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Overpaying for smartphone basics?

Last week, T-Mobile launched the ZTE ZMAX, a large 5.7 inch smartphone, for $252 or $10.50 per month with a two year contract. Cricket launched a similar device this week, the Grand X Max for $199. Both devices are big, beautiful and affordable and also feature some of the biggest batteries on the market. These are the features ZTE didn’t skimp on based on the company’s research.
By
October 6, 2014

Last week, T-Mobile launched the ZTE ZMAX, a large 5.7 inch smartphone, for $252 or $10.50 per month with a two year contract. Cricket launched a similar device this week, the Grand X Max for $199. Both devices are big, beautiful and affordable and also feature some of the biggest batteries on the market. These are the features ZTE didn’t skimp on based on the company’s research.

“During our research phase for the ZMAX, consumers expected the device was going to cost $500 or more. It’s wasn’t a total surprise based on what is happening in the market place today with devices like the iPhone 6 Plus costing $750,” said Andrew Elliott, Director of Strategic Marketing for ZTE USA. “We use a special usage equation to deliver the best smartphone value on the market.”

ZTE developed a utility model that identifies the cost per feature by analyzing how consumers use smartphones and the utility of each feature. In studying usage patterns ZTE focused on providing the best possible solutions for the best possible price thus maximizing value to the end consumer. This model resulted in the ZTE ZMAX which provides an exceptional experience at an unexpected price.

“With innovation being created only for innovation’s sake, brands lost sight of what people need, want and love to do in life and building phones with that in mind,” said Andrew.

Smartphone Utility Model

Cost per utility is found by evaluating the capabilities of each device and measuring how well it performs against usage models. For example, the ZTE ZMAX is $252 off-contract or $3.96/Utility while the Samsung Galaxy S5 is $650 or $8.22/Utility.

The media flurry around the iPhone 6 Plus has us all thinking about our next smartphone purchase. As awareness rises about the true costs of devices, we increasingly consider fresh brands that are delivering the cool factor at a lower cost, like the new ZTE ZMAX.