This IDC study reviews smartphone pricing in the United States during 1H13. IDC analyzes no-commitment prices, pricing on a two-year contract, and pricing after incentives through the perspectives of different operating systems, smartphone vendors, and mobile operators.
"Pricing has been, and continues to be, one of the leading factors when choosing a new smartphone," says Ramon Llamas, research manager with IDC's Mobile Phones team. "The data shows decline since the start of the year, even when multiple vendors have released new flagship models to the market. At the same time, vendors and carriers must be mindful of pricing smartphones too low, lest they be considered lower quality to go along with the low price. This puts carriers and vendors in a challenging position - How low can smartphones be priced, especially as the U.S. market moves toward more and more high-end devices? To this end, IDC recommends that carriers experiment with price along a number of vectors, including subsidies, bundling, and data plan pricing."
Experiment with Pricing
Experiment with Subsidies
Experiment with Bundles