Handsets in hindsight

As the number of handsets sold in the U.S. has grown over the past decade, the average cost of those devices has dropped. That fact should come as no surprise — it's just basic economics. What is surprising is just how drastic that drop has been. According to data from the Telecommunications Industry Association, the average price of a handset has fallen $665, or 83%, since 1987, when wireless phones began to eke into the consumer market.

Still, the industry has managed to keep ahead. Phone sales have grown by a factor of 12 over that same period, while overall revenues from handset sales have doubled. The industry may be about to enjoy the best of both worlds, however. According to TIA, the average price of a handset is going to start rising in 2005 with the advent of advanced data networks. At the same time, overall sales are expected to continue to climb.