Handset prices at the major carriers continue to gyrate, week-by-week, suggesting that carriers-like retailers changing their window displays-are perennially in search of the right combination of brand, features and price to lure in new subscribers or retain current subs with an upgrade.
Yet some carriers obviously take a breather now and then, and in the first week of January, only T-Mobile USA Inc. among top-tier carriers continued to raise and lower prices on a substantial number of handsets.
This speculation on retail strategy-the carriers do not publicly discuss their pricing strategies-is based on post-holiday price changes across carriers and handset brands. The pricing pattern during the all-important, holiday-season fourth quarter tends to be downward, a simple cast and presentation of bait, in fishing terminology.
Between Jan. 1 and Jan. 8, T-Mobile USA dropped prices on Samsung Electronics Co. Ltd.’s t609, from $50 to “free,” and knocked down the carrier-branded Sidekick 3 from $250 to $200. The carrier raised prices on four models: the Samsung t619 rose to $40 from “free,” where it resided during the holidays, the Samsung t629 rose to $100 from $50, the Motorola Inc. V195s crept up to $30 from $20 and the carrier-branded Dash hit $200 from $150.
Alltel Corp. was the other pricing gymnast last week, as it changed pricing on five handsets, four of them downward-perhaps reflecting efforts aimed at its larger competitors. At Alltel, the price of a Motorola Razr v3m ticked upward to $45 from $35. Meanwhile, incremental price drops included the Kyocera Wireless Corp. Strobe K612B (now $30, down from $50 last week), the Pantech PN218 (now $20, down from $50), the Samsung U420 (now $50, down from $60) and the LG Electronics Co. Ltd. AX355 (now $40, down from $70).
Boost Mobile L.L.C. dropped the price of its top-end handset, the i885, to $300 from $350, and shaved a full $100 off the price of its i875 model, from $300 to $200. Other phones getting the price-cut treatment include the i835, i835w and i835g models (all now $100 down from $130), the i455 (now $60 down from $90) and the i415 (now $40 down from $50).
Cingular Wireless L.L.C. discounted the LG CG225 to “free” from $10 and the Nokia Corp. 6102i to $10 from $50. Sprint Nextel Corp. and Verizon Wireless took a breather from cutting bait.
(All prices cited include a two-year contract, except for Boost.)
Carrier price changes on handsets: casting for new subs, upgraders?
ABOUT AUTHOR
Jump to Article
What infra upgrades are needed to handle AI energy spikes?
AI infra brief: Power struggles behind AI growth
The IEA report predicts that AI processing in the U.S. will need more electricity than all heavy industries combined, such as steel, cement and chemicals
Energy demand for AI data centers in the U.S. is expected to grow about 50 gigawatt each year for the coming years, according to Aman Khan, CEO of International Business Consultants
AI infra brief: Power struggles behind AI growth
The IEA report predicts that AI processing in the U.S. will need more electricity than all heavy industries combined, such as steel, cement and chemicals
Energy demand for AI data centers in the U.S. is expected to grow about 50 gigawatt each year for the coming years, according to Aman Khan, CEO of International Business Consultants