OnePlus launched its first foldable smartphone, the book-type OnePlus Open, on Thursday to enter the small but growing US foldable market. The new launch, which is now open for pre-orders, makes OnePlus the third OEM with a book-type foldable in the US market, competing with Samsung’s Galaxy Z Fold 5 and Google’s Pixel Fold. Motorola is the only other OEM that has foldable smartphones in the US market, namely the new RAZR and RAZR Plus, but these are clamshell-style foldables.

In 2022, US foldable smartphone sales accounted for just over 2% of overall smartphone sales in the country. The portion has grown further in 2023. Foldables are an important segment for the Android market as they are one of the few categories where we are seeing iOS to Android conversion.

The OnePlus Open is a strong contender versus both Samsung’s Fold 5 and Google’s Pixel Fold, as the company spent over a year on R&D with the help of OPPO. The new device is currently the lightest (239g) and one of the thinnest (5.8mm unfolded) foldables available in the US. It also supports one of the lightest hinges with only 69 parts made with various metals and materials to make the hinge lightweight but durable. OPPO will release the same phone as the Find N3 in other markets. Compared with the other two devices on the market, OnePlus is priced very competitively. It is $100 cheaper than its counterparts and has better or on-par top-line specs, aside from not having wireless charging.

A short review – a multimedia powerhouse with a strong camera and Open Canvas

Having personally tested the device over the last two weeks – the OnePlus Open holds up to the hype. The flagship specs make the device a breeze to use. The fingerprint sensor is snappy, the battery lasts a full day, and pictures turn out great, especially if you like the signature Hasselblad look.

OnePlus has also added a new feature called Open Canvas which enables multi-window operations and promises to be able to resize 95% of apps without weird, forced visuals or use adjustments. Up to three windows can be displayed on the screen at the same time.

OnePlus also added a desktop-like taskbar for easy application access. Unfortunately, it does not have a desktop mode like Samsung’s DeX, which would have enabled even more productivity with the device. There is no compatibility with the OnePlus Stylo either. However, the overall device was quite impressive and OnePlus’ commitment to make a competitive foldable flagship is commendable.

OnePlus’ foldable outlook – promising if branding efforts continue

The key for OnePlus will be getting the media and consumers’ attention with its Open since it is not being ranged in carrier channels. This is where the Pixel Fold and the Samsung Galaxy Z Fold 5 will have a leg up as over 90% of smartphone sales happen within a postpaid or prepaid channel sale. Selling open market is often challenging as consumers are used to getting “free” devices from carriers with an upgrade and/or trade-in or new line offer creating the illusion of bargains that are ultimately recouped by carriers via higher service plans or customer loyalty to a carrier.

OnePlus is offering some very competitive promotions on its website to gain a competitive advantage in the open market. Customers can trade in any device, any condition, and receive at least $200 off on the Open, and get up to $1,000 off. This matches Samsung’s Fold 5 trade-in value promotion while Google Fold’s maximum trade-in value is $590. Additionally, OnePlus is giving customers free OnePlus Buds Pro 2 ($150 value), offering 24 months 0% APR financing, three months of YouTube Premium, and a six-month Google One 100GB membership.

If OnePlus is able to get deeper into the public eye with its brand and new foldable, the device could become a strong contender in the still-nascent US foldable market. In the past, OnePlus has partnered with the Boston Marathon, Riot Games, and the UFC to get its name out to different customer segments. It needs to continue these efforts to drive potential customers to the open market sales channels for the device to be successful.

The OnePlus Open will sell unlocked and retail for $1,699.99 at OnePlus.com, Amazon.com and Bestbuy.com with pre-orders beginning on October 19 and a full launch on October 26.

The post OnePlus Launches Its First Book-type Foldable – The OnePlus Open appeared first on Counterpoint.

Apple Store sales for the iPhone 15 series started in the US on September 22, with people lining up outside the stores across the country to get their hands on the devices. This year felt a bit different compared to the previous three years –wait queues seemed to be much longer and more in-person shopping was done. Gone were the COVID-19 distancing measures and online-order pushes from Apple and carriers alike. Here are the five big takeaways from the sales launch day:

• Store traffic for Apple locations is up while carriers see limited uptake: It seems we are back to waiting in long lines to purchase new Apple products during launch season. Just like last year’s launch, Tim Cook opened the sales at Apple’s 5^th Avenue store in New York and greeted customers personally. Carrier stores, on the other hand, saw limited traffic and constrained iPhone inventory as Apple more tightly controls the supply during launch.

• iPhone 15 Pro and Pro Max are selling out or very limited quantity remains: As we have seen in previous launches, the Pro versions tend to have stronger demand as early adopters eagerly wait to upgrade their devices. The iPhone 15 Pro Max is the top model in demand.

• Delivery times are increasing, even for the base models: Demand for all iPhones has increased compared to last year. Apple is projecting delivery dates of October 4-9 for the iPhone 15 and 15 Plus models and October 23-30 for the Pro models on the launch day for the base memory configuration and black color models. In comparison, the iPhone 14 only had a slight lag of four days for delivery while the iPhone 14 Pro models saw delivery times in the 4-5-week range – similar to the iPhone 15 Pro models.
• eSIM issues have largely subsided: When Apple first came out with eSIM-only iPhones last year, there were many issues with the initial transition from physical SIM swaps to eSIM. Carriers had to massively adjust their activation process and due to the large demand for iPhones during the launch, there were some bottlenecks that caused long delays for customers waiting to have their numbers transferred. Store representatives say this year the process has been much smoother and quicker.
• iPhone 15 Pro Max is being heavily promoted as a gaming machine: Store representatives have been given several talking points around the iPhone 15 Pro Max’s gaming capabilities. From hardware-accelerated ray tracing and a new 6-core GPU to USB-C-enabled 4K gaming on an external monitor, the new Pro series devices are being pushed as viable alternatives to consoles and other Android devices alike.

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The post iPhone 15 Sales Launch Day: Pro Max Demand High in US appeared first on Counterpoint.

Apple has released its new iPhone 15 series, confirming the price increase for the Pro Max model by $100 in the US. This is the first time since the Pro series launched in 2019 that Apple has raised its prices. Apple’s carrier promotions have softened slightly compared to the iPhone 14 launch while trade-in values for N-1 devices (newest generation minus one, i.e. iPhone 14) have also decreased. Apple is offering better trade-in values for N-2 or N-3 devices compared to last year to help upgrade its older-generation base.

New pricing for Pro Max – Now at $1,199 for base model

The Pro Max price increase to $1,199 is mostly a result of an upgrade to a titanium chassis as well as a telephoto camera, which will allow for 5x optical zoom with a 120mm lens. The base model now also comes with 256GB of storage. This price increase may change consumer purchasing patterns and potentially have repercussions for Apple’s overall ASP as consumers may decide to purchase more affordable models this time around. It may be noted here that the 256GB iPhone 14 Pro Max also retailed for $1,199.

US promotions decrease slightly

US carriers Verizon, T-Mobile and AT&T generally have the same top-line promotions for the highest tiered plans on Apple’s website as last year’s iPhone 14 launch. This means that both AT&T and T-Mobile will offer up to $1,000 off on devices with a qualifying trade-in and eligible plan. Verizon remains the outlier, offering a discount of only $800. However, Verizon and T-Mobile’s lower-tiered plans have seen a decrease in value. This means that iPhone 15 promotions are slightly worse compared to last year, especially with the higher price of the iPhone 15 Pro Max.

This comes at a time when carriers are seeing historically low upgrade rates and smartphone purchases are being delayed as consumers continue to face economic uncertainty. Nevertheless, we believe the iPhone 15 has the potential to be another big upgrade cycle for Apple, especially for the iPhone 11 and iPhone 12 owners as they look to upgrade their three- to four-year-old devices.

Trade-in Values Have Decreased for N-1 Models, But Apple is Pushing its Older Base to Upgrade

Although the discounts offered have largely remained the same, the pure trade-in values of N-1 devices have fallen, again. When the iPhone 13 series launched, customers could get a maximum of $790 in trade-in value for their old iPhone 12 Pro Max. This trade-in value dropped to $720 for the iPhone 13 Pro Max when the iPhone 14 series released last year. This year’s iPhone 15 launch saw trade-in values drop to $650 for the iPhone 14 Pro Max as the highest-value trade-in device.

Compared to the years before, Apple is putting a stronger focus on offering better trade-in values for its N-2 and N-3 models such as the iPhone 13 series and iPhone 12 series. Trade-in values for N-2 models have increased 9%-28% YoY for this year’s launch. This also shows that Apple wants to incentivize customers to upgrade their older models to the latest iPhone 15 while signaling to the iPhone 14 users to hold off for now. In fact, these trade-in values could potentially be more attractive to customers than carrier deals, especially if they are not on the highest tiered plans available. This might lead to more customers purchasing an unlocked device directly from Apple rather than opting for a carrier promotion offered by Apple.

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The post First Price Increase of iPhone 15 Pro Max Since 2019: Apple Incentivizing Older Base to Upgrade appeared first on Counterpoint.

John Deere’s drive to innovate – a growing population and the need for more food resources

John Deere is trying to solve a major future problem. By 2050, the size of the world’s population will exceed 10 billion, increasing global food demand by around 50%. The company’s goal is to work towards a fully autonomous production system that will be capable of taking care of crops at the individual plant level, by giving each plant proper nutrients, water, soil and more. This would allow farmers to maximize both yield and production of crops.

John Deere had its first tech summit in Austin, Texas, at the beginning of April to showcase its latest agricultural and construction innovations and technologies. The analyst community was able to witness its latest See and Spray technology which enables farmers to pinpoint weeds using computer vision and machine learning and eliminate them swiftly. John Deere also demonstrated its new ExactShot technology that will enable farmers to plant seeds and fertilize only the area right around the seed, which will save up to 60% in fertilizer, thus reducing costs for the farmer while also significantly limiting the environmental harm. All these latest technologies rely on John Deere’s “tech stack” that the company has built over the years. From GPS to field mapping that allow tractors to drive in straight lines and even take turns autonomously, to its connectivity and digital twin solutions for remote monitoring.

