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Mobile Phones - US - February 2015

Mobile Phones - US - February 2015

“Customer loyalty has solidified the position of current market leaders for the short term. However, these and all mobile phone brands will face a mounting pressure to lower prices in light of greater competition globally and approaching smartphone market saturation in the US.”

– Bryant Harland, Technology and Media Analyst

This report looks at the following areas:

The impact of manufacturer and operating system loyalty
Satisfaction with existing mobile devices
Can the mobile phone market continue to be driven by upgrades?


SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: Total US volume sales and fan chart forecast of mobile phones, 2009-19
Samsung and Apple lead brands owned
Figure 2: Leading Cell phone brands owned – Any ownership, December 2014
The consumer
Factors inhibiting desire to upgrade
Figure 3: Factors affecting consumer desire to upgrade cell phones, by gender and age, December
2014
Loyalty high among cell phone owners
Figure 4: Cell phone manufacturer loyalty, by household size, December 2014
Reaching the tech-savvy consumer
Figure 5: Consumers’ cell phone research habits, by age, December 2014
What we think
ISSUES AND INSIGHTS
The impact of manufacturer and operating system loyalty
The issues
The implications
Satisfaction with existing mobile devices
The issues
The implications
Can the mobile phone market continue to be driven by upgrades?
The issues
The implications
TREND APPLICATIONS
Trend: Cam Cam
Trend: Attention Economy
Trend: Data Creators
MARKET SIZE AND FORECAST
Key points
Growth in the smartphone market to slow considerably by 2017
Figure 6: Total US volume sales and forecast of mobile phones, 2009-19
Manufacturers pressured by increasing price competitiveness
Segments
Figure 7: Total US volume sales and market share of mobile phones, by segment, 2012 and 2014
Fan chart forecast
Figure 8: Total US volume sales and fan chart forecast of mobile phones, 2009-19
MARKET DRIVERS
Key points
Increased data from cellular plans, readily available Wi-Fi: Increased value of
smartphones
As more consumers turn to the cloud, device specifications become less important
LEADING COMPANIES
Key points
Figure 9: Top three smartphone brands – Any ownership, December 2014
Samsung
Apple
LG Electronics
MARKETING STRATEGIES AND INNOVATIONS
Project Ara promises modular cell phones
The next generation of mobile processors: Directional audio recording, 4K streaming
support
Improving mobile phone batteries: Lithium-ion and beyond
Current ads focused on camera functionality
Figure 10: Samsung Galaxy S5 ad, April 2014
Figure 11: Apple iPhone 6 and iPhone 6 Plus ad, September 2014
CELL PHONE BRANDS OWNED
Key points
Smartphone penetration continues to rise
Figure 12: Cell phone brands owned – Any ownership, by age, December 2014
Smartphone ownership trends upward with number of children in household
Figure 13: Cell phone brands owned – Any ownership, by number of children in household, December
2014
Operating system penetration and profitability
Figure 14: Smartphone operating systems used, by age, December 2014
FEATURE PHONE OWNERSHIP AND PLANS TO UPGRADE
Key points
Feature phone ownership
Figure 15: Cell phone brands owned – I use this type of phone as my primary phone, by age,
December 2014
Nearly 30% of non-smartphone owners plan to buy one in the next year
Figure 16: Planned smartphone purchases, by age, December 2014
Reasons for not upgrading to a smartphone
Figure 17: Reasons for not upgrading to a smartphone, by gender, December 2014
CELL PHONE PURCHASING TRENDS
Key points
Average lifecycle of a cell phone
Figure 18: Lifecycle of cell phones, by age (mean number of years), December 2014
Spend on devices continues to increase
Figure 19: Amount paid for cell phones, July 2009-September 2014
ATTITUDES AND OPINIONS REGARDING MOBILE PHONES
Key points
Cell phone hardware is outpacing consumers’ usage
Figure 20: Cell phone usage habits – Any agree, by gender and age, December 2014
A market for custom-built smartphones
Figure 21: Cell phone usage habits – Any agree, by household size, December 2014
Consumers’ awareness and usage of current features
Figure 22: Cell phone usage habits – Any agree, by primary cell phone, December 2014
SATISFACTION WITH CURRENT PHONES
