Overview:
- US weekly smartphone sales were down due to weaker demand in postpaid. Prepaid channels had an uptick in last few weeks but we’re now seeing weakness as initial demand for new models continues to settle down.
- In case of Apple, non-Pro models continue to gain in terms of overall model mix. n-1,n-2 generation iPhone base models continue to do well taking advantage of subsidies even with lower tier rate plans.
- However, there are patches in the market which are still performing well. Samsung Galaxy A15 continues to gain momentum with more marketing and channel push across all carriers. So far Galaxy A55 series is missing from the US channels, although the device has hit EU and LATAM markets.
- Some of the old Google Pixel 7 series models are finally being discontinued by postpaid carriers.
- Motorola has been aggressive in Metro by T-Mobile channel with higher subsidies across its device portfolio. But some of the new Motorola models are still available in selective prepaid channels only but we expect them to range in other carrier channels soon.
We might see further weakness in prepaid post April-June 2024 period as the US government subsidy under ACP program ends and people are forced to pay for subsidized rate plans.
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