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Mobile Phones - US - March 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Forecast for mobile phones stagnant before introduction of 5G spurs growth
Figure 1: Total US mobile phone sales and fan chart forecast, in units, 2013-23
Strong brand loyalty makes it difficult for challengers
Figure 2: Smartphone brands considered, by smartphone brand owned, January 2019
Figure 3: Smartphone brands considered, by smartphone brand owned, January 2019
A better camera alone isn’t enough for smartphone owners to switch brands
Figure 4: Attitudes toward smartphones – Switching and brands, by smartphone brands owned January 2019
The opportunities
Four in 10 plan on purchasing within the next year
Figure 5: Smartphone purchase intent, January 2019
Engagement with smartphone accessories correlates to purchase intent
Figure 6: Smartphone purchase intent, by count of smartphone accessories used, January 2019
English-speaking Hispanic Millennials a critical target for tech products
Figure 7: Smartphone purchase intent and attitudes, by Millennials and Hispanic origin, January 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Unit sales forecast to continue downward trend through 2020
Smartphone penetration eclipses 80%
Apple sees record number of battery swaps in 2018
Trade-in programs hope to minimize impact of refurbished market
MARKET SIZE AND FORECAST
Downward trend forecasted until next generation of phone tech
Figure 8: Total US mobile phone sales and fan chart forecast, in units, 2013-23
Figure 9: Total US mobile phone sales and forecast, in units, 2013-23
MARKET BREAKDOWN
Feature phone sales account for just 7% in 2018
Figure 10: Total US mobile phone sales, in units, by segment, 2013-18
Smartphone penetration north of 80% in 2018
Figure 11: Mobile phone ownership and type of phone used, 2011-18
Figure 12: Smartphone users, by household income, 2012-18
Figure 13: Mobile phone ownership and type of phone used (among internet users), 2011-18
Figure 14: Smartphone users, by household income (among internet users), 2012-18
MARKET PERSPECTIVE
Impact of 5G on mobile devices is still too early to determine
5G rollout could link network providers with specific brands
More than half of US households no longer have access to a landline
Apple replaces nearly 11 million iPhone batteries in 2018
MARKET FACTORS 
Trade disputes bring uncertainty and potential price increases
Political pressure limits Huawei’s presence in the US
Refurbished second-hand market can impact new phone market
Figure 15: Sprint iPhone X upgrade retention email, December 2018
Figure 16: Apple iPhone Xr upgrade retention email, part 1, December 2018
Figure 17: Apple iPhone Xr upgrade retention email, part 2, December 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Apple’s iPhone still the king of the hill
Apple and Samsung top repeat consideration among current owners
Mobile gaming ready to take the next step
Chinese companies like Huawei face political hurdles in US
COMPANY AND BRAND MARKET SHARE OF MOBILE PHONES
Apple iPhone user market share growth stops in 2018
Figure 18: Brand of smartphone, by mobile phone users, 2012-18
WHAT’S WORKING?
Apple has the most loyal smartphone owners
Google garnering significant interest among smartphone shoppers
WHAT’S STRUGGLING?
Apple will no longer report unit sales on iPhones
Alternative non-carrier brands get little to no consideration
WHAT’S NEXT?
5G technology will refresh buying demand
Foldable touchscreens begin to enter the market
Figure 19: Video of Royole Flexpai demo at CES 2019, January 2019
Mobile gaming could attract a new type of gaming consumer to the smartphone market
Smart home products, accessories could impact smartphone purchasing
THE CONSUMER – WHAT YOU NEED TO KNOW 
Apple commands majority of the market
High accessory usage correlates with purchase intent
Smartphone owners don’t want to switch operating systems
More than half of non-shoppers are happy with their current phones
SMARTPHONE OWNERSHIP
Smartphone ownership nearing universality
Figure 20: Smartphone ownership, January 2019
SMARTPHONE BRANDS OWNED
Apple and Samsung command majority of the smartphone market
Figure 21: Smartphone brands owned, January 2019
Apple most popular among younger women
Figure 22: Smartphone brands owned – Apple, by gender and age, January 2019
Apple draws high-end market, LG draws budget shoppers
Figure 23: Smartphone brands owned – Apple, Samsung, LG, by household income, January 2019
SMARTPHONE ACCESSORIES
Audio and protection top uses among consumers
Figure 24: Smartphone accessories, January 2019
Younger higher-income consumers key to new device adoption
Figure 25: Smartphone accessories – Select items, by age and household income, January 2019
Gamers like to accessorize their tech
Figure 26: Smartphone accessories, by gaming profiles, January 2019
Figure 27: Samsung Galaxy Note9 Fortnite pre-order promotion, acquisition email, August 2018
SMARTPHONE ACCESSORIES – REPERTOIRE ANALYSIS
Half the market uses three or more accessories with their smartphones
Figure 28: Repertoire analysis, smartphone accessories, January 2019
