Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- The smartphone market is approaching maturity
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- Figure 1: Value of mobile phone sales in the UK, 2011-21
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- Figure 2: Value of mobile phone sales in the UK (source data), 2011-21
- Companies and brands
- Manufacturers responsible for most of the promotional effort
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- Figure 3: Total above-the line, online display and direct mail advertising expenditure on smartphones, by advertiser, 2016
- Sony struggles to challenge market leaders’ brand positioning
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- Figure 4: Attitudes, by manufacturer brand, January 2017
- Windows Phone struggles to compete in the binary OS eco-system
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- Figure 5: Attitudes, by operating system brand, January 2017
- The consumer
- Samsung and Apple continue to strengthen their market leadership
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- Figure 6: Manufacturer of smartphone owned, December 2016
- Towards a binary OS eco-system
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- Figure 7: Operating system of smartphone owned, December 2016
- Buying smartphones outright is the preferred option
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- Figure 8: Ways in which consumers paid for their smartphone, December 2016
- No marked preference for online or offline smartphone shopping
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- Figure 9: Ways in which consumers got their smartphone, December 2016
- Mobile network providers dominate smartphone distribution market
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- Figure 10: Whom consumers got their smartphone from, December 2016
- Majority of smartphone owners to upgrade in the next two years
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- Figure 11: Intentions to buy or upgrade to a new smartphone in the next two years, December 2016
- Non-upgraders want to make the most of their current device
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- Figure 12: Reasons not to plan a smartphone purchase in the next two years, December 2016
- Brand loyalty in the smartphone market
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- Figure 13: Attitudes of consumers planning on a smartphone purchase in the next two years, December 2016
- Longer battery life by far the most wanted feature
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- Figure 14: Most important features when upgrading to a new smartphone, December 2016
- Two in five smartphones have second life…
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- Figure 15: Second life of smartphones, December 2016
- Almost half of smartphone owners wouldn’t buy second-hand
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- Figure 16: Attitudes towards second-hand smartphones, December 2016
- What we think
Issues and Insights
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- Potential developments of brand loyalty in a slowing smartphone market
- The facts
- The implications
- The threat of the second-hand market and how to overcome it
- The facts
- The implications
The Market – What You Need to Know
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- The smartphone market is approaching maturity
- Innovation to help revive the market from 2020 onwards
- Substitution of basic phones with smartphones continues
- Purchasing intentions remain strong despite market slowdown
- Voice assistants could further drive mobile-first behaviours
- The smartphone market is the most brand-driven
Market Size and Forecast
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- The smartphone market is approaching maturity
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- Figure 17: Value of mobile phone sales in the UK, 2011-21
- Figure 18: Value of mobile phone sales in the UK (source data), 2011-21
- The short and long-term impact of Brexit
- Innovation to help revive the market from 2020 onwards
- Forecast methodology
Market Drivers
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- Substitution of basic phones with smartphones continues
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- Figure 19: Ownership of mobile phones and smartwatches, January 2012-December 2016
- Purchasing intentions remain strong despite market slowdown …
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- Figure 20: Plans to purchase or upgrade consumer technology products, by timescale, December 2016
- …as smartphone usage continues to grow
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- Figure 21: Devices used to access the internet in the last three months, June 2013-September 2016
- Mobile-first teens and tweens entering the adult demographic
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- Figure 22: Devices used by children aged 10-15, May 2016
- Voice assistants could further drive mobile-first behaviour
- Mobile gaming further drives smartphone usage
- The smartphone market is the most brand-driven
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- Figure 23: Factors on which consumers would decide first when buying technology products, April 2017
Companies and Brands – What You Need to Know
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- Upgrade programmes become a reality in the UK
- The Nokia 3310 is back
- Welcome Pixel, the first true Google Phone
- A shift in the monitored admix
- Manufacturers responsible for most of the promotional effort
- Sony struggles to challenge market leaders’ positioning
- Windows Phone struggles to compete in the binary OS eco-system
Launch Activity and Innovation
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- Upgrade programmes become a reality in the UK
- The Nokia 3310 is back
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- Figure 24: the new Nokia 3310 in the three colour variations available, March 2017
- Welcome Pixel, the first true Google Phone
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- Figure 25: The Pixel and Pixel XL, October 2016
- Sony bets on slow motion
- LG moves from modular designs to split-screen support
- Are bendable and flip smartphones on the horizon?