John Deere’s long-term strategy – Leap Ambitions

In 2022, John Deere launched its Leap Ambitions Framework to unlock a $150-billion incremental opportunity and to measure its Smart Industrial Strategy – focusing on combining smart technology innovation with the company’s legacy of manufacturing excellence.

1. To expand the number of connected machines to 1.5 million by 2026, a significant increase from the 500,000 connected machines in 2022.
2. Demonstrate viable low/no carbon alternative power solutions by 2026.
3. Aim for 10% of total revenue to be recurring by 2030.

The company’s strategy involves increasing the number of acres that are connected via John Deere Operation Center, an online farm management system (farms using this system are known as engaged acres), to 500 million by 2026 from 329 million in 2022, with 75% of engaged acres sustainably engaged by 2030. In terms of its equipment strategy, the company will also ensure that 100% of new small agricultural equipment is connectivity enabled, offer electronic options, and deliver a fully autonomous battery-powered electric agricultural tractor by 2026. Lastly, John Deere’s construction and forestry segment will deliver 20+ electric and hybrid-electric product models and increase the adoption of various technologies by 2026.

Connectivity plays a major role in John Deere’s goals and the company still has an RFP out for a satellite provider that can provide it with 5Mbps download and upload speeds with under 500ms latency. This would be a fallback solution in areas where cellular connectivity is weak or has dead spots and is critical for the company to ensure as all of its autonomous solutions need connectivity to run.

John Deere is a prominent player in the global tractor market. In fact, the company holds a leading position in the connected agriculture space. According to the latest Connected Agriculture tracker by Counterpoint Research, John Deere’s 40% shipment share was the largest in the connected tractors market as of the end of 2022.

Competitive advantages – Pushing in innovation connectivity and sustainability

John Deere’s competitive advantage rests on a foundation of innovation, connectivity and sustainability. The company’s rapidly growing connected machine portfolio, strong focus on automation and EVs, expanding electric product lineup, and an unparalleled dealer network make it a leader in an increasingly technology-driven agricultural landscape.

• Connected machine portfolio: 53% of John Deere’s products can connect to the internet and the integration of cellular connectivity in 82% of these connected products propels farming into a new era of data-driven decision-making. This connected ecosystem enables real-time monitoring, remote diagnostics and predictive maintenance, ultimately boosting efficiency and productivity for farmers.
• Focusing on automation and EVs: Automation has been a key driver for John Deere’s product portfolio, enabling farmers to be more efficient and to do more with fewer resources. It is also making electric-powered choices available for all the different types of equipment. From tractors to small agriculture and turf equipment, the company’s focus on electrification is a strategic move that not only aligns with environmental concerns but also anticipates future regulatory shifts and consumer preferences.
• Extensive dealer network and retrofit services:

John Deere’s vast network of over 2,000 dealer locations across the US and Canada solidifies its competitive edge. With separate dealer groups catering to agriculture and construction/forestry, the company ensures tailored expertise for each sector. Furthermore, John Deere’s commitment to retrofit services and product upgrades demonstrates the company’s dedication to maximizing the longevity and value of its equipment. The substantial contribution of retrofits and upgrades, amounting to 18% of total equipment sales in 2022, highlights the company’s innovative approach to customer satisfaction.

Partnerships continue to be a strong driver for John Deere’s success

Overall, John Deere is making strides to further agricultural technology in a very steady and strategic manner. The company has been making the right investments. It now has more than 3,400 engineers, and has acquired companies like Blue River and Spark AI, and most recently Smart Apply, to help scale its tech solutions.

Below, we have shared some of John Deere’s most notable partnerships and brand acquisitions, which all synch up strongly with the company’s overall product development and strategy over time:

Conclusion

John Deere’s strength lies in its ability to execute diligently as it is the market share leader in the agriculture space, moving the market along at a pace that is comfortable for most customers. We expect John Deere to continue education efforts through its upcoming tech summits or future CES-level type sponsorships as it tries to establish itself as a household name in the tech space. John Deere has ambitious plans, but it has a strong roadmap to deliver on its leap ambitions and strategy. The company’s partnerships and brand acquisitions through the years further emphasize its commitment to innovation and growth.

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The post John Deere: Pioneering the Future with Agricultural IoT Technology appeared first on Counterpoint.

Smartphone OEM OnePlus launched its latest flagship OnePlus 11 globally at the Cloud 11 event in New Delhi on February 7, with viewing parties in New York and London. In addition to the new smartphone, OnePlus debuted the OnePlus Buds 2 Pro TWS, OnePlus Pad tablet, a mechanical keyboard and a sneak peek at a new concept device being revealed at MWC Barcelona. These announcement were made under OnePlus 2023 roadmap which it called 1+4+X. OnePlus, like Samsung’s Unpacked event, also featured a brief presentation from Google to showcase its partnership with the Chinese OEM.

1+4+X strategy

OnePlus is tightening and refocusing its strategy in 2023. There is no more “Pro” model and, instead, OnePlus is only offering one flagship model that has all the features a premium device should have. This is the “1” in its strategy – one smartphone model offering all flagship-killer specifications at an affordable price. The OnePlus 11 will cost $699 (in the US) for 8GB RAM/128GB storage and $799 for 16GB RAM/256GB storage, with pre-orders starting February 7 and sales opening February 16. OnePlus will not range the device at T-Mobile, choosing to go open market instead. The US carrier premium market is tough, with the entrenchment of Apple and Samsung, and even Google Pixel crowding the space. This is a difficult decision for the OEM, but the marketing money it saves will be used to strengthen its community outreach and lower the cost of the flagship device.

The OnePlus 11 comes with the latest Qualcomm Snapdragon 8 Gen 2 platform, 6.7-inch 2K 120Hz AMOLED display, up to 16GB LPDDR5X RAM memory, up to 256GB UFS 4.0 storage, 5000 mAh dual-cell battery and an 80W SUPERVOOC battery charger that charges the device from 1% to 100% in 27 minutes. It is also offering four years of Android updates and five years of security updates, a must since Samsung is offering this for all its flagship and mid-range devices. The camera system includes a Sony IMX890 50MP main sensor, IMX709 32MP portrait lens and IMX581 48MP ultra-wide camera, coupled with third-generation Hasselblad color calibration software. Having tested the OnePlus 11 for several weeks now, the device has solid battery life, and taking pictures with the new Hasselblad software is impressive, especially in low-light conditions. The device is snappy and responsive due to RAM-Vita technology, which uses AI and ML to allocate onboard storage to maximize memory.

Where OnePlus falls behind with the OnePlus 11 is the lack of wireless charging, which OnePlus says is not an issue with its GaN battery-charging technology. However, as a premium device, and especially with its newly announced OnePlus Buds Pro 2 that has wireless charging, the product messaging becomes muddled. The OnePlus 11 also only has the IP64 rating instead of the standard IP68. While the OnePlus 11 supports all US carriers for certain LTE and 5G bands, it doesn’t come with mmWave for Verizon. Overall, the OnePlus 11 is a solid flagship device. However, not having the device ranged at T-Mobile will be a challenge for OnePlus in 2023.

The “4” in OnePlus’ strategy refers to its ecosystem of TWS, TV, smartwatch and, now, tablet devices that will connect together. The OnePlus Buds Pro 2 has spatial audio technology in partnership with Google, LHDC 4.05 Lossless Hi-Res Audio, up to 48dB Adaptive Noise Cancellation, dual device connectivity and Google’s Fast Pair, 54ms low latency and Bluetooth 5.3LE for a smooth gaming experience. Like other new OnePlus devices, it also has Dolby Atmos audio along with Dolby Head Tracking technology. The battery life is impressive with 10 hours of playback and up to 39 hours with the case. It is available for $179, with pre-orders starting February 7 and sales opening February 16.

The other device announced was the OnePlus Pad, the OEM’s first tablet. It will be available for pre-orders in April. The tablet has an 11.61-inch screen with a 7:5-ratio screen and 144Hz refresh rate, powered by a MediaTek Dimensity 9000 chipset.

Lastly, the “X” represents products that will connect with the OnePlus ecosystem, such as the Keyboard 81 Pro, the OEM’s first mechanical keyboard. OnePlus wants to push the envelope within IoT and create its own ecosystem approach with seamless connection and integration between products.

OnePlus’ future in North America

The launch event underscored OnePlus’ strategy for North America with CEO Robin Liu emphasizing the launch of the OnePlus 11, OnePlus Buds 2 Pro and OnePlus Pad for the US market. The departure from the premium smartphone space at T-Mobile will be tough for OnePlus as it now doubles down in the prepaid space with its N-series devices at Metro by T-Mobile. However, OnePlus now has additional resources available to spend on marketing its brand and expanding mindshare with the money it is saving from not being in the premium T-Mobile space. This is likely the reason OnePlus is launching more IoT devices, as it takes a broader approach to the North American market.

More emphasis on community. Monthly community events, NYC pop up on Feb 11, and deeper collaboration with Qualcomm and Google. #Cloud11 this is a must for OnePlus to maintain and grow it's presence in North America pic.twitter.com/kz0CZW8x9D

— Maurice Klaehne (@MKlaehne) February 7, 2023

OnePlus has improved its overall messaging, but there are still areas that it can improve on in the future. The newest 1+4+X strategy makes sense but the messaging around the products could be more consistent still. Not having a “Pro” model but claiming flagship performance needs the inclusion of wireless charging, especially if you are marketing the Buds 2 Pro with wireless charging and a premium look and feel.

The North American market will be challenging for any OEM, especially in 2023 due to macroeconomic conditions. This is likely the best time for OnePlus to exit the premium space at T-Mobile, but in the long term, the OEM needs to re-enter this space to remain competitive and bolster revenue gains.

