Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: US sales of technology hardware and communication services, by all and Black consumers, at current prices, 2015-20
- Impact of COVID-19 on Black consumers and technology and communications
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on Black consumers and technology and communications, April 2021
- Opportunities and Challenges
- Young Black men are a key consumer group
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- Figure 3: Black consumers’ tech hardware ownership and purchase intent – Select items, by young men, January 2021
- Parents seek to be prepared
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- Figure 4: Black consumers’ tech hardware ownership and purchase intent – Select items, by parental status, January 2021
- Gaming is a key platform for younger Black consumers
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- Figure 5: Gaming console ownership, by all and Black consumer key demographics, January and February 2021
- Values matter
The Market – Key Takeaways
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- An important audience for brands to win
- A growing market moderately impacted by COVID-19
- Hardware outpaces services
- Pandemic drives more serious efforts to address the digital divide
- Growing trend of remote work due to COVID-19 less applicable
Black Consumers by the Numbers
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- A stable share of the US population
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- Figure 6: US population, by race and Hispanic origin, 2016–26
- Economic challenges remain
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- Figure 7: US household income distribution and median, by race and Hispanic origin of householder, 2019
- A younger population
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- Figure 8: US population by age, by all and Black, 2021
- More women head up households
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- Figure 9: US households by type, by all and Black, 2020
Market Size Estimate
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- Consistent growth only temporarily disrupted by COVID-19
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- Figure 10: Total US sales of technology hardware and communication services, at current prices, by Black and non-Black consumers, 2015-20 (est)
- Impact of COVID-19 on Black consumers and technology and communications
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- Figure 11: Short-, medium- and long-term impact of COVID-19 on Black consumers and technology and communications, April 2021
- Immediate impact
- Short term
- Recovery
Segment Performance
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- Hardware gains over services as devices multiply
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- Figure 12: Total US sales of technology hardware and communication services, by segment, at current prices, 2015-20 (est)
- Spurts of growth for Black consumers
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- Figure 13: Black consumer expenditures on technology hardware and communication services, by segment, at current prices, 2015-20 (est)
Market Factors
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- New efforts to close the digital divide
- Pandemic brings greater economic pain
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- Figure 14: Labor force participation and unemployment (seasonally adjusted), by total and Black consumers, January 2007-February 2021
- More vulnerability to illness and death
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- Figure 15: Difference between COVID-19 and unweighted/weighted* population, by race and Hispanic origin, September 2020
- Black consumers more likely to be essential workers
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- Figure 16: Employed persons by certain detailed healthcare, transportation and sales occupations, by race and Hispanic origin, 2019
- Relative to the average, fewer Black workers telecommute due to COVID-19
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- Figure 17: Teleworking during the Coronavirus Pandemic, by race and Hispanic origin, March 3-15, 2021
Companies and Brands – Key Takeaways
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- Time for tech brands to step up
- Some changes seen with social networks
- Advertising that makes a statement
- Big-screen phones, low-cost notebooks have appeal
Competitive Strategies
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- Trend Drivers underpin company strategies and opportunities
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- Figure 18: Mintel Trend Drivers and Pillars – Rights, Identity and Surroundings
- A reckoning for big tech
- Social networks start taking stands
- Representation matters
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- Figure 19: Amazon’s Big Game Commercial “Alexa’s Body” Ad – February 2021
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- Figure 20: Beats’ “Flex That Voice” Ad – November 2020
Market Opportunities
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- Phones that can truly do it all
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- Figure 21: LG Dual Screen
- Chromebooks for the family
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- Figure 22: CTI Chromebook NL710-LTE
The Consumer – Key Takeaways
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- Gaming is a key focus
- Black consumers are buying many types of tech
- Many are planning to buy
- Pandemic led to spending on tech
- Opportunity to market wearable tech for health
- High levels of satisfaction with communication services
- Enthusiastic about social, mixed views on virtual learning and events
Tech Hardware – Home Entertainment Product Ownership
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- Strong adoption of gaming, room to grow with HDTV, audio
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- Figure 23: Home entertainment product ownership, by all and Black consumers, January and February 2021
