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Parks Associates: iPhone users have a higher lifetime value than Android phone users

New research addresses current trends, consumer adoption, and revenue models in smartphone market

Dallas, Texas, May 6, 2014 - Parks Associates today announced mobile research showing 25% of U.S. smartphone users have a lifetime value to a mobile carrier of $5,000 or more. While the lifetime value of smartphone users varies significantly, Apple iPhone users in general have a higher value than Android users-roughly one-third of iPhone users have a lifetime value of $5,000 or more versus just 22% of Android phone users.

Parks Associates calculates the lifetime value of a mobile data subscriber by multiplying the length of time a subscriber has used a smartphone with his or her current provider by the monthly expenditure on mobile phone services.

"Parks Associates' 2014 survey of U.S. broadband households reveals more households now have a smartphone than a desktop PC," said Tejas Mehta, research analyst, Parks Associates. "Mobile is quickly replacing the PC as the preferred means of connecting to the Internet, and the smartphone is the key device driving this change. Now, with smartphone saturation in the United States and other mature markets worldwide, leading smartphone manufacturers are locked in a race to offer the most appealing features, while mobile carriers are working to ensure retention of their most valuable subscribers."

Mobile data services have boosted overall ARPU figures over the past three years. Parks Associates reports mobile phone service is the most expensive home service in the U.S. At the end of 2013, households with unbundled mobile services spent over $100 per month on average. Among smartphone users, 22% have bundled mobile services, while 62% spend over $50 per month with unbundled mobile services.

"High-value subscribers are long-time smartphone users and generally unlikely to switch providers; however, desire for a new phone is the main driver for mobile subscribers who are likely to switch providers in the next 12 months," Mehta said. "These and other market forces are driving changes in the U.S. smartphone market. Mobile carriers are replacing the traditional device-subsidy model with installment plans and early upgrade programs in a bid to shorten the upgrade cycle. At the same time, leading smartphone manufacturers are locked in a race to offer the most appealing features in their latest models."

Parks Associates' industry report Smartphone: King of Convergence (Third Edition) analyzes current trends, consumer adoption, and revenue models in the smartphone market. The report examines opportunities for carriers, app developers, content distributors, and other service providers to forge new connections to consumers and build new avenues to increase revenues. It includes analysis of new phone features and functions designed to create a competitive edge.
In addition, Parks Associates' Lifetime Value of Mobile Subscribers presents consumer research on mobile consumers, analyzes the key differences between those with a high and low lifetime values, and analyzes the role of high-value subscribers in subscriber churn and acquisition. It is based on multiple consumer surveys, including a 4Q 2013 survey of 2,500 U.S. broadband households.

The smartphone research is available for purchase at For more information, contact, 972-490-1113.

About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA)®, CONNECTIONS™ Europe, and Smart Energy Summit. | | |

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