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Who Needs Contracts? Unlocked Phone Sales Jump in 2015

More than 14.5 million unlocked smartphones were shipped in 2015.

 & Stephanie Mlot Contributor

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Unlocked smartphone shipments hit a record high in the U.S. last year.

According to research from Strategy Analytics, shipments are up 140 percent annually to 14.6 million units in 2015. Miami-based phone manufacturer Blu took the lead, capturing 36 percent of the market with 5.2 million unlocked smartphones, a 160 percent annual growth from 2 million in 2014.

Blu "has been growing rapidly in the U.S. unlocked smartphone market due to extensive distribution channels like Amazon and Best Buy and popular Android unlocked models like the Studio 6.0," Strategy Analytics Executive Director Neil Mawston said in a statement.

Apple and Motorola came in a distant second (12.3 percent) and third (9.6 percent), respectively.

The introduction of the iPhone Upgrade Program last year gave Cupertino a boost, driving sales from 0.7 million units in 2014 to 1.8 million in 2015.

"Motorola also had a strong performance…shipping a record 1.4 million unlocked smartphones in 2015," added Ken Hyers, director at Strategy Analytics.

The company solidified its third-place standing with the help of its third-gen Moto X and Moto G, as well as price reductions for the second-generation Moto G.

"LG and Huawei also saw strong growth," Hyers said, "mainly thanks to healthy demand for the Google Nexus 5X and 6P, respectively."

A relatively new phenomenon—only 6.1 million units were shipped in 2014—unlocked handsets promise a freedom those devices linked to a specific carrier contract do not. 

And when you get bored with your handset, just trade up or sell in, without waiting for a leasing agreement or installment plan to end. Plus, you can own multiple devices and swap your SIM card between them—helpful for those folks leading a double life.

But with the good comes the bad, and for unlocked phones, that typically means compatibility only on GSM networks. There are some exceptions: The Apple iPhone 6/6s, Google Nexus lineup, and Motorola Moto X Pure work on all four major carriers.

About Our Expert

Stephanie Mlot

Stephanie Mlot

Contributor

My Experience

  • B.A. in Journalism & Public Relations with minor in Communications Media from Indiana University of Pennsylvania (IUP)
  • Reporter at The Frederick News-Post (2008-2012)
  • Reporter for PCMag and Geek.com (RIP) (2012-present)

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