Unlocked Smartphone Market Growing as Consumer Awareness Increases, Says NPD

Growing awareness of unlocked smartphones is widening the market for the devices beyond initial users who were typically “frugal consumers looking for lower priced devices," reported NPD Monday. Noticeable shifts in unlocked smartphone adoption occurred among women and consumers ages 35-54, said an NPD report, which estimates 46.5 million active unlocked smartphones are running on U.S. mobile networks, up 22 percent from the end of Q1 2018 to Q1 2019. Most consumers are aware of the advantages of an unlocked phone, including lower cost and freedom to choose carriers, said NPD analyst Brad Akyuz. Carriers are helping to educate them about advantages through “aggressive BYOD (bring your own device) offers, which give consumers yet another opportunity to bring their device to a new network to take advantage of a discounted rate.” Unlocked devices used to fall mostly in the sub-$400 category, but now $500-$700 phones account for nearly a quarter of the installed base of unlocked phones, mirroring the overall rise in average selling prices, he said. Big box retailers’ financing programs are also enabling price-sensitive shoppers to buy expensive unlocked “hero devices,” he said.