The post OnePlus Announces 1+4+X Strategy With OnePlus 11 Launch appeared first on Counterpoint.

America’s third-largest cable internet provider Cox Communications announced its Cox Mobile service during CES 2023. The service will run on Verizon’s network and be available for its 7 million broadband customers nationwide. Cox covers around 7% of US households, parts of 19 states and Washington DC. Cox is following the footsteps of other cable players, like Comcast’s Xfinity Wireless, Charter’s Spectrum Mobile and Altice’s Optimum. June 2022 saw the launch of WOW! Mobile, which runs on Reach Wireless.

Cable’s growing mobile presence

Cable companies have steadily increased their mobile subscriber penetration over the years. When looking at combined net adds, they have captured the highest amount of postpaid net-adds in Q3 2022, with 734,000 altogether between Xfinity, Spectrum and Optimum. Postpaid carriers like Verizon, AT&T and T-Mobile, while initially not concerned, are now starting to pay closer attention to cable players as they continue to have strong subscriber growth. This trend is being boosted by the US’ current socio-economic conditions, as customers are trying to save money wherever they can. Cable players utilize a bundling approach for their mobile services by combining the deals with their internet services. This provides cost savings and fewer service providers to manage every month.

Cox Mobile launches two service plans and Samsung device lineup

Cox Mobile is offering two plans, just like other cable providers. The first plan is a by-the-Gig plan for $15 per month, while the other is an unlimited offering for $45 per month. During a press event, Cox Mobile Assistant Vice President of Marketing Catherine Borda de Castro and Vice President Tony Krueck emphasized the unrestricted ability to switch between the two plans to offer the most flexibility and savings possible. For a single line, when you compare Verizon’s lowest 5G unlimited plan, “Welcome Unlimited”, at $65 per month (that is with auto pay and paper-free billing), with Cox Mobile’s $45 per month unlimited plan, yearly savings amount to $240, making a very compelling case for consumers looking to reduce monthly service costs.

The current mobile phone offerings are limited, but Cox says it will launch more flagship devices in the coming months. Currently, Samsung is the only brand being offered, with devices like the A13 5G available for $199.99 ($50 off) and the S22 for $499.99 ($300 off) until January 31. The likely reason for this is Cox’s need to have devices switch seamlessly between Wi-Fi and the cellular networks it supports, which may require some changes to existing device infrastructure and software. Another potential reason is that smaller OEMs might be hesitant to join at the start as the unit economics and ROI still need to be proven out for a company that wants to break into the mobile space. Cox already tried to enter the market in 2011 but shuttered the efforts as it found it was not able to be competitive within the market back then.

Leveraging networks, between CBRS and Wi-Fi calling

While Cox does hold some spectrum in the CBRS space, it has not deployed or utilized the assets yet. Like Comcast, Cox could potentially begin installing small cells in key metropolitan areas to offload traffic from Verizon’s network, which would save the new MVNO millions over the long run, as it wouldn’t need to pay to use Verizon’s network for connectivity. Along the same lines, Cox will use its over 4 million hotspots to offload traffic from Verizon’s network. Cox does not own all these hotspots, instead it collaborates with other cable and internet service providers including Optimum, Spectrum and Xfinity to achieve nationwide coverage.

Cox Mobile to go big on marketing – Annie the sheep and Super Bowl

Cox promised to heavily begin marketing its offerings during major sporting events, such as upcoming NFL games and the Super Bowl. It showcased its marketing campaign, which will revolve around Annie the sheep, not only a representation of Cox Mobile’s brand and vision but also an embodiment of its customer base and values.

Annie the sheep will represent @CoxComm as it's mobile mascot, representing the brands values and customer voice. @TheGEICOGecko watch out! pic.twitter.com/bRXkvhbF3o

— Maurice Klaehne (@MKlaehne) January 5, 2023

What Cox Mobile means for mobile industry

Cable players will likely continue growing their mobile subscriber base, especially in these recessionary conditions as people look for value and cost savings. This will put additional pressure on postpaid carriers, which have been bleeding subscribers to cable players over the last years. There is hesitancy in the industry, especially OEMs, to go all-in on partnerships with Cox Mobile, as it is a new brand with no mobile customer base. The US smartphone market is already facing weakness due to the economy, inventory glut, and COVID-19 closures of factories in China. This makes additional investments into new markets challenging for many OEMs.

The initial quarters after the launch will be the key for Cox Mobile to begin getting mobile subscribers and prove to the market that further investments and collaborations will be fruitful in the long run. Strong Q4 earnings announcements and net-adds from Comcast, Charter and Altice will help Cox Mobile. It will likely benefit from a halo effect, as Xfinity and Spectrum are showing good mobile penetration already, at 15% of their subscriber base. Operating margins will also be a key factor to watch since it will reveal how well Cox can utilize its wireless hotspots to offload cellular traffic. Look for Cox Mobile to follow similar playbooks of other cable players in 2023, but with some distinct differentiation such as seamless rate plan switching and a cleverly thought-out marketing campaign.

The post Cox Launches Mobile Service in 19 US States to its 7 Million Subscribers appeared first on Counterpoint.

Gaming phones have remained a niche product in the US for years despite carrier efforts to include mobile gaming aspects into their portfolios and services. Back in 2018, AT&T was the first to include a gaming phone, the Razer 2, as part of its product portfolio. Sales were weak, however. According to the US Monthly Sell-Through Tracker, Razer did not reach higher than 1% market share in sales within AT&Ts portfolio during the device’s tenure. Since then, most attempts by carriers to highlight mobile gaming have focused on cloud mobile gaming services like GeForce NOW or the now-defunct Google Stadia. More recently, Verizon has announced a new partnership with Razer and Qualcomm to bring a new handheld called the Razer Edge 5G in early 2023. For the most part, gaming phones have remained on the sidelines, only available in the unlocked market.

Gaming phones’ influence on market

While gaming phone sales have been a fraction of those seen by the latest Apple iPhone or Samsung S series devices, they have a big impact on design choices for more mainstream devices. We continue to see mainstream OEMs putting more gaming features into premium flagships, such as higher screen refresh rates up to 144Hz, gaming-optimized modes and vapor cooling technologies. Smartphones with a refresh rate of 90hz or higher made up less than 15% of total smartphone sales in Q3 2022 and we expect this penetration rate to increase in the future as more OEMs implement this feature on both high and low-end devices. Qualcomm’s Snapdragon Elite Gaming portfolio with Variable Rating Sharing Pro and Volumetric Rendering are additional options for OEMs to choose from when launching a new device.

Nubia Red Magic 7s Pro: Latest gaming phone to enter US

The Red Magic 7s Pro came out just three months after the Red Magic 7s made its debut and is one of the more recent gaming phones that have entered the US market. Nubia is a sub-brand of ZTE and Red Magic smartphones are specifically designed for gaming. The brand has been very aggressive with its product launch cycles, having released 16 Red Magic branded devices in the last four years. Having had the opportunity to use the device for a few weeks now, the phone feels refreshing from a feature perspective compared to the more popular flagship options available in the US market.

The cooling fan can be directly enabled on the home screen.

The Red Magic 7s Pro comes with the latest Qualcomm Snapdragon 8+ Gen 1 processor and features a dedicated gaming chip called Red Core 1. It has a 5,000mAh dual-cell battery, and a 65W charger for rapid charging. There are two configurations to choose from – 12GB RAM with 256GB storage for $729 and 18GB RAM with 512GB storage for $899.

The smartphone has a high-speed cooling fan that can run up to 20,000RPM and a multi-layer cooling system called ICE 10.0 that is made up of different components to keep the device cool when playing graphics-intensive games. It also comes with a 6.8-inch AMOLED screen with 120Hz refresh rate, 20:9 ratio, 1080*2400 resolution, multi-finger 480Hz up to 960Hz touch sampling rate, and a screen-to-body ratio of 92.7 due to the inclusion of the first under-display camera in a gaming phone. Red Magic promises up to two years of security updates but only one Android version update.

Like previous Red Magic devices, there are two shoulder triggers that mimic controller triggers with 520Hz sampling giving a response rate as fast as 7.4ms. This is very unique to gaming phones and gives them an edge over the average smartphone due to the ability to have more controls while gaming. However, it would have been interesting to include ways to utilize these shoulder triggers more outside of gaming. In the past, we’ve seen Apple utilize the Apple logo on the back of the iPhone as an added button or Pixel devices using Active Edge, a way of squeezing a phone to launch Google Assistant.

While in a game, simply swipe from the top left or right corner to get to the Game Space HUD to enable different gaming modes, configure the shoulder triggers, start a screen recording, or even take notes.

Camera performance needs improvement, a common theme among gaming phones. To optimize screen real-estate, there is an under-display camera with 16MP resolution. It works fine for basic selfies, but images tend to have a lot of background noise and there are issues with lens flare and refraction due to the under-display nature of the camera. At the back, you get a triple camera set-up comprising a 64MP main camera, an 8MP ultrawide camera and a 2MP macro camera. The 64MP main camera stands out for taking solid portrait shots and Red Magic’s software helps with subtle improvements through edge detection and background blur features. Cameras are never a big selling point on gaming phones, but OEMs could possibly optimize their software more to further enhance image quality.

Overall, the key highlights of the device are the very fast and responsive shoulder triggers, the small but mighty cooling fan and the implementation of the UDC to get more screen real estate for an improved immersive experience. These features certainly make the device stand out as a gaming phone rather than just a flagship device. However, the phone does have its drawbacks. The device is bulky and lacks the finesse and design aesthetics found in flagship devices. Lastly, it doesn’t come with other premium features we have come to expect with the latest flagships, like multiple Android version upgrades, wireless charging, and waterproofing. The latter two are admittedly hard to do, when you dedicate space to a whole cooling fan as design trade-offs need to be made for gaming optimized devices.

Will gaming phones grow?

