smartphone market in 2019 · 2019. 10. 9. · 1 executive summary 6 ngs phone manufacturers are...
TRANSCRIPT
October 2019
Smartphone Market in 2019Features, upgrade potential and brand relevance
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Phone
Upgrade
Market
Background
and Exec
Summary
1
Mobile Brand
Potential
2
Phone
Features
Potential
3
Headphone
Jack Opinions
5
Mobile
Gaming
Attitudes
6
Report Contents
4
1 BackgroundS
UR
VEY
MET
HO
D
• 2002 respondents
• 10 Minute online survey via
harris 24
• Aged between 18 and 89
• Fieldwork in September 2019
• Survey was weighted to be
nationally representative by
age, gender and region
• Harris 24 is an ultrafast polling service from Harris Interactive, delivering up to 5,000 respondents for national polls or targeted audiences
• Clients have real-time data access via an analytics platform with exportable results
• We can reach 30+ million global consumers across 70+ markets
• Click here for more information
• See end of report for more services provided by Harris Interactive
1 Executive SummaryTO
P 6
FIN
DIN
GS
Phone manufacturers are having to combat inertia in the market, with 38% holding onto
their phone for 3 or more years
High impact features, that are most likely encourage faster upgrades revolve around
practicality and productivity (5G, long battery life, wireless charging etc.)
Young people are most enticed by these practical features because they enrich a
phone’s potential to augment their lifestyles
Challenger brands such as Google and Huawei are best placed to promote these
features and mount a challenge against market leaders
Smaller brands such as Xiaomi, Honor and OnePlus have yet to differentiate in the
market, and could also promote these features to break-out
Interestingly, younger people are the most likely to miss a headphone jack, its removal
means too many things to charge and lack of convenience/signal quality
2U
PG
RA
DE M
AR
KET
55%
27%
11%
7%
1-2 years
3-4 years
5 years or more
Don't Know
No. of years to upgrade phone
9% 64% 26%
0% 20% 40% 60% 80% 100%
Shorter time About the same Longer time
2%
2%
9%
10%
13%
17%
46%
Other (specify)
Better for the environment
No features to upgrade for
I cannot afford upgrade
I have other priorities
New phone too expensive
Happy with current phone
Reasons for keeping phone longer
Keeping phone longer/shorter time
38% of the UK
population hold onto
their phone for 3 years
of more, and 26% are
keeping hold of them
for longer. Potentially
new features or formats
could shake up the
market.
Phone manufacturers are having to combat
inertia in the market to encourage upgrades
Base: Total (2002), Reasons for keeping phone longer (531)
3 To combat inertia, companies need to introduce
Utility-type features that interest people
54%50%53%62%
42%42%
20%27%19%12%
21%7%5%
28%31%27%20%
36%35%
41%39%
39%38%
34%
28%20%
13%15%14%13%16%17%
29%24%32%
36%29%
42%
44%
5%5%6%6%6%6%9%10%11%15%16%23%31%
This feature doesn't interest me Only a nice to have, won't seek out Would seek out, but not essential Next phone choice is based on this
Features that improve productivity & practicality of smartphones spark the most interest amongst the
consumer. Longer battery life, fast & wireless charging are features that will be sought out in future
phone purchases.
Level of interest in features
Base: Total (2002)
PH
ON
E F
EA
TU
RES
3P
HO
NE F
EA
TU
RES The features with the
highest potential to
drive smartphone
upgrades relate to
practicality, with longer
battery life and fast-
charging as the features
with the highest
likelihood to spark an
upgrade. Many of the
other features, such as
beautification &
Augmented reality, have
both low awareness and
low appeal in terms of
driving an upgrade.
Infinity ScreenStylus
Foldable Screen
Optical Camera Zoom
Low Light photo mode
Wireless Charger
Beautification
Stream or play latest games
Longer battery life
Fast-Charging
Punch-hole camera
Video editor
5G
Augmented Reality
0%
5%
10%
15%
20%
25%
30%
35%
10% 20% 30% 40% 50% 60%
% S
ay f
eatu
re w
ou
ld m
ake m
e u
pg
rad
e
%Aware of feature
Niche appeal features High impact features
“Could-have” Features Bonus features
Strategic feature potential
Base: Total (2002), People interested in features (potential for upgrade) (1709)
Utility-type features have wide-market impact,
with strong awareness & propensity to upgrade
3
32%
25%
18%16%
44%
37%
32%
23%
19%
30%32%
27%
21%
17%
42%
28%
18%
12% 12%
59%
Longer Battery Life Fast Charging 5G Wireless Charger None would make me
upgrade
Total
18-34
35-54
55+
Older generations are much less likely to be swayed by new features to
upgrade their phone. Young people cite longer battery life as the main driver
for an upgrade.
