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NPD Group: 1/3 of All Smartphones Sold are Now Prepaid
by Karl Bode 08:24AM Tuesday Jul 23 2013
If you hadn't noticed, prepaid wireless is exploding. Prepaid customers have been growing 15% year over year (compared to 1% for postpaid), and now account for more than 30% of all wireless consumers. According to recent data from the NPD Group, year over year smartphone sales doubled last quarter, and prepaid smartphone sales accounted for nearly 30% of all smartphones sold during the period. "The easy purchase cycle and grab-and-go nature of the product play into the strength of large-format stores," said the group in a statement. "Certainly, companies like AT&T recognize this shift in purchasing as they ramp up their focus on prepaid phones with their recently announced ‘Aio’ product branding initiative."

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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
Reviews:
·CenturyLink

Good!

Now let see what happens when the Wireless can't lock you into a multi year contract and you are free to move your service from month to month. What we really need is cut throat competition and if no one is locked into a contract, as in the EU model, perhaps things will start to change. No wait, good buddy law makers, making good buddy laws, cut throat law suits, Feudal fiefdom like coverage areas, wars against muni's etc, etc maybe not
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption
elefante72

join:2010-12-03
East Amherst, NY

Re: Good!

That's not entirely true. In the MVNO space today there is lots of choice and price formats. The issue is that the largest MVNO American Movil (Tracfone) also happens to be one of the worst managed ones, in addition to their offerings are chaotic and throttle and cut off for unknown reasons. Sort of fear factor.

AT&T however is cutting in line w/ AIO and GoPhone --and soon Cricket-- which are two impressive offerings because they allow real LTE. Verizon is barely allowing circa 2005 phones on their network and it's strictly 3G--EvDO. So Verizon MNVO requires gyrations to flash radios ($$$) to get 3G access on LTE phones. Sprint prepaid brands allow LTE too--thankfully because their 3G network is under water and dead. They need to take that old dog out behind the shed and shoot it. TMO is now playing the same games and is marginally cheaper because their coverage is the worst of all major carriers. Once they upgrade prices will go up.

The problem w/ AT&T plans is that they are NOT cheap. $60 for 2GB is not a deal. If you can get a corporate discount and a phone subsidy (for now) the price can get pretty close to that $60 mark OR LESS. I know people on family plans paying in the $50's with a phone subsidy on AT&T. Verizon on the other hand, no. They are just plain expensive all around unless you have corporate.

The biggest issue is getting a GOOD smartphone (other than iphone for $700) that you dont need to buy off ebay and hope it supports the frequencies that are being refarmed all over the place. The biggest problem here is people DONT go to dealers who can navigate all this stuff. It's definitely not for the average joe.

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
Reviews:
·CenturyLink

3 edits

Re: Good!

said by elefante72:

The biggest issue is getting a GOOD smartphone (other than iphone for $700) that you dont need to buy off ebay and hope it supports the frequencies that are being refarmed all over the place. The biggest problem here is people DONT go to dealers who can navigate all this stuff. It's definitely not for the average joe.

Check this out: »www.chinavasion.com/china/wholes···a_Black/

Three of My friends have this phone and I am very impressed with it especially when you know it costs $300 dollars. it does 2G GSM, and 3G WCDMA. No they don't have 4G/LTE phones but when you can get a good smartphone for a cheap as $149 dollars....... One of these friends happens to have a Verizon MiFi card with 4G he used it to tether this phone via wifi it worked great>
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption
slyphoxj

join:2002-06-23
Brook Park, OH
Reviews:
·ObiVoice
·WOW Internet and..
·magicjack.com
·Callcentric
said by elefante72:

That's not entirely true. In the MVNO space today there is lots of choice and price formats. The issue is that the largest MVNO American Movil (Tracfone) also happens to be one of the worst managed ones, in addition to their offerings are chaotic and throttle and cut off for unknown reasons. Sort of fear factor.

... and America Movil may be about to ruin Page Plus, one of the betters MVNO's \-:. The beauty with Page Plus is that I can have a Verzion (albeit 3G only) smartphone without having to fork over for a data plan. I pay $12/month for 250 minutes and 250 texts.

But my Droid X is starting to get pretty slow though after about a year... maybe a custom ROM would help?
cablemanf250

join:2013-07-15

Search for the best Deal

I have to admit in my area ATT is the better service over Verizon & Sprint, but they both have good reception service, My wife was with Sprint, 6 years, and wanted a smart phone, after almost $50 a month for a standard line & texting, we went with Boost Mobile (yes Sprint Network) with shrinkage, $55 - $45 for everything, best deal and the network is pretty good, no issue's.

Eddy120876

join:2009-02-16
Bronx, NY

1 recommendation

in 5 more years

That number will surpass the contract world. T-mobile was smart enough to take the lead here in the states. Now lets see what they try to do next. I do agree with need great phone under 400 dollars since we all know even with a case your phone might not survive it all. I have an Iphone on Straight talk great voice and text data is a bit slow I just wish most MVNO could rival the big telcos when it comes to speed.

88615298
Premium
join:2004-07-28
West Tenness

Re: in 5 more years

said by Eddy120876:

That number will surpass the contract world. T-mobile was smart enough to take the lead here in the states. Now lets see what they try to do next.

