Will "Unlocked" Cellphones be sold Direct!
The major cell phone operators’ hold on which devices U.S. consumers can use on their networks may be slipping as large manufacturers like Motorola and Nokia dabble in selling “unlocked” phones.
Up until recently, unlocked phones–handsets that can be used on multiple carrier networks–have been available only in “gray” markets where Americans have bought phones from overseas. Now manufacturers are selling them on their Web sites and through certain retail channels.
I have had several occasions to discuss with Microsoft Mobile developers.. and Handset manufactures, they often complain about their innovation takes very long to get to consumers due to extremely lengthy validation, excruciating certification, training to call center personnel from the wireless carriers. As a result, the US phone market is lagging behind Asian and European market in new technology.
Worldwide, the cell phone market is split about 50-50 between phones sold through carriers and phones sold through other channels directly to consumers, says Lin. In Asia, about 80 percent of cell phones are sold independently of a carrier. And in Europe, roughly 70 percent of cell phones are sold unlocked. But in the U.S., between 90 percent and 95 percent of cell phones are sold through a mobile service provider.
“In general, phone makers do better in markets where the handset purchase is separate from the service purchase.”
–Albert Lin, analyst with American Technology Research
The good side about this “carrier controlled” distribution method is in general the carriers subsidize the hardware cost in exchange to a long term contract.
With the economic environment, (read recent layoff at Motorola) manufactures might decide to sell directly unlocked phone to consumer especially in GSM standard. (Will we see Apple selling directly the iPhone in their stores?). CNET reports that starting 2007 manufacturers are testing the waters in the U.S. market, however, the companies are watching carefully to make a major push that might upset carriers they do business with.
[Ref CNET News]
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