It seems like at a time when consumers are looking to cut their cell spending, carriers are focused on premium products and services. For instance, we saw MetroPCS launch the BlackBerry Curve earlier this month. Not to be outdone, Virgin Mobile has started discussing the trick up its sleeve. The company plans to release touchscreen handsets. This seems like a peculiar move at this point, but CEO Dan Schulman thinks it fits right in with industry trends.

While smartphones only account for 20 percent of handsets sold today, Schulman believes that we could soon see rates of up to 50 percent within five years. He’s not the first to make such a proclamation. There has been a trend moving towards all-in-one devices, ones which can place calls, connect to the Internet, message, and even function as a mini computer. Smartphones are a step in that direction.

“Things like value and flexibility are moving to the forefront,” [Schulman] said. “I think the economy is helping people to appreciate our model.”

Yes, as we’ve learned over the past few months consumers are starting to appreciate prepaid. However, this is moving from the value-intensive nature of prepaid to a more premium model. Not only will touchscreen phones cost more, but they require even costlier data packages. Will Virgin’s targets — low- and middle-income youth — be able to afford such goodies? Consider Virgin appears to be targeting older customers, that answer might be no.

Posted By : Joe
Posted at : March 23rd, 2009 - 10:00 am
Filed under : Virgin Mobile