By Andy Patrizio
LOS ANGELES -- The U.S. mobile phone market is very different from the rest of the world, from the networks to the hardware to our approach to mobile phones. The result? A slower adoption of smart phones than other parts of the world.
That's one of the main take-aways from several panel discussions at the Smart Phone Summit, taking place in a city notorious for distracted drivers on their cell phones. The Summit precedes the annual CTIA wireless conference here, which starts Tuesday.
According to The NPD Group, smart phones only make up around two percent of total wireless device sales in the U.S.. A smart phone is defined as a telephone with an operating system, applications and, if not a full keyboard, then one with the ability to input more than 12 digits.
Part of the problem, according to Avi Greengart, principal analyst, mobile devices for the market research firm Current Analysis, is vendor lock-in and the lack of portability between phones.
America has three different wireless networks: GSM (define), used by T-Mobile and Cingular; CDMA (define), used by Verizon (Quote, Chart) and Sprint (Quote, Chart); and IDEM, used by Nextel. Also, carriers in the U.S. lock the consumer to the phone much more rigidly than in other parts of the world by locking the SIM card.
This makes it nearly impossible to easily switch carriers and very difficult to switch phones. Europe and Asia, others at the summit pointed out, have a much stronger trend toward upgrading and replacing their phones.
"In America, the operator is the hardware vendor. In Europe, they have these cell phone warehouses where you can buy all kinds of different devices," said David Brown, senior VP of advanced wireless services for Brightpoint North America, a wireless service and product provider.
It's an unusual contradiction. The U.S. has a much higher rate of upgrading and replacing computers than in Europe, but in Europe, they upgrade and replace their phones faster than in the United States. Greengart said it's no surprise.
"The U.S. has a broadband, PC-centric culture," he explained. "Most Americans got their first online experience on a PC experience, while in Europe, most people got their first online experience through a cell phone."
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