The Red Magic 7s Pro is very impressive, packed with useful gaming features and a welcome change from the regular flagship line-up found in the US. However, the design and form factor clearly focus on hardcore gamers. At a price point of $800 in the unlocked market, it also remains a very expensive device for most US consumers. The US market is primarily carrier driven, which heavily discounts devices through promotions and trade-ins. Gaming phones will need to carve out a spot in carrier portfolios to truly gain traction, but if the past is any indicator, it is not going to be easy.

Branding remains a big hindrance as gaming phones are often backed by known gaming brands like Asus ROG which may be recognized by gamers but not the general public. There are now also flagship alternatives like the OnePlus 10T available that have sought to create a more hybrid phone – optimized for gaming but without the gaming look. This creates additional competition and drives gaming phones further into their niche. If a more recognizable brand gets into gaming, it could broaden market interest and, along with a reasonable price point, open up a more casual gaming market. This could become the perfect excuse for parents to get their children a phone and not have to also purchase a separate gaming device.

* Key Southeast Asia countries include Indonesia Thailand Philippines and Vietnam

The post Nubia Red Magic 7s Pro Review: Powerful Specs, Gaming Features, But Niche Identity appeared first on Counterpoint.

Verizon had a strong quarter in terms of revenue growth

• Total wireless service revenue grew to $18.8 billion, a 10.0% YoY increase primarily driven by administrative fee increases that took effect in June 2022. Wireless postpaid consumer customers saw an administrative charge increase of $1.35 per voice line to $3.30. For businesses the amount of the charge is $2.20 per month per line for each smartphone and data device, and $0.98 per month per line for each feature phone and tablet device. This was called an “Economic Adjustment Charge”.
• Business wireless service revenue grew 5.7% YoY. Verizon continues to lead in business subscribers, owning over 45% of mobile B2B subs. Revenue growth was attributed to a strong uptake in business subscribers, up 5.5% YoY, now at 17.8 million wireless retail postpaid phone subs.
• Equipment revenues also grew to $6.6 billion, up 22.9% YoY driven by a stronger upgrade rate of 4.7%, up 0.4 basis points YoY. Promotions for Samsung’s new foldables and the latest iPhone 14 helped achieve this higher upgrade rate. According to preliminary estimates for Q3 2022 from Counterpoint’s US Channel Share Tracker, Verizon’s share of sales of $800 and above smartphones was more than 60%, compared to below 40% in Q3 2021.

Wireless retail postpaid phone churn climbs to .92% from 0.74% in Q3 2022

• As expected, due to the Economic Adjustment Charge, Verizon posted a consumer postpaid phone churn of 0.88% and business postpaid phone churn of 1.10%. Both went up YoY but the consumer segment saw stronger increases.
• Higher churn saw net adds also drop to just 8,000 postpaid phone subscriber additions in Q3 as the consumer segment saw a loss of 189,000 postpaid phone subs while the business segment saw 197,000 postpaid phone subscriber additions.

Source: Verizon Earnings Statements

Business growth a bright spot for Verizon

• Business revenues and subscriber growth has helped Verizon weather the current headwinds well. Unlike the consumer segment, businesses tend to have fewer choices of providers, making switching more difficult. This has benefitted Verizon on the business side. The increase in administrative fees had a greater (negative) effect on the consumer side.
• Verizon sees continued positive momentum for its business segments in government, enterprise, and SMBs due to the need for increased mobility among the workforce. Work from home trends have helped Verizon during COVID-19 times, but it remains to be seen how much this trend will continue in the long-term.

Fixed wireless access momentum continues with 342,000 net adds in Q3 2022

• Consumer FWA net additions were 234,000 while business FWA contributed 108,000 net adds.
• There are now more than 40 million households covered by Verizon’s fixed wireless in Q3 2022, including over 30 million households covered by mmWave 5G, dubbed 5G Ultra Wideband.
• Verizon also launched FWA in prepaid through Straight Talk in Q3. Straight Talk Home Internet is a new service which uses Verizon’s LTE and 5G networks for $45 per month with download speeds promised between 20-100Mbps. A Home Internet Router has a one-time fee of $99.99 and is available at Walmart.

Prepaid segment saw the first positive Tracfone net additions since Q1 2021

• Prepaid had a gain of 39,000 net additions in the quarter, 34,000 of them from Tracfone brands. There are now 23.1m prepaid connections.
• In addition to launching an FWA program in prepaid, Verizon also launched a new prepaid brand called Total by Verizon. This will sit in-between the low-end Tracfone value offer and the higher-end postpaid services to give consumers a high-end value option.

C-band 5G build out is faster and better than expected

• Verizon is well on track to hit 175m POPs by the end of the year, having eclipsed 160 million in Q3. It also expects to hit 200 million in the first quarter of 2023.
• In Q3 2022 nearly 53% of its postpaid wireless phone customers having 5G-capable devices. According to the US Channel Share Tracker, over 90% of sales made in Q3 were 5G-capable phones compared to 70% in Q3 2021.
• In terms of guidance on deployment expenditures for the company’s C-Band 5G network, Verizon continues to expect to spend $5 billion to $6 billion in 2022.

Outlook for Q4 2022 and full year 2022

• Verizon’s overall 2022 guidance has remained the same with a projected wireless service revenue growth of 8.5% to 9.5%.
• In Q4, it will need to manage the increased churn, especially in the consumer segment. New iPhone 14 sales and promotions will help with this, as well as improved network infrastructure through its C-Band deployments.
• FWA and business momentum will likely continue, especially with the expansion of FWA to more segments and the current work from home climate.
• Verizon announced an organization restructuring with goals of cutting $3 billion in costs. AT&T has also started cost cutting which included almost 3,000 jobs.

The post Verizon’s Q3 2022 earnings focuses on revenue gains as customers churn away appeared first on Counterpoint.

Google’s Pixel series has long been a favorite of Android enthusiasts looking for a pure Android experience without the bloatware that some other OEMs have with their own skins, apps and features. The Pixel series was created to showcase cutting-edge Android capabilities, many of which are deemed “Android firsts” before being implemented by other OEMs. The latest Pixel 7 series builds on this legacy by including Google’s latest G2 Tensor chip, improved camera hardware and software enhancements, and new security features that Google promises will become available to other OEMs in the future. During the Made by Google event, aside from the Pixel 7 and 7 Pro, a new Pixel Watch and Pixel Tablet were also announced, with more news about the tablet coming in 2023.

Pixel sales – a balancing act to promote Android

Google is walking a fine line with its Pixel series. It wants to promote Android as much as possible, but it doesn’t want to take away share from other Android OEMs. The US accounts for almost 50% of all Pixel sales and current target countries are very limited – namely Canada, United Kingdom, France, Germany, Australia and Japan. Google could increase its reach to more countries, but this also has its costs by potentially displacing smaller OEMs in these countries. With the Pixel 7 and 7 Pro, Google has added a few key markets, keeping this balance in mind. Devices are now available in USA, Canada, Singapore, Japan, Denmark, Italy, Taiwan, Germany, Australia, Sweden, India, United Kingdom, Netherlands, Norway, Spain, Ireland, and France.

This is also why throughout the years, Pixel has gained in mind share but not necessarily in market share. While in Q4 2021 Google acknowledged that it had an “all-time quarterly sales record for Pixel”, the last years have been difficult for the OEM due to COVID-19 shutdowns, supply chain issues and demand drops. The OEM’s market share remains below 5% in the US and global sales are even lower. This has been a puzzle for many enthusiasts and media given the continuous R&D Google is investing in its Pixel series.

What Google wants to do is stop or at least stem the slow but steady stream of Android to iOS migration. But, even as it attracts some iOS users to try out the device, more shift to Apple as shown in our USA Activations Tracker below. This pattern has many Android OEMs concerned.

Pixel 7 and 7 Pro – the main event but Pixel Xa models drive growth

From the Pixel 3a to the Pixel 6a, Google’s mid-tier device offerings sustained sales performance. For flagships, the latest Pixel 7 and 7 Pro models will demonstrate the latest and greatest out of Google’s R&D labs. The second-generation Tensor chip doubles down on Google’s AI and machine learning prowess, while also helping Google continue its strong camera performance. Specifically, the G2 Tensor chip promises 60% improvement in machine learning and 20% improved efficiency with Google’s custom TPU. Security was also strongly marketed through features like Face Unlock and Fingerprint Unlock as well as  built in VPN by GoogleOne and five years of security updates. The new devices will also come with parts made out of recycled aluminum as part of Googles drive to use recycled or renewable materials for at least 50% of the plastic used across hardware products by 2025. At price points of $599 and $899, they again represent an affordable alternative to other more expensive flagships. Both devices will be available at Verizon, AT&T, and T-Mobile at launch. However, Google’s success in the premium tier is largely driven by device launch momentum and holiday sales, as historically launches for flagship devices have happened in October. The momentum slows in the first quarter. In the US, Google has a particularly hard time gaining share in premium sales due to Apple and Samsung’s dominance. The Pixel 6a and its predecessors, however, have had more sustained success in selling as the mid-tier market is less brand loyal and opts for more “bang for your buck” choices.

Google Watch – an ecosystem approach within the Android ecosystem

Google wants to demonstrate what an Android ecosystem can look like, not just for between a watch and a smartphone, but also the smart home and beyond. Google’s foray into wearables with the Pixel Watch has been hotly anticipated, but many are asking now if it is too little, too late. It is not. Strategically priced at $349.99 for Wi-Fi and $399.99 for LTE, the Watch will sit among competitors from Samsung, Garmin and others. However, the Watch should not be seen as a direct competitor to other Android OEMs. Instead, Google is likely trying to take a page out of the Pixel book, by showcasing what a Wear OS watch can be capable of, with a special focus on sports and fitness to begin with, as seen with the new Fitbit heart rate monitoring integration efforts and 6 months of Fitbit premium for free.

