Smartphones Invade the Prepaid Market

jfruh writes "When tech geeks debate the state of the smartphone world, they usually focus on the iPhone and its high-end Android rivals from the major carriers. But Android is rapidly entering the lower-end world of contractless prepaid phones that you can buy at 7-11 or Wal-Mart. 63 percent of prepaid phones sold in 2011 were smartphones, and while they might not offer cutting-edge hardware or easy customization, they do provide a smartphone experience without an onerous contract."

Comments

Can't wait..

[aero2600-5]

As soon as my early termination fee is low enough, I'm shitcanning AT&T and getting a pre-paid android. Probably going to go with Virgin Mobile. I've had success with them in the past.

Re:Can't wait..

[Anonymous Coward]

ESN blocks are carrier based, meaning switching carriers as long as the phone is comparable will often avoid a blacklist. That said, buying bad ESN phones is like clicking on spam, it only promote more unwanted abuse (theif, faking of lost phone for insurance) though there are legitimate cases (found phone again long after reported stolen, found lost phone but no way to contact original owner).

But yes, you can get a defective phone, but that applies to all used and new phones bought (though mostly used). You'll simply have to either rely on whatever return policy is in place and vendor reliability/review/rating available. Bad ESN does not equal bad hardware, so that basically constitutes fraud if not described as such.

My 3GS is prepaid with no onerous contract

[enjar]

Buy used 3GS for ~$150. Get GoPhone SIM. Insert in phone. Change APN if you want data. It takes three seconds.

Prepaid smartphone. No onerous contract. No jailbreak required. Works fine with iTunes and App Store.

Cheap compared to

[tepples]

Decent phone, and very cheap plan.

True, Virgin Mobile USA's $35 per month smartphone plan is "very cheap" compared to what the premium carriers charge, but it's still a lot more than the same carrier's cheapest dumbphone plan at $7 per month. I'd think the carriers would offer some way to gradually transition from a dumbphone to a smartphone. But Virgin Mobile USA's cheapest smartphone plan still provides ten times more voice minutes per month than I foresee using, given that most of my calls that aren't related to arranging a ride can wait for a land line whose bill I split with another member of the household. For someone who wants a smartphone as an upgrade from the combination of a dumbphone and PDA but isn't yet ready to pay $336 more per year, what U.S. carrier do you recommend? T-Mobile?

Re:I have an unlocked device.

[icebike]

I wish all phones were sold unlocked, and I wish all carrier subsidies were illegal.
The price of phones rises to absorb all the subsidy they can extract from the carriers.

The iPhone was a huge siphon, emptying AT&Ts pockets into Apples, making Apple the
richest company in sight on a phone that really does not cost that much to produce.
Now Apple are doing the same thing to the other carriers.

If people had to buy their own phones the net effect would be lower prices, or they would be buying other phones. Greece, like India doesn't allow subsidies. Apple isn't selling well there. If Apple cut its profit margin in half, they would open up vast new markets.

Some of the lower-to-mid level Android phones do well in those same markets.

Americans are forced in contracts?

[i ate my neighbour]

In actually free parts of the world, we can buy any smartphone without any contracts. Obviously, initial cost is higher but usually worth in the long run.

Re:I have an unlocked device.

[shutdown -p now]

The problem in US is that if you bring your own phone, your contract is not really any cheaper than if you got one from them with a contract - in other words, you're always paying the "subsidized" price, regardless of whether there's a phone to subsidize or not. That smacks of forced bundling to me, and given that all carriers do that, with the exception of T-Mo, it may well be regarded as cartel collusion to squeeze the customers.