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Mobile Phones - UK - April 2016

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
Smartphone market slowing down
Figure 1: Best- and worst-case forecast for the value of mobile phone sales, 2010-20
Smartphone ownership flattened out in 2015
Figure 2: Ownership of mobile phones, January 2012-December 2015
Samsung and Apple control over three fifths of smartphone market
Figure 3: Manufacturer of smartphone owned, December 2015
Windows Phone OS challenges market consolidation
Figure 4: Operating system of smartphone owned, December 2015
Phablets set to continue to grow in popularity
Figure 5: Screen size of smartphone owned and future purchase intentions, December 2015
Cameras now at the forefront of smartphone competition
Figure 6: Features that would encourage to upgrade to a new smartphone, December 2015
Trade-in programs might drive market share
Figure 7: Factors that would influence choice of manufacturer, December 2015
Price still a barrier to non-owners
Figure 8: Reasons for not owning a smartphone, December 2015
What we think
ISSUES AND INSIGHTS
Encouraging early upgrades among smartphone owners
The facts
The implications
Fostering brand switching among smartphone owners
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Smartphone market slowing down
Mobile players the most successful at converting shoppers into buyers
Smartphone ownership flattened out in 2015
Upgrade programs could prove beneficial on multiple fronts
Phablets trigger more smartphone activity
Struggling tablet market strengthens phablets’ positioning
Virtual reality could sustain smartphone industry revenues
MARKET SIZE AND FORECAST
Smartphone market slowing down
Figure 9: Best- and worst-case forecast for the value of mobile phone sales, 2010-20
Figure 10: Value of mobile phones sales, 2010-20
Upgrade programs to revive consumer demand
CHANNELS TO MARKET
Smartphone shoppers prefer online channels
Figure 11: Websites used and stores visited to shop around for smartphones, April 2015
Mobile players the most successful at converting shoppers into buyers
Figure 12: Stores visited and websites used to buy smartphones, April 2015
MARKET DRIVERS
Smartphone ownership flattened out in 2015
Figure 13: Ownership of mobile phones, January 2012-December 2015
Figure 14: Technology used at home by children aged 10-15, March 2015
Upgrade programs could prove beneficial on multiple fronts
Figure 15: Contract length, December 2015
Phablets trigger more smartphone activity
Figure 16: Online activities performed in the past three months on a smartphone, by smartphone screen size, June 2015
Struggling tablet market strengthens phablets’ positioning
Figure 17: Household ownership of tablets, January 2012-December 2015
Figure 18: Ownership of tablets (by screen size), by ownership of smartphones (by screen size), June 2015
Virtual reality could sustain smartphone industry revenues
Figure 19: Google cardboard, March 2016
Figure 20: Samsung Gear VR and Samsung Gear 360, March 2016
KEY PLAYERS – WHAT YOU NEED TO KNOW
Taking wireless charging to the next level
Looking for smartphones’ next USP
Let’s Tango
Are marketing budgets shifting to offline channels?
Competitors struggle to match market leaders’ brand image
Windows Phone suffers from limited availability of apps
LAUNCH ACTIVITY AND INNOVATION
Taking wireless charging to the next level
Figure 21: Powermat wireless charging pad and Powermat Ring, March 2016
Foldable designs open new scope for device convergence
Figure 22: Samsung’s patent for a foldable smartphone-tablet hybrid, December 2015
Cloud-first smartphone hits the market
Smartphones can get ethical
Two screens are better than one
Figure 23: LG’s V10 dual screen smartphone, October 2015
Let’s Tango
BRAND COMMUNICATION AND PROMOTION
Are marketing budgets shifting to offline channels?
