Samsung unveils five new Galaxy A series phones
Samsung last week announced the upcoming debut of five new additions to its popular Galaxy A series lineup. The new phones – A01, A11, A21, A51, A51 5G and A71 5G – range between $110 and $600 in price. The ultra-low end A01 ($110) and A51 ($400) arrived at Verizon one day after Samsung’s announcement. The A11 ($180) and A21 ($250) are the updated versions of the Galaxy A10 and A20 phones that enjoyed substantially high demand in the second half of 2019. The A51, on the other hand, is the modified version of the Galaxy A50, which was one of the top mid-tier phones sold globally (except the US market as it was not picked up by any of the carriers). Samsung announced that its U.S. carrier partners will pick up the 5G-powered version of the A51 later this summer. The A51 5G will carry a $499 price tag.
The NPD Take:
- Samsung’s decision to debut two strong 5G device options (the A51 5G and A71 5G) in the $500-$600 range will put a lot of pressure on all tier-2 and tier-3 smartphone OEMs that have been banking on supplying the U.S. carriers with affordable 5G device portfolios. Needless to say, a similar pressure will be present on Samsung’s 5G-powered S20 series phones that suffer from high price tags starting at $1000.
- If history is any indication, Samsung’s new Galaxy A01, A11 and A21 are poised to be quite successful among prepaid customers. The A01’s $110 price tag makes it an ideal switcher promo device for prepaid carriers.
OnePlus getting ready to launch a new flagship
OnePlus has made a name for itself by winning the hearts of tech enthusiasts with its uniquely marketed high-end smartphones and paving its way into the U.S. carriers lineups. T-Mobile was the first U.S. carrier to offer the OnePlus phones to its customers in late 2018, and Sprint followed suit later in 2019. The OEM is getting to ready to unveil its next flagship, the OnePlus 8 series, during a web-event later this week. The event will, of course, be open to the public, but it’s note-worthy to mention that this is a shift from previous practices when OnePlus’ (in-person) launch events were open to customers paying for an entrance fee. Another shift in strategy is OnePlus’ level of teasing customers with information related to the specifications of the new 8. The OEM has been actively marketing the new phone in various digital outlets and providing a lot of information on design and specifications of the phone (such as the ultra-fast charging and 120 MHz screen refresh rate) prior to the launch of the phone.
The NPD Take:
- With T-Mobile and Sprint joining forces, OnePlus needs to extend its distribution to more operators in the U.S. in order to increase brand equity and enjoy higher market share. The new OnePlus 8 is rumored to have secured commitment from another major operator, thus we might be hearing the OnePlus brand more and more in the market.
- OnePlus has already confirmed that the new 8 and 8 Plus phones will run on Qualcomm’s new Snapdragon 865 chipset, which is the top of the line silicon solution in the market. Considering the additional cost of 5G support, it is safe to assume that the new One Plus 8 phones will be priced substantially higher than the previous iterations. OnePlus’ main value proposition has been offering flagship specs at the higher end of mid-tier price points, and a steep increase in price will limit the new phone’s reach.
Metro by T-Mobile reengineers distribution
With the T-Mobile/Sprint merger finalized, the new T-Mobile organization has begun making bold distribution moves. The carrier has no immediate plans of integrating the Sprint brand, but according to the National Wireless Independent Dealer Association (NWIDA), T-Mobile’s prepaid arm Metro’s non-exclusive dealers (that sell Metro services alongside services from rival carriers) have been given a 120-day termination notice to cease sales of Metro phones. According to NWIDA, as many as 750 non-exclusive outlets have received this notice.
The NPD Take:
- T-Mobile has a reputation for its immense control over distribution of its products services. The carrier and its prepaid arm Metro do not collaborate with any national distributor, including Walmart, which is the top seller of prepaid smartphones in the market. Metro solely banks on its branded stores, most of which are authorized dealers, to push its products and services, and the decision to limit other brands’ exposure in an authorized outlet is understanble.
- The unexpected COVID chaos might have a slightly positive impact on the prepaid market with economically strained postpaid customers possibly considering prepaid options to lower their budgets. Metro’s aim to enjoy the full spotlight in the authorized dealer channels should help, but the carrier should also consider looking into partnering with Walmart to reach the potential customers in rural areas.