Mobile phone accessories to generate more revenue than the smartphones in 2007

The market for mobile phone accessories is booming. According to ABI Research, it will generate over $32 billion in revenues this year, $4 billion more than what is expected from the smartphone market. Around 77% of these revenues will come from the sales of “after-market” mobile phone accessories and the remaining from “in-box” accessories shipments. Furthermore, ABI Research expects this market to grow steadily and generate over $80 billion in revenues in 2012.

Handset vendors now recognize that to increase sales of their high-end mobile phones, they need to provide accessories that allow users to fully enjoy and benefit from the features provided in those handsets. Nokia (NYSE: NOK) is addressing the handset accessory market with a distinctive approach of “Mobile Enhancement” products while Motorola (NYSE: MOT) is placing special emphasis on the growing “Personalization” and “Self-Expression” trends.