As noted by market research firm, gap intelligence, the tech giant first started focusing on this market in September. And over the past last year, this pursuit has grown more arduous for the company. An evidence of this can be seen by how much the prepaid retail channel placements of the iPhone has grown from Q2 2016 to Q2 2017. The figure has grown from 15 SKUs to 46 SKUs. But it seems like Apple is not yet ready to stop this growth. The San Diego-based research firm has noted a 35% increase from Q1 2017 to Q2 2017.
To further improve its efforts in the prepaid market, Apple has secured a partnership deal with Costco. Through this prepaid distribution deal, Apple has been able to increase its prepaid retail placements by up to 200% (AT&T) and 125% (Best Buy) quarter over quarter. The market research firm has noted that there has been 15 new retail placements for the iPhone across five prepaid carriers. Wave7 Research has noted that even though Apple has long been identified as a high-end brand, it seems to be willing to sacrifice its margins just so they could gain a larger part of the prepaid market.
Using gap intelligence's data to support its report, Wave7 shared that there has been an influx of low-cost iPhone SE, 5S and 6 models purchased for prepaid. This can be expected since carriers like AT&T GoPhone, Total Wireless, and Simple Mobile have launched iPhone models under $200. MetroPCS, meanwhile, just launched the iPhone SE 32GB at a price of $199. As for the base models, Straight Talk customers can already purchase the iPhone 5S for $99, iPhone SE for $159, and iPhone 6 for $199. Customers who port to Boost Mobile can get the iPhone 5S at $49.99.
Back in March, T-Mobile, Sprint, and AT&T all extended their unlimited data offers to accommodate the needs of the prepaid sector. Last month, Verizon followed suit by reducing the price on its tiered prepaid plans while increasing the data allotment on each plan. This growing trend proves true to the notion that more and more people are switching to prepaid from postpaid.