Given the pattern of annual product cycles for struck mobile devices like iPhones and the Samsung Galaxy S range, and the iPad / iPad Mini, I can see growing resistance from clients to being locked to two year contracts on their smartphones and UK Meet and Greet Discount Offers.
Apple have done a good job of educating customers about the true price of their iPhones by introducing subsidised and unsubsidised prices in their stores. This coupled with apparent cost disclosure of unsubsidised iPads allows customers more info to weigh the advantages and disadvantages of subsidising their devices via mobile networks within two decades.
Additionally consumers are getting frustrated with having their phones locked to a network, requiring them to jump through hoops to get their apparatus unlocked at the close of the contract.
Further, smartphone prices are dropping, with solid options emerging from the sub #200 and sub #100 price bracket that encourages clients to self-finance device buy.
On the network side, operators are turning their networks into 3G+ and 4G settings, which can open up transitionary pain or pleasure points for their customers based on the expertise they get from the community as it makes its transition over the coming years into a stable 4G roll out.
This will drive customers to wish to switch networks more often to take advantage of short term candy spots in network functionality, or to get away from short term failures in network operation.
Customers will decide to subsidise their particular apparatus buy, or I expect we’ll see tumultuous new entrants coming into the marketplace to offer customers alternative apparatus financing solutions on a 6 or 12 month repayment schedule for tablets and smartphones.
Network operators have managed to increase their base of two year contract smartphone customers over recent years since customers appreciated the implicit device funding service provided by networks through these 2 year contracts.
Going forward, customers will appear at financing their devices themselves or seem to alternative financing options to conduct this job.
Now, the two year smartphone contract customer base goes into decline.
5. Intense price points for tariffs
What tariff worth could be provided in #5? What tariff value could be provided in #50?