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Why Android smartphones are perfect for prepaid

If you follow the blog often, you know that there is an increasing number of Android smartphones available for prepaid services. This is just another indicator of how much the industry has changed in the past few years. When we first started blogging about prepaid wireless services — all the way back in May of 2007 — there were no prepaid smartphones. In fact, smartphones weren’t very big at all. BlackBerry was by far the best option, and the iPhone hadn’t even hit the market. Now there are dozens of smartphones available from a number of prepaid carriers. But no matter where you look, Android provides the best value.
 

Prepaid users want value
 
As prepaid wireless services have changed, so have their users. It’s tough to say whether carriers changed based on user demand, or whether users started buying newer services because carriers made them available. Either way, we’ve seen rapid advancement in the last few years, and smartphones have now become commonplace in the prepaid market. But the best selling ones are the ones that provide the most value.
 
That might seem like an obvious statement, but it’s not an easy concept to execute. In order to provide value, carriers have to find handsets that people will love at a price that they will accept. There have been a number of high quality handsets on prepaid carriers, but at $300 to $400 it’s not the best value proposition. It’s one reason we haven’t seen the iPhone on prepaid. The value proposition doesn’t match up for enough users.
 
What about BlackBerry?
 
It’s a relatively new development, but many prepaid carriers have picked up BlackBerry smartphones for their lineups. Yet we’ve seen little movement forward from any of these carriers. Here’s a quick list of four prepaid carriers who do carry the BlackBerry.
 

  • Boost Mobile. They once carried the BlackBerry Style 9670, a flip phone, but they’re apparently out of stock. There is likely no plan to re-order. They also have the Curve 8530, an outdated handset.
  • Cricket carries the Curve 8530 as well, but that’s it. It’s been available for over a year, and there have been no plans to add a new BlackBerry.
  • MetroPCS has the same deal as Cricket. There just seems to be no movement on this front.
  • Virgin Mobile once carried the 8530, but in mid-November it no longer appeared on the website. An email to Virgin revealed that they are simply out of stock, but it has been more than a month now.

 
It’s not that the BlackBerry is a bad smartphone. It does bring basic features, such as email, calendar, and contacts, and it has plenty of social apps such as Facebook and Twitter. It also has BBM, which is a favorite of the BlackBerry crowd. But with the BlackBerry crowd diminishing that’s less of a selling point.
 
What it comes down to with BlackBerry: it’s a mid-range device with a higher-end price tag. You’ll see a lot of BlackBerry devices in the $180 to $200 range. That might seem acceptable, but Android smartphones can do a lot more for the same, or less, money.
 
Android is about the value
 
What makes Android a great value proposition is the low end. That is, even a low-end Android handset is still as good as, if not better than, the BlackBerry. And so users can buy an Android handset for $100 and get plenty of value out of it. It still has those basic smartphone features, it still has social features, and, most of all, it has access to the Android Market.
 
With hundreds of thousands of apps available, even low-end Android handsets have some value proposition. Users can also take advantage of unlimited plans, which typically cost $55 per month. Even better, with a loyalty plan like Boost’s users can end up paying $40 per month for their service eventually. That is, the value is there in both the handset and in the plan. And that is why Android handsets, and particularly low-end Android handsets, are the best bet for the prepaid market.