Editor’s Note: In this monthly feature, RCR Wireless News talks to retail managers across the country to get a first-hand view of what’s hot in wireless.
RadioShack Corp. sells wireless devices and service around the country. The retailer offers postpaid service from AT&T Mobility and Sprint Nextel Corp. in more than 4,000 locations, along with smaller carriers such as Alltel Corp. and prepaid service from Tracfone Wireless Inc., Sprint Nextel sub-brand Boost Mobile as well as mobile virtual network operator Virgin Mobile USA Inc.
Greg Schmidt, area wireless director for RadioShack’s Southeast region, oversees approximately 600 RadioShack stores from Virginia to Florida. He spoke with RCR Wireless News about wireless retail trends.
What trends do you see in device popularity?
There are two existing trends that I’d like to call out in the postpaid wireless business. The first is really around music phones. Music phones are driving a large number of both new and upgrade purchase decisions. Now consumers can choose from phones . that have all the features and stylings they’d expect from full-function MP3 players: removable memory, external MP3 controls, stereo headphone jacks, slim and fashionable form factors and even on occasion, multiple colors and features such as megapixel digital camera. . This holiday season, we’re teaming with AT&T and Samsung and we’re launching an exclusive color [the red Samsung A737] just due to the overwhelming popularity of these feature-rich devices.
The other . trend that we’re seeing is the growth of what I call data devices or air cards. More and more customers are taking advantage of the ability to use the wireless networks for Internet access on their notebook computer or home computer. With the pricing coming down on both the devices and the rate plans as well . we’re seeing more everyday consumers come in to purchase this product that was traditionally relegated to the business user.
Which accessories are the most popular?
There have been three must-have accessories. The star has always been the car charger/cigarette lighter adapter. We’ve got a unique item called the iGo that allows customers to . power multiple devices with one cigarette charger: wireless phone, PDA, MP3 player and a myriad of portable devices all off of one charger. Bluetooth has been a considerable growth category for the wireless industry and specifically at RadioShack, not only with the reduction in the price point but also with the increase of local markets now passing hands-free laws for customers who are going to be driving and using the phone at the same time. The final, sort of surprising growth category is removable memory.
What plans are customers asking about and signing up for?
More customers are upgrading to plans with not only more minutes for less dollars than their existing plans, but plans that include unlimited text messaging, accessing personal e-mail from the handset, not to mention those data devices have stand-alone plans. So we’re seeing customers make more decisions not just based on minutes and nights and weekends, but upgrading to services that allow them to do more in terms of music, messaging and entertainment.
Which data service add-ons are consumers most interested in?
The most popular features continue to be around sending and receiving data, not just using the phone for voice communications: text messaging, picture messaging and now more and more, not just to send and receive business e-mail but personal e-mail whether I use Yahoo mail or AOL or I use Hotmail. [Consumers want] the ability to access personal e-mail even when they’re on the go, even instant messaging. Those data features around sending and receiving information are continuing to be the most popular, with things like downloading music and games running a close second.
What trends do you expect to see this holiday season and into 2008?
Looking forward to 2008, I think a lot of the trends we’re seeing right now are just going to continue: more feature-rich devices, more removable memory, more higher-resolution cameras, more features integrated from all these other portable devices that we have, in one handset, and the service plans that go along with that. Closer to the holiday season . prepaid wireless is always very high on the shopping list. . We’re confident that the prepaid business . [is] going to continue to drive a lot of purchases for both new and returning customers who have family members-typically younger family or older family members-looking for wireless as a gift.