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- Figure 26: The Lenovo CPlus Prototype, April 2017
Advertising and Marketing Activity
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- A shift in the monitored admix
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- Figure 27: Total above-the line, online display and direct mail advertising expenditure on smartphones, by media type, 2015 and 2016
- Manufacturers responsible for most of the promotional effort
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- Figure 28: Total above-the line, online display and direct mail advertising expenditure on smartphones, by advertiser, 2016
- Nielsen Ad Intel coverage
Brand Research – Manufacturers
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- Brand map
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- Figure 29: Attitudes towards and usage of selected manufacturer brands, January 2017
- Key brand metrics
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- Figure 30: Key metrics for selected manufacturer brands, January 2017
- Brand attitudes: Sony struggles to match market leaders’ positioning
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- Figure 31: Attitudes, by manufacturer brand, January 2017
- Brand personality: Apple’s exclusivity is unmatched
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- Figure 32: Brand personality – Macro image, January 2017
- HTC and Lumia equally struggling
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- Figure 33: Brand personality – Micro image, January 2017
- Brand analysis
- Samsung’s reputation unaffected by Galaxy Note 7 backlash
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- Figure 34: User profile of Samsung, January 2017
- Sony appears stuck in the middle
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- Figure 35: User profile of Sony, January 2017
- Apple’s exclusive positioning has some drawbacks
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- Figure 36: User profile of Apple, January 2017
- HTC’s value for money proposition best appeals to men
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- Figure 37: User profile of HTC, January 2017
- Lumia struggles on awareness
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- Figure 38: User profile of Microsoft Lumia, January 2017
Brand Research – Operating Systems
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- Brand map
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- Figure 39: Attitudes towards and usage of selected operating system brands, January 2017
- Key brand metrics
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- Figure 40: Key metrics for selected operating system brands, January 2017
- Brand attitudes: Windows Phone struggles to compete in the binary OS eco-system
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- Figure 41: Attitudes, by operating system brand, January 2017
- Brand personality: exclusivity vs accessibility is key to the competition between iOS and Android
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- Figure 42: Brand personality – Macro image, January 2017
- iOS outperforms competitors for both features and style
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- Figure 43: Brand personality – Micro image, January 2017
- Brand analysis
- Android’s wide availability is its key advantage
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- Figure 44: User profile of Android, January 2017
- iOS’s exclusivity drives upbeat brand image
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- Figure 45: User profile of iOS, January 2017
- Windows Phone struggles to keep up in the binary OS eco-system
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- Figure 46: User profile of Windows Phone, January 2017
The Consumer – What You Need to Know
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- Samsung and Apple continue to strengthen their market leadership
- Buying smartphones outright is the preferred option
- Mobile network providers dominate smartphone distribution market
- Brand loyalty is a key driver in the smartphone market
- Two in five smartphones have second life…
Manufacturer and Operating System
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- Samsung and Apple continue to strengthen their market leadership
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- Figure 47: Manufacturer of smartphone owned, December 2016
- Samsung has wider appeal but Apple is able to reach key demographics
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- Figure 48: Ownership of Samsung and Apple smartphones, by gender and age, December 2016
- Keeping up with the top players
- Towards a binary OS eco-system
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- Figure 49: Operating system of smartphone owned, December 2016
Smartphone Purchasing Process
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- Buying smartphones outright is the preferred option
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- Figure 50: Ways in which consumers paid for their smartphone, December 2016
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- Figure 51: Ways in which consumers paid for their smartphone, by manufacturer of smartphone owned, December 2016
- No marked preference for online or offline smartphone shopping
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- Figure 52: Ways in which consumers got their smartphone, December 2016
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- Figure 53: Ways in which consumers got their smartphone, by ways in which consumers paid for their smartphone, December 2016
- Mobile network providers dominate smartphone distribution market
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- Figure 54: Whom consumers got their smartphone from, December 2016
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- Figure 55: Whom consumers got their smartphone from, by ways in which consumers paid for their smartphone, December 2016
Buying Intentions in the Next Two Years
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- Majority of smartphone owners to upgrade in the next two years
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- Figure 56: Intentions to buy or upgrade to a new smartphone in the next two years, December 2016
- The impact of the second-hand market on upgrades
- Non-upgraders want to make the most of their current device
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- Figure 57: Reasons not to plan a smartphone purchase in the next two years, December 2016
- Brand loyalty in the smartphone market
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- Figure 58: Attitudes of consumers planning on a smartphone purchase in the next two years, December 2016
- Manufacturers’ upgrade programmes could threat operators’ positioning
- Retailers and operators can use trade-ins to attract upgraders
Important Features When Upgrading
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- Longer battery life by far the most wanted feature…
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- Figure 59: Most important features when upgrading to a new smartphone, December 2016
- …but cameras remain a key area of competition
- Still looking for the next killer smartphone feature
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- Figure 60: Most important features when upgrading to a new smartphone, by repertoire of most important features when upgrading to a new smartphone, December 2016
Smartphones’ Lifecycle and the Second-hand Market
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- Two in five smartphones have a second life…
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- Figure 61: Second life of smartphones, December 2016
- …but keeping a spare remains the most popular option
- Almost half of smartphone owners wouldn’t buy second-hand
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- Figure 62: Attitudes towards second-hand smartphones, December 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Market size and forecast
- Fan chart forecast
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- Figure 63: Best- and worst-case forecast for the value of the UK mobile phone market, 2016-21
- Brand research
- Brand map
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