- Women lag men in home entertainment ownership
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- Figure 24: Black consumers’ home entertainment product ownership, by gender, February 2021
- Younger, more affluent consumers a key target
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- Figure 25: Black consumers’ home entertainment product ownership, by age and household income, January 2021
Tech Hardware – Personal Electronics Ownership
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- High levels of ownership for Black consumers
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- Figure 26: Personal electronics ownership, by all and Black consumers, January and February 2021
- Black men more interested in entertainment, women in fitness
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- Figure 27: Black consumers’ personal electronics ownership – Select items, by gender, January 2021
- Significant digital gap for less affluent seniors
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- Figure 28: Black consumers’ personal electronics ownership, by age and household income, January 2021
- Parents particularly likely to own tablets, headphones
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- Figure 29: Black consumers’ personal electronics ownership, by parental status, January 2021
Tech Hardware – Purchase Intent
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- An audience that is eager to buy
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- Figure 30: Tech hardware purchase intent, by all and Black consumers, January and February 2021
- Young men pursue entertainment
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- Figure 31: Black consumers’ tech hardware purchase intent, by age and gender, January 2021
- Less affluent consumers also interested in buying
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- Figure 32: Black consumers’ tech hardware purchase intent, by household income, January 2021
COVID-19 Impact – Tech Purchases
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- Black consumers more likely to spend due to COVID-19
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- Figure 33: Black consumers’ tech use changes due to COVID-19, January 2021
- More affluent Black consumers become more dependent
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- Figure 34: Black consumers’ tech use changes due to COVID-19, by age and household income, January 2021
- Interest in hardware purchases also grows due to COVID-19
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- Figure 35: Tech purchases due to COVID-19, by all and Black consumers, January and February 2021
- Men significantly more likely to buy most types of tech
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- Figure 36: Black consumers’ tech purchases due to COVID-19, by gender and age, January 2021
Spotlight on Smartphones and Wearable Tech
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- Black consumers less loyal to Apple
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- Figure 37: Smartphone brands owned, by all and Black consumers, January and February 2021
- Younger, more affluent significantly more likely to choose Apple
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- Figure 38: Black consumers’ smartphone brands owned, by age and income, January 2021
- Early adopters of 5G?
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- Figure 39: Black consumers’ interest and ownership for 5G cell phones, by age and household income, January 2021
- Interest in wearables as a health solution
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- Figure 40: COVID-19 impact on Black consumer attitudes toward wearable tech, by age, January 2021
Communications – Internet and Mobile Services
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- Majority are happy with services
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- Figure 41: COVID-19 Impact on Black consumers’ attitudes toward internet and mobile service, by gender and by age, January 2021
- Less affluent chose pre-paid wireless plans
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- Figure 42: Black consumers’ cell phone plans by type, by household income, January 2021
- T-Mobile the most popular choice
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- Figure 43: Mobile network providers – all and pre-paid plans, by all and Black consumers, January and February 2021
- Verizon leads in customer satisfaction
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- Figure 44: Black consumers’ satisfaction with mobile phone service, by network provider, January 2021
Communications – Online Interactions and Social Media
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- Digital interactions are an important way to stay connected with family
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- Figure 45: COVID-19 impact on Black consumers’ attitudes toward online interactions, January 2021
- Men more engaged with virtual events
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- Figure 46: COVID-19 impact on Black consumers’ attitudes toward online interactions, by gender, January 2021
- An important audience for social
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- Figure 47: Daily visitation to social media sites, by all and Black consumers, January and February 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 48: Total US sales of technology hardware and communication services, at current prices, 2015-20 (est)
- Figure 49: Black consumer expenditures on technology hardware and communication services, at current prices, 2015-20 (est)
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- Figure 50: Total US sales of technology hardware and communication services, by segment, at current prices, 2015-20 (est)
- Figure 51: Black consumer expenditures on technology hardware and communication services, by segment, at current prices, 2015-20 (est)
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