Telephia, a provider of performance measurement information to the mobile industry, reports Wal-Mart and RadioShack posted strong market share for wireless retail. Among recent wireless purchasers who bought their phone within the last 6 months at a major U.S. retailer, such as big box and consumer electronics stores, 32 percent bought their handset at Wal-Mart (see Table 1), as compared to 15 percent two years ago in Q3 2003, more than doubling in share. Twenty-eight percent bought their phone at RadioShack, as the top two major retailers comprised 60 percent of the total market share, according to Telephia’s U.S. Device Report from Q3 2005. Twelve percent of recent mobile device buyers made a purchase at Best Buy, while Target and Circuit City rounded out the top five, claiming eight and seven percent, respectively.

“With the holiday shopping season swinging into full gear, consumer electronics, such as cell phones and other mobile devices, are predicted to be hot sellers once again,” said Kanishka Agarwal, Vice President of New Products, Telephia. “The major retailers, such as the big box and consumer electronics stores, are the first stop for many shoppers.”

Table 1: Top Five Major Retailer Share of Wireless Consumers Who Made
a New Handset Purchase During the Past Six Months (U.S.)
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Major Retailer Recent Mobile Device Purchase Share (%)
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1. Wal-Mart 32%
2. RadioShack 28%
3. Best Buy 12%
4. Target 8%
5. Circuit City 7%
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Source: Telephia U.S. Device Report, Q3 2005

Note: Respondents for table 1 data were asked: Where did you purchase
your current wireless telephone/handset?

Overall, service provider retail stores still attract the highest proportion (47 percent) of mobile phone buyers who made a device purchase in the last six months. Both major retailers and service provider websites posted the second highest share, at 11 percent each.

Strong Pre-Paid Wireless Market at Major Retailers

Telephia data shows that major big box and consumer electronic retailers generate a high rate of pre-paid cell phone purchases. Among recent wireless device purchasers who subscribed to a pre-paid plan, 40 percent bought the plan from a major retailer (see Table 2). Service provider retail stores secured a 20 percent share of recent device purchases on prepaid plans, while the web storefronts of service providers posted a 12 percent share.

“Major retailers are capitalizing on a growing consumer audience who want to purchase cell phones without having to get a credit approval or locking themselves into long-term contracts,” added Agarwal. “This group of consumers has been underserved in the past. The presence of big box and consumer electronic stores in locations serving a broader audience has helped maximize the opportunity to reach this section of the mobile population.”

Table 2: Retail Channel Share of Pre-paid Plan Purchaser (U.S.)
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Share of Recent Device Purchasers
Location on Prepaid Plans
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Major Retail Store 40%
Service Provider Retail Store 20%
Service Provider Online Store 12%
Other 9%
Non-Service Provider Online Store 7%
Local Independent Telecom Store 4%
Grocery Store or Convenience Store 3%
Kiosk in a Mall/Department Store 3%
Outbound Phone Call 2%
Telemarketing/Incoming Phone Call 1%
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Source: Telephia U.S. Device Report, Q3 2005

Note: Respondents for table 2 data were asked: Do you subscribe to one
of these “pre-paid” or “pay-as-you-go” plans?

The Telephia U.S. Device Report is based on a survey of more than 79K respondents each quarter, with historical data trending since Q3 2003. The report tracks key industry performance metrics such as brand and device market share, brand consideration and retention, consumer satisfaction, retail dynamics, subscriber acquisition, user profiles, feature usage and preferences.