Posted On: 12/25/2013 12:50:58 PM
Post# of 275
Re: NotRichYet2 #9
Can IFON be the next APPLE??
Who is Scared of the Growth of Pre-Paid Plans?
By: John Althoff
10-15-2013 @ 12:28 PST | verykoolTeam
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Did you know that since the year 2008, 58% of the new cellular phone activations in the USA were made through “pre-paid” plans with no contracts?
Sara Kaufman, a market analyst for Ovum, an independent research firm, recently stated: “It’s a dramatic change in how customers in the United States are buying wireless (devices).”
Prepaid Services are well-known in developing markets and, in fact, were responsible for the rapid expansion of cell phones throughout the world more than fifteen years ago. (Refer to an article I wrote earlier in 2013 for the verykool Blog.
With “Pre-Paid” service plans, consumers typically pay the full cost of the phone up-front, and do not commit themselves to a 2-year contract where, over the long-term, they would end up paying far more for their new handset.
This takes us back to my initial question: Who’s scared of the Growth of Pre-Paid Plans? It turns out Apple is!!! You see, Apple has been enjoying an exceptionally comfortable position in the market with the iPhone. Not only has Apple been reaping a large profit margin on iPhone sales to the network operators, but, in the USA, Apple has been extracting additional fees from the operators for the privilege to sell the iPhone to their customers who sign-up for two-plus year contracts!
Investors and analysts took for granted Apple’s ability to extract large profits from the highly competitive handset market in the USA. Apple’s investors were duly rewarded for exerting their market power, relishing the meteoric rise of Apple’s shares traded in the stock market.
However, the tide is beginning to change. Apple is beginning to lose their grip because consumers have decided that they prefer to take control of their monthly expenses and their phone purchases. The Pre-Paid Plans are very attractive because of their low cost and simplicity: Buy a new smartphone for the retail price or bring any device that works on the network, pay a flat fee (usually $55-$75), and use the phone as much as you want for 1 month. Then, prepay for the following month before the current month expires.
The powerful combination of the cost-saving and simplicity of Pre-Paid Plans with the rising popularity of #Android-powered phones has put Apple under significant pressure and its dominance is eroding. Apple is now forced to give up some of its profit margin and compete with devices which are priced substantially lower. The new, less expensive iPhone 5C is merely beginning of this development.
What does this mean for the consumer? Well… only good things! It means you have more control over the cost of your service, and you are free to activate and use the smartphone of your choice!
I have one last question: Have you looked at the verykool s470 Black Pearl (NASDAQ COMPANY IFON'S smart phone)? It’s easy to activate on a Pre-Paid Plan!
http://www.verykool.net/blog/who-is-scared-of...paid-plans
Who is Scared of the Growth of Pre-Paid Plans?
By: John Althoff
10-15-2013 @ 12:28 PST | verykoolTeam
Share:
Did you know that since the year 2008, 58% of the new cellular phone activations in the USA were made through “pre-paid” plans with no contracts?
Sara Kaufman, a market analyst for Ovum, an independent research firm, recently stated: “It’s a dramatic change in how customers in the United States are buying wireless (devices).”
Prepaid Services are well-known in developing markets and, in fact, were responsible for the rapid expansion of cell phones throughout the world more than fifteen years ago. (Refer to an article I wrote earlier in 2013 for the verykool Blog.
With “Pre-Paid” service plans, consumers typically pay the full cost of the phone up-front, and do not commit themselves to a 2-year contract where, over the long-term, they would end up paying far more for their new handset.
This takes us back to my initial question: Who’s scared of the Growth of Pre-Paid Plans? It turns out Apple is!!! You see, Apple has been enjoying an exceptionally comfortable position in the market with the iPhone. Not only has Apple been reaping a large profit margin on iPhone sales to the network operators, but, in the USA, Apple has been extracting additional fees from the operators for the privilege to sell the iPhone to their customers who sign-up for two-plus year contracts!
Investors and analysts took for granted Apple’s ability to extract large profits from the highly competitive handset market in the USA. Apple’s investors were duly rewarded for exerting their market power, relishing the meteoric rise of Apple’s shares traded in the stock market.
However, the tide is beginning to change. Apple is beginning to lose their grip because consumers have decided that they prefer to take control of their monthly expenses and their phone purchases. The Pre-Paid Plans are very attractive because of their low cost and simplicity: Buy a new smartphone for the retail price or bring any device that works on the network, pay a flat fee (usually $55-$75), and use the phone as much as you want for 1 month. Then, prepay for the following month before the current month expires.
The powerful combination of the cost-saving and simplicity of Pre-Paid Plans with the rising popularity of #Android-powered phones has put Apple under significant pressure and its dominance is eroding. Apple is now forced to give up some of its profit margin and compete with devices which are priced substantially lower. The new, less expensive iPhone 5C is merely beginning of this development.
What does this mean for the consumer? Well… only good things! It means you have more control over the cost of your service, and you are free to activate and use the smartphone of your choice!
I have one last question: Have you looked at the verykool s470 Black Pearl (NASDAQ COMPANY IFON'S smart phone)? It’s easy to activate on a Pre-Paid Plan!
http://www.verykool.net/blog/who-is-scared-of...paid-plans
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