Wednesday, June 18, 2014

Consumers Prefer Unsubsidized Smartphone Handsets - Good News for Amazon's rumored “Prime Data” Plan

Parks Associates Announces New 1Q 2014 Mobile Research Prior to Amazon Event

In anticipation of Amazon’s announcement this week of a rumored smartphone and subsidized mobile data plan, Parks Associates announced new researchtoday showing over two-thirds of U.S. mobile phone subscribers prefer data plans that cover only smartphones, while one-third prefer plans that would extend to multiple devices, such as tablets and laptops.

Furthermore, over two-thirds of U.S. mobile phone subscribers prefer to purchase a smartphone at full price if it eliminates the contract and lowers their monthly fee. Lower-income households are especially likely to prefer unsubsidized handsets, according to data from Parks Associates, which reflects wider use of prepaid services among this demographic.

“T-Mobile in particular has tapped into the strong consumer desire for unsubsidized handsets, prompting Verizon and AT&T to make their own competitive offers that include lower monthly fees, unsubsidized handsets, and installment payment options,” said Tejas Mehta, Research Analyst, Parks Associates. “It makes sense for Amazon to launch a smartphone in this market. The Internet giant is hoping to expand its footprint by offering consumers better experiences through simplified data plans as well as better retail shopping experiences for mobile consumers.”

Nearly 40% of smartphone owners use a retail and shopping app on a monthly basis, and the average time spent on retail shopping is one hour per week, according to 360 View: Mobility and the App Economy.This new research project includes data and analysis of a 1Q 2014 consumer survey of 10,000 U.S. broadband households. 

“It’s not too late for Amazon to launch a smartphone, especially given strong Kindle Fire tablet sales,” Mehta said. “Our research shows the Kindle Fire is neck-and-neck with Samsung Galaxy tablets in terms of household ownership in the U.S., with 16% of households owning a Kindle vs. 14% owning a Galaxy.”

Mehta and Harry Wang, Director of Health & Mobile Product Research at Parks Associates, are available to comment on the Amazon event this week. To request an interview or specific research data, contact Holly Sprague at [email protected] or 720-987-6614.

More information about 360 View: Mobility and the App Economyis available at www.ParksAssociates.com.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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