Number of accessories used correlates with age, gender, and income
Figure 29: Number of accessories used, by gender and age, January 2019
Figure 30: Number of accessories used, by age and income, January 2019
One third of Hispanic smartphone owners use five or more accessories
Figure 31: Repertoire analysis of smartphone accessories used, by race and Hispanic origin, January 2019
Users of multiple accessories are more likely to buy and shop different brands
Figure 32: Smartphone purchase intent, by repertoire of smartphone accessories used, January 2019
Figure 33: Smartphone brands considered, by repertoire of smartphone accessories used, January 2019
Figure 34: Attitudes toward smartphones, by repertoire of smartphone accessories used, January 2019
SMARTPHONE PURCHASE INTENT
Four in 10 plan to purchase within the next year
Figure 35: Smartphone purchase intent, January 2019
Youngest consumers show highest purchase intent
Figure 36: Purchase intent – Within the next year / in the next three months, by gender and age, January 2019
Figure 37: Purchase intent – Within the next year, by generation, January 2019
Non-Apple owners more likely to be in the market
Figure 38: Purchase intent – Within the next year / two years, by smartphone brands owned, January 2019
Opportunity to partner with console gaming
Figure 39: Smartphone purchase intent, by gaming profiles, January 2019
English-speaking Hispanic population shows higher purchase intent
Figure 40: Smartphone purchase intent, by race and Hispanic origin, January 2019
SMARTPHONE BRANDS CONSIDERED
Apple and Samsung lead for consideration among in-market shoppers
Figure 41: Smartphone brands considered, January 2019
Whopping 97% of Apple owners considering staying with the brand
Figure 42: Smartphone brands considered, by smartphone brands owned, January 2019
Figure 43: Smartphone brands considered, by smartphone brand owned, January 2019
Apple has greatest consideration among youngest iGen demographic
Figure 44: Smartphone brands considered, by generation, January 2019
English-speaking Hispanic Millennials considering the most brands
Figure 45: Smartphone brands considered, by race and Hispanic origin, January 2019
DESIRED FEATURES
Battery length and durability top consumer desires
Figure 46: Desired features, January 2019
Parents and younger shoppers looking for a better camera
Figure 47: Desired features, by gender and age, January 2019
Figure 48: Desired features, by parental status, January 2019
Figure 49: Smartphone brands considered, by desired features – Better camera (NET), January 2019
Figure 50: Google Pixel 3 print advertisement, November 2018
Samsung succeeds with shoppers seeking gaming and virtual reality
Figure 51: Smartphone brands considered, by desired features, January 2019
Figure 52: Samsung Galaxy S8 virtual reality informational email, part 1, January 2018
Figure 53: Samsung Galaxy S8 virtual reality informational email, part 2, January 2018
TURF Analysis
Methodology
Figure 54: TURF analysis of desired features, January 2019
REASONS FOR NOT PLANNING TO BUY
Phone satisfaction tops consumer reasons for not buying
Figure 55: Reasons for not planning to buy, January 2019
Satisfaction with current phone increases with age
Figure 56: Reasons for not buying, by age, January 2019
ATTITUDES TOWARD SMARTPHONES
Consumers hesitant to switch brands
Figure 57: Attitudes toward smartphones – Switching and brands, by smartphone brands owned, January 2019
Majority of 18-24s think they spend too much time on their phones
Figure 58: Attitudes toward smartphones – Time, by age, January 2019
Younger generations buy into biometric security
Figure 59: Attitudes toward smartphones – Biometrics, by generations, January 2019
Figure 60: Desired features, by attitudes toward smartphones – Biometrics, January 2019
Gender and age the determining factors behind size preference
Figure 61: Attitudes toward smartphone size, by gender and age, January 2019
ATTITUDES TOWARD SMARTPHONES – CLUSTER ANALYSIS
Cluster analysis
Figure 62: Cluster analysis of attitudes toward smartphones, January 2019
Gender and age split cluster groups
Figure 63: Gender and age distribution, by cluster groups, January 2019
Figure 64: Cluster group distribution, by gender and age, January 2019
Tech Phone-atics
Characteristics
Figure 65: Attitudes toward smartphones – Select items, by cluster groups, January 2019
Opportunities
Figure 66: Smartphone purchase intent, by cluster groups, January 2019
Figure 67: Attitudes toward mobile networks – 5G, by cluster groups, January 2018
Empty Smart Nesters
Characteristics
Figure 68: Attitudes toward smartphones – Time, by cluster groups, January 2019
Figure 69: Smartphone brand owned, by cluster groups, January 2019
Figure 70: Attitudes toward smartphones – Select items, by cluster groups, January 2019
Opportunities
Figure 71: Attitudes toward smartphones – Select items, by cluster groups, January 2019
Simple Phone Folk
Characteristics
Figure 72: Attitudes toward smartphones – Select items, by cluster groups, January 2019
Opportunities
Tech-Life Balancers
Characteristics
Opportunities
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms

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