Key points
The overwhelming majority of consumers are satisfied with their phones
Figure 23: Satisfaction with current phones and features, December 2014
Young women show demand for more mobile storage space
Figure 24: Satisfaction with current phones and features – Any satisfied, by gender and age, December
2014
Camera quality, graphics are pain points for non-smartphone owners
Figure 25: Satisfaction with current phones and features – Any satisfied, by primary cell phone,
December 2014
OPINIONS REGARDING PURCHASING A NEW PHONE
Key points
Consumers’ desire to upgrade vs. money-saving strategies
Figure 26: Opinions when purchasing new phones, by gender and age, December 2014
Consumers with children in household more interested in phones that are preloaded with
apps
Figure 27: Opinions when purchasing new phones, by presence of children in household, December
2014
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Cell phone brands owned
Figure 28: Cell phone brands owned – Any ownership, by race/Hispanic origin, December 2014
Manufacturer and operating system loyalty
Figure 29: Cell phone usage habits – Any agree, by race/Hispanic origin, December 2014
Cell phones as productivity and social tools
Figure 30: Usage of cell phones as social and productivity tools – Any agree, by race and Hispanic
origin, August 2013-September 2014
KEY DRIVER ANALYSIS
Methodology
Do consumers care about battery life?
Figure 31: Key drivers of overall satisfaction with primary mobile phone, December 2014
Figure 32: Overall satisfaction with primary mobile phone – key driver output, December 2014
CLUSTER ANALYSIS
Figure 33: Target clusters, December 2014
Loyalists
Demographics
Characteristics
Opportunity
Mobile Technology Explorers
Demographics
Characteristics
Opportunity
Value Buyers
Demographics
Characteristics
Opportunity
Basic Feature Users
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 34: Target clusters, December 2014
Figure 35: Cell phone brands owned – Any ownership, by target clusters, December 2014
Figure 36: Cell phone brands owned – I use this type of phone as my primary cell phone, by target
clusters, December 2014
Figure 37: Reasons for not upgrading to a smartphone, by target cluster, December 2014
Figure 38: Lifecycle of cell phones, by target clusters (mean), December 2014
Figure 39: Cell phone usage habits – Any agree, by target clusters, December 2014
Figure 40: Satisfaction with current phones and features – Any satisfied, by target clusters, December
2014
Figure 41: Satisfaction with current phones and features – Any dissatisfied, by target clusters,
December 2014
Figure 42: Opinions when purchasing new phones, by target clusters, December 2014
Cluster demographic tables
Figure 43: Target clusters, by demographics, December 2014
Cluster methodology
QUALITATIVE RESEARCH
Cell phone usage and desired improvements
Path to purchase
Opinions regarding mobile phone brands
APPENDIX – OTHER USEFUL CONSUMER TABLES
Cell phone brands owned – Any ownership
Figure 44: Cell phone brands owned – Any ownership, by household income, December 2014
Figure 45: Cell phone brands owned – Any ownership, by female and age, December 2014
Figure 46: Cell phone brands owned – Any ownership, by male and age, December 2014
Figure 47: Cell phone brands owned – Any ownership, by household size, December 2014
Cell phone brands owned – Primary cell phone
Figure 48: Cell phone brands owned – I use this type of phone as my primary cell phone, by household
income, December 2014
Figure 49: Cell phone brands owned – I use this type of phone as my primary cell phone, by male and
age, December 2014
Figure 50: Cell phone brands owned – I use this type of phone as my primary cell phone, by female
and age, December 2014
Figure 51: Cell phone brands owned – I use this type of phone as my primary cell phone, race and
Hispanic origin, December 2014
Operating system of primary cell phone
Figure 52: Smartphone operating systems used, by age, December 2014
Figure 53: Smartphone operating systems used, by gender and age, December 2014
Figure 54: Smartphone operating systems used, by household income, December 2014
Figure 55: Smartphone operating systems used, by race and Hispanic origin, December 2014
Average spending on cell phones
Figure 56: Amount paid for cell phones, by age, August 2013-September 2014
