Despite decreasing tablet computer sales resulting from low consumer demand, tele-communication companies can still find some use for this gadget. One option is to package it as smartphone’s best friend and partner.
Wireless companies have been jockeying for new subscribers in a market where there are more active cellphone plans than there are people, a predicament that led to slowing growth and increased competition.
Carriers have found the answer in tablet computers, which represent one of the few places where the industry can wring out a new source of revenue after the companies have nearly tapped out smartphone upgrades. Companies are offering aggressive promotions to get customers to sign up.
However, the new tablet connections aren't as attractive as smartphones for two reasons: they don't generate as much revenue as smartphones and they aren't bringing in new customers. Rather, the majority of tablet sales are upgrades to existing customer plans.
The lifetime value of a tablet customer to a wireless carrier is US$ 761, about one-third of that of a handset customer, according to New Street Research.
Subscriber figures "no longer have the same meaning as they used to," said Paul de Sa, a senior analyst at Bernstein Research, in a research note this week. "They now represent success in up-selling tablets to the base, rather than reflecting shifts in subscriber market share between carriers."
Verizon Communications Inc. is giving away some tablets free. The devices led the company to add 1.4 million of the most lucrative postpaid customers in the second quarter, the vast majority of which—or a record 1.15 million—were for new tablets. During the first quarter, tablet sales at Verizon offset a decline in handset connections.
"Tablets are extremely good for the industry, not just for Verizon," said Verizon Chief Financial Officer Fran Shammo.
More than 85 percent of AT&T Inc.'s postpaid customer additions during the past four quarters have come from tablet computers, and Sprint Corp. has recently relied on tablet sales to offset significant subscriber losses. Also, last year, T-Mobile US Inc. began giving away a chunk of free data to lure tablet customers.
The boom in tablets is fueled in part by a proliferation of cheaper and smaller alternatives to Apple Inc.'s iPad. When the iPad launched in 2010, it was the first of its kind but these days consumers have a wide range of choices from companies like Samsung Electronics Co., Amazon.com Inc. and Google Inc.
Wireless companies have been jockeying for new subscribers in a market where there are more active cellphone plans than there are people, a predicament that led to slowing growth and increased competition.
Carriers have found the answer in tablet computers, which represent one of the few places where the industry can wring out a new source of revenue after the companies have nearly tapped out smartphone upgrades. Companies are offering aggressive promotions to get customers to sign up.
However, the new tablet connections aren't as attractive as smartphones for two reasons: they don't generate as much revenue as smartphones and they aren't bringing in new customers. Rather, the majority of tablet sales are upgrades to existing customer plans.
The lifetime value of a tablet customer to a wireless carrier is US$ 761, about one-third of that of a handset customer, according to New Street Research.
Subscriber figures "no longer have the same meaning as they used to," said Paul de Sa, a senior analyst at Bernstein Research, in a research note this week. "They now represent success in up-selling tablets to the base, rather than reflecting shifts in subscriber market share between carriers."
Verizon Communications Inc. is giving away some tablets free. The devices led the company to add 1.4 million of the most lucrative postpaid customers in the second quarter, the vast majority of which—or a record 1.15 million—were for new tablets. During the first quarter, tablet sales at Verizon offset a decline in handset connections.
"Tablets are extremely good for the industry, not just for Verizon," said Verizon Chief Financial Officer Fran Shammo.
More than 85 percent of AT&T Inc.'s postpaid customer additions during the past four quarters have come from tablet computers, and Sprint Corp. has recently relied on tablet sales to offset significant subscriber losses. Also, last year, T-Mobile US Inc. began giving away a chunk of free data to lure tablet customers.
The boom in tablets is fueled in part by a proliferation of cheaper and smaller alternatives to Apple Inc.'s iPad. When the iPad launched in 2010, it was the first of its kind but these days consumers have a wide range of choices from companies like Samsung Electronics Co., Amazon.com Inc. and Google Inc.
Posts
0 comments
Post a Comment