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Capital among hottest markets for Bluetooth headsets

By Darrell Smith - dvsmith@sacbee.com

Published 3:46 pm PDT Thursday, July 24, 2008
Story appeared in BUSINESS section, Page D4

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Sacramento was one of the nation's hottest markets for Bluetooth headsets as consumers scooped up the devices at nearly four times the national average in May in the rush to comply with state law requiring hands-free cellular phones by July 1.

Sacramento, Los Angeles, San Francisco and San Diego were the top four metro markets for the headsets in the country based on units per store, New York-based market researcher the NPD Group said Wednesday. The firm tracks sales and monitors changes in market areas for manufacturers and retailers.

Bluetooth is a technology that wirelessly transmits voice and data over a short range. Though non-Bluetooth wired headphones and speaker phones also pass legal muster, many motorists reached for Bluetooth-enabled headsets in the run-up to July 1 and the new law.

"It's not very often that legislation affects the number of sales on a local level," said Ross Rubin, NPD's director of industry analysis.

But Atlanta-based wireless technology analyst Jeff Kagan was not surprised.

The combination of legislation, a looming deadline and Californians' love of technology was bound to be lucrative for retailers.

"(California is) there when it comes to adopting technology, but all of the sudden, the law changes and everyone wants a solution," Kagan said. "The best marketing campaign is a change in the law."

The promise of fines and strict enforcement likely also contributed to the rush. California Highway Patrol officers vowed to extend no grace period to motorists and blitzed the state with a monthslong campaign to spread the word.

Fines for first offenders are $20 and $50 for subsequent offenses, but with state penalties and processing fees, tickets increase to $76 and $190, respectively.

As of Wednesday, 4,738 motorists had been cited statewide by CHP officers for cell phone violations, said spokeswoman Jaime Coffee.

Shirley Helfand of Sacramento had no plans to be among them. She was eager to show off the Bluetooth she bought in June. The volunteer at North Franklin District Business Association went to her car, returned to the office with her mobile phone and Motorola T305 portable car kit, calling husband Stuart to demonstrate the device.

"We're both synched up to it," she said.

Local retailers said sales were still strong weeks after the law went into effect.

Russ Enyart, who owns three Sacramento-area Wireless Toyz outlets, said sales haven't slowed down since July 1. At his stores, hot sellers include the Jawbone and Plantronics 645 headsets.

"Best sales ever. This month is better than last month," he wrote in a text message. Others, he said, are still waiting. "People are just putting off the purchase," he said.

Meanwhile, at AT&T stores in Northern California, sales were up 50 percent at the end of June over May as the July 1 deadline approached, said spokeswoman Gina Pernetti. Though post-law data wasn't available, Pernetti said headset sales were still brisk, paced by Jawbone and Motorola H12 devices.

"We're still seeing an in- crease" in sales, Pernetti said. "People are realizing that it's not just about safety. It's the law."

About the writer:

  • Call The Bee's Darrell Smith, (916) 321-1040.
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