Cellphone Driving Bans Spur Bluetooth Sales

By Nancy Klosek

The growing state bans on cellphone use while driving might be a pain for some motorists, but it is sure to be a boon for many retailers selling Bluetooth accessories.

Industry executives say that as states mandate hands-free cell use, more drivers will be seeking alternatives, such as Bluetooth-enabled accessories. Consumer awareness has been heightened in trend-setting states like New York, which bars hand-held phone use while driving, and California, whose law takes effect July 1.

To help convince those and other drivers that Bluetooth is the way to go, manufacturers continue to simplify the operation and setup of the devices.

Cellphone manufacturers are also promoting Bluetooth functionality, enhanced sound quality and battery life of their devices. Meanwhile, industry leaders are lauding the Bluetooth Special Interest Group (SIG) for its efforts to improve education and functionality of the devices.

“The Bluetooth SIG has done an admirable job of improving the technology so that it can transfer more data, faster, making it more useful,” said David Wenning, senior vice president for Parrot, adding that 75 percent of new phones sold in Q4 included Bluetooth. “This has allowed accessory makers to use the technology in millions of devices, and the cellphone makers to incorporate Bluetooth in more and more phones.”

The good news for retailers is that the mobile Bluetooth market is still developing, providing plenty of opportunities for new sales, industry leaders said.

“People are getting more aware of the benefits, but it’s not moving as fast as in Europe and Asia, where stereo Bluetooth phones account for more than 80 percent of what is sold there.” said Howard Kim, marketing manager for iLuv, noting that many of the new features added to Bluetooth-enabled devices create more complexity than consumer benefits. “With those types of devices, it’s a little harder to educate the consumer. But we work on packaging all the time and provide our retailers detailed and graphics-enhanced P.O.P. materials to better explain benefits of products like our new iLuv i730.”

iLuv i730 is a hands-free car kit for the iPod that affixes to a windshield and features a multi-docking system and FM transmitter for listening to iPods and iPhones through car speakers. It also recharges the source device.

To smooth the bumps in the Bluetooth pairing process, BlueAnt offers a toll-free support center to help users with instructions, said Suzanne Harrison, BlueAnt’s marketing manager. The BlueAnt site also provides online product simulations for devices like the new Supertooth Light visor-mounted hands-free speakerphone and the V1 voice-controlled Bluetooth headset. “It’s people’s perception that Bluetooth is complicated, but that’s just a lack of education,” she said, pointing to a Bluetooth SIG micro site initiative designed to explain Bluetooth’s benefits and features in simple terms. “The goal is to get the site into retail stores and accessed there.”

Although awareness of Bluetooth is growing in states cracking down on hands-on cellphone use in cars, industry executives said there is still much confusion around compliance and user options.

“We’re working to reduce that confusion by educating consumers in-store and online,” Wenning said, adding that the company’s parrotsafedriving.com site includes an overview of hands-free laws in the U.S. and Canada. “In addition, we are working with all of our customers to provide them with current information on the laws, and information that will help them help their customers make a wise decision. While an earbud does technically comply with the law, we don’t believe it is an adequate solution because of comfort and audio quality issues - which means drivers will stop using them are a short period of time - so we’re promoting our portable and installed line as much better options.” The future for in-car Bluetooth technology is a bright one, said Wenning, spurred by new technologies such as Near Field Communication. It will “greatly reduce the complexity of pairing devices,” Wenning said. “NFC is a touch-and-pair technology; just touch your phone to the car kit and it pairs automatically, eliminating all the manual steps involved.”

Other technologies that will influence hands-free product development include streaming video. “This will allow a small, wireless camera to be mounted in the taillight or on the back bumper of a vehicle and provide a clear view of what is happening at the rear,” Wenning said. “This should greatly enhance safety in driveways and parking lots.”