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Prepaid Smartphones!

I want prepaid smartphones now!  I know, I need to be more patient ;-).  The reality is that there actually are prepaid smartphones currently available from select Prepaid Wireless Providers such as the BlackBerry and even Google Android phones starting to come out.  When I start talking about this topic, people tend to ask:  Why would someone with a prepaid wireless plan want a sophisticated smartphone?  AND... Why is the selection so small?  Well, let's take a closer look at these very good questions!  Or skip to What is a Smartphone now.


Why Prepaid Smartphones?

There are many people out there (mostly in North America) who still believe that prepaid wireless, or No Contract Cell Phone Plans, are only (or at least mostly) for the low end of Cricket Kyocera Zio M6000the wireless market.  While that used to be the case, it is certainly no longer true, and one only needs to look at most other countries in the world to see how dominant no contract wireless has been for decades (read more about Why Prepaid Wireless).  The bottom line, though, is that prepaid wireless is dominating across the world, and even carriers in North America have seen prepaid growth out pace postpaid growth starting in 2009.  Sprint Nextel certainly believes this is the case, and have been busy growing their prepaid wireless, no contract wireless portfolio.  Read more about Sprint Prepaid Cellular Phones.


So what does this mean?  Well, as prepaid wireless becomes more popular, consumers like us start to demand better phones with more features.  We're no longer second class citizens!  We want a QWERTY keyboard.  We want to send and receive emails.  We want to view Word and Excel documents.  We want to download games and applications, etc.  Prepaid smartphones are the answer to our needs and desires!


Why is Prepaid Smartphone Selection So Small?
Fortunately, and unfortunately, this is an easy question to answer.  The selection of smartphones has been so small for the following reasons:
  • Before prepaid wireless began to grow, there really wasn't a market for it.  Since 2009, as the prepaid wireless market has proven to be a dominant force, and an important source of growth for prepaid carriers, they have been hard at work preparing to launch higher end phones, including smartphones.
  • There really is a lot of technology in smartphones; let's not take that for granted.  And that technology costs money.  OEMs (Original Equipment Manufacturers) charge a good amount of money to carriers to buy them.  While postpaid wireless has the benefit of contracts and Handset Subsidies, prepaid doesn't.  This means that these phones cost A LOT of money; more than most people are typically willing to pay.
The good news is that as smartphones become more and more popular, the overall cost to build them has come down (and will continue to decline).  As the price comes down, we'll see more/better selection of prepaid smartphones being offered.  That's why the ones that you saw available in 2009 and 2010 tend to be older models, because the OEMs are more willing to sell them to carriers at a lower price to deplete their inventory.  Whether you're looking for a no contract smartphone or a postpaid plan, click over to Best Smartphone to learn what features you might want to consider as you make your selection.


 
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