Survey Suggests Smartphones on the Rise in Prepaid Device Sales

  • “Smartphones accounted for 29 percent of all prepaid device sales in 2011, compared to just 5 percent three years ago, according to new survey data from marketing research group the Stevenson Company,” GigaOM writes.
  • Prepaid consumers generally pay full price for new handsets, unlike contract subscribers who get sizable discounts on their smartphones.
  • In 2011, 50 percent of all mobile phone purchases — both prepaid and postpaid contract plans — were smartphones and the gap between prepaid and contract users is closing, researchers found. Customers are also purchasing their prepaid services from other retailers like Walmart, not directly from the operators.
  • “Stevenson drilled deep into the demographic data and found that half of prepaid buyers had a household income of $35,000 or more, compared to 76 percent of postpaid buyers, and more than 55 percent of prepaid buyers owned their own home. Income and credit are no longer the sharp dividing lines between prepaid and postpaid,” the article states.

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