|Page (1) of 1 - 07/12/12||email article||print page|
Cell Phone Repair in the US Industry Market Research Report Now Available from IBISWorld(July 12, 2012)
Los Angeles, CA (PRWEB) July 12, 2012
The Cell Phone Repair industry experienced strong growth over the past five years. Industry revenue is expected to rise at an average annual rate of 10.9%, with 13.7% growth anticipated from 2011 to 2012, to total $1.1 billion. Much of this growth has been on the back of the growth in the popularity of repair-prone smartphones. Moving forward, however, the increasing affordability of cell phones is encouraging more consumers to purchase new cell phones rather than repairing their existing ones. According to IBISWorld industry analyst Nima Samadi, internet enabled smartphones are more expensive than basic feature phones and are therefore more likely to be repaired instead of replaced. Smartphones also have fragile LCD (liquid crystal display) screens and touchscreens, inaccessible batteries (with the iPhone being one of the most notorious offenders) and other breakable parts that make them more likely to need repair. Smartphones currently represent more than two thirds of all mobile phone sales and half of all mobile phone users. The rapid market acceptance of smartphones has created a need for more cell phone repair shops to keep up with this growing market. Over the five years to 2012, the number of cell phone repair shops has grown at an average rate of 6.8% per year to 2,455.
Over the five years to 2017, industry revenue is forecast to grow 4.9% per year to $1.5 billion. The industry is expected to grow at a slower rate than the previous five years due to rapid technology growth, the falling price of cell phones, and rising disposable incomes all encouraging replacement demand versus repairs. The emergence of 4G wireless technology (and an increasing number of 4G-enabled devices being released) should encourage a more rapid transition to 4G devices, which will discourage customers from repairing older 3G devices (and instead purchase a new 4G-capable device). Falling prices have also supported demand for new cell phones and smartphones, providing stronger incentives for consumers to replace their existing cell phones as opposed to repairing them, says Samadi. In addition, expected disposable income growth and a rise in consumer sentiment over the next five years will encourage more consumers to simply replace their broken cell phones instead of repairing them.
The Cell Phone Repair industry is highly fragmented and small operators dominate the industry. The top four players are estimated to account for less than 5.0% of industry revenue in 2012, indicating a low industry concentration. There are a large number of small firms in the industry specializing in cell phone repair services that operate independently and are targeted to serve a small geographic region. Industry concentration has remained relatively stable in the past five years as cell phone repair services are generally owned by small, independent operators. In the past five years, the number of industry establishments has increased an annualized 6.8% to 2,455 in 2012. The high growth in the number of establishments is due to an increased demand for cell phone repair service. For more information, visit IBISWorlds Cell Phone Repair in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry repairs and maintains cell phones. Some firms may also repair tablets such as iPads or other electronic devices as a secondary business. Industry firms include brick-and-mortar stores, which allow customers to bring their cell phones to their stores for repair. Some stores also allow customers to mail in devices that need repairs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Read the full story at http://www.prweb.com/releases/2012/7/prweb9692973.htm.
Related Keywords:internet,computing and information technology,satellite technology,wireless technology,science and technology,technology (general),identification technology,agricultural research and technology,lifestyle and leisure,lifestyle (house and home),economy, business and finance,financial and business service,business enterprises,business (general),economy, business and finance,economy (general),computing and information technology,satellite technology,wireless technology,science and technology,technology (general),electronics,identification technology,agricultural research and technology