Smartphone Sales in 1Q 2014: Verizon Narrowly Tops AT&T in Smartphone Gains with 3 Percent Difference
Smartphone usage in the United States (U.S.) has increased during the latest quarter, according to a consumer knowledge and insights network.
Kantar Worldpanel reported smartphone penetration increase by 10 percentage points in the latest quarter. The percentage increase led to smartphone penetration representing 55 percent of overall mobile phones, up from 45 percent.
From the top four mobile carriers in the U.S., Verizon can claim victory in having the largest share of smartphone users in the U.S. with 33 percent of the pie. AT&T narrowly followed behind with 30 percent.
The U.S.'s overall fourth-largest mobile carrier, T-Mobile, accounted for the third-largest smartphone users with 10 percent. Sprint's figures were not disclosed.
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Smartphone sales during the first quarter of 2014, in comparison to standard mobile phones, also increased. Smartphones accounted for 74 percent of overall sales during the quarter, which is an increase from the 65 percent during the same quarter in 2013.
Despite the sales increases of smartphones, non-smartphone owners significantly remained reluctant about upgrading. According to interviews to non-smartphone owners by Kantar Worldpanel, 44 percent of respondents stated they are "not sure" if they will upgrade within the next 12 months. Non-smartphone owners, 19 percent of them also responded they "definitely won't" upgrade.
"The cost of new devices and data plans was cited as the biggest reason for consumers' indecision, while lack of interest and basic need fueled the outright smartphone rejection," noted Kantar Worldpanel.
Mobile carriers are, however, working on attracting non-smartphone owners with various new payment plans that can allow them to pay in installments.
"Although consumers might be confused by the growing options, these measures are making the costs associated with smartphones more transparent and understandable," added Kantar Worldpanel, noting a combination of mid-range to low-end devices could help "win" over consumers despite losing out on high-end devices.
As Latin Post reported, while Verizon maintained the top position of most smartphone owners, the mobile carrier did not earn enough postpaid subscribers during the quarter. According to Technology Business Research, Inc., (TBR), AT&T bested Verizon in the postpaid subscriber market by approximately 100,000 net additions during the first quarter. TBR's Datacenter Analyst for Mobility and Telecom Practice Eric Costa stated Verizon's decline in the postpaid subscriber market might have been the result of AT&T's Share Everything plans. Verizon has countered AT&T's new plan offer with the More Everything plans, which also aims to counter T-Mobile's Simple Choice and Sprint's Framily plans.
Smartphone sales in the U.S. have benefited Google's Android operating system as the platform was represented in 57.6 percent of the smartphones sold during the first quarter of 2014, which is an increase of 8.3 percentage points from the same period in 2013.
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