Mobile Week in Review

Xfinity launches affordable unlimited prices

Last week, Xfinity announced a new pricing structure for their unlimited plan, and it is competitive. The price for one line is $45 per month, which goes down to $30 per line for 2 to 4 lines and $20 for each additional line after that. They also continue to offer by-the-gig plans depending on the customer’s needs.

The NPD Take:

• As economic uncertainty looms, consumers are looking to save. We have been seeing price sensitivity from major carriers, such as Verizon’s new Welcome Unlimited plan advertising $30/line for four lines. While the cost for four lines comes out to the same $120, Xfinity’s plan provides savings for other family sizes, starting at 45% savings on two lines compared to Verizon (a $60 total cost for Xfinity). Xfinity’s plan includes access to Verizon’s 5G and 4G networks. With Verizon’s network coverage plus these steep savings, customers may be incentivized to switch to the MVNO.
• While this plan sounds enticing, it will be interesting to observe its success. Trust in the cable MVNO brand may be a hurdle, as we have observed low ratings for Cable Operators in our survey questions regarding which carriers have the best coverage, speed, reliability, and other metrics. Creating awareness about where Xfinity’s cell service comes from – that being Verizon’s network – will be integral to gaining switchers’ trust. This is especially true because Verizon scores very highly among consumers when asked which carrier they believe has the best coverage, speed, and reliability, but scores lower when it comes to service value.

It’s crunch time for Apple’s 2022 iPhone launch

Rumors that the event would take place on September 7 are confirmed. Sources expect new generations of the iPhone and potentially Apple Watch to be announced.

The NPD Take:

• The new and imminent date of the announcement has implications when it comes to supply and competition. While not long ago there were supply shortages on iPhone components, the promptness of the September 7 Apple launch event may mean that those concerns are no longer as prominent, and Apple is ready to sell the new phones.
• The timing is also interesting in relation to Samsung’s August 10 Unpacked event announcing the new Z Series phones. Perhaps there is concern that iPhone users will consider switching to Samsung, and they plan to promote the new iPhone series to prevent this churn.