Android Repairs Costing Carriers $2 Billion Per Year

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Android smartphones might be cheaper for consumers, particularly with entry-level devices. But repairs on Android devices are reportedly costing carriers around the world a whopping $2 billion per year.

Research firm WDS says that Android smartphones might often be cheaper than the iPhone or BlackBerry smartphones due to subsidies and entry-level models. However, these smartphones often end up more expensive to maintain for carriers, costing a global $2 billion per year in repair costs. Tim Deluca-Smith, VP for marketing at WDS says that “[w]hile this price point sounds very attractive, when you look at a total cost of ownership its a different story.”

Deluca-Smith says that Android has brought smartphones to the masses, with handsets costing as little as $100. However, telecoms often bear the brunt of the cost when rolling out cheaper devices from lesser-known brands. But sometimes this also includes bigger brands like Samsung and HTC, which have boosted the popularity of the Android platform both in the low- and the high-end.

WDS offers device management and call center services to telecom companies, and has experience with handling inquiries regarding returns and repairs. The company says that it usually costs carriers an average of 80 GBP (or US$128) per handset in service fees, courier fees, or the cost of replacing the device when a customer calls in to complain about a problem.

What matters most, according to WDS, is the end-to-end control of smartphone manufacturers over their devices. The likes of Apple and RIM have stricter control over the iPhone and BlackBerry, respectively, in terms of components, software and even user experience. In contrast, Google does not have direct control over most Android smartphone manufacturers, and many phone makers even customize their software and user experience.