Tuesday, February 01, 2011

Smartphone TCO Coming Down, Varies Enormously

To own a Smartphone on the Verizon network costs about $100 per month, before taxes.  Add in taxes and it's about $110 or more per month, $1,320 per year.  At the low end, owning a smartphone on MetroPCS is  $720 per year, a savings of $600 annually.

MetroPCS is now offering the Hauwei Ideos, a very basic Android smartphone for $120 (at Best Buy).  That's a deal that's hard to beat.

A capable if somewhat limited smartphone.  But for $120 unsubsidized, who cares?

While the Ideos is only a mid-range smartphone, it's perfectly functional and includes access to the full Android market.  That $120 purchase price is contract free as well.  It's hard for me to see how such enormous price differentials sustain themselves in the market, but I don't think they can last as MetroPCS reaches national coverage.

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