Figure 24: Recorded above-the-line, online display and direct mail total advertising expenditure on smartphones, by advertiser, 2015
Mobile network providers aggressively target accessories category
Figure 25: Recorded above-the-line, online display and direct mail total advertising expenditure on smartphone accessories, by advertiser, 2014 and 2015
Methodology and coverage
BRAND RESEARCH – MANUFACTURERS
Brand map
Figure 26: Attitudes towards and usage of selected technology brands, November 2015
Key brand metrics
Figure 27: Key metrics for selected technology brands, November 2015
Brand attitudes: Microsoft Lumia and HTC struggle to build positive image
Figure 28: Attitudes, by technology brand, November 2015
Brand personality: Apple enjoys unique positioning
Figure 29: Brand personality – Macro image, November 2015
Samsung and Sony successfully combine reliability and desirability
Figure 30: Brand personality – Micro image, November 2015
Brand analysis
Samsung enjoys well-rounded trustworthy image
Figure 31: User profile of Samsung, November 2015
Sony’s product offering fosters stronger positioning among men
Figure 32: User profile of Sony, November 2015
Apple shows unique and exclusive positioning among 16-24s and women
Figure 33: User profile of Apple, November 2015
Microsoft Lumia still trying to establish strong positioning
Figure 34: User profile of Microsoft Lumia, November 2015
HTC Vive could help boost brand image
Figure 35: User profile of HTC, November 2015
BRAND RESEARCH – OPERATING SYSTEMS
Brand map
Figure 36: Attitudes towards and usage of selected brands, November 2015
Key brand metrics
Figure 37: Key metrics for selected brands, November 2015
Brand attitudes: Windows Phone suffers from limited availability of apps
Figure 38: Attitudes, by brand, November 2015
Brand personality: Android couples accessibility with upbeat image
Figure 39: Brand personality – Macro image, November 2015
iOS is cutting-edge and stylish at the same time
Figure 40: Brand personality – Micro image, November 2015
Brand analysis
Android builds a strong user base with well-rounded image
Figure 41: User profile of Android, November 2015
iOS cool image builds on its exclusivity
Figure 42: User profile of iOS, November 2015
Windows Phone seeking its place in the market
Figure 43: User profile of Windows Phone, November 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
Samsung and Apple control over three fifths of smartphone market
Windows Phone OS challenges market consolidation
Phablets set to continue to grow in popularity
Cameras now at the forefront of smartphone competition
Trade-in programs might drive market share
Price still a barrier to non-owners
MANUFACTURER AND OPERATING SYSTEM
Samsung and Apple control over three fifths of smartphone market
Figure 44: Manufacturer of smartphone owned, December 2015
Windows Phone OS challenges market consolidation
Figure 45: Operating system of smartphone owned, December 2015
iPhone Upgrade Program could help Apple avoid potential slow down
Figure 46: Manufacturer of smartphone owned, by age and annual household income, December 2015
SCREEN SIZE
Phablets set to continue to grow in popularity
Figure 47: Screen size of smartphone owned and future purchase intentions, December 2015
Samsung dominates the phablet space
Figure 48: Manufacturer of smartphone owned, by screen size of smartphone owned, December 2015
FEATURES THAT WOULD ENCOURAGE TO UPGRADE
Cameras now at the forefront of smartphone competition
Figure 49: Features that would encourage to upgrade to a new smartphone, December 2015
Figure 50: Rear- and front-camera resolution of Samsung Galaxy and Apple iPhone, 2010-15
Could a modular phone be the answer?
Figure 51: LG’s G5 with slide-in modules, February 2016
Figure 52: Google’s Project Ara Prototype, 2015
PURCHASING INFLUENCES
Trade-in programs might drive market share
Figure 53: Factors that would influence choice of manufacturer, December 2015
Could aftersales services trigger brand switching?
REASONS FOR NOT OWNING SMARTPHONES
Basic users do not need a smartphone
Figure 54: Reasons for not owning a smartphone, December 2015
Price still a barrier to non-owners
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Abbreviations
Market size and forecast
Fan chart forecast
Figure 55: Best- and worst-case forecast for the value of the UK mobile phones market, 2015-20
Brand research
Brand map

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