Mobility Week in Review

Report Type: 
Week In Review
Overview

The new iPhones are just around the corner

It’s early September again and that means that we are only days away from witnessing the latest iPhones. As in every pre-debut iPhone season, there are various speculations about its form factor (which allegedly won’t change fundamentally since last year’s iPhone 12 went through a substantial chassis makeover), performance, and camera. However, the most intriguing speculation of all is the phone’s alleged new technology that will allow users to communicate (text and voice) via satellites when they are not connected to a cellular network. Apple will officially debut the new phones on Tuesday, September 13, and if last year’s debut is any indication, the pre-order shipments for at least the mainstream version should begin within 10 days.

The NPD Take:

  • The new iPhones’ rumored ability to provide satellite communications is certainly exciting and a great selling point for certain niche markets (i.e. the maritime sector), but we are more interested in seeing if Apple can also deliver a solid use case for 5G. Apple’s “5G got real” motto used in the iPhone 12’s debut has been a great marketing push, but the OEM (like other OEM rivals and carrier partners) have yet to come up with a compelling reason to convince consumers on why they need the 5G connectivity.
  • Apple previously warned the market of upcoming component shortages that could impact its supply chain for the iPhone debuts in the fall. Last year’s Pro flagships were late to market and U.S. carriers and retailers struggled to find inventory. Given Apple’s guidance in July and the expected high demand (as we expect U.S. carriers to continue their aggressive subsidy campaigns for iPhone upgrades), finding available stock on desired SKUs of the upcoming iPhones will likely be as challenging as last year.

5G MSRPs officially go below $200

Last year during these days, we wrote about T-Mobile’s debut of the REVVL 5G and praised the carrier to bring the 5G device MSRP under the $400 mark. Back then we also speculated that we would be seeing a major decline in 5G device MSRPs as Qualcomm’s low-end 5G silicones begin to roll out in early 2021. Only a year later, AT&T has announced the availability of its white-label Radiant Max 5G phone, which carries a price tag of $179. Powered by Mediatek’s Dimensity 700 chipset, the phone boasts a 6.8-inch HD display, 48 MP camera, 4GB RAM, and a substantially large battery of 4,750 mAh capacity. Notably, while the phone carries a $179 price tag, AT&T customers can get their hands on it for only $100. AT&T’s prepaid arm Cricket displays the same phone under the “Cricket Dream 5G” brand for $189.

The NPD Take:

  • AT&T’s low price on the new Radiant Max is impressive especially considering the current supply shortages adversely impacting device component prices. Small-scale OEMs have been taking larger hits during this supply crunch, but AT&T’s pricing suggests that this was not the case with FIH Mobile, the make of the Radiant Max 5G. It is noteworthy to mention that the FIH Mobile is owned by Foxconn, which is one of the largest ODMs in the world.
  • As we have been speculating for the past several quarters, the use of 5G as a device marketing tool will be obsolete when device MSRPs continue to come down at such a rapid pace.

 

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