The NPD Group: Nearly Half of Mobile Phone Users Eschew Multimedia Features and Use Handsets Solely to Make Calls

Verizon Wireless customers are the least likely to embrace their phone as an all-in-one multimedia device  

PORT WASHINGTON, NEW YORK, January 6, 2009 -- According to a new report by The NPD Group, a leading market research company, 45 percent of U.S. mobile phone users prefer to use their mobile phones to make calls, and not for other available multimedia features. Only 20 percent of mobile phone users prefer to use their phones as an all-in-one multimedia device for music, videos, Web surfing, and other activities beyond making phone calls.

NPD's "Mobile Phone Usage Report" also reveals that among top wireless carriers, Verizon Wireless customers are least likely to embrace their phone as an all-in-one multimedia device.

While most U.S. consumers are aware of text messaging and the ability to change ringtones, the "Mobile Phone Usage Report" revealed that just 34 percent of mobile phone users know that their current phone's memory can be expanded, 28 percent know that they can watch videos, and 12 percent know they can access the Internet via Wi-Fi.  Nearly a quarter (23 percent) were not sure if their phone included GPS, while a similar number (21
percent)
were not sure if their handsets would play music.

The adoption of advanced handset features shows a gap between the usage of these features and the increasing sell through of devices supporting these features. According to NPD's monthly Mobile Phone Track service from January through November 2008, 71 percent of all handsets purchased by consumers in the U.S. were capable of playing video, 60 percent had expandable memory, and 55 percent had GPS technology.

"Increasingly consumers are purchasing phones with advanced capabilities that go far beyond voice calling, but only those who take advantage of these

features offer the best revenue potential for carriers," said Ross Rubin, director of industry analysis for NPD. "Carriers and other handset retailers

have an opportunity to educate customers as to the capabilities of their handsets in the wake of slower overall handset sales."

Methodology: Information in the "Mobile Phone Usage Report" is based on an NPD online survey of pre-identified U.S. mobile phone owners aged 13 and older, which was fielded in August 2008. NPD Group's Mobile Phone Track information service compiles and analyzes mobile device sales data based on more than 150,000 completed online consumer research surveys each month.
Results are projected to represent the entire population of U.S. consumers.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer

and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions.
Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/.

Contact:
Lee Graham
The NPD Group
(212) 333-4983
lee@leegraham.biz