Table of Contents
Executive Summary
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- Impact of COVID-19 on mobile phones
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on mobile phones, 24 February 2021
- The market
- Market drops to £5.9bn amid COVID-19 impact
- Market expected to move towards pre-COVID-19 levels in 2021
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- Figure 2: Market size and forecast for mobile phones, 2015-25
- COVID-19 lockdown sees people use their smartphones more leading to greater concerns around digital addiction
- Companies and brands
- Apple and Samsung stay neck and neck as market leaders
- Huawei’s market share drops as expected
- Apple adds 5G with iPhone 12 line-up
- Samsung announces Galaxy Z Fold 2 5G with edge-to-edge screens
- Oppo is in the top three biggest spenders on advertising
- Consumers’ opinion on Huawei’s reliability and trust drops
- The consumer
- Well over eight in 10 consumers own a smartphone
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- Figure 3: Personal ownership of technology products including smartphones, January 2020-December 2020
- One in five consumers have bought a smartphone since COVID-19
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- Figure 4: Technology devices bought since COVID-19, December 2020
- Two in 10 smartphone owners with a 5G-capable brand have a 5G device
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- Figure 5: Ownership of a 5G smartphone, January 2020-December 2020
- Loyalty towards Apple and Samsung even stronger than last year
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- Figure 6: Staying with the same smartphone brand, December 2019-December 2020
- Almost half of smartphone owners bought the device fully upfront
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- Figure 7: Paying upfront or in instalments for smartphone, December 2020
- Less than £250 is most common price bracket for upfront smartphone buyers
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- Figure 8: Price for smartphone bought upfront, December 2020
- Significant drop in Younger Millennials’ intent to upgrade smartphone
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- Figure 9: Intent to upgrade smartphone in next two years, January 2020-December 2020
- Long battery life is the most important feature for smartphones
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- Figure 10: Most important features when buying a new smartphone, December 2020
- Interest in buying foldables grows after Samsung, Motorola and Microsoft launches
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- Figure 11: Ownership and interest in buying foldable smartphones, December 2020
- Majority of smartphone owners feel more secure with biometrics than a PIN
- Over a third of smartphone owners concerned over device addiction
- Around half of Generation Z and Millennials consider the environment when buying smartphones
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- Figure 12: Attitudes towards biometrics, digital addiction and impact of COVID-19 on smartphones, December 2020
Issues and Insights
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- How COVID-19 is shaping the mobile phone market
- Smartphone usage since lockdown adds to worries about digital wellbeing
- Highlighting environmental initiatives in marketing videos to appeal to consumers
The Market – Key Takeaways
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- Mobile phone market down 9.7% in 2020
- COVID-19 lockdown drives importance of smartphones but adds to digital addiction concerns
- Some consumers expected to keep their phone with SIM-only plans due to financial concerns
Market Size and Forecast
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- Impact of COVID-19 on mobile phones
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- Figure 13: Short-, medium- and long-term impact of COVID-19 on mobile phones, 24 February 2021
- Market drops to £5.9bn in 2020 amid COVID-19 impact
- Samsung and Apple’s revenue stats highlight fluctuating state of the market
- Market expected to move towards pre-COVID-19 levels in 2021
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- Figure 14: Value of mobile phone sales, 2015-25
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- Figure 15: Market size and forecast for mobile phones, 2015-25
- Market drivers and assumptions
- Learnings from the last recession
- Forecast methodology
Market Drivers
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- COVID-19 lockdown sees people use their smartphone more, leading to greater concerns around digital addiction
- Smartphone usage since lockdown
- Developing digital wellbeing features
- COVID-19 expected to cause more people to keep their current phone with SIM-only
- 5G phones are now mainstream with entry-level prices
Companies and Brands – Key Takeaways
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- Apple and Samsung still lead market share, while ownership of Huawei drops
- Apple and Samsung include 5G as standard across iPhone 12 and Galaxy S21 devices
- LG Wing features ‘T’-shape for improved multitasking
- Less consumers see Huawei as trustworthy and reliable than in January 2020
Market Share
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- Apple and Samsung stay neck and neck as market leaders
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- Figure 16: Market share for mobile phones, December 2020
- Huawei’s market share drops as expected
- Motorola is fourth for consumer ownership
- LG to drop out of the smartphone market
Launch Activity and Innovation
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- Apple adds 5G with iPhone 12 line-up
- Design and display
- Cameras
- Storage capacity and pricing
- Apple’s environmental considerations
- Samsung reduces price with latest Galaxy S21 devices
- Cameras
- Display and performance
- Storage capacity and pricing
- Samsung announces Galaxy Z Fold 2 5G with edge-to-edge displays
- Flex Mode and multitasking
- Folding hinge
- Storage capacity and pricing
- LG Wing showcases ‘T’-shaped design
- Microsoft enters foldables market with Surface Duo
Advertising and Marketing Activity