Younger people are most interested in these
practical features
Base: Total (1709), 18-34 (519), 35-54(599), 55+ (673)
PH
ON
E F
EA
TU
RES
“Which of these features would make you upgrade your phone?”
3
“What 3 features would you miss the most?”
18-34
Access the Internet 48%
Use Social Media 36%
Take Photos/Videos 35%
Listen to music 26%
Stream Videos 23%
35-54
Access the Internet 52%
Take Photos/Videos 35%
Send Texts 35%
Voice Calls 33%
Use Social Media 24%
55+
Send Texts 58%
Voice Calls 56%
Access the Internet 42%
Take Photos/Videos 38%
Send Email 26%
Essential phone
features vary by
age group. While
older generations
prioritise the basic
smartphone
features, younger
people cite the
ability to listen to
music and stream
videos amongst
the top 3 features
that would be
missed the most.
Phones are lifestyle accessories to young people,
and features such as 5G enrich that experience
Base: 18-34 (567), 35-54 (702), 55+(845)
PH
ON
E F
EA
TU
RES
BR
AN
D P
OT
EN
TIA
L4
Despite recent
controversy in the
press, Huawei is best
set to challenge
market leaders
Samsung and Apple.
Google has great
potential, but needs
a stronger sales and
brand strategy to
really start to
challenge in this
space.
Size of bubble = % awareness
Market DeclinersMarket Followers
Apple
Samsung
Huawei
Sony
Nokia
Motorola
Blackberry
HTC
-10%
0%
10%
20%
30%
40%
50%
60%
-5% 0% 5% 10% 15% 20% 25% 30% 35% 40%
% s
ee b
ran
d a
s re
leva
nt
in t
he f
utu
re
% using brand
As market challengers, Huawei & Google could
benefit from implementing these changes
Usage, future relevance and awareness of established mobile brands
Market Mavericks Market Leaders
Base: Total (2002)
4B
RA
ND
PO
TEN
TIA
L
4
LG Electronics
Honor
Acer
OnePlus
Lenovo
Xiaomi
Asus
0%
1%
2%
3%
4%
5%
6%
-5% 5% 15% 25%
% s
ee b
ran
d a
s re
leva
nt
in t
he f
utu
re
% using brand
The smaller brands have yet
to break into challenger
territory; Acer has high
awareness in the category
but is not capitalising on this,
while Xiaomi, Lenovo, and
Oneplus all have the same
levels of low usage and
relevance.
These brands really need to
differentiate to break out of
being small-scale challenger
brands.
Size of bubble = % awareness
BR
AN
D P
OT
EN
TIA
LPromoting these features could help smaller
brands to differentiate & break out
Usage, future relevance and awareness of smaller mobile brands
Base: Total (2002)
5
61%of people reported listening
to music on their
smartphones
52%
29%
19%
Of these people,
their main
methods of
listening are:
Headphones
/earbuds via
an inbuilt
jack
Wireless
headphones/earbuds
Headphones/earbuds
via an adaptor
Consumers are still using headphone jacks, as it remains to be the main method of listening to music
on smartphones.
Despite the manufacturers shift away from the
inbuilt headphone jack, it remains prevalent
Base: 1,162
HEA
DP
HO
NE J
AC
K
5
16%
31%
54%
21%
41%
38%
15%
29%
55%
11%
24%
64%
Total
18-34
35-54
55+
HEA
DP
HO
NE J
AC
KTwice as many people cite a preference FOR a headphone jack
compared to without. This preference is higher in younger people.
Strong marketing towards 18-34s could incorporate inbuilt headphone
jacks.
Interestingly, younger people demonstrate the
highest preference for an inbuilt headphone jack
Headphone jack preference
Base: Total (2002) 18-34 (567) 35-54 (702) 55+ (757)
I Prefer a phone without a headphone
jackI Prefer a phone with a headphone jack I don’t mind
5
13%
13%
14%
17%
18%
23%
32%
38%
38%
Other
Adapters don't look very good
Adapters don't last long and must be replaced often
Adapter audio quality is lower than having a direct jack
Using wireless headphones is lower quality audio
Bluetooth signal on wireless headphones is unreliable
Smartphone manufacturers are phasing out adapters, forcing us to use
wireless headphones
Using an adapter or wireless headphones is less convenient than
having a direct jack
Using wireless headphones means I must charge too many things
Consumers seem to
be craving a return to
simpler times in terms
of their everyday
technology. Reasons
for preferring an
inbuilt jack revolve
primarily around
convenience and
practicality.