Google’s success is defined by Android’s success

Google’s growth ambitions are not just for itself but for Android as a whole. Of course, it wants to make (and sell) a strong and competitive product, but it does so in the name of overall Android growth and not just its own. Google is invested in the success of all Android OEMs and will continue to walk this path with the latest Pixel 7, Pixel 7 Pro and Watch, showcasing Android’s strengths and innovations to the best of its ability.

The post Pixel 7 and Watch: Made by Google Showcases Android Greatness, Attempts to Check Shift to iOS appeared first on Counterpoint.

• Inventory is much improved over last year’s launch which was affected by component shortages
  • At opening, many Apple stores still had plenty of inventory for those looking to purchase iPhones as walk-ins, although the supply is waning now and some Pro Max models are on back order at carriers. This was very different compared to last year where customers often had to have devices shipped to them during the launch period due to shortages.

Sources: Apple.com, carrier websites

• iPhone 14 Pro Max and iPhone 14 Pro lead early sales
  • Early adopters and upgraders continue to opt for the Pro models instead of the base iPhone 14. This is typical for the early months of a new iPhone launch. Many are upgrading from older devices such as the iPhone X series. Fewer are upgrading from the iPhone 13 Pro series. The new deep purple color is a forerunner for color choice.

• iPhone 14 – early upgraders are hesitant
  • Apple store and carrier reps will have a hard time convincing iPhone owners to purchase an iPhone 14 as it is almost identical to the $100 cheaper iPhone 13. Some of the improvements are an additional core on the A15 bionic chip, a 1.6% bigger battery, a slightly wider F1.5 aperture 12MP rear camera, along with crash detection and Emergency SOS via satellite (which hasn’t rolled out yet).
  • Savvy customers will know these differences and either hold off or go for the iPhone 13 instead. Reps may also advise iPhone 13 users not to upgrade, especially in cases where devices still need to be paid off or no tangible benefit can be found for an upgrade.
• Carrier pre-order deals are similar to last year, but Verizon not the forerunner anymore
  • Verizon, AT&T and T-Mobile have similar pre-order deals compared to last year, offering up to $800 off for the base model and up to $1,000 off for the Pro series devices with trade-ins and unlimited plans. Verizon’s iPhone 14 Pro promotion offers another $200 via e-gift card for switchers. This is worse compared to last year when it offered an extra $500 via Prepaid Mastercard.
• Apple store trade-in values are less competitive than last year
  • The highest trade-in values for Apple phones this year are $720 for an iPhone 13 Pro Max and $600 for an iPhone 13 Pro. Last year’s offers were better at $790 for an iPhone 12 Pro Max and $640 for an iPhone 12 Pro. Lower trade-in values make Apple’s own promotions weaker year over year.

Source: Apple.com

• eSIM woes a mixed bag
  • Having eSIM-only iPhones was a big point of concern for reviewers and media as it makes switching from multiple SIM cards more difficult, especially when travelling in other countries where eSIM isn’t as widespread.
  • People who are looking to purchase a US iPhone and send it to someone abroad are also more hesitant to do so with the iPhone 14.
  • eSIM activations have been going smoothly at carrier store locations, according to reps. However, there are complaints coming from people trying to transfer their eSIMs over themselves, as this is a new and unfamiliar process for many. In addition, iOS 16 introduced a bug that impacted new device activations, which required a firmware update to iOS 16.0.1 to fix the issue.
• Store traffic is managed by Apple’s appointment system
  • Apple has followed a system for several years now where people need to book an appointment to purchase a device. The long lines we see now are for those looking to grab an appointment spot to purchase a device. The hype of previous iPhone launches is more subdued in today’s environment.

Conclusion

The iPhone 14 series is off to a strong start, especially for the iPhone 14 Pro and Pro Max. It remains to be seen how the iPhone 14 stacks up compared to the similarly spec’d and more affordable iPhone 13. However, the success of the iPhone will likely continue despite the current state of the economy as Apple products are more shielded from inflationary pressures and consumers continue to see strong promotions to help sell devices.

The post iPhone 14 Pro, Pro Max Lead US Sales in Latest Apple Launch Day appeared first on Counterpoint.

The new OnePlus 10T comes in Moonstone Black and Jade Green

The launch event was spread over two days of presentations and meetings with the OnePlus leadership team. The first day focused on a high-level global business update, highlighting continued growth in sales in North America and India, as well as showcasing the latest Snapdragon 8+ Gen 1 and the new OxygenOS 13 (first coming to the 10 Pro and then the 10T later this year). The second day was the actual launch event of the OnePlus 10T with some additional announcements such as a new partnership with Worlds 2022, a tournament for the League of Legends e-sports season; OnePlus expanding its presence in Thailand and Malaysia through new model launches; and a new 80W car adapter.

Refocusing the brand’s messaging to a two-device strategy

The last “T” variant of the OnePlus series was the 8T. The 9 series skipped the T variant, which is generally a more mid-range flagship smartphone. Ever since OnePlus made a more concerted effort to go for the premium price bands with its devices starting with the OnePlus 6 in 2018, it has had a hard time sending a clear message as it went with a line-up of four premium SKUs. The different options and price points, and even special editions (McLaren edition, Cyberpunk edition), sent a confusing message to consumers, especially new ones who do not have a lot of brand awareness of OnePlus and might find the plethora of offerings too much to take in.

History of OnePlus flagship launches from 2014 to 2022

With the latest OnePlus 10 Pro and new OnePlus 10T, this messaging has been streamlined and simplified for the consumer. With the OnePlus 10 Pro, you get a high-end flagship with all the bells and whistles, while with the OnePlus 10T, you “evolve beyond speed” to get a slightly lower-priced model that is optimized for gaming and quick battery charging. This is helpful for consumers who don’t know the OnePlus brand and need quick-hitting facts to get a powerful initial impression of both OnePlus as a brand and as a device. OnePlus does not currently have the luxury of having multiple SKUs like Samsung, which can fall back on its brand awareness to get consumers interested in devices. A lesson that the OEM is implementing with the 10 series.

Competitive pricing but at a cost

However, issues with pricing remain. The OnePlus 10T sits at a very competitive $649 with the latest Snapdragon 8+ Gen 1, 150W (125W in North America), 6.7’ OLED screen with 120 Hz refresh rate, 4,800mAH battery, vapor cooling system, 50MP main/8MP ultrawide/2MP macro camera, up to 16GB of LPDDR5 RAM and up to 256GB of UFS 3.1 storage. Some spec sacrifices had to be made, of course, to achieve the lower price, with the most talked about one being the lack of the alert slider. The Hasselblad software and branding is also missing, as well as the telephoto lens, wireless charging, and the dynamic 120 Hz refresh rate that the OnePlus 10 Pro has.

Summing it all up, the OnePlus 10T’s big differentiators include:

• Snapdragon 8+ Gen 1 chip: Boasts an improved Qualcomm Adreno GPU with up to 10% faster GPU clock speeds and support for HDR gaming, with a 30% improvement in GPU power efficiency.
• Next-generation 3D cooling system: A cryovelocity vapor chamber with eight dissipation channels to help with overheating issues that have plagued previous OnePlus models.
• HyperBoost gaming engine: Includes a GPA Frame Stabilizer that reduces frame rate fluctuation when gaming. GPU Load Control improves the efficiency of graphics rendering.
• LSTouch: Gives a 1,000 Hz instant touch sampling rate to improve responsiveness when gaming.
• 150W SUPERVOOC charging: Enables the 4,800 mAh battery to charge fully in only 19 minutes, with 1,600 battery cycles guaranteed with battery health staying above 80%. In the US, the charger will come in a 125W variant. OnePlus also frontloads the first 10 minutes of charging, promising enough charge for a full day.
• Improved camera performance: Except for the 2MP macro lens, which is a downgrade, the 10T comes with a 50MP Sony IMX766 sensor with optical image stabilization (OIS), a new Nightscape 2.0, and improved HDR performance.
• 360-degree antenna system: Fits the 10T with 15 antennas to help with signal strength, especially when gaming and holding the phone horizontally.
• OxyGenOS 13 (when it is finally available for the 10T): Sports an Aquamorphic design aesthetic with an always-on display and AI system booster to help memory management for more stable performance. It also comes with Snapdragon Sound-enabled spatial audio, and Dolby Atmos, faster audio switching and pairing, and a new sandbox privacy feature called Privacy Safe 2.0.

With the launch of the 10T, OnePlus also dropped the price of the OnePlus 10 Pro by $100 to $799 in the US, putting the two devices just $150 apart. For comparison, the OnePlus 9 Pro and 9 were priced at $969 and $729 respectively at launch, which was better in terms of price differentiation. But then there were issues with messaging around the ideal users for each device. Now, with the very close pricing for the OnePlus 10 Pro and 10T, there will likely be some confusion for users, who often use price as a differentiating factor between models. This will be especially true for those who want to go for the 16GB/256GB OnePlus 10T variant which will cost $749, just $50 less expensive than the 10 Pro base model.

The OnePlus 10 Pro and OnePlus 10T side by side

Going back to flagship-killer roots

OnePlus is doing its best to take up the flagship killer moniker once again with the OnePlus 10 series. While this messaging was not fully expressed at the launch, it was clearly there if you read between the lines and as you look at the two devices and the price points they are offered at. Talking with OnePlus, it promised that the flagship-killer point would be more emphasized in its upcoming marketing campaigns.

A better path forward

OnePlus is still a young company in the US and is certainly still growing. According to Counterpoint’s Market Monitor Service, its US market share has hovered around 2%-3% in recent quarters. Much of the initial growth was largely due to the impact of low-end LTE and 5G devices such as the N100, N200 5G and the N10 and N20 series at T-Mobile and Metro by T-Mobile. The missing piece for OnePlus for further growth lies in the expansion of its premium market share, where the OEM has struggled in the past. The OnePlus 10 T and 10 Pro give the OEM a much better shot at gaining some share from other Android players like Google or Samsung. Even iPhone users may find some interest as OxygenOS 12 began making nods to iPhone software via a similar Control Center swipe-down feature to access the OnePlus Shelf. OnePlus is also trying to work more with T-Mobile reps, having even invited some to the launch event to help bring more brand awareness to those boots on the ground who advise and sell phones to customers daily. OnePlus’ path to success won’t be easy in the US market, but the new two-device premium and gaming approach, combined with its big marketing pushes in both e-sports and sports, feels more purposeful than previous launches. We continue to monitor OnePlus closely.

