New Device: Worth the Price?
Posted on June 5, 2017 by Matt Louden
As mobile phones become more expensive and carriers begin to remove device subsidies from their offerings, more and more people are deciding to stick with older technology.
Across the board, carriers are already feeling the effects of this change. AT&T, for example found that less than 4% of its regular monthly customers upgraded a mobile device in Q1 2017—the lowest quarterly rate ever.
Less upgrades also means smaller overall revenues. AT&T’s wireless equipment sales dropped 17% compared to Q1 2016. While not as dramatic, Verizon and T-Mobile experienced dips as well; five and two percent respectively.
So far, we’ve seen unsubsidized carrier devices have a huge enterprise impact on our own customers. The first five months of 2017 saw a 65% reduction in new mobile device orders compared to last year’s numbers over that same timeframe.