Let's see T-mobile gets rid of contracts and makes you pay full price and this is labeled as good thing and T-mobile is praised. If you can't afford full price you can pay $150 down and pay $20 a month for 24 months. Verizon announces VZ EDGE in which you can have no contract service but you pay full price but you can pay it off over 24 months. But unlike t-mobile you don't need a huge down-payment. And it's labeled a rip-off. Interesting.

I have an Iphone on Straight talk great voice and text data is a bit slow I just wish most MVNO could rival the big telcos when it comes to speed.

You do realize where MVNOs gets their network access from don't you? MVNOs will not get 4G access anytime soon.

Eddy120876

join:2009-02-16
Bronx, NY

Re: in 5 more years

Um BF i said T-mobile was smart enough to take the lead. I didn't said they won or are the top dogs. Also T-mobile you do own the phone once you pay it. I believe the same is with VZ the only difference is that once you are done you can take your T-mob phone to any GSM carrier without having to do anything special something you can't do with VZ phones since you know their CDMA signals are not the same across the board.

Also I know about the MVNO not having 4G yet but I do wish they could rival the big ones even if they are part of some of then.

88615298
Premium
join:2004-07-28
West Tenness

Yes pre-paid customers

enjoy your super low end smartphones with blazing 3G speeds and limited coverage areas.

WTB100MB

join:2007-08-16
Dallas, TX

Re: Yes pre-paid customers

BF68, you sound like a shill for either AT&T or Verizon...

I am quite happy on my shiny new 4G/LTE Advanced connection with T-Mobile, despite the fact that they only offer no contract prepaid service.

I had spent over 10 years with Verizon, and I had a grandfathered Unlimited data plan. In order to keep that plan however, I would have had to pay full price (just like I did with T-Mobile, except that T-Mobile essentially let me finance the phone at no interest). But wait, there is more... had I stayed with Verizon, I would have to pay a much higher monthly fee (plus their below the line hidden fees and taxes) in order to "subsidize" my new phone... the phone I am PROHIBITED from buying because I am on a grandfathered unlimited plan.

Why pay more money for service on a phone that I would not have received anyway?

I have the latest LTE Samsung Galaxy 4S, but T-Mo also offers an iPhone 5, Samsung Galaxy Note2, HTC One, Sony Xperia, Google Nexus 4... none of which are "3G" devices, despite your specious argument to the contrary.

I have better coverage in Dallas with LTE Advanced than I did over the past several years with Verizon (who needs to wake up and smell the competition).

Oh, and I also have a faster wireless connection over T-Mobile, than I do with the paltry ooffering at home, a wired u-verse connectio (bear in mind that u-verse' entire bandwidth is a 26 Mbps VDSL2 connection):

Test Date: Jul 23, 2013 4:02:20 pm
Connection Type: Lte
Server: Austin, TX
Download: 24.00 Mbps
Upload: 10.63 Mbps
Ping: 33 ms

External IP: 208.54.83.213
Internal IP: 100.152.189.66
Latitude: 29.76330
Longitude: -95.36330

A detailed image for this result can be found here:

»www.speedtest.net/android/524176844.png

I work with a bunch of guys who all have Verizon cell phones, and they routinely ask people to csll them on their land line, or have to step outside to get a better Verizon signal, while I am getting the call quality and 20+ Mbps download as shown above.

I don't work for T-Mobile, nor am I associated with them in any way.

Metron

88615298
Premium
join:2004-07-28
West Tenness

Re: Yes pre-paid customers

said by WTB100MB:

I am quite happy on my shiny new 4G/LTE Advanced connection with T-Mobile, despite the fact that they only offer no contract prepaid service.

You're right t-mobile is better. let me know when t-mobile brings LTE to my area. Hell let me know when T-mobile bring ANY service within 50 miles of me. Until then T-Mobile can shut it. Any carrier that DELIBERATELY ignores 35% of the US doesn't deserve respect.

I had spent over 10 years with Verizon, and I had a grandfathered Unlimited data plan. In order to keep that plan however, I would have had to pay full price (just like I did with T-Mobile, except that T-Mobile essentially let me finance the phone at no interest). But wait, there is more... had I stayed with Verizon, I would have to pay a much higher monthly fee (plus their below the line hidden fees and taxes) in order to "subsidize" my new phone... the phone I am PROHIBITED from buying because I am on a grandfathered unlimited plan.

Oh but what Verizon has better coverage. That has value. Verizon will work 95% of anywhere I go. Come visit to my area and try using that unlimited T-mobile data and enjoy the 2G roaming which by the way is NOT unlimited. Read the terms of T-mobile.

I have the latest LTE Samsung Galaxy 4S, but T-Mo also offers an iPhone 5, Samsung Galaxy Note2, HTC One, Sony Xperia, Google Nexus 4... none of which are "3G" devices, despite your specious argument to the contrary.

Good for you. I guess you didn't read my post since I was CLEARLY referring to pre-paid MVNOs like Straight Talk. So who cares what phones T-mobile has? It wasn't even germane to my post.

I have better coverage in Dallas with LTE Advanced than I did over the past several years with Verizon (who needs to wake up and smell the competition).

Competition? When T-mobile cedes 35% of the US to at&t and Verizon I don't call that competition. When Verizon and at&t can each have 15% marketshare without even trying simply by T-Mobile and Sprint ignoring large parts of the country those 2 will ALWAYS be on top.