Mobile Phones - UK - February 2014

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast value of mobile phone sales, 2008-18
Market factors
Nokia’s exit will consolidate market along broader tech lines
2014 should see surge of Eastern manufacturers
Refresh contract aims to boost handset sales
Brand innovation
The consumer
Manufacturer of phones owned by consumers
Figure 2: Manufacturer of consumers' mobile phones, November 2013
Operating system used
Figure 3: Operating system installed on consumers’ smartphones, November 2013
Importance of brands in the purchasing process
Figure 4: Importance of brands and model when buying a new phone, November 2013
Factors that influence purchases
Figure 5: Ranked factors that influence consumers’ choice of mobile phone handset, November 2013
Additional features important to consumers
Figure 6: Additional features important to consumers, November 2013
What we think
ISSUES IN THE MARKET
Is the market saturated, commoditised, or both?
Will OEMs come under increasing pressure to survive?
Is the integration of older consumers being catered to?
Can modular phones really succeed?
TREND APPLICATION
Trend: Prepare for the Worst
Trend: Second Skin
Mintel Futures: Old Gold
MARKET DRIVERS
Key points
Smartphones slowly more popular with older consumers
Figure 7: Personal ownership of mobile phones, by age, September 2013
Manufacturers experiment with new control technologies
Nokia’s exit will consolidate market along broader tech lines
Asda promotes activity at bottom end of the market
2014 should see surge of Eastern manufacturers
Figure 8: Worldwide smartphone shipments, by manufacturers, Q3 2012 and Q3 2013
BlackBerry slowly withdraws from consumer market
Refresh contract aims to boost handset sales
WHO’S INNOVATING?
Key points
Project Ara announces modular phone
Reported Amazon phone will have 3D interface
Samsung curved screen a step away from flexible phones
Yota phone includes an LCD and e-ink display
MARKET SIZE AND FORECAST
Key points
Minor fluctuations likely to continue
Figure 9: Value of mobile phone sales, 2008-18
Forecasts
Figure 10: Forecast value of mobile phone sales, 2008-18
CHANNELS TO MARKET
Key points
O2’s Refresh drives huge success
Figure 11: Retailer or network that consumers acquired their device from, November 2013
Online, in-store and over the phone orders, by retailer and network
Figure 12: Channel used by consumers who have purchased their phone from a network operator in the last three months, November 2013
In-store sales more popular
Figure 13: Channels used by consumers who have purchased their phone from a high street retailer in the last three months, November 2013
COMPANIES AND PRODUCTS
Apple Inc.
Figure 14: Key financials for Apple Inc., 2012 and 2013
BlackBerry Limited
Figure 15: Key financials, BlackBerry Limited, 2012 and 2013
HTC Corporation
Figure 16: Key financials, HTC Corporation, Q4 2012-Q3 2013
LG Electronics
Figure 17: Key financials, LG Electronics, Q3 2012-Q2 2013
Nokia Corporation
Figure 18: Key financials, Nokia Corporation, Q4 2012-Q3 2013
Samsung Telecommunications
Figure 19: Key financials, Samsung, Q3 2012-Q2 2013
Sony Mobile Communications
Figure 20: Key financials, Sony Corporation, Q3 2012-Q2 2013
BRAND RESEARCH – MOBILE PHONE HANDSET MANUFACTURERS
Brand map
Figure 21: Attitudes towards and usage of brands in the mobile phone sector, November 2013
Correspondence analysis
Brand attitudes
Figure 22: Attitudes, by mobile phone brand, November 2013
Brand personality
Figure 23: Mobile phone brand personality – Macro image, November 2013
Figure 24: Mobile phone brand personality – Micro image, November 2013
Brand experience
Figure 25: Mobile phone brand usage, November 2013
Figure 26: Satisfaction with various mobile phone brands, November 2013
Figure 27: Consideration of mobile phone brands, November 2013
Figure 28: Consumer perceptions of current mobile phone brand performance, November 2013
Brand index
Figure 29: Mobile phone brand index, November 2013
Target group analysis
Figure 30: Target groups, November 2013
Figure 31: Mobile phone brand usage, by target groups, November 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists
BRAND RESEARCH – SMARTPHONE OPERATING SYSTEMS
Brand map
Figure 32: Attitudes towards and usage of brands in the operating system sector, November 2013
Correspondence analysis
Brand attitudes
Figure 33: Attitudes, by operating system brand, November 2013
Brand personality
Figure 34: Operating system brand personality – macro image, November 2013
Figure 35: Operating system brand personality – micro image, November 2013
Brand experience
Figure 36: Operating system brand usage, November 2013
Figure 37: Satisfaction with various operating system brands, November 2013
Figure 38: Consideration of operating system brands, November 2013
Figure 39: Consumer perceptions of current operating system brand performance, November 2013
Brand index
Figure 40: Operating system brand index, November 2013
Target group analysis
Figure 41: Target groups, November 2013
Figure 42: Operating system brand usage, by target groups, November 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists
BRAND COMMUNICATION AND PROMOTION
Key points
Manufacturer spend increases over 100%
Figure 43: Top 10 phone manufacturers, by adspend, 2009-12
THE CONSUMER – MANUFACTURER OF PHONES OWNED
Key points
