tag:blogger.com,1999:blog-17500930.post8427461339764966163..comments2024-03-20T22:57:03.923+00:00Comments on Dean Bubley's Disruptive Wireless: Falling smartphone prices = problems for operator control?Dean Bubleyhttp://www.blogger.com/profile/05719150957239368264noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-17500930.post-16986021432930500282011-01-10T23:02:37.235+00:002011-01-10T23:02:37.235+00:00Very interesting article. It could happen, but it ...Very interesting article. It could happen, but it does discount the face that the carriers and their affiliates in the US have thousands of retail outlets, and due to subsidies, their handsets/devices can hover around $0 to $99, even for quite high-end devices. Further, their advertising power is huge (VZW is over a $1B/year correct?) Therefore, Joe Average is just going to hit those venues in far greater numbers than the alternatives.<br /><br />In terms of real device costs, if the barriers to getting devices approved for the networks dropped significantly (no PTCRB for example, just FCC), and the really cheap (Asian) producers ironed out their IPR situations so they wouldn't get impounded at the docks, then, we might see some really cheap devices in the US outside of the carrier controlled or influenced channels. But right now, the most secure way for OEM's to be able to offer low prices is via the lower-risk large volumes that the carriers can offer and that no one else can. The only way I can see that evolving is if Best Buy, or Walmart decided to start placing orders directly for these handsets. That might happen.<br />Having said that, the problem will still be the monthly fee - why pay a large monthly fee if you don't get the benefit of a subsidized handset. The government could step in and require carriers to split the monthly fee into a service + loan fee so that users with their own phones would be able to pay less per month or we might see bulk purchasing MVNO's like Simple Mobile succeeding - or maybe the aforementioned retailers will do it themselves. <br /><br />So, I agree, cheaper smartphones could be a game changer, but it'll take someone as big as the carriers to do I think.Mobile Media Guruhttps://www.blogger.com/profile/08047208821271812939noreply@blogger.comtag:blogger.com,1999:blog-17500930.post-25216358646770373852010-12-14T09:07:06.043+00:002010-12-14T09:07:06.043+00:00Dean -
I ran some desk research last month about...Dean - <br /><br />I ran some desk research last month about the Average Selling Price of smartphones over the last 24 months(before and subsidy is applied). You can find it here. <br /><br />http://www.wds.co/enlighten/average_selling_price/WDS_2010_Average_Selling_Price.pdfTim Deluca-Smithhttp://www.wds.conoreply@blogger.comtag:blogger.com,1999:blog-17500930.post-87196008448122251262010-12-09T12:12:32.339+00:002010-12-09T12:12:32.339+00:00As 'IPisation' continues then the mobile i...As 'IPisation' continues then the mobile industry moves towards the same horizontal market division we now see in fixed comms. Operators can only use delay tactics to maintain vertical integration and the direct relationship with the end user.<br /><br />Liberation of advance handsets from operator shackles would be another factor that accelerates that journey.Dan Younghttp://twitter.com/ejectejectnoreply@blogger.com