Sharp Re-Enters U.S. Smartphones Via Dual-Market Strategy, SoftBank Tie-In
Sprint and Sharp are taking a decidedly mid-market approach to the U.S. smartphone market that’s dominated in the U.S. by Apple and Samsung, according to comments executives made at the launch of the Sharp Aquos Crystal smartphone in New York Tuesday. The phone, available on subsidized two-year contract plans for zero down and $10 per month over 24 months -- or $149 on a prepaid plan from Boost Mobile or Virgin Mobile -- was launched along with value-oriented data pricing plans from Sprint.
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Sharp’s re-entry into the U.S. market is the result of SoftBank’s buy of Sprint, which makes it cost-effective for Sharp to build the Crystal for the U.S. market and for Japan, where Sharp is the leading producer of Android smartphones. “We probably couldn’t have done this two years ago because it would have been going by itself to Sharp,” said David Owens, senior vice president-product at Sprint. “The reason we're able to make this value play is that SoftBank was able to commit volume and units in Japan” and Sprint was able to build volume across its brands, Owens said. The combination “essentially allowed Sharp to build a single product for us in Japan and the U.S.,” he said.
Sprint has moved away from the Framily plan, which Owens said was difficult for consumers to understand. He said AT&T and Verizon have more than 75 percent of the U.S. market. A directive from new CEO Marcelo Claure was to make it easy for consumers and sales associates to compare plans and see how Sprint provides “better value” than the competition, he said. The new Family Share Pack offers four lines for $160, same as the Framily plan, but with double the data, he said.
Yoshisuke Hasegawa, general manager of Sharp’s Communications Systems business, told us the Crystal is an exclusive model for Sprint in the U.S. market, and the company’s initial focus with smartphones is with SoftBank. On whether Sharp will expand its footprint in the U.S. down the road, Hasegawa said Sharp needs to build a base in the U.S. first. Sharp has been selling smartphones in Japan since 1995 and sold to the small-business market in the U.S. four years ago.