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Low-cost smartphones driving USA users to PrePay networks

Categories: Devices, Research
By: , IntoMobile
Tuesday, November 20th, 2012 at 1:40 AM

Lower prices and better selection of smartphones at tier-two carriers like Boost Mobile, MetroPCS and Virgin Mobile are causing a decline in pre-paid smartphone sales from tier-one carriers in the USA.

According to the NPD Group, 70% of smartphone buyers who purchased their phones on a prepaid carrier had switched from a tier-one carrier in Q3 2012. The research company says that the overall penetration of prepaid smartphones rose from 39% in Q2 to 42% in Q3. Prepaid smartphone sales at prepaid carriers were up 23% over the prior quarter, while at tier-one carriers prepaid smartphone sales fell 12%. Consumers who were replacing their mobile phones were more likely to have switched from a tier-one carrier (80%) than were first-time smartphone buyers (60%).

Overall smartphone penetration rose from 66% last quarter to 70% in Q3. Android experienced a unit volume increase of 25%, as its share increased from 59% to 63% of the smartphone market. Apple’s iOS unit volume rose 16%, and the company’s market share remained steady at 31%.

About The Author

Dusan Belic

Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.