Metro begins selling phones online
Metro by T-Mobile, T-Mobile’s main prepaid arm, has overhauled its website and now offers online purchase options for phones listed on the site. Metro’s website previously served as an information platform where customers and prospects could see the carrier’s device selection and pricing but were directed to a Metro by T-Mobile retailer for inquiries. Unfortunately, this is still the case for existing customers who are looking for a new device upgrade or those new customers who would like to port their phone numbers from service providers. The new “online store” is limited to new customers who switch to Metro by T-Mobile and get a new phone number. Also of note, the online purchase option is limited to a select number of low-tier phones made by Motorola and TCL. New customers seeking iPhones or Samsung models still need to visit a retail location.
The NPD Take:
- Metro by T-Mobile had long ignored the digital channels even during the peak months of the pandemic when customer mobility was extremely limited. Offering new port-in customers the ability to purchase new phones online is certainly welcome but Metro has roughly 20 million customers; half of which upgrade new phones every two years or sooner. Metro’s decision to exclude upgraders from buying online is likely a result of its efforts in migrating good-credit customers over to the Magenta postpaid side as this convincement takes place in retail.
- While over 90% of prepaid phone customers pay full price for their smartphones at the time of purchase, device financing has become a standard option offered in prepaid. Metro’s rivals as well as channel partners such as Walmart offer device financing through third-party creditors such as Affirm, and Metro should consider going the same route once it extends its (purchasable) online phone selection to the more expensive Apple and Samsung models.
TCL lands the LG Stylo replacement
TCL announced the commercial availability of its new Stylus 5G phone through T-Mobile and Metro by T-Mobile. As the name suggests, the new TCL Stylus 5G features a built-in stylus to be used on the gigantic 6.8-inch FHD+ display powered by MediaTek’s mid-tier Dimensity 700 chipset. Given its affordable price point (MSRP $258 at T-Mobile / $269 at Metro), the phone’s spec list is somewhat light as it boasts 4 GB RAM, 128 GB storage (upgradable to 2 TB with an external memory card), 4,000 mAh battery with fast charging and 50 MP main camera. Notably, TCL claims that the built-in stylus and the screen connection is 38% faster in terms of latency than rivals’ stylus offerings. The new phone is available for free for new T-Mobile customers and $19 for new Metro prepaid customers.
The NPD Take:
- Like Motorola, TCL is following the footsteps of LG, which had considerable success with its low-end Stylo series that ran for six generations until LG ceased operations as a mobile phone maker. Back in 2020 when LG was still in the game, its Stylo series accounted for a third of its total phone sales in the US market. According to NPD’s POS-based retail tracking service, Motorola’s G Stylus and G Stylus 5G models accounted for close to 10% of its total sales in the national retail channels.
- The TCL Stylus 5G’s aggressive price point should give TCL the boost it has been seeking since entering the US market with its brand (in addition to the licensed Alcatel brand). According to NPD’s Connected Intelligence Mobility survey, TCL’s brand awareness barely passes the 10% mark while less than 2% of U.S. smartphone shoppers consider it for their next phone upgrade.