Author: Phill Maling


Publication Date: Nov 07 2017


Pages: 13


Report Type: Report, PowerPoint



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 Pricetrax

ZTE Bucked Pricing Trend with Axon 7 but Failed to Capitalise




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Report Summary:

Strategy Analytics’ PriceTRAX Service has examined the handset pricing (from launch) for the ZTE Axon 7.The Axon 7 launched as an impressively spec’d flagship smartphone at a mid-tier price point.

Over time the retail price for the Axon 7 remained stable with no sign of depreciation 18 months after launch. Traditionally flagship pricing from vendors such as Samsung, Huawei and Lenovo erodes over time. This can prop up device sales 2-4 quarters after launch. OnePlus has a more disruptive approach to handset launch pricing, providing a launch price lower than the retail price, a strategy to drive early device adoption.

There appears to be little financial incentive for early vs late adoption of the Axon 7 by consumers due to static device pricing. Axon 7 primary availability is unsubsidised via retailers. There are very few operators offering the device subsidised on post-paid contracts. Some third party retailers do fill this gap but this is in fewer than 10 countries worldwide.

ZTE appeared to be relying on the Axon 7’s premium tier specifications to sell the flagship and did not utilise price reduction to maintain device sales after the product’s launch quarter. ZTE may have missed out on device launch price revenue when pricing the Axon 7 and could have limited post launch sales performance by not reducing handset price over time. According to Strategy Analytics’ Smartphone Model Tracker Service  Q4’16 shipment volume for the Axon 7 was 0.7M units which reduced to 0.3M during Q1’17.




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