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 hsprague@gmail.com 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-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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