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- Spending on mobile phone adverts drops due in part to cinema closures
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- Figure 17: Total above-the-line and online display advertising expenditure by mobile phone manufacturers, 2016-20
- Figure 18: Total above-the-line and online display advertising expenditure by mobile phone manufacturers, by media type, 2016-20
- Oppo is in the top three biggest spenders on advertising
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- Figure 19: Total above-the-line and online display advertising expenditure by mobile phone manufacturers, by brand (top five), 2020
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 20: Attitudes towards and usage of selected brands, January 2021
- Key brand metrics
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- Figure 21: Key metrics for selected brands, January 2021
- Apple is most likely brand to be viewed as innovative
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- Figure 22: Attitudes, by brand, January 2021
- Consumers most likely to see Samsung as fun ahead of other brands
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- Figure 23: Brand personality – macro image, January 2021
- Motorola and Samsung viewed as most affordable brands
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- Figure 24: Brand personality – micro image, January 2021
- Brand analysis
- Apple users are more likely to have had an excellent experience
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- Figure 25: User profile of Apple iPhone, January 2021
- Samsung viewed as most trusted brand
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- Figure 26: User profile of Samsung Galaxy, January 2021
- Consumers’ opinions on Huawei’s reliability and trust drops
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- Figure 27: User profile of Huawei, January 2021
- Awareness of Motorola is high but recommendations are low
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- Figure 28: User profile of Motorola, January 2021
- Google Pixel ranks third for consumer recommendations
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- Figure 29: User profile for Google Pixel, January 2021
- Seven in 10 Xiaomi users either had a good or excellent experience
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- Figure 30: User profile for Xiaomi, January 2021
- Over one in five consumers who have heard of OnePlus say it is affordable
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- Figure 31: User profile for OnePlus, January 2021
The Consumer – Key Takeaways
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- COVID-19 expected to have slowed take-up of 5G devices
- The entry-level smartphone market is playing a key role
- Over a third of smartphone owners consider how environmentally friendly the brand is
Impact of COVID-19 on Consumer Behaviour
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- One in five consumers have bought a smartphone since COVID-19
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- Figure 32: Technology devices bought since COVID-19, December 2020
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- Figure 33: Influence of COVID-19 on technology purchase decision, December 2020
- Entry- to mid-level smartphone market set to thrive as consumers intend to spend less
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- Figure 34: Buying a cheaper smartphone due to COVID-19 financial uncertainty, December 2020
Smartphone Ownership and Brand Loyalty
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- Well over eight in 10 consumers own a smartphone
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- Figure 35: Personal ownership of technology devices including smartphones, January 2020-December 2020
- Two in 10 smartphone owners with a 5G-capable brand have a 5G device
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- Figure 36: Ownership of a 5G smartphone, January 2020-December 2020
- Loyalty towards Apple and Samsung even stronger than last year
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- Figure 37: Staying with the same smartphone brand, January 2020-December 2020
Type of Payment and Pricing
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- Almost half of smartphone owners bought the device fully upfront
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- Figure 38: Paying upfront or in instalments for smartphone, December 2020
- Less than £250 is most common price bracket for upfront smartphone buyers
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- Figure 39: Price for smartphone bought upfront, December 2020
Upgrade Intentions and Most Important Features
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- Significant drop in Younger Millennials’ intent to upgrade smartphone
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- Figure 40: Intent to upgrade smartphone in next two years, January 2020-December 2020
- Long battery life is the most important feature for smartphones
- Superfast charging devices
- 5G is currently a low priority but expected to increase
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- Figure 41: Most important features when buying a new smartphone, December 2020
- Interest in foldables grows after Samsung, Motorola and Microsoft launches
- Nostalgia vs productivity
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- Figure 42: Pricing for Motorola Razr, 17 March 2021
- Possible Apple foldable smartphone would boost the industry further
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- Figure 43: Ownership and interest in buying foldable smartphones, December 2020
Attitudes towards Smartphones
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- Majority of smartphone owners feel more secure with biometrics than PIN
- Over a third of smartphone owners concerned over too much phone usage
- Around half of Generation Z and Millennials consider the environment when buying smartphones
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- Figure 44: Attitudes towards biometrics, smartphone usage and environmental considerations, December 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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