Many leading suppliers use PriceTRAX to track and compare smartphones, mobile phones, tablets and dongles across 120 carriers and 190 retailers in 43 countries.  Weekly updates to unsubsidised, pre-paid and post-paid contract pricing across retailers and operators are presented in a comprehensive and easy-to-use web interface.

You are invited to attend our exclusive analysis breakfast presentations at MWC where you can try out PriceTRAX. If you would like to register for this breakfast event click HERE-->>

The PriceTRAX demonstration will show its ease of use and efficiency in answering questions such as:

·         Have any of our competitors’ prices changed this week?

·         Are we losing margin through unnecessarily low price points?

·         What are the most popular market entry price points?

·         How does tablet pricing compare across retailers and network operators?

If you feel that someone in your company or a colleague within the industry may benefit from a demonstration please feel free to forward this announcement to them.

If you would like to register for this breakfast event click HERE-->>

Stephen Entwistle

You can Follow me on twitter.com/sentwistle1419

Using our PriceTRAX database, we have discovered an interesting trend concerning the retail price subsidies for basic handsets on certain US operators. For some models there is a significant difference between the price paid on a month-to-month contract, the price paid for a replacement device and the price paid for an unsubsidised device without a contract.

The initial discovery was made when examining pricing for the LG Extravert. At the time of writing, the model can be purchased from Verizon’s online store on a 2 year contract for $99.99 or on a month-to-month contract for $209.99. Meanwhile, Best Buy sells the same model either as a replacement device for a rather hefty $299.99 (or for $29.99 on a 2 year contract) or as a stand-alone, prepaid "No-Contract Mobile Phone" for just $79.99. Weird?

Two options for purchasing the same device as they appear in the same cart on the Best Buy website. Top – as a Replacement Device, below – as a No-Contract Mobile Phone

Furthermore, this is not limited to a particular model or retailer. The Samsung Gusto 2 is available from Verizon for $79.99 on a 2 year contract or for $199.99 on a month-to-month contract. RadioShack, however, sells the device as a "No Contract Phone" for less than either of these options at just $19.99. The same model is also available from Best Buy on a 2 year contract for $19.99 or as a Replacement Device for $249.99.

Similarly, over at Sprint, the Samsung Array M380 handset is available through Sprint’s website on a two year contract for $19.99, with a listed "regular price" of $219.99. However, it is also available as a "No Contract Mobile Phone" on Boost Mobile (a Sprint subsidiary that provides a solely prepaid service) through RadioShack for a mere $39.99.

One thing these 3 devices have in common is that they are all CDMA-based non-smartphones, commonly positioned more towards prepaid customers.

Confused? So are we! Why would anyone pay $199.99 for a Gusto 2 from Verizon, when they can buy it for $19.99 at RadioShack with no contract? One possible explanation can be found in Verizon’s policy that only allows prepaid phones to be transferred to a post-paid contract 6 months after the phone is activated. This prevents customers who may have lost or broken their Samsung Gusto 2 from trying to avoid the hefty $249.99 price for a replacement by simply popping down to RadioShack and purchasing a prepaid version for just $19.99.

To try the PriceTRAX database for yourself click HERE

Alex Fuller

We recently did some analysis of the nationwide experiment carried out by mobile network operators (MNOs) in Spain.  When MNOs tried removing the subsidies applied to contract-based smartphones we used PriceTRAX, our online price comparison database to monitor price fluctuations and then our Wireless Operator Strategies team looked at the impact on connection volumes.

Movistar, Vodafone and Yoigo were the frontrunners in this experiment. Orange did not take part, possibly because their subsidies were already lower compared to its competitors.  Download PriceTRAX's latest complimentary extract: Observing Spanish Smartphone Pricing Dynamics: Are Subsidies Changing? for the full story, summary details and the methodology.

Movistar was the first to start removing subsidies on smartphones in Spain, which increased their handset prices by more than €100 in April 2012. Vodafone and Yoigo followed in May, increasing their up-front handset price by 100%.

When these smartphone handset subsidies were removed, it’s no surprise that Movistar’s gross connection volumes took an annual fall of 42%, while Vodafone saw a 36% reduction in Q2 (Source: Wireless Operator Strategies).

The above chart shows that after the initial jump of over €100 in April/May, the average smartphone cost on a contract has since fallen back somewhat suggesting a softening of the MNOs resolve.

If you like to try the PriceTRAX database for yourself CLICK HERE >>>

PriceTRAX now tracks 225 network operators and retailers spanning 38 countries following the recent addition of 58 new channels (operators and retailers) this quarter. PriceTRAX is an online database which tracks three types of pricing for smartphones, mobile phone and tablets.

Prices currently tracked are the:

• Retail Price (Unsubsidised)
• Pre-Paid or PAYG Price (Pay-As-You-Go)
• Post-Paid or Contract Pricing; including tariff cost, contract duration and any upfront handset cost

PriceTRAX’s impressive country portfolio will continue to increase through continued research efforts. The PriceTRAX team works closely with clients to increase coverage in regions of interest.

The map below summarises today’s coverage.

If you want to try the PriceTRAX database for yourself, just click HERE or contact the team to arrange a PriceTRAX demo.