Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Social Media
- Advertising clips
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- New growth potential as a mature industry faces transition
- New models, new competition
- From voice to web to apps
- Android kicks up a storm in platform war
- 4G at last
- Motorola clings to lead in installed base
- Apple and Android lead in social media buzz about apps and OS
- Strong potential for brand confusion in marketing crush
- Younger, higher-income respondents lead advanced phone usage
- Majority spent less than $60 on phone
- Younger consumers driven by features more than shape of phone
Insights and Opportunities
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- Introduction
- Ker-ching! Adding up the value of slaying dedicated handhelds
- The power of social networking in your hand
- TV moves from PCs to phones
- It pays to accessorize
Inspire Insights
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- Customization
- What's it about?
- What we've seen
- Addressing individual needs in every phone
Market Size and Forecast
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- Key points
- High penetration leads to stabilizing growth
- Smartphone, 4G transition to drive future sales
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- Figure 1: U.S. supplier sales and forecast for mobile phones, current prices, 2004-14
- Figure 2: U.S. supplier sales and forecast for mobile phones, at inflation-adjusted prices, 2004-14
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- Figure 3: Total U.S. unit shipments and average price for mobile phones, 2004-10
Competitive Context
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- PCs more and more portable
- Multiple functions lead to new competition
Segment Performance
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- Key points
- Smartphones on the rise, basic phones in decline
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- Figure 4: U.S. supplier sales of mobile phones at current prices, by segment, 2008 and 2010
- Figure 5: U.S. mobile phone unit shipments, by segment, 2008 and 2010
Segment Performance—Smartphones
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- Key points
- iPhone kicks off smartphone craze
- More than just a phone
- Platform consolidation on the way
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- Figure 6: U.S. supplier sales and forecast for smarpthones, at current prices, 2004-14
- Figure 7: U.S. supplier sales and forecast for smartphones, at inflation-adjusted prices, 2004-14
- Figure 8: U.S. unit shipments and average wholesale prices of smartphones, at current prices, 2004-10
Segment Performance—Basic Phones
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- Key points
- Basic phones lose ground as carriers look beyond voice
- The carrier’s darling
- Basic usage still the norm
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- Figure 9: Attitudes toward basic cell phone usage, by gender, age and household income, November 2008-December 2009
- Potential sales via multiple phone ownership
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- Figure 10: U.S. supplier sales and forecast for basic phones, at current prices, 2004-10
- Figure 11: U.S. supplier sales and forecast for basic phones, at inflation-adjusted prices, 2004-14
- Figure 12: U.S. unit shipments and average wholesale prices for basic phones, at current prices, 2004-10
Retail Channels
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- Available at (every) store very near you
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- Figure 13: Number of U.S. stores run by cell phone service providers and related companies, 2010
- Online also plays a critical role
Market Drivers
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- Key points
- Continued shift from voice to web
- An end to the all-you-can-eat data buffet?
- See and say
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- Figure 14: Interest in video calling on cell phone, by gender, age and household income, March 2010
- Platform wars
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- Figure 15: Platform share of installed base of smartphones, among five leading brands, September 2009-February 2010
- Role of app developers
- 4G
- Consumers delay upgrades but keep service during recession
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- Figure 16: Disposable personal income and personal consumption, 2006-