slower data

[jgmecarter]

http://www.androidauthority.com/smartphone-data-use-outpacing-capacity-149489/

If this is true what is the point for paying for data.

What do you guys think of this?

 

[Tonik]

Don't belive that the issue is that bad. The article seems to rely on continued sales growth. But US smartphone sales are expected to flatten out after 2014 and 2014 won't be that hot. Bandwidth is a regional issue so if China is still booming in sales it won't hurt our bandwidth.

 

[jgmecarter]

Why do they think smart phone sales will flatten out? Do they think something else is going to take its place?

 

[jseah]

Why do they think smart phone sales will flatten out? Do they think something else is going to take its place?

It's basic math. The US has a certain number of actual people living here. Therefore, carriers can only grow their subscriber base so much, unless they can steal customers from their competitors, or convince customers that 6 month old infants really need to have a cell phone, or convince customers that they need to carry more than one cell phone. If you end up having every man, woman and child living in the US subscribed to a cell phone, where will you get new customers then?

Future growth in smart phone sales will then be dependent on getting people not currently on smartphones to adopt smartphones. According to Verizon's press release on their Q4 results, nearly 90% of the new customers they added in Q4 were smartphone customers, and about 58% of their entire subscriber base is using smartphones. If they reach 100%, what then? Who will they sell smartphones to?

 

[jseah]

This statement from that article is so obvious it is funny...

"A recent report by Deloitte says that smartphones — mostly comprising Android, iOS and Windows Phone — consume 35 times more data traffic than typical non-smartphones."

Well....duh! Maybe next Deloitte will come out with a report that says that a 6,000 pound SUV will use more gas than a 50 pound moped.

 

[jgmecarter]

I understand what you are saying but I think 2014 is to early for what you guys are talking about. Right now the smartphone market is sold to people that are between the ages of 18 to 50. As the older generation starts to get older and die off the younger generation will get older and want smart phones. The odds are that the generation that they are Marketing to now will continue to buy smart phones as they get older. There is no way that data plans are even close to being maxxed out because of the number of people that are living when there is a generation that wants nothing to do with it right now. When the people that are between the ages of 30 through 50 become 60 through 80 years of age then thats when they will reach the ceiling of total sales that they can achieve. If you think that I am wrong that's fine but go out and ask old people why they don't buy phones with data plans and then go ask 10 year olds what kind of phone they want.