Carriers are cutting pricing and offering customers more flexibility. IMO, that shift hurts the smartphone suppliers. Stalwarts, such as Nokia and RIM, have recently been struggling and there are questions about their long term viability. The continued emphasis on lower priced plans and phones will make their market positions even more tenuous.
many of the popular no contract carriers such as Boost and Cricket have HIGHLY competitve plans here in the US with calls to Canada and Mexico included. $55 and $65 montly plans.
All carriers are introducing competitive no contract rates and services and the buy in point is the drop in cost of smartphone ownership with prices ranging from $60 and up.
I agree with you. I knows number of college-aged people who do the pay as you go route. I think it will continue to increase in popularity because it allows for flexibility.
Prices have been falling, however, shipment rates recently have been leveling off and even showing signs of a decline. Consequently, it will be difficult for suppliers to maintain their profit margins. It would seem some vendors will exit the market soon. Can anyone envision a time when phone pricing rises? IMO, some vendors will attempt to do this by offering attractive features, however, I am not sure this approach will have much success.
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