Figure 57: Amount paid for cell phones, by gender and age, August 2013-September 2014
Figure 58: Amount paid for cell phones, by race and age, August 2013-September 2014
Figure 59: Amount paid for cell phones, by Hispanic origin and age, August 2013-September 2014
Lifecycle of cell phones
Figure 60: Lifecycle of cell phones, by gender and age (mean), December 2014
Figure 61: Lifecycle of cell phones, by primary cell phone (mean), December 2014
Figure 62: Lifecycle of cell phones, by primary cell phone OS (mean), December 2014
The role of cell phones in consumers’ lives
Figure 63: Attitudes and opinions about cell phones/smartphones, by age, August 2013-September
2014
Figure 64: Attitudes and opinions about cell phones/smartphones, by household income, August 2013-
September 2014
Figure 65: Attitudes and opinions about cell phones/smartphones, by gender and age, August 2013-
September 2014
Figure 66: Attitudes and opinions about cell phones/smartphones, by race and age, August 2013-
September 2014
Figure 67: Attitudes and opinions about cell phones/smartphones, by Hispanic origin and age, August
2013-September 2014
Figure 68: Attitudes and opinions about cell phones/smartphones – Any agree, by race and Hispanic
origin, August 2013-September 2014
Figure 69: Attitudes and opinions about cell phones/smartphones, July 2009-September 2014
Cell phone usage habits and opinions
Figure 70: Cell phone usage habits – Any agree, by age, December 2014
Figure 71: Cell phone usage habits – Any agree, by household income, December 2014
Figure 72: Cell phone usage habits – Any agree, by male and age, December 2014
Figure 73: Cell phone usage habits – Any agree, by female and age, December 2014
Figure 74: Cell Phone Usage Habits – Any agree, by number of children in household, December 2014
Figure 75: Cell phone usage habits – Any agree, by primary cell phone OS, December 2014
Figure 76: Opinions when purchasing new phones, by age, December 2014
Satisfaction with current mobile phones and features
Figure 77: Satisfaction with current phones and features – Any satisfied, by male and age, December
2014
Figure 78: Satisfaction with current phones and features – Any satisfied, by female and age, December
2014
Figure 79: Satisfaction with current phones and features – Any satisfied, by race and Hispanic origin,
December 2014
Figure 80: Satisfaction with current phones and features – Any satisfied, by mobile device ownership
Figure 81: Satisfaction with current phones and features – Very satisfied, by opinions when purchasing
new phones, December 2014
Figure 82: Satisfaction with current phones and features – Very satisfied, by opinions when purchasing
new phones, December 2014 (continued)
Figure 83: Satisfaction with current phones and features – Any dissatisfied, by male and age,
December 2014
Figure 84: Satisfaction with current phones and features – Any dissatisfied, by female and age,
December 2014
Figure 85: Satisfaction with current phones and features – Any dissatisfied, by race and Hispanic origin
Figure 86: Satisfaction with current phones and features – Any dissatisfied, by gender and age,
December 2014
Figure 87: Satisfaction with current phones and features – Any dissatisfied, by primary cell phone,
December 2014
Cell phone usage for business
Figure 88: Cell phone business use, by age, August 2013-September 2014
Figure 89: Cell phone business use, by household income, August 2013-September 2014
Figure 90: Cell phone business use, by race and age, August 2013-September 2014
Figure 91: Cell phone business use, by Hispanic origin and age, August 2013-September 2014
Cell phone purchasing habits
Figure 92: Opinions when purchasing new phones, by age, December 2014
Figure 93: Opinions when purchasing new phones, by household income, December 2014
Figure 94: Opinions when purchasing new phones, by primary cell phone, December 2014
Figure 95: Opinions when purchasing new phones, by primary cell phone OS, December 2014
APPENDIX – KEY DRIVER ANALYSIS
Interpretation of results
Figure 96: Overall satisfaction with primary mobile phone – Key driver output, December 2014
Figure 97: Satisfaction with current phones and features, by primary cell phone, December 2014
APPENDIX – TRADE ASSOCIATIONS
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

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