Samsung handsets owned by almost a third of consumers
Figure 44: Manufacturer of phones owned by consumers, November 2013
Apple has distinct trend towards youth ownership
Figure 45: Ownership of Samsung, Apple and Nokia mobile phones, by age, November 2013
Figure 46: Ownership of Samsung, Apple and Nokia mobile phones, by presence of children in the household, November 2013
Apple loyalty remains unequalled
Figure 47: Current phone owned by consumers, by manufacturer of previous phone, November 2013
Samsung gender bias is unusual
THE CONSUMER – OPERATING SYSTEM USED
Key points
Smartphone users prefer Android
Figure 48: Operating system installed on consumers’ smartphones, November 2013
BlackBerry and Symbian shrink
Figure 49: Mobile platform segmentation, November 2012
Figure 50: Mobile platform segmentation, November 2013
Subtle age differences exist
Figure 51: Operating system used by consumers, by age, November 2013
Some consumers still do not understand operating systems
Figure 52: Manufacturer of handsets used by consumers with Android phones, November 2013
THE CONSUMER – IMPORTANCE OF BRANDS IN THE PURCHASING PROCESS
Key points
Network operator brand is the most important feature
Figure 53: Importance of brands and model when buying a new phone, November 2013
Older consumers show the strongest preferences
Figure 54: 8-10 ratings given to brand importance, by 16-24s and over-65s, November 2013
Women more likely than men to rate network operator brand as important
Figure 55: Rating of importance of “brand of network operator”, by gender, November 2013
Handset brand importance most affected by income
Figure 56: 8-10 ratings given to brand importance of network and handset, by gross annual household income, November 2013
THE CONSUMER – FACTORS THAT INFLUENCE PURCHASES
Key points
Friends and family the most important factor
Figure 57: Ranked factors that influence consumers’ choice of mobile phone handset, November 2013
Older consumers driving desire for larger screens
Figure 58: Consumers who rank a bigger screen as the most important factor when choosing a new phone, by age, November 2013
Nokia owners significantly more focused on camera quality
Figure 59: Ranking of the importance of camera quality as a factor in next choice of handset, by manufacturer of consumers’ currently owned phone, November 2013
4G may be a handy point of differentiation for non-iOS devices
THE CONSUMER – ADDITIONAL FEATURES IMPORTANT TO CONSUMERS
Key points
Affordability the single most important concern for just under half
Figure 60: Additional features important to consumers, November 2013
Modular phones could become popular
Presence of young children generates desire for profiles
Figure 61: Consumers who want a phone with different user profiles, by age of children in the household, November 2013
Little interest in smartwatches
APPENDIX – MARKET SIZE AND FORECAST
Figure 62: Best- and worst-case forecast for the value of mobile phone sales, 2013-18
APPENDIX – THE CONSUMER – MANUFACTURER OF PHONES OWNED
Figure 63: Manufacturer of consumers' mobile phones, November 2013
Figure 64: Most popular manufacturer of consumers' mobile phones, by demographics, November 2013
Figure 65: Other manufacturer of consumers' mobile phones, by demographics, November 2013
APPENDIX – THE CONSUMER – OPERATING SYSTEM USED
Figure 66: Operating system of consumers' smartphones, November 2013
Figure 67: Operating system of consumers' smartphones, by demographics, November 2013
APPENDIX – THE CONSUMER – IMPORTANCE OF BRANDS IN THE PURCHASING PROCESS
Figure 68: Importance of brands and model when buying a new phone, November 2013
Figure 69: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of manufacturer brand in their handset choice 0-7, November 2013
Figure 70: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of manufacturer brand in their handset choice 8-10, November 2013
Figure 71: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of handset model in their handset choice 0-6, November 2013
Figure 72: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of handset model in their handset choice 7-10, November 2013
Figure 73: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of operating system in their handset choice 0-6, November 2013
Figure 74: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of operating system in their handset choice 7-10, November 2013
Figure 75: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of network operator brand in their handset choice 0-7, November 2013
Figure 76: Manufacturer of consumers' mobile phones, by consumers who ranked the importance of network operator brand in their handset choice 8-10, November 2013
Figure 77: Operating system of consumers' mobile phones, by consumers who ranked the importance of manufacturer brand in their handset choice 0-7, November 2013
Figure 78: Operating system of consumers' mobile phones, by consumers who ranked the importance of manufacturer brand in their handset choice 8-10, November 2013
Figure 79: Operating system of consumers' mobile phones, by consumers who ranked the importance of handset model brand in their handset choice 0-7, November 2013
Figure 80: Operating system of consumers' mobile phones, by consumers who ranked the importance of handset model in their handset choice 8-10, November 2013
