This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Next Smartphone Revolution Will Be Price

Once the American consumer realizes that a subsidy up front plus an inflated monthly fee is a net ripoff, there will be a move in the marketplace to buy smartphones SIM-unlocked and get service from a SIM card that you may have picked up at Wal-Mart. Thirty dollars per month can give you unlimited service, saving you as much as $60 a month, or $1,440 over two years. The consumer nets $1,000 or more in savings, $500 per year.

Those $500/year savings are already available to the consumer, so why will it matter more a year from now than today, you may ask? The answer is that the U.S. consumer is so short-sighted that the net present value benefit is harder to see if the phone costs $349 (Nexus) and $649 (iPhone), as opposed to perhaps $199 a year from now (a future Nexus phone).

2. Even lower prices for the monthly plans. If you want not only unlimited data, but you're also stuck on circuit-switched telephony and SMS, as 99% of Americans are, it's not enough to get just a $30 data plan for your smartphone. Most people pay closer to $90 because the bill adds to the $30 data also $20 for SMS and $40 for unlimited circuit-switched calling.

Google is likely to change this. I started writing in 2007, and have repeated this call in numerous articles since, that Google will launch its own integrated VoIP service. This has taken longer than I anticipated in 2007, 2008, 2009, 2010, 2011 and 2012. But it WILL happen. And I don't think we are a full year away from this. I think it will happen in 2013 -- cross your fingers.

With Google VoIP, calling may be 100% free, or you may get unlimited service at some very cheap price, perhaps $10 per month. Or you'll get something like 1,000 minutes or 3,000 minutes for $10 -- or whatever. All you need is a data plan, and you will be able to buy at least 4 gigs for $30 per month. SMS? It's already free with Google, and when they make voice free as well, people will finally wake up and start using the free SMS (Google Voice).

I predict Google will unveil this vision -- complete with $199 high-end smartphones and almost-free VoIP -- on May 15, 2013.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $693.01 0.00%
MSFT $49.87 0.00%
NOK $5.87 0.00%
QCOM $50.52 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs