5G smartphone prices begin spiraling downwards
T-Mobile last week announced its upgraded REVVL lineup, which will include a 5G-powered model, the REVVL 5G. The new REVVL 5G is powered by Qualcomm’s mid-tier Snapdragon 765 chipset and offers an impressive spec list including a 4,500 mAh battery, 6.53” display, 128 GB storage and three rear cameras (the main one supports 48 megapixel resolution). The REVVL 5G will carry a $399 price tag, though new line activations will enjoy a subsidized $199 price. The other two REVVL models include the REVVL 4, a low-end Mediatek-powered model that will sell for $120, and the REVVL 4+, which upgrades to a Qualcomm powered chipset as well as a bigger display and battery. The REVVL 4+ will carry a $192 price tag. All three phones will be available for sale on September 4th.
The NPD Take:
- The REVVL line has been one of the most successful white-labeling smartphone solutions in the market thanks to T-Mobile’s consistent branding efforts and a clear strategy of working with established ODM partners. The carrier previously worked with TCL (the maker of Alcatel brand phones), Coolpad and Motorola for its various REVVL franchise models, and the latest 4 series and the REVVL 5G are allegedly built by TCL.
- T-Mobile’s sub-$400 price on the REVVL 5G is just the beginning of the fierce pricing wars we are expecting to see in the U.S. mobile market. U.S. carriers have urgency to move their customers to 5G networks for fast ROI, and we will likely see T-Mobile and its rivals keep pushing 5G device prices down (to sub-$300 MSRP levels) in Q4 2020.
Metro wants more iPhone users
Metro by T-Mobile is now offering Apple’s popular iPhone SE 2020 model for a reduced price of $49 when activated with new service. The iPhone SE 2020 regularly sells for $399, and it has long been subject to heavy promotional activity by prepaid carriers. Metro has been offering the phone to new customers for $99 since the phone’s debut in April. The in-store-only $49 promotion requires new customers port in a number (which was not active on a T-Mobile or Metro plan in the past 90 days) to the carrier, and keep the line active for six months while enabling AutoPay on their account. Notably, eligible customers will enjoy a $250 instant discount and will then receive a $100 virtual prepaid card (which brings the price down to $49) after six months.
The NPD Take:
- T-Mobile’s Metro prepaid brand trails behind rival prepaid brands in Apple iPhone adoption as it was the latest to welcome the iPhones to its device selection in mid-2016. The prepaid has since been working hard to close the gap with rivals; aggressive subsidies on older generation iPhones or free AirPod offers have helped the carrier boost its iPhone base to 20%+ levels at the end of 1H 2020. The $49 pricing on the popular iPhone SE should further help the carrier in attracting new subscribers from rivals.
- The iPhone SE 2020 has been one of Apple’s most successful iPhone launches due to fortunate (or unfortunate) COVID timing that fostered customers seek cost effective options. The phone was highlighted as an Android churn magnet during Apple’s quarterly earnings conference back in July. Metro’s aggressive promotion on the phone will attract rivals carriers’ iPhone users as well as Android users who want to jump ship.