People are rebelling against the day-to-day complexities imposed on them by tech companies
Reasons for preferring an inbuilt headphone jack
Base: 590
HEA
DP
HO
NE J
AC
K
6
22%
78%
45%55%
24%
76%
3%
97%
Yes No
Total
18-34
35-54
55+
10%15%
20%17%
26% 27%
11%15%
24%
5% 6%11%
Monthly Weekly Daily
Frequency of
mobile gaming
by age group:
Desire to
stream Xbox,
PlayStation, or
PC games direct
to smartphone:
Unsurprisingly, young people are the most
‘hardcore’ mobile gamers
Base: Total (2002), 18-34 (567), 35-54 (679), 55+ (757)
MO
BIL
E G
AM
ING
While 18-34s are the most frequent gamers, they also report the highest desire to
stream console-style games direct to their smartphones.
6
50%
28%25%
18%16%
14% 14%12% 11% 11% 10% 10% 10% 10% 9%
7%
48%
31%29%
18% 18%16% 16%
12% 12%14% 15%
13%11% 10%
8% 9%
Puzzle Trivia &
Word
Card Strategy Simulation Action Adventure Casino Racing Sports Dice &
Board
Role
Playing
Pokemon
Go
Music Educational None of
these
Currently Play Interested in Playing
Potential gap in the market for game genres with
a higher rate of interest vs current rate of play
Mobile games currently played vs. games interested in
Genres like Dice & Board, Adventure, Action, Card, & Trivia have higher rates of interest than
current rates of play. This suggests that there are gaps to be filled within these genres to target
those who are interested in order to bridge the gap between currently play and interested in
playing.
Base: Currently play/interested (1120)
MO
BIL
E G
AM
ING
6
31%
20%19%
11% 11%10% 10% 10%
9%8% 8% 8%
7% 7%5%
39%39%
28%
23%
27%
24%
32%31%
17%
27%
24%
19%
23%
18% 18%
14%
2%
Puzzle Trivia &
Word
Card Simulation Strategy Action Adventure Dice &
Board
Sports Role
Playing
Casino Racing Pokemon
Go
Music Educational None of
these
Total Streamers
Potential to promote and create ‘hardcore’ game
content as streamers get into mobile gaming
Mobile games interested in, all respondents vs, streamers
People who reported an interest in steaming console games direct to their smartphones
are classified as streamers. These people report a much higher interest in playing all
genres compared to the general public, especially Action, Adventure, & Sports genres.
Base: Total (2002), Streamers (404)
MO
BIL
E G
AM
ING
Survey Overview
Topics Covered Potential Data Cuts
Demographic Details
Smartphone brand/network usage
and awareness
Provider and contract information
Length of time people are waiting
to upgrade
Desirable smartphone features
Headphone jacks
Mobile Gaming
Upon request, we are able to cut data by the following:
Age
Gender
Smartphone brand usage
Service Provider
Contract Type (long
term/monthly/pay-as-you-go,
Contract packages, Cost, & Length
of contract
Mobile Concept Test (MVNO)
• Quant research with consumers to test three ‘final’ new handset concepts previously assessed in focus groups.
• 1,500 online interviews with UK target audience using a monadic design with DCM (conjoint) element to finalise list of features to be offered and promoted.
Global Brand Tracker (Digital Media Player)
• Quant tracking to understand awareness, consideration, brand perceptions and advertising recall for leading streaming media player.
• Online tracking study of 2000 consumers per market per monthly wave (across 6 global markets).
iPhone Intentions Study (Major Network)
• After the announcement of the iPhone 8 and X, the client was concerned about low pre-order volumes for the new mobile and wanted to understand why to determine stock levels.
• 3,000 consumer interviews covering purchase intent, reasons for non-consideration, and upgrade likelihood.
UK Brand Tracking (Major Network)
• Quant tracking of how customers’ and prospects’ attitudes evolve over time and what it means for the business.
• 5,000 nationally representative interviews plus 4,000 customer interviews per monthly wave.
In-store experience Study (MVNO)
• Qual research to understand key stages customers go through purchasing a new phone, and areas for CX improvements.
• Accompanied shops with 20 shoppers (5 actually purchased a phone/Sim), and 5 in-store staff interviews.
Consumer IoT Security Labelling Study
(Department for Culture, Media & Sport)
• Selected by the DCMS to conduct research into new labelling system to reassure UK public smart devices are safe and secure.
• Background & methodology can be viewed here here
Market Environment Study (VR Brand)
• Quant research across 5 international markets to assess the market potential for a pioneering VR headset.
• 4,000 consumer interviews per market to explore awareness, interest, drivers/ barriers, applications, purchase intent, pricing and early adopter profiling.
Sim Only customer needs (MVNO)
• Quant research to understand why consumers are moving from PAYM/PAYG to SIMO and profile target audience (including spend/sales channels, and drivers of consideration)
• 3,000 consumer interviews with smartphone users
Insight Community (Electronics Company)
• European insight community with experienced photographers and printer users.
• A range of quant and qual research is used to develop products, optimise e-commerce and web design and test marketing communications.
20
Selected Tech & Telecoms case studies
21
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