Bamboo Mobile
  • Home
  • Bamboo Blog
  • Market Reports
  • Contact Us

Bamboo Blog

Mobile Carrier 2Q 2015 Overview

8/31/2015

0 Comments

 

Tracking the numbers to help you understand the industry

PictureSource: Compass Intelligence, 2015
Earlier this month, I published an overview report on the mobile carrier 2Q 2015 reported numbers (2Q 2015 Mobile Industry Update: Total Industry and Top 4 Carrier Overview). I looked at basic financials like revenue, end of quarter subscriber counts, churn and other key areas like tablet growth. The graphic below depicts how smartphone growth has really boosted the market in the last few years. Today, there are over 230M active smartphones but growth is slowing.  Subsequently, the mobile carriers are focused on tablet activations and on connected devices, especially as the connected car and consumer wearables gain momentum.

However, let me step back and say something about these metrics, since we all know it's easier to make a qualitative statement about the market without many factoids or context. Tracking quarterly financials is key for any strategic planning organization and market analytics firm for that matter. This information feeds into market forecast models and is used to recognize patterns and trends that reflect the state of the market. This information is pivotal in understanding the foundation of the business, which is why you will often see this type of information referred to as "foundational analysis." It by no means an exhaustive financial analysis but it is intended to be more than a guess of what's happening around us.  




With that said, here are some of the key takeaways from the last quarter:
  • Installment and leasing plans are transforming the market. CI estimates 58M (229% over this time last year) out of 247M postpaid subs (or about 23%) are on these types of plans. 
  • Overall churn numbers in postpaid are pretty good, which is interesting in the hyper competitive environment. 
  • Smartphone growth is slowing but tablets and other connected devices are on the rise. Tablet growth is up 40% in the quarter when compared to 2Q14. 
Equipment revenue is growing while service revenue is in decline. This is both from installment and leasing, but also pricing pressures are impacting service revenue.  From the chart below, it is evident the the big two carriers sold quite a few devices via their EIP programs as equipment revenue spiked. 

Picture
Source: Compass Intelligence, 2015
Verizon, the one with the most to lose, has managed to keep postpaid churn below 1%, despite the aggressive TMO pricing and promotions.  AT&T is focused, among other things, on the Next program. The company is moving to a subsidy free consumer model.  Another big story coming out of the second quarter is T-Mobile's move into 3rd place based on subscribers. the company does continue to report stellar numbers as they reported 2.1M net adds in 2Q15.  Finally, Sprint had some good news this quarter as it reported the lowest churn ever at 1.56%. Financing around its device leasing program and other challenges remain, however. 
For more information on our mobile and wireless research or  Annual Service Plans, which includes metrics tracking, competitive analysis, newsletter creation and more, please contact Kate Pearce kpearce@compassintelligence.com or click on this link.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Categories

    All
    Buyback Vendor
    Company Phone Recycling
    Device Reuse
    Device Reuse And Recycling
    Eco-friendly Mobile Phones
    Green Mobile
    Green Phones
    Handset Subsidies
    Idle Phones
    Iphone Launch
    Mobile Industry
    Mobile Phone Buyback Incentives
    Mobile Phone Recycling Survey
    Mobile Phone Trade In Programs
    Mobile Phone Trade-in Programs
    Mobile Phone Upgrading
    Mobile Upgrades
    New Idle Device Reports
    Old Iphone Values
    Phone Recycling
    Phone Recycling Rates
    Pre-owned Mobile Phones
    Product Testing
    Recycling Iphones
    Refurbished Phones
    Secondhand Dealer Laws
    Smart Phone Subsidies
    Smartphone Theft
    Trade In Program Incentives
    Upgrade Cycle
    Used Device Pricing Index
    Used Iphones

    Bamboo Blog 

    Kate Pearce

    Bamboo, Chief Editor 
    Strategist & Sr. Consultant at Compass Intelligence

    Want more from Us?

    Archives

    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    April 2015
    March 2015
    November 2014
    September 2014
    July 2014
    June 2014
    May 2014
    March 2014
    February 2014
    November 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    July 2012
    April 2012
    March 2012

    RSS Feed


    RSS Feed

    View my profile on LinkedIn
Powered by Create your own unique website with customizable templates.
  • Home
  • Bamboo Blog
  • Market Reports
  • Contact Us