US Consumers May Prefer Unsubsidized Smartphone Handsets
Published on: 18th Jun 2014
Over two thirds of U.S. mobile phone subscribers prefer data plans that cover only smartphones, while one third prefer plans that would extend to multiple devices, such as tablets and laptops.
Furthermore, over two-thirds of U.S. mobile phone subscribers prefer to purchase a smartphone at full price if it eliminates the contract and lowers their monthly fee. Lower-income households are especially likely to prefer unsubsidized handsets, according to data from Parks Associates, which reflects wider use of prepaid services among this demographic.
"T-Mobile in particular has tapped into the strong consumer desire for unsubsidized handsets, prompting Verizon and AT&T to make their own competitive offers that include lower monthly fees, unsubsidized handsets, and installment payment options," said Tejas Mehta, Research Analyst, Parks Associates. "It makes sense for Amazon to launch a smartphone in this market. The Internet giant is hoping to expand its footprint by offering consumers better experiences through simplified data plans as well as better retail shopping experiences for mobile consumers."
Nearly 40% of smartphone owners use a retail and shopping app on a monthly basis, and the average time spent on retail shopping is one hour per week, according to 360 View: Mobility and the App Economy. This new research project includes data and analysis of a 1Q 2014 consumer survey of 10,000 U.S. broadband households.
"It's not too late for Amazon to launch a smartphone, especially given strong Kindle Fire tablet sales," Mehta said. "Our research shows the Kindle Fire is neck-and-neck with Samsung Galaxy tablets in terms of household ownership in the U.S., with 16% of households owning a Kindle vs. 14% owning a Galaxy."