The post OnePlus Bets Big on 10T to Take Premium Segment Share appeared first on Counterpoint.

However, during the same period, smartphone CPI declined 20% YoY. In fact, taking December 2019 as the base period, we have seen smartphone pricing decline almost every month. What does this all mean?

Looking at these numbers don’t tell the full story. While the CPI does provide a good indication of inflation, when looking at the goods and services measured, it ignores the role of promotions and discounts in reducing prices. Though the smartphone market has been fiercely competitive, full retail prices for smartphones have increased over the last several years if we ignore promotions and discounts.

5G rollouts heighten carrier competition, sweeten deals

• Carrier promotions have increased over the years as they try to grab subscribers from each other and get more subscribers on their 5G networks.
• AT&T has pledged a promotional strategy that gives both new and old subscribers the same deals, eliminating the surprise price increases that consumers often face after promotional pricing runs out.
• Verizon has been very aggressive with its trade-in offers, even allowing for broken devices to be traded in for full value at times.
• T-Mobile has been touting its Great Free 5G Phone Upgrade program and other promotions for well over a year. We have not seen promotions cool in 2022 yet. Instead, they are better than in 2021 in many cases.

Improvements in smartphone design, components raise prices

• Since the introduction of first 5G smartphones in 2019, we have seen full retail prices for devices increasing due to the added cost of 5G modules and increases in other specs to optimize 5G technology.
• In addition, foldables entered the market at very high retail prices and have continued to remain a premium product.
• Lastly, due to the component shortages of 2021, there was a lack of LTE chipsets, which drove up costs for manufacturers as they had to pay for higher-priced 5G SoCs.
• According to Counterpoint’s USA Channel Share Tracker, wholesale prices increased by about 20% YoY in Q2 2022.

Will we see prices increase in future?

• Japan’s yen recently depreciated an almost unprecedented 20% against the US dollar, making Apple and even the carrier Rakuten raise iPhone and other Apple product prices by 20%-40%, stirring up concerns of price hikes in other countries.
• In the case of Japan, many were buying these iPhones and trying to resell or ship them to other markets. The price increase took this into account.
• In general, Apple pricing and volumes are locked in by carriers and rarely change in most countries. This sort of price increase in the middle of a sales cycle will likely be more rare in other economies and highly dependent on further unprecedented currency depreciation.
• Supply chain and logistics costs may increase smartphone prices in the future. However, so far, these have not been passed on to the consumer in the US. Carriers are absorbing these costs by increasing services and other fees.

The post 20% YoY Decline in US Smartphone CPI Hides True Rising Costs of Devices appeared first on Counterpoint.

Previous years have had a greater focus on software development for Apple’s iOS, iPadOS, macOS and WatchOS. But this year, Apple has given hardware updates, featuring news about its latest Apple Silicon M2 chip, and updates to the MacBook Air and MacBook Pro.

Apple’s latest WWDC has only furthered its walled garden approach by more deeply connecting different iOS products through an emphasis on collaboration, productivity and sharing.

The following are the key takeaways from the announcements:

Next-generation Apple Silicon begins with the M2 chip in MacBook Air and MacBook Pro

• Apple’s M1 chips received an incredibly positive reception from the tech community. The M2 chip is built on 5nm technology with 20 billion transistors, providing an 18% faster CPU, a 35% more powerful GPU and a 40% faster Neural Engine compared to the M1 of last year. It also has 50% more memory bandwidth compared to the M1, and up to 24GB of fast unified memory. It also includes a higher-bandwidth video decoder, supporting 8K H.264 and HEVC video.
• The M2 chip will first launch with the MacBook Air and MacBook Pro. The MacBook Air was redesigned and now measures 11.3 mm thin and weighs just 2.7 pounds. It still has a fan-less design, supports 18 hours of video playback and has a larger 13.6” liquid retina display with 500 nits brightness. The MacBook Pro seems to have received more minor upgrades through the M2 chip. Both will be available for purchase starting in July at a price of $1,199 and $1,299 respectively.

New iOS 16 features focus on customization, communication and deeper ecosystem integration

• iOS users can now customize their lock screen with new filters, widgets and real-time feeds. Apple is now making it easier to share content between users through a new Shared Photo Library on iCloud, expanded SharePlay functionality, allowing shared Safari Tab Groups between users, and an upgrade to Live Text, Apple’s Google Lens competitor, to more easily capture text from images.
• In terms of deeper ecosystem integration, Apple Wallet received several updates such as Tap to Pay, which enables iOS users to pay phone-to-phone and skips the use of a POS terminal. There are more partners which will accept ID cards stored in Apple Wallets. Also, the ID in the Wallet can now be used in instances where ID verification is necessary. Digital key cards are also now more easily shareable. Apple Pay Later splits the cost of a purchase across four payments over six weeks for US users. Apple Wallet can also now track orders of devices bought via Apple Pay Order Tracking with participating merchants. CarPlay showed off what next-generation vehicles (said to be launched in late 2023) will be capable of by deeply integrating with a cars hardware. CarPlay will be capable of interfacing with vehicle data to render the speed, fuel level, temperature and more on the instrument cluster, as well as personalize the dashboard with widgets and even natively control the radio or change the climate. Aside from the M2 chip announcement, CarPlay is the next big thing to watch as Apple broadens its reach in the automitive space.
• Other announcements focused on deeper Siri integration with apps, improved dictation features, a revamped Home app that will bring support for the Matter smart home connectivity standard, expanded uses for the Health and Fitness apps, and new improvements to Apple News and Game Center. Lastly, Apple focused on a new privacy tool called Safety Check which can be helpful to users whose personal safety is at risk from domestic or intimate partner violence, and updates to accessibility services.

WatchOS 9 showcased minor updates, but some with big health impacts

• There are now several new watch interfaces to help users customize their smart watch further.
• The Workout App shows a Heart Rate Zones which can be used to monitor the intensity of a workout and more information on pace, power, heart rate and cadence can be displayed. New running form metrics have been introduced, including Stride Length, Ground Contact Time and Vertical Oscillation.
• More sleep insights and data can be harnessed as Apple can now track sleep stages. Using signals from the accelerometer and heart rate sensor, the Apple Watch can detect when users are in REM, Core, or Deep sleep.
• Users who are diagnosed with atrial fibrillation (AFib) can track the frequency of AFib over an extended period of time with their watch and monitor their conditions better. The data can also be shared with a healthcare provider.
• Lastly, Apple Watch can now help users manage and track their medications, vitamins and supplements by setting alerts and reminders.

macOS Ventura enables more multitasking, cross-device integration, improved gaming

• Stage Manager is an interesting productivity tool that can help organize apps and windows into groups to seamlessly transition between different tasks.
• Continuity Camera uses the iPhone as the webcam on Mac, a neat feature to utilize the iPhone’s great camera system. It even works wirelessly.
• Handoff is also coming to FaceTime. Users can start a FaceTime call on their iPhone or iPad and fluidly transition it over to their Mac.
• Metal 3 is the latest version of the proprietary software that powers the gaming experience for Apple products using Apple Silicon. MetalFX Upscaling will help enable rendering at a lower internal resolution before being displayed, making AAA games run better.

Next iPadOS 16 packs productivity, collaboration features

• All the above productivity and collaboration features are also present for iPadOS 16.
• In addition to them, a new collaboration tool called Freeform will become available later this year. This app essentially creates a whiteboard that can be used in real time to write down notes and ideas while on a FaceTime session with multiple people.
• There is also now full external display support, enabling even stronger productivity gains.

The post Apple’s WWDC Showcases New M2 Apple Silicon, Plethora of Collaborative Software Updates appeared first on Counterpoint.

AT&T wins postpaid subscribers as T-Mobile growth slows. Verizon and US Cellular posts net-add losses

• AT&T saw 691,000 postpaid net adds, its best Q1 in a decade. The operator’s consistent promotional offers for both new and old subscribers helped it win share from other carriers.
• T-Mobile saw 589,000 net postpaid phone adds, a 23% YoY decrease, due to less aggressive switcher offerings and a higher focus on strengthening Sprint customer relationships.
• Verizon saw 36,000 net postpaid phone losses. Consumer postpaid phone net losses were 292,000, partially offset by strong business net additions of 256,000. Verizon lost postpaid subscribers, especially to AT&T.
• US Cellular had 44,000 net postpaid phone losses, citing increased competition in the market.

Prepaid sales were weak despite tax-season promos

• There was strong prepaid-to-postpaid migration, affecting prepaid sales. Q1 2021 also had stimulus money that fueled the economy, which was absent this year, also impacting sales of prepaid devices.
• Cricket net phone adds were down 45%, T-Mobile saw a 59% YoY decrease but remained net positive.
• On the other hand, Verizon lost 77,000 TracFone subscribers and a further 3,000 Verizon Prepaid subscribers, US Cellular had 18,000 net losses while Dish saw another 343,000 net losses which it attributed to CDMA shutdown effects.

Cable players continue growing, taking subscribers from postpaid carriers

• Comcast, Charter, and Altice combined had over 8.4 million subscribers in Q1 2022. While Comcast had the biggest subscriber share at 52%, Charter followed closely behind with 47%.
• Comcast saw over 39% YoY subscriber growth, Charter 47% and Altice grew 14%. Comcast’s Xfinity set a new net-add record for the company while Charter’s Spectrum Mobile revenues reached $690 million, an increase of 40.2% YoY. Altice net adds were 12,000 in Q1 2022. It aims to strengthen its retail positioning by opening 75 more retail locations this year.

