• Apple Intelligence is being strongly featured in Verizon advertisements to push upgrades.
• T-Mobile recently launched North America’s first commercially available 5G RedCap device, the TCL Linkport.
• New white-label devices Outlast 5G and Magic 2 5G indicate a continuing shift from LTE to 5G in prepaid channels.
• The iPhone 12 and 13 are Apple’s new focal point in prepaid channels as the iPhone 11 reaches end-of-life.

US smartphone sales in August had contrasting numbers to show in postpaid and prepaid channels. Even as postpaid sales were up slightly, prepaid sales continued their fall from previous months. The prepaid-to-postpaid shift is gaining momentum, supporting the decline along with the lack of new launches in prepaid.

Top postpaid trends

US postpaid smartphone sales were up 1% YoY in August, according to Counterpoint’s US Channel Share Tracker. The recent device launches by major brands are expected to improve the growth number in September.

Verizon recently launched a new promotion bundle offering the iPhone 16 Pro, iPad (10^th generation), and six months of Apple One, all for free with an eligible trade-in. This deal has a total value of $1,600 and is similar to holiday season deals in previous years. With the iPhone 16 series launch, Verizon has been featuring Apple Intelligence in its advertisements in hopes that it will further persuade consumers to upgrade.

T-Mobile recently launched North America’s first commercially available 5G RedCap device, the TCL Linkport. The Linkport is a mobile hotspot that supports reduced-capacity connections on the operator’s 5G network. However, in contrast to this, TCL smartphones have entirely been removed from T-Mobile postpaid.

Source: Counterpoint Research

According to Counterpoint’s US Channel Share Tracker, Google’s sales were down 4% YoY in August if we exclude the Pixel 9 series, which launched earlier in the year than the Pixel 8 series did in 2023. The Pixel 9 Pro has been on backorder at T-Mobile and Verizon stores. AT&T store representatives reported low inventory for the Pixel 9 Pro and Pro XL devices, but the Pixel 9 remains generally available.

Following the iPhone 16 series launch, Apple’s advertisements and promotions are centered on the iPhone 16 Pro, indicating the device as a top performer and a popular choice for the base and Plus iPhone upgraders. According to Counterpoint’s Promotions Tracker, last year’s launch of the iPhone 15 Pro garnered $1,000 discounts from only T-Mobile and Xfinity. This year, that promotion is being offered by all major carriers for the iPhone 16 Pro.

Top prepaid trends

US prepaid smartphone sales continued their declining trend in August, falling 22% YoY, according to Counterpoint’s US Channel Share Tracker. This decline was due to the lack of new devices being featured in the prepaid lineup similar to postpaid trends, combined with higher-quality devices being offered in prepaid channels over the past few years, which has resulted in lower upgrade rates. Additionally, this decline can also be attributed to the continued shift of prepaid customers to postpaid.

Source: Counterpoint Research

AT&T has debuted new white-label devices Outlast 5G, Debut S3 and Magic 2 5G to help 5G reach lower price tiers. These launches also come with a new wave of promotions, offering each of the three phones for free with a new line. Previously, the Cricket Outlast was a 4G LTE smartphone, but the latest model now features 5G connectivity. White-label devices will help move 5G to 68% of the total smartphone sales in Q4 this year.

Motorola devices featured strong promotions from Cricket, with the Moto G Power 5G, Moto G 5G and Moto G Play being offered for free with a new line. There was also a large discount on the Moto G Stylus 5G. The new Razr 2024 is performing well in prepaid channels. The promotions on this device are not as strong as at the launch of the Razr 2023 last year, but Boost and Cricket stores have received positive reactions about it. Verizon’s prepaid has lately been offering only one Motorola device, the Moto Edge Plus 2023, but the brand appears to be performing well there.

Source: Counterpoint Promotions Tracker

Promotions on the iPhone 11 are being discontinued across the board, being replaced with the iPhone 12 and 13. Historically, Apple follows an N-X strategy in prepaid channels, offering heavy discounts on third- or fourth-generation iPhones, as mentioned in Counterpoint’s report, “Will the iPhone 12 Become Apple’s New Prepaid Champion”. With the iPhone 11 approaching end-of-life, the iPhone 12 and 13 have become the new Apple devices of focus in prepaid, featuring strong promotions across channels. The iPhone 12 is currently offered for free at Metro and is on sale for $150 at Boost, according to Counterpoint’s US Promotions Tracker.