From equipment and network plans to software technology and purchasing patterns, everything in this massive industry is changing. So what does this mean for the future?
The evolution of the cell phone industry
The cell phone industry is quite fluid right now. While there is no danger of the industry collapsing, it is quite clear that the future of the industry will be very different. In fact, if you take a look at the market 10 years from now, you probably won't recognize it.
Here are some of the evolutions we are currently experiencing:
1. The death of network contracts
In the past, you went to a company like AT&T or Verizon and signed a two-year wireless contract. In return, they will give him a new smartphone at a heavily subsidized price. These carriers were able to do this because they kept you on a 24-month contract that allowed them to charge a fraction of the cost of the phone each month.
T-Mobile decided to enter the industry a few years ago. Instead of offering discounted phone prices and two-year contracts, they announced that their services would be contract-free. Customers simply buy their phones at full price (or pay a monthly fee) and get a lower monthly rate.
And while T-Mobile was the only carrier to offer this option for several years, Verizon and AT&T are now on board. And with the three largest wireless networks abandoning traditional contracts, it's clear that this is the future of the market.
2. The rise of unlocked smartphones
In the past, if you wanted to buy a smartphone, you had to go to your wireless network store and they would show you what options they had. While you can technically buy a phone from a third party, the networks will not publicly recommend this type of behavior. If something happens to the phone, or if it doesn't work in the first place, you're out of luck. However, times are changing.
As traditional wireless contracts have become a thing of the past, consumers now find it beneficial to purchase unlocked devices from other sources. This separates you from the provider and gives you more control.
"If you find a better deal, just pop in a different SIM card and you're good to go," says Megan of Cheap-Phones.com.
3. Transformative technology
In the next few years, we can also expect to see some pretty incredible developments in smartphone technology.
"I'm talking about the price we have to pay for such amazing features on our smartphones."
Will smartphones remain the ubiquitous devices we know today, or will something else suddenly emerge? If they maintain their value and new features like the ones mentioned above are added, it is possible that the price of smartphones will increase and gradually overtake other devices such as tablets and personal computers.
The future of the industry
As you can see, the future of the industry will look very different from the current state. In addition to changes in mobile device technology, everything from the way phones are purchased to the structure of wireless network contracts will look completely different.
Whether you're a customer or a company in an industry, it's important to stay on top of changes to ensure you're on top of what's next.
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