National retail sales soft

• Sales in channels such as Best-Buy, Walmart and Target were weak as inventory was impacted post-holiday sales and some stores limited hours due to Omicron spikes in January. Prepaid demand in these channels remained soft, affecting most of the sales volumes.

April smartphone sales see growth, Q2 inflationary impact less than expected

• Overall smartphone sales rebounded in April and are expected to rise mid-single digits in Q2 from the slump in Q1, heavily driven by strong postpaid momentum. The promotions environment has improved — Verizon began offering the iPhone 13 for free to existing customers with a trade-in instead of just switchers, for example.
• AT&T and Verizon both are increasing service or administrative charges for their postpaid plans due to inflationary pressures. Nevertheless, we don’t expect this to have a significant effect on consumer behavior in postpaid. It may cause some people to switch to different plans, but we don’t see postpaid-to-prepaid migration happening.
• Prepaid will remain soft, however, even as supply chain issues lessen. This is where inflation may cause more headwinds, especially since smartphone costs have gone up by 10% for some OEMs.
• Carriers may begin decreasing their portfolios in Q2, which would affect white-label and low- to mid-end devices. Fewer SKUs give carriers more bargaining power on volume deals.

The post US Smartphone Market: After Q1 Drop, Postpaid to Provide Strong Momentum in Q2 appeared first on Counterpoint.

A short review

 The good

 There are already plenty of reviews of this device out there since it launched in the beginning of 2022, so this will touch upon a few things only. I have now had the device for over a week and can tell OnePlus has definitely made improvements on the camera via its partnership with Hasselblad. Pictures are less saturated and more natural. The same camera sensors from the 9 Pro are used in the 10 Pro so you can really tell the difference that software can make. OnePlus has not confirmed if these software updates will be available for the 9 Pro. In addition to the camera, the 5,000 mAh battery and 65W charger are terrific. Being able to charge your device from 0% to 100% in roughly 32 minutes is amazing. The 80W version of the charger even shaves off a few more minutes, but the US electrical system does not support that kind of power, unfortunately. The 65W charger can also double up as a laptop charger. The device feels fast and snappy thanks to the latest Snapdragon 8 Gen 1 processor and 6.7” QHD+ (3216 x 1440 pixels) resolution on a 120Hz Fluid AMOLED with an LTPO panel.

The bad

 Spec-wise, the phone truly can compete head-to-head with flagship devices from Apple, Samsung, Google and others. However, there are two minor downgrades that the device has compared to the 9 Pro. The latest version does not include mmWave and only supports sub-6 5G bands. It is certified on both T-Mobile and Verizon’s 5G networks but can only run on AT&T’s 4G network as it will not pursue certifications from this carrier. Secondly, OnePlus is only offering one memory and RAM configuration model in the US, the 128GB and 8GB RAM variant, which will disgruntle some users wanting the higher variants that are available in other countries.

On the software front, OnePlus is promising three major OS updates and four years of security updates, which falls slightly short compared to Samsung. While OnePlus and OPPO are developing their own OSs, they do share a unified OS code base, which has led to some design choice issues related to the latest OxygenOS 12 software. Icons and fonts feel more heavy and rigid instead of the minimalist design of OnePlus. The widget shelf that OnePlus implemented often gets opened accidentally when you try and swipe down from the top of the screen.

US market and OnePlus: Still just a prepaid contender?

Ever since OnePlus launched with US carriers, it has offered a premium smartphone for consumers. This strategy has been largely unsuccessful due to the stranglehold Apple and Samsung have in the premium market. OnePlus has had much better success in the sub-$300 space with its Nord series, especially the N200 5G in Metro by T-Mobile. In fact, due to LTE chip shortages in 2021 combined with T-Mobile’s push to upgrade its lower-end base to 5G, OnePlus grew its market share to almost 10% in Q2 and Q3 2021 for both prepaid and postpaid sales combined. Overall, OnePlus sold 2.5 million Nord series devices in 2021, the vast majority of them through T-Mobile channels.

With the OnePlus 10 Pro, the company is again making a bid for premium market share. The $899 price is competitive, putting it at the same level as the Pixel 6 Pro and $100 cheaper than the S22 Plus. No other OEM includes a powerful 65W charger. T-Mobile is currently offering the OnePlus 10 Pro for new and existing customers for free with an eligible trade-in on Magenta MAX, or 50% off with an eligible trade-in on any postpaid plan with 24-month bill credits.

From a discussion with OnePlus during a pre-launch briefing, it seems the company is ramping up its marketing efforts for the US market in 2022. In February, The Boston Marathon announced that OnePlus would be the official smartphone and key sponsor for the 2022 Boston Marathon. For the past several years, OPPO was the sponsor. OnePlus has promised more such announcements to come in 2022, which is all that can be said for now. These initiatives will certainly help OnePlus gain more visibility in the US, where it remains relatively unknown. A larger mind share will help the brand in postpaid sales where brand perception and trust are larger purchase decision factors compared to the prepaid market which is more price focused.

It was a good move on OnePlus’ part to go with an even more streamlined premium option for its 2022 flagship strategy. There is no “base” version like in the OnePlus 9 or a “T” version like it had with the OnePlus 8T. This makes it less confusing for consumers who don’t know the brand well yet. T-Mobile continues to be a strong partner for OnePlus given the (un)carrier’s history of being more less dominated by Apple and presenting consumers with more Android smartphone SKUs. However, the device will unlikely make a big impact on the premium space, especially since Samsung launched its S21 FE and S22 devices earlier this year. OnePlus may also lose out on some of its core customers due to the limited SKUs and OxygenOS 12. But for new potential customers, the strategy makes sense for the long run.

For the full version of the report, subscribe to the US Channel Share Tracker by contacting info@counterpointresearch.com

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The post Will 10 Pro Provide Premium Push to OnePlus’ US Dream? appeared first on Counterpoint.

Foldable future after Chicago smartphone failure

This is not the first time TCL has released foldable concept devices. Back in 2019, when Samsung was releasing its first foldables, TCL also showcased a clamshell foldable using its “DragonHinge” technology, which allows for bending displays in multiple directions. Following up on this in 2020, TCL showcased a tri-fold prototype that allows a smartphone to become a 10-inch tablet. A rollable mock-up was also previewed, but it wasn’t until now that TCL was ready to show a working version of the device.

TCL is learning from its “Chicago” foldable, which is a canceled clamshell foldable that was supposed to come to the market for $600-$700, compared to the $999 or above price of Samsung and Huawei foldables. The phone project was suspended indefinitely as component prices made the targeted price point unattainable, combined with the still small demand for foldables around the world. TCL still hopes to enter the market with a foldable, but the timing remains unclear for the moment. Counterpoint estimates that the penetration rate of foldables was less than 1% in 2021, but the category is growing, albeit slowly due to the premium nature of the devices.

The latest prototypes from TCL are the Fold n Roll, a working prototype of the aforementioned rollable display, and the Ultra Flex, a 360-degree folding smartphone that can be used as an outward-facing smaller screen as well as an 8-inch tablet-like device. The limited specs given out by TCL are as follows:

• Fold n Roll: 2880×2160 resolution with 360ppi, 8.8 inches when rolled out; roughly 7 inches when rolled in; 8mm thick when unfolded; 18mm thick when folded.

• Ultra Flex: 01-inch PLP AMOLED screen; 2480×1860 resolution; supports active pen stylus.

TCL stressed that these devices were nowhere near production. What it wanted to do was demonstrate the sort of devices and concepts we could potentially be seeing two or three years from now. TCL’s R&D department is trying out different designs and form factors to see what is possible and what provides the best overall user experience. TCL is, of course, also showcasing these display and foldable technologies to potentially partner other OEMs looking to enter the foldable market. The foldable market remains heavily dominated by Samsung at this time. TCL is looking to position itself as a low-cost competitor in the future and these devices clearly demonstrate its continued commitment to the foldable segment. While these two devices do demonstrate TCL’s ambitions to cement itself as a foldable device and component maker, the two prototypes are still very much early-stage concepts with bugs and glitches. The Ultra Flex display stopped working on the day of the product demo and even had pieces come off the device when being tested for the flexibility of the display. The Fold n Roll also had some issues with getting the rolling mechanism to consistently roll in and roll out when pressing the roll button.

New 30 series comes out before one year of 20 series

TCL also introduced its all-new 30 series line-up — TCL 30 5G, TCL 30+, TCL 30, TCL 30 SE and TCL 30 E. Each of these devices is powered by a MediaTek processor and priced at €249 for the 30 5G. The remaining devices are priced between €139 and €200. US availability has yet to be announced. Recently, TCL launched the 30 XE 5G and Verizon-exclusive 30 V 5G, both positioned as affordable 5G devices for US prepaid markets primarily. TCL already has the 20 XE and 20 A 5G in the US market since October 2021, making some of the price SKUs a bit crowded for the OEM with multiple offerings available. The launch timing for these 20 series devices was a bit delayed due to production issues caused by shortages. However, according to Counterpoint’s US Channel Share Tracker, the 20 XE has had a strong start in Metro by T-Mobile and is also gaining momentum in Boost. The new 30 series devices will offer customers more choice for affordable 5G devices and is a welcome refresh ahead of the US tax season. TCL is looking to expand its market share in the sub $200 segment and is finding some early success at some carriers.

NXTPAPER tablets, affordable connected tablets showcased

Previously just a concept, TCL showcased the NXTPAPER MAX 10 tablet, which delivers a paper-like reading and writing experience on a 10.36-inch NXTVISION display. The device will first launch in Asia. TCL also showed off new connected 4G and 5G tablets — TAB 10 HD 4G and TAB 10s 5G. The former is available in both Europe (€179) and Asia (€199), while the latter will just be available in Europe (€349). These devices were somewhat overshadowed by the new foldable concepts and smartphones, but they demonstrated TCL’s ambitions to capture more of the tablet market, especially in the low-to-mid tier.

The post TCL Demonstrates New Foldable Concepts, Latest Devices appeared first on Counterpoint.

