Fewer U.S. Cell Phones Purchased Due To Broader Cell Phones Plan

New York, NY (AHN) - Fewer pre-paid and basic cell phones are being sold in the U.S. as a widening adoption of post-paid cellular plans and high-end mobile phones reshape the market, studies said.

Both market analysts Strategy Analytics and NPD Group show a falling number of new U.S. cell phones being purchased. Strategy Analytics reports five percent less phones were purchased this quarter compared to the same period a year ago. NPD Group points to a 22 percent fall-off in quarterly sales.

Driving the changes is a double-barreled case of a slowing economy and a maturing U.S. wireless market. With more than eight in 10 Americans owning a cell phone, demand is dropping. Bernstein Research found a 23 percent drop in new U.S. cellular subscribers.

Pre-paid cell phones, once a thriving market is showing some slowdown as more families opt for plans that include their children, frequent customers of the prepaid mobile phone.

Also, as carriers jockey to entice cell phone subscribers to their service, companies are offering more and more features, a segment that has grown to 17 percent from 10 percent in 2007.

Feeling the pinch is Motorola, which has seen much of its U.S. sales lost to Samsung or LG.