December 30, 2022
Average Smartphone Lifecycle Is 3.5 Years & Smartphone Costs Will Continue To Escalate
The average age of a Smartphone is now 3.5 years according to one of the world’s largest cellphone insurance and trade-in companies.
As Device Lifecycles lengthen the impact to Telecom Operator P&L will be significant.
When looking at the P&L for Telecom Operators the only area of growth up until 12 months ago was “Hardware Sales”.
“Hardware Sales” has been the growth engine of the Telecom Operator P&L for the last 5 to 8 years.
Over the last 15 months Telecom Operators have on average at least twice raised prices/consumer costs by 5% to 10% each time for the cost of the rate plan or “other fees”.
Given our articles that we have previously written around the trends for Smartphone price increases and what is occurring in the EBOM (Electronic Bill of Materials) and SBOM (Software Bill of Materials) we are likely to see 10% to 14% increases in the cost of handsets to Telecom Operators on a like for like basis in 2023.
This range is likely to be conservative because handset volumes in the last 6 months of 2022 are tanking globally and volume decreases will be offset by an increase in prices across the entirety of the Smartphone range by the OEM.
Our Previous Postings On Smartphone Costs :
- 5G Costs For Telecom Operators Will Require Plan Price Increases : https://lnkd.in/g4n6jWCu
- mobilityView Inc. Once Again Ahead Of The Curve On 5G & Cost Structure For Wireless Operators - Predicts Over 12 Months Ago 5G Energy Costs Much More Expensive Than 4G : https://lnkd.in/gWPvzFdS
- 5G Uses How Much Electricity? You Can’t Be Serious…. Wireless Rate Plan Prices To Increase Dramatically! : https://lnkd.in/gR8vJ82m
- Why Are 5G Monthly Hardware Costs 2x to 7x The Rate Plan? Are B2B Customers Complaining About Hardware? : https://lnkd.in/gYn22R7q
- Expect To See Major Price Hikes In Rate Plans For Wireless & Home Internet Due To Chord Cutting : https://lnkd.in/gz7FPcx3
- Samsung To Raise Chip Prices By 20% : Handset Costs To Soar : https://lnkd.in/gpV9zCQ3
- Canada Has The Highest Cellular Phone Costs In The World : https://lnkd.in/gqDxf4kb
- UK Telco Regulator (OfCom) Urges Telcos To Resist Price Hikes : https://lnkd.in/gmHMVj-P
Our Mobile Cost Management (MCM) Solution :
- 70% More cost effective than a Stipend for Smartphone Reimbursement
- 75% More cost effective than a Company provided phone
- Keeps companies labour law and tax law compliant
- Protects companies against class action lawsuits by their employees for failure to reimburse or adequately reimburse
- Keeps employees reimbursed & happy in a tax efficient lower cost way than a stipend or company provided phone
- Aligns your smartphone reimbursement policy to your mileage reimbursement policy. Tax authorities globally have required a mileage book for years and now require a "mileage book for connectivity costs" denoting the business vs. personal usage & cost
30 Second Explainer Videos On How We Lower Costs For Employees/Gig Workers & Employers :
Tax Deduction Changes For US Gig Workers : https://lnkd.in/ggAfRWhc
Tax Deduction Changes For Canadian Gig Workers : https://lnkd.in/gHFXa5nC
Tax Deduction Changes For Australian Gig Workers : https://lnkd.in/geT95ZTM
Non-Canadian Employee & Gig Worker tax deduction : https://lnkd.in/gD5eEke
Smartphone global tax trends : https://lnkd.in/dbvArumk