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Snapshot of the US smartphone market and LG G3 sales

Aug 15, 2014 |

We conducted a channel check in the US (August 4 - 13, 2014), to get a precise idea of the state of mobile phone retail shortly after the LG G3 launch.  Our main observations are as follows.

Leasing a success story

Phone leasing programs have been in place for almost a year. They’re showing good traction. According AT&T sales associates surveyed "Next" is the most popular option among consumers.  In addition to paying for a phone of choice on a monthly basis, consumers receive network service discounts as part of the easy payment plan. This adds an additional purchase and loyalty driver.  Depending on the device selected, AT&T shows a grid of monthly payments vs. a two-year contract to highlight the financial benefits.  AT&T announced 50% of new smartphone sales in Q2 were “Next” sales. 
Verizon is also finding success with its "Edge" program. According to our survey among a small cross section of Verizon sales associates – the consensus was that around 65% of customers stick with a regular two-year contract while around 35% have moved to the "Edge" program.    
The leasing programs are designed for consumers who are eager to adopt the latest technologies.  When asked about traditional two-year contracts, store associates suggested that almost half of the customer base they interacted with were satisfied with a traditional two-year contract...


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