• Store traffic is up again in Apple Stores. 2020 was a tough launch year for Apple and the iPhone 12. The launch was staggered over two months, and COVID-19 restrictions made going into stores less appealing. This year however, we have seen people line up again to pick-up orders or reserve an iPhone for a later time. It’s not like the massive lines for the iPhone 6 or iPhone 7 launch events, but it’s still showing a return to brick-and-mortar to an extent. Online sales remain a key driver for Apple however.

• Pre-order deals are strong this year. All carriers are offering up to $1000 for the iPhone 13 Pro models with trade-ins and select unlimited plans, while the iPhone 13 models have promotions for $800 with in credit. Verizon was the most aggressive however, offering an extra $500 Prepaid Mastercard for those who switch to its network for the iPhone 13 Pro model. Apple’s own trade-in value offers topped off at $790.

• Demand for iPhone 13 Pro and iPhone 13 Pro Max were higher than the regular iPhone 13. This is not unusual, especially for the launch day. Power users and those on Apple’s yearly iPhone Upgrade Program tend to upgrade first, getting both the best performing iPhones, and also going for higher memory configurations such as the 1TB option.

• Apple Stores, as well as carrier stores, are already short on inventory. Shipment dates continue to be pushed out. This is especially true due to the high demand for the iPhone 13 Pro Max which Apple.com is estimating being shipped between October 25^th and November 1^st. Certain colors, such as gold or pink, seem to be lean on inventory as well. Apple continues to limit shipments to carriers during launch periods as it wants to drive customers to its own stores, which creates additional shortages for carriers.

• A minority of people are coming in for the iPhone 12 at this time. But this may change. Since the launch of the iPhone 13, the iPhone 12 received a $100 haircut. This is enticing some customers looking to upgrade to a 5G iPhone without needing to spend more money on the iPhone 13. While the iPhone 13 does have a longer battery, and additional camera, it may not be enough to convince some. We will likely see more people going with the iPhone 12 after this launch period as carriers move to update their “N -1” iPhone slot.

Related Posts

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5. iPhone 13 to Watch Series 7 & 5G iPad mini: The Apple Event Lowdown

The post Increased store traffic, promotions, shortages, and more; five takeaways from the iPhone 13 launch appeared first on Counterpoint.

The newest iPhone 13 series, like its predecessors, will come in four flavors — iPhone 13 Mini, iPhone 13, iPhone 13 Pro and iPhone 13 Pro Max. Upgrades to the iPhone 13 include a dual-camera system, the latest A15 bionic chip, upgraded battery and storage starting at 128GB now. For the Pro series, additional improvements include a 120Hz refresh rate display, a penta-core A15 chip, up to a terabyte of storage, and further improvements in camera specs and features that Apple calls “cinematic mode”. No charger is included, like the iPhone 12.

iPhone 13 Impact on US Market

The iPhone 12 helped Apple give a large boost to its US iOS installed base, which reached almost 170 million users in Q2 2021. Continued strong promotions, especially from AT&T and Verizon, have helped the iPhone 12 maintain over 60% share of sales of all Apple iPhone products in the 10 months of sales since its launch. In comparison, the iPhone 11 series dropped close to 50% within the same time frame. Consumers are beginning to spend more money again, coming out of the COVID-19-triggered stay-at-home orders and with increased vaccination rates across the country. Apple is betting on continued momentum from this positive growth wave with its latest iPhone 13 series.

Carriers continue to be very aggressive with promotions as they want more people on their 5G service plans. Looking at the Apple.com offers, AT&T is offering up to $1,000 in credit after trade-ins of eligible devices, while Verizon is offering up to $700. T-Mobile is offering $700 or more, which includes an additional $500 from T-Mobile/Sprint. Apple’s own highest trade-in value peaks at $790 for an iPhone 12 Pro Max.  AT&T has seen good momentum in upgrading its base, while Verizon will look to keep skimming off high ARPU customers from other carriers. Lastly, T-Mobile will make a grab for consumers using its large mid-band 5G spectrum to entice those looking to upgrade to the latest iPhone 13.

There are still some big unknowns ahead for Apple. The global component shortages may prevent the OEM from having adequate supply. However, Apple has been fairly immune to this so far. Furthermore, while the latest iPhones do offer some nice improvements in camera, display and storage, the iPhone 12 remains a very viable smartphone. Now that it is $100 cheaper, it may entice some customers who are on the fence about purchasing a more expensive iPhone. More to come.

The post iPhone 13 to Boost US iOS Installed Base as Carriers Push Promotions appeared first on Counterpoint.

Snapdragon Sound was launched by Qualcomm in March 2021 as an end-to-end audio system solution to provide premium sound — up to 24-bit, 96kHz high-resolution Bluetooth music through its aptX codec suite called aptX Adaptive. To kick things off, Snapdragon Sound had its first in-person event of the year in NYC on September 1 to demonstrate its latest aptX Adaptive codec called aptX Lossless to analysts, media and other influencers. Steve Aoki, who is a big proponent for audio advancements, even ended the night with a DJ-set and cake-throwing performance for fans, Qualcomm invitees, and the new Snapdragon Insider program.

Qualcomm’s Snapdragon Sound certification promises to create high-resolution wired quality audio for the wireless market.

AptX Lossless – newest piece to the puzzle

Qualcomm initially had several different audio codecs, from aptX and aptX HD to aptX LL. AptX Adaptive essentially can dynamically scale the bitrate to adjust for quality, whereas the other codecs were locked into a bitrate.

With the latest aptX Lossless announcement, Snapdragon Sound adds a new layer to its codecs by promising CD quality 16-bit 44.1kHz lossless audio over Bluetooth. With more music-streaming services offering HD, hi-res and even lossless quality music files, Qualcomm is hoping to cater to consumers looking for the highest quality wireless listening experience possible. AptX Lossless is also capable of scaling down the bitrate to as low as 140kbps in congested RF environments to ensure there are no audio drops or other issues. CD lossless audio is supported for 44.1kHz, but for hi-res 24-bit 96kHz lossy is still supported.

Future of wireless streaming

Aside from the universally used low-complexity sub-band codec (SBC), there are other codecs in the market, such as Sony’s LDAC, HWA Alliance’s LHDC and Samsung’s Scalable Codec to name a few. Each have their pros and cons. The new aptX Lossless codec will help Qualcomm deliver a very holistic solution to the wireless market for those looking for high-fidelity Bluetooth devices. Not only will this solution attract audiophiles, but it will also target gamers and those working on the go through ultra-low latency audio synchronization (89 ms) and the aforementioned bitrate scalability to adapt to different RF environment settings.

Snapdragon Sound will be the first to offer a codec that provides true CD quality 16-bit 44.1kHz lossless audio over Bluetooth. Since it is an end-to-end solution, OEMs that manufacture both smartphones and TWS may be especially interested in this offering as an added ‘premium’ feature for their higher-end products. The Snapdragon Sound certification can also be a strong marketing tool to cater to consumers looking for the best possible wireless sound experience, especially since aptX has already built up a great reputation over the years.

Apple Music is already offering lossless CD and hi-res audio to its subscribers for free, and with Spotify HiFi coming later this year, there is a clear demand for higher quality music. With global TWS sales growing 27% YoY, the market is also readily adopting Bluetooth and other wireless hearables. Snapdragon Sound is well-positioned with aptX Lossless to capture the attention of consumers looking for a very versatile and robust audio experience. Xiaomi and Audio-Technica are the first two companies that have adopted Snapdragon Sound. Qualcomm has also made its own devices sporting Snapdragon Sound via its Snapdragon Insider program in partnership with Asus and Master and Dynamic. The Asus smartphone is powered by Qualcomm’s latest Snapdragon 888 processor while the Master and Dynamic TWS device has Qualcomm’s QCC5141 Bluetooth audio chip. Products with aptX Lossless will not be available until the end of this year or early 2022.

More to come as devices are announced and launched.

The post Snapdragon Sound Makes Pitch With High Quality Wireless Audio Solution appeared first on Counterpoint.

T-Mobile is pushing the envelope when it comes to budget 5G smartphones ($100-$250 band) in the US. While both AT&T and Verizon are focused on upgrading their base with the latest premium 5G offerings, T-Mobile has moved in with its “5G for All” campaign and a promise to give free 5G smartphones to those looking to upgrade. Initially starting out with the Samsung A32 5G, T-Mobile recently changed the offer to the new OnePlus N200 5G, a $216 device. This was the first sub-$250 5G smartphone available on a carrier network.

More recently, T-Mobile announced another sub-$250 5G device in the form of the REVVL V+ 5G. The device, which will sell for $199.99 on both Metro and T-Mobile, is the fifth iteration of the REVVL smartphone line-up. Previously, REVVL phones have been manufactured by TCL and Motorola, but this time Wingtech will make the newest device for T-Mobile. Overall, when you look at 5G smartphones for under $300, the carrier now has five devices available at full retail, compared to only one each at AT&T (Samsung A32 5G) and Verizon (Motorola One 5G UW Ace).

Table 1: T-Mobile Sub-$300 5G Smartphones

Budget 5G smartphones present a huge opportunity for OEMs

In 2020, budget smartphone sales made up around 20% of total sales. More importantly, it is not a price band that is solely dominated by Apple and Samsung, like in the premium $600 and above segments. Instead, OEMs such as Motorola, TCL/Alcatel and about-to-be-shut LG compete against Samsung for market share in this band. LG is leaving a sizeable market share up for grabs, and this is where a big opportunity lies for OEMs to gain both market share and mind share, especially related to 5G and its capabilities.

5G smartphones are becoming cheaper thanks to Qualcomm’s Snapdragon 480 5G and MediaTek’s Dimensity 700 5G SoCs. Both prepaid and postpaid service providers are eager to have more 5G smartphones in their portfolios, especially since they want customers to upgrade their plans to 5G. With more devices launching in H2 2021, we expect to see increased competition for 5G budget smartphone market share.

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