Diffusion of mobile handset features: Analysis of turning points and stages

Mobile handsets have evolved into advanced devices with a rich variety of hardware and software features enabling the use of variety of applications, networks, and services. Consequently, mobile handset features constitute an important part of the global communications infrastructure. Modelling the diffusion of mobile handsets as a product category is becoming less relevant as the market is approaching saturation especially in the developed countries. Simultaneously, the diffusion of mobile handset features is increasingly important and of interest to many stakeholders. This article analyzes and compares the diffusion patterns of mobile handset features, using a longitudinal annual dataset of the penetrations of 15 different features in Finland between 2005 and 2010. Two major turning points – the takeoff and the inflection point – as well as the durations of the diffusion stages between these points are determined. The results show large variations between different features, highlighting the significance of the introduction stage in the diffusion process. The results are useful for regulators and companies in understanding the pace of change taking place in the communications infrastructure.