Figure 81: Operating system of consumers' mobile phones, by consumers who ranked the importance of operating system in their handset choice 0-7, November 2013
Figure 82: Operating system of consumers' mobile phones, by consumers who ranked the importance of operating system in their handset choice 8-10, November 2013
Figure 83: Operating system of consumers' mobile phones, by consumers who ranked the importance of network operator brand in their handset choice 0-7, November 2013
Figure 84: Operating system of consumers' mobile phones, by consumers who ranked the importance of network operator brand in their handset choice 8-10, November 2013
Figure 85: Consumers who ranked brand of the manufacturer 0-3 in importance when purchasing a phone, by demographics, November 2013
Figure 86: Consumers who ranked brand of the manufacturer 4-7 in importance when purchasing a phone, by demographics, November 2013
Figure 87: Consumers who ranked brand of the manufacturer 8-10 in importance when purchasing a phone, by demographics, November 2013
Figure 88: Consumers who ranked handset model 0-3 in importance when purchasing a phone, by demographics, November 2013
Figure 89: Consumers who ranked handset model 4-7 in importance when purchasing a phone, by demographics, November 201, November 2013
Figure 90: Consumers who ranked handset model 8-10 in importance when purchasing a phone, by demographics, November 2013,
Figure 91: Consumers who ranked operating system on the phone 0-3 in importance when purchasing a phone, by demographics, November 2013
Figure 92: Consumers who ranked operating system on the phone 4-7 in importance when purchasing a phone, by demographics, November 2013
Figure 93: Consumers who ranked operating system on the phone 8-10 in importance when purchasing a phone, by demographics, November 2013
Figure 94: Consumers who ranked network operator on the phone 0-3 in importance when purchasing a phone, by demographics, November 2013
Figure 95: Consumers who ranked network operator on the phone 4-7 in importance when purchasing a phone, by demographics, November 2013
Figure 96: Consumers who ranked network operator on the phone 8-10 in importance when purchasing a phone, by demographics, November 2013
APPENDIX – THE CONSUMER – FACTORS THAT INFLUENCE PURCHASES
Figure 97: Importance of phone features to consumers when purchasing a new handset, November 2013
Figure 98: Importance of a high-quality camera when purchasing a new handset, November 2013
Figure 99: Importance of the device being light weight when purchasing a new handset, November 2013
Figure 100: Importance of the ability to expand on in-built storage (eg with micro – SD cards) when purchasing a new handset, November 2013
Figure 101: Importance of the device having a larger screen (ie at least over 5”) when purchasing a new handset, November 2013
Figure 102: Importance of there being a wide range of apps available for download to the handset when purchasing a new handset, November 2013
Figure 103: Importance of recommendations from friends or family when purchasing a new handset, November 2013
Figure 104: Importance of having a 4G capability when purchasing a new handset, November 2013
Figure 105: Importance of having a wireless charging capability when purchasing a new handset, November 2013
Figure 106: Importance of compatibility with other technologies when purchasing a new handset, November 2013
Figure 107: Importance of a high-quality camera when purchasing a new handset, by demographics, November 2013
Figure 108: Importance of the device being light weight when purchasing a new handset, by demographics, November 2013
Figure 109: Importance of the ability to expand on in-built storage (eg with micro – SD cards) when purchasing a new handset, by demographics, November 2013
Figure 110: Importance of the device having a larger screen (ie at least over 5”) when purchasing a new handset, by demographics, November 2013
Figure 111: Importance of there being a wide range of apps available for download when purchasing a new handset, by demographics, November 2013
Figure 112: Importance of recommendations from friends or family when purchasing a new handset, by demographics, November 2013
Figure 113: Importance of having a 4G capability when purchasing a new handset, by demographics, November 2013
Figure 114: Importance of having a wireless charging capability when purchasing a new handset, by demographics, November 2013
Figure 115: Importance of compatibility with other technologies when purchasing a new handset, by demographics, November 2013
APPENDIX – THE CONSUMER – ADDITIONAL FEATURES IMPORTANT TO CONSUMERS
Figure 116: Consumer interest in other phone features, November 2013
Figure 117: Consumer interest in other phone features, by most popular manufacturer of consumers' mobile phones, November 2013
Figure 118: Consumer interest in other phone features, by next most popular manufacturer of consumers' mobile phones, November 2013
Figure 119: Manufacturer of consumers' mobile phones, by consumer interest in other phone features, November 2013
Figure 120: Importance of brands and model when buying a new phone, by consumer interest in other phone features, November 2013
Figure 121: Consumer interest in other phone features, by consumer interest in other phone features, November 2013
Figure 122: Consumer interest in other phone features, by demographics, November 2013