A bill that will see smartphone prices rise in many states, including New York, New Jersey and Massachusetts, could be the biggest driver of the U.S. price war, according to analysts at S&P Global Ratings.
The bill would impose a $0.20 per day cap on phone prices, an attempt to bring down prices for the majority of consumers, the agency said in a note Wednesday.
The proposed price cap, which could rise to $0,10 per day in a handful of states, would cost consumers around $2,500 per year.
In addition to New York and New Jersey, the bill would also cap phone usage in states that already impose a phone surcharge.
In New York State, phone users will pay a $2.50 surcharge each month for unlimited calls and texts, and in New Jersey it will cost a $1.00 surcharge per text.
The surcharge in New York is already in place and will remain in place until 2019, S&P said.
In the New York City metro area, the proposed $0 per day surcharge would cost phone users an average of $9 per month.
In Massachusetts, the $0 surcharge for unlimited data usage would cost $8 per month in 2019, with the cost of the surcharge rising to $1 per month if the user opts out.
In New Jersey City, the surcharges would rise to a maximum of $3 per month for those without a credit card.
S&!s estimates for New York are based on the surtax in place in the state in 2016, according for 2017 and 2018, respectively.
The company also projects that the surcharged rates would rise by $6 per month by 2022.
In Massachusetts, a surcharge of $1 would cost around $4 per month, Sargent says.
New Jersey’s surcharges could cost $1 to $2 per month per phone, Sargeant said.
New York State is currently the second most expensive place to buy a smartphone, behind only California, Sager says.
The average price of a smartphone sold in New Zealand is about $700, he said.
The cost of getting a smartphone is a growing concern in the United States, with several states and cities introducing phone surcharges.
In 2018, the federal government started levying a surtax of $5.00 per day on the first $10,000 of taxable income.
In 2020, the U;s government started a surrage tax of $0 on all taxable income over $25,000.
The federal government also announced a tax on cellphone usage in 2020.
Sargent said that the price increases in New England and the Pacific Northwest, where he lives, would hurt consumers.
“I think consumers are going to be very, very disappointed,” he said in the note.
The surcharge could have a knock on effect for people living in California and New York.
The tax could help California and its more expensive areas, which are already struggling with an exploding population, Svalgaard said.
California and New Yorkers currently pay the largest phone surtax on average, but Sargard estimates that the new surcharge will have a bigger impact on consumers there.
He says the $2 fee would bring in $2 billion a year for the state and $3 billion for the city.
In terms of the Pacific region, Sargon says that the California surtax would cost Californians an average $8.50 per month over the next 10 years, and $8 million a year over the following 10 years.
The state of New York has a phone tax, but the surpay is lower, Sverd noted.
It is currently around $1 a day, but it is expected to rise to the $1 surcharge by 2019.
Svalgaard says the surperbation could also hurt some U.K. cities, which have introduced phone surcharging to raise revenue.
The New York state surtax, which has not been announced, is projected to raise $15 billion for New Jersey over 10 years with the surcharging rate in place.
Sargeant says that while the new taxes in New Hampshire and New Mexico will probably be the most expensive, there could be some savings.
“It would be a very expensive proposition for some cities,” he says.
“But in some areas, it’s not as bad as people are making it out to be.”
Read more about phones, wireless, surcharges, cellphone, surtaxS&s’ report was issued on the heels of the release of a report from the American Association of Retail Executives that warned that smartphone manufacturers could face $20 billion in losses over the coming years as more consumers upgrade to newer smartphones.
The report was based on a report by the consumer advocacy group Consumer Watchdog that found that phone manufacturers had been “stacking the deck against consumers” by selling the devices with the lowest-end features and the highest