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
- Market struggling for growth as people delay upgrades
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- Figure 1: Value of mobile phone sales in the UK, 2012-22
- Big two manufacturers dominate over 72% of the market
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- Figure 2: Smartphone ownership, by brand, February 2018
- Smartphone ownership struggling for growth
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- Figure 3: Ownership of smartphones, January 2013-December 2017
- Major product launches in 2017 boosted advertising spend
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- Figure 4: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, 2014-17
- The consumer
- Over half of people have owned their phone more than a year
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- Figure 5: Length of time people have owned smartphone, February 2018
- Mobile network providers remain the most popular purchase location
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- Figure 6: Purchase location, February 2018
- Fingerprint scanning is the most popular unlocking method
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- Figure 7: Preferred method of unlocking smartphone, February 2018
- Social media is the most popular smartphone activity
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- Figure 8: Most popular smartphone activities, February 2018
- Most people stick to the same operating system and manufacturer
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- Figure 9: Smartphone behaviours, February 2018
- Nearly two thirds of people will upgrade smartphones in the next two years
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- Figure 10: Plans to upgrade, December 2016 and February 2018
- Extended battery life is a growing priority
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- Figure 11: Important factors when upgrading, February 2018
- What we think
Issues and Insights
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- Can innovations still entice consumers to upgrade regularly?
- The facts
- The implications
- Insurance and screen replacement plans gain importance as prices rise
- The facts
- The implications
The Market – What You Need to Know
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- Market struggling for growth as people delay upgrades
- Smartphone ownership struggling for growth
- Growth of ‘phablets’ encroaching on the tablet market
- Economic factors remain important despite necessity of smartphones
- Relaunches focus on nostalgia and second phone market
Market Size and Forecast
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- Market struggling for growth as people delay upgrades
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- Figure 12: Value of mobile phone sales in the UK, 2012-22
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- Figure 13: Value of mobile phone sales in the UK, 2012-22
- Forecast methodology
Market Drivers
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- Smartphone ownership struggling for growth
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- Figure 14: Ownership of smartphones, January 2013-December 2017
- Economic factors remain important despite necessity of smartphones
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- Figure 15: Proportion of consumers who have bought electrical goods in the last three months and expect to buy in the next three months, September 2015-February 2018
- Growth of ‘phablets’ encroaching on the tablet market
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- Figure 16: Apple’s iPhone 8 and iPhone 8 Plus
- Relaunches focus on nostalgia and second phone market
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- Figure 17: Nokia’s 8110 4G ‘Banana phone’
Companies and Brands – What You Need to Know
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- Big two manufacturers dominate over 72% of the market
- Apple overtakes Samsung as the most popular brand
- Samsung launches new flagship S9 range
- Apple’s iPhone X becomes the most expensive smartphone
- Major product launches in 2017 boosted advertising spend
Market Share
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- Big two manufacturers account for over 72% of smartphone ownership
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- Figure 18: Smartphone ownership, by brand, February 2018
- Apple overtakes Samsung as the most popular brand
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- Figure 19: Smartphone ownership, by brand, December 2016 and February 2018
- iPhone ownership varies more than Samsung in terms of demographics
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- Figure 20: Ownership of Apple and Samsung smartphones, by selected demographics, February 2018
Launch Activity and Innovation
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- Samsung launches new flagship S9 range
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- Figure 21: Samsung’s Galaxy S9 smartphone
- Apple’s iPhone X becomes the most expensive smartphone
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- Figure 22: Apple’s iPhone X
- Google boosts market presence with innovative Pixel 2
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- Figure 23: Google’s Pixel 2 smartphone
- Qi wireless charging becoming the standard technology
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- Figure 24: Apple’s wireless charging on iPhone 8 and iPhone X
- Purism set to launch security-focused smartphone
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- Figure 25: Purism’s Librem 5 smartphone
Advertising and Marketing Activity
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- Major product launches in 2017 boosted advertising spend
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- Figure 26: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, 2014-17
- Figure 27: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, by media type, 2014-17
- Television remains the key advertising outlet for phones
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- Figure 28: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, by manufacturer, 2017
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 29: Attitudes towards and usage of selected brands, February 2018
- Key brand metrics
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- Figure 30: Key metrics for selected brands, February 2018
- Brand attitudes: Apple iPhone perceived as worth the higher price
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- Figure 31: Attitudes, by brand, February 2018
