Despite a decline in consumer electronics this season, the smartphone market remains in excellent health. A report from Flurry Analytics indicated a growth in smartphone sales of 21% week-over-week with nearly 275,000 units sold as well as a 57% week-over-week increase for Black Friday with just short of 370,000 units sold. Cyber Monday sales were even better, exceeding Black Friday by 31% according to IBM Coremetrics. The tech behemoth’s aren’t the only ones benefitting from the high sales; however. These numbers bode well for tech behemoth’s like Apple, Google and Samsung and accessories and application makers both. Tech trinkets don’t come cheap and for every iPhone or iPad sold, a cover of portable keypad is likely to be purchased either with it or in the aftermath of the first scratch meaning investors looking to get a piece of the smartphone pie have a new avenue to pursue.
ZAGG (Nasdaq:ZAGG), which designs, manufactures and distributes protective coverings audio accessories and power solutions for consumer electronic and hand-held devices, is among the public companies reaping the benefitting from the staggering rise in smartphone sales. For the third quarter that ended September 30, 2010 ZAGG posted revenue of $23.1 million, a 137% increase over the same period last year and a 53% increase from the prior quarter.
The positive impact of the new mobile device introductions and high sales can be expected to continue through the holiday season as sales of smartphones surge to their highest levels.
When ZAGG first began it was a small company traded on the Pink Sheets but the rate of Smartphone adoption has been such that the company is now traded on NASDAQ and has been steadily making gains for some time. Its products, sold under the brand names invisibleSHIELD, ZAGGaudio and ZAGGaudio have been awarded shelf space at many top retailers alongside smartphones, attracting the attention of conscientious buyers.
Aligning themselves with smartphones and more recently tablet computer’s like Apple’s wildly popular iPad has been a highly successful endeavor for the company, prompting ZAGG to expand their product list to include the ZAGGmate a mobile keyboard for the iPad that debuted at Best Buy on Black Friday. ZAGG's tangential approach to the smartphone and tablet market is one that could be potentially mimicked by investor's trying to turn a profit from smartphones without directly investing in the companies that create them.
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