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Monday, May 16, 2011

When your phone expires before your contract

Around 62% of customers feel their smart phone is obsolete now, or that it will be obsolete before their wireless contract is up.  That’s according to a recent story from Research Brief.  Up to 48% of customers would consider buying a new phone early if terms were favorable (even though doing so would almost certainly involve some cost).  Click here to see the full story.

Implications:  Funny… my wife is going through this right now.  The phone she is carrying was more than enough to satisfy her desire to take phone calls and send text messages at the time we bought it.  But as new apps have rolled out and more sites have become optimized for mobile, she has become disenchanted with the device ahead of its’ scheduled retirement.

We inquired about purchasing a phone upgrade… and the price was over $200.  It would cost about $175 to opt-out of her contract.  If other consumers are running into a similar situation, one must wonder whether it is only the phones that have become obsolete, or whether the way they are sold has become dated, too.

Personal examples aside… consider this underlying issue:  Consumers are buying smart phones at an amazing rate, even knowing they will be confident of the product for a span of about twelve months.  That says something about how pervasive technology has become in our society, doesn’t it?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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