The convenience of communication on the go led millions of American consumers to adopt mobile phones, and as these devices have gained power and features they are playing an increasingly important role in people’s lives. Cellphone ownership has now reached 92% in the U.S. according to Experian Simmons data, a large number of consumers are adopting multipurpose smartphones and a growing number are relying heavily on phones as their primary way to make calls and even connect to the web.

These trends have helped fuel continued growth in the $39.5 billion mobile phone industry. The industry is extremely competitive, with a number of well-funded global players fighting for dominance. Maintaining a leading position is further challenged by the rapid upgrade cycle seen in the U.S.—where consumers have grown accustomed to swapping out phones quite quickly thanks to carrier subsidies—as well as a complex ecosystem where manufacturers must partner with carriers, software platform companies and even app developers to create successful offerings.

Popular characters can be very effective at driving sales for a variety of products. For example, according to Nickelodeon, Dora the Explorer has generated more than $11 billion in worldwide sales since 2002. The exceptional effectiveness of character merchandising—especially when related to advertising directed at children—has also led to a great deal of oversight from the federal government. Research has shown that children respond more favorably to products with packaging that includes cartoon characters. The effect is so strong that children even rate foods with cartoon character packaging as tasting better than other foods.

Despite the popularity of character merchandising, overall sales have declined in recent years. The decrease is partially due to the continuing weak economy, and that many parents have adopted more frugal shopping habits in an effort to reduce discretionary spending. Thus, while character merchandising can be quite effective, it is also important to examine consumer attitudes and behavior, as well as industry trends and innovations, to ensure that such efforts are successful.

This report discusses both smartphones and standard phones that are used primarily for portable communication through both voice and data. It builds on Mintel’s Mobile Phones—U.S., June 2010.

While cell phone services and service providers are closely linked with the mobile phone market and are discussed where applicable, wireless subscription revenues and application/content download sales are not included in market size and segmentation data, nor are peripherals or accessories.

This report explores the wireless information and entertainment platforms inside vehicles. It provides insight into the external and internal factors affecting their development and what they mean for future sales, promotional campaigns and industry innovations. Specific questions that are answered in this report include, but are not limited to, the following:

As of December 2009, 91% of American consumers own a cellphone. Despite the evident maturity of the mobile phone industry, the market has avoided the traditional consolidation and commoditization seen in many other tech products. Indeed, as phones become more and more powerful, they are taking a larger role in peoples’ lives and going far beyond voice, or even online communication.

Thanks to “all you can eat” service plans and new smartphone platforms that support a broad range of applications, consumers can use their phones for entertainment, information, news, shopping and more, making the cellphone sector a critical one for companies in virtually all industries to understand and explore.