Microsoft reveals new details on the Surface Duo
Microsoft last week revealed additional details about its much-anticipated dual-screen device, the Surface Duo, which was initially introduced almost a year ago. The Duo will boast two 5.6-inch OLED displays that offer a combined 8.1-inch viewing estate when working together. The device will run a customized version of Android 10 for dual-screen functionality. The Snapdragon 855-powered device will sport a single camera lens (with 11 MP resolution) that can face inwards our outwards depending on the use case. Microsoft revealed that the new Surface Duo will carry a $1399 price tag and be available on September 10. AT&T has secured exclusivity for the sales of the Duo, though Microsoft will also be selling an unlocked version of the device. Notably, the Duo does not support 5G networks, and it lacks support for T-Mobile’s band 71, meaning users will not be able to enjoy the full benefits of the carrier’s low-frequency wide coverage.
The NPD Take:
- The launch of the Android-powered Duo is a major strategic shift showing Microsoft has yet to give up on the mobile market. The dual-screen designs have been tried by many mobile phone OEMs such as LG, but market adoption has been extremely limited due to the unfriendly interfaces and non-ergonomic form factors. However, there is an interesting nuance here; the Surface Duo is not a traditional smartphone. It offers a unique combination of productivity features that take advantage of the Microsoft’s suits of applications, thus caters to a different audience who might purchase the Duo as a secondary productivity device.
- The Surface Duo’s carrier exclusivity with AT&T is a good win for the carrier, which has long been perceived (by consumers periodically surveyed by NPD) as the top mobile carrier when it comes to device selection. The Surface Duo may not bring in a ton of new customers, but it will surely give the carrier additional marketing ammunition against rivals T-Mobile and Verizon.
- The Android-powered Surface Duo has the potential to convert iPhone users who cannot jump the Windows ship for their computing needs, to the Android side. Apple iPhone enjoys an astonishing 92% retention rate (meaning 92% of iPhone users have historically upgraded to another iPhone during their device upgrade/replacement period), so only a few of them might remotely consider Android phones. Although it is a highly customized version of Android, the Surface Duo may become iPhone users first introduction to the Android platform.
T-Mobile eyes the enterprise market with Test Drive
T-Mobile last week launched a new initiative targeting business customers, a segment the carrier trails behind rivals given its heavy consumer focus. Dubbed Test Drive, the new promotion offers business accounts with minimum 12 lines to test the T-Mobile network through via a mobile hotspot device for up to 30 days or 30GB, whichever comes first. Larger businesses with more accounts are offered custom promotions based on their specific needs. The carrier also offers business customers that switch their service to T-Mobile a free Samsung Galaxy A51 5G smartphone as well as up to $650 for up to 5 lines to break free from their previous carrier.
The NPD Take:
- T-Mobile has long been offering Test Drive promotions to consumers that have been reluctant to switch their service due to network coverage concerns. The initial promotion was launched back in 2014, when the carrier offered prospect customers free service (with unlimited music streaming) for one month alongside a free iPhone 6. The carrier then launched a similar offer last year, but this time the loaner device was a mobile hotspot. The extension of the offer to businesses is should help as unlike consumers, business users generally prioritize network coverage and reliability over cost, and the promotion should allow them to test the waters before bringing their accounts to T-Mobile.
Dish’s Boost Mobile gets aggressive with switcher offers
Boost Mobile continues to make bold moves to expand its user base. Dish Network two weeks ago acquired Ting Mobile, a relatively small MVNO with about 270K users, and then launched new entry level rate plans starting at $10/month ($10/1GB - $15/2GB - $25/5GB) with an effort to match rival offerings such as T-Mobile’s similar $25/5GB plan. The prepaid carrier last week amplified offers, which include switchers promotion that offer the iPhone 7 for $29 to new customers visiting Boost Mobile retail outlets. Other in-store exclusive offers include up to four free LG Stylo 6 phones, which is regularly priced at $179 after savings.
The NPD Take:
- Boost Mobile’s updated rate plans (including a new policy that caps unlimited plans’ high-speed data usage at 35GB/month) signals a clear shift in strategy as the brand no longer enjoys the same network bandwidth under Sprint ownership. Boost Mobile is now a true MVNO buying wholesale data from T-Mobile, thus limiting usage will directly impact its bottom line. According to the NPD SmartMeter, an average prepaid customer has consumed a little over 10GB of cellular data month (due mainly to the data traffic increased during the COVID lockdowns), though most of them consume less than 5GB.