Thanks to a huge discount for an older model, the top selling pair of smartphones in the U.S. during the third quarter were the Apple iPhone 4 and the Apple iPhone 3GS in that order. According to stats compiled by the NPD group, the pair beat out some Android heavyweights launched during the period like the HTC EVO 3D and the Motorola DROID 3. During the third quarter, the Apple iPhone 4S had yet to launch, which made the iPhone 4 the current version of the phone at the time.
The data, which comes from new smartphone purchases by those 18 or older, does not include enterprise or corporate purchases. During the three-month period, the Apple iPhone 4 was priced at $199.99 with a signed 2-year contract for the 16GB model while the 8GB Apple iPhone 3GS was free with a signed contract.
The "Free" 8GB Apple iPhone 3GS
During the quarter, of those smartphone buyers who said they were willing to pay $200 to $250 for their next handset, 64% ended up paying under $200 for their new phone. NPD suggested that this means that carriers were leaving money on the table while the average price for a new smartphone dropped for the fourth consecutive quarter. During the third quarter, the average price of a new smartphone was $135.
However, it seems that some carriers, like Verizon, have stretched the line of what used to be the "Gold Standard" for smartphone prices during the fourth quarter. Where Big Red used to price its high-end models at $199.99 with a signed two-year contract, the latest Verizon top of the line phones are being priced at $299.99 with the signed contract. These are usually dual-core, LTE enabled phones like the Motorola DROID BIONIC, the Motorola DROID RAZR and the HTC Rezound. This pricing started in the Q2 with the launch of the Samsung Droid Charge which is an LTE enabled phone, but is powered by a single-core processor..
While handset prices dropped in the third quarter, on average, accessory prices were steady indicating a fairly decent demand for them. Ross Rubin, executive director of industry analysis for NPD, suggested that retailers could do well by focusing their promotions on smartphone accessories.
Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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