- Brand personality: Google Pixel and Samsung Galaxy deemed the most fun brands
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- Figure 32: Brand personality – Macro image, February 2018
- Google Pixel considered the most desirable brand, with iPhone considered expensive
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- Figure 33: Brand personality – Micro image, February 2018
- Brand analysis
- Samsung Galaxy is the most recommended brand
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- Figure 34: User profile of Samsung Galaxy, February 2018
- Apple iPhone seen as an expensive and exclusive brand
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- Figure 35: User profile of Apple iPhone, February 2018
- Google Pixel deemed innovative, fun and stylish
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- Figure 36: User profile of Google Pixel, February 2018
- Sony Xperia considered user-friendly and reliable
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- Figure 37: User profile of Sony Xperia, February 2018
- HTC lacks a strong brand identity
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- Figure 38: User profile of HTC, February 2018
- Chinese brand Huawei viewed as basic but good value for money
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- Figure 39: User profile of Huawei, February 2018
The Consumer – What You Need to Know
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- Over half of people have owned their phone more than a year
- Mobile network providers remain the most popular purchase location
- Fingerprint scanning is the most popular unlocking method
- Social media is the most popular smartphone activity
- Most people stick to the same operating system and manufacturer
- 24% of people have broken the smartphone screen in the last two years
- Nearly two thirds of people will upgrade smartphones in the next two years
- Extended battery life is a growing priority
Purchase Patterns
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- Over half of people have owned their phone more than a year
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- Figure 40: Length of time people have owned smartphone, February 2018
- Mobile network providers remain the most popular purchase channel
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- Figure 41: Purchase location, February 2018
- Upfront payment is focused on retailers and manufacturers
- The rising expense of flagship phones is supporting network contracts
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- Figure 42: Smartphone payment methods, February 2018
- 16-24-year-olds least likely to get smartphones from network providers…
- …while men are most likely to pay for phones in full up front
Smartphone Security
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- Fingerprint scanning is the most popular unlocking method
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- Figure 43: Preferred method of unlocking smartphone, February 2018
- Over half of iPhone owners prefer to use fingerprint scanners
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- Figure 44: Preferred method of unlocking smartphone, by brand owned, February 2018
Smartphone Activities
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- Social media is the most popular smartphone activity…
- …closely followed by calls and messages
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- Figure 45: Most popular smartphone activities, February 2018
- There is a clear age split in popular smartphone activities
- Calls and SMS the only activities selected less by younger demographics
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- Figure 46: Most popular smartphone activities, by age, February 2018
- Wide range of activities has driven storage capacity needs
Behaviours of Smartphone Owners
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- Most people stick to the same operating system and manufacturer
- Free screen repair is set to grow in importance
- Over half of people keep their old phone as a spare
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- Figure 47: Smartphone behaviours, February 2018
- 16-34-year-olds are the most likely to stick with OS and manufacturer
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- Figure 48: Smartphone behaviours, by age, February 2018
- Those aged 18-24 and upgrading regularly are more likely to break screens
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- Figure 49: Target groups based on statements about smartphones – CHAID – Tree output, February 2018
- Figure 50: Target groups based on statements about smartphones – CHAID – Table output, February 2018
Plans to Upgrade
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- Nearly two thirds of people will upgrade smartphones in the next two years
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- Figure 51: Plans to upgrade, December 2016 and February 2018
- Owners of Sony smartphones are more likely to upgrade
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- Figure 52: Plans to upgrade, by brand owned, February 2018
- Price and incremental updates encouraging some to keep phones
- Increased trade-in deals could boost upgrade affordability
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- Figure 53: Reasons for not upgrading, December 2016 and February 2018
Important Factors when Upgrading
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- Extended battery life is a growing priority
- Manufacturers are pushing wireless charging
- Men are more likely to want bigger and better screens
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- Figure 54: Important factors when upgrading, February 2018
- Improved camera quality is the second most important factor…
- …and even more important for younger demographics
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- Figure 55: Important factors when upgrading, by age, February 2018
- Vast majority of people focus on multiple upgrade factors
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- Figure 56: Repertoire of important factors when upgrading, February 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Market size and forecast
- Fan chart forecast
- Value
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- Figure 57: Best- and worst-case forecast for the value of the UK mobile phone market, 2017-22
- Brand research
- Brand map
- CHAID analysis – Methodology
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- Figure 58: Target groups based on statements about smartphones – CHAID – Table output, February 2018
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