Smartphones Gather Steam as Prices Plunge

According to NPD Group, smartphones accounted for nearly a fifth of total phone sales this year, doubling their share of sales from only a year ago.

Smartphones aren’t just for suits anymore. According to the NPD Group, the popularity of formerly exclusive multitasking phones like BlackBerrys has picked up significantly in the last year, with smartphones now accounting for 19 percent of total mobile phone sales.

By contrast, smartphones represented just 9 percent in the same measurement period (January through July) of last year.  Why the sudden shift? According to NPD’s director of industry analysis, Ross Rubin, declining prices, streamlined form factors, and consumer Internet connectivity all played a role. The average price of a smartphone dropped from $199 to $185 in the year between measurements, reflecting a shift toward affordability, even as features continued to improve.

As for which manufacturers are managing to cash in on the trend, BlackBerry maker RIM still holds its position as the number one manufacturer of smartphones, but Apple’s July release of a 3G iPhone managed to push it up to the number two position this year. Both manufacturers are trailed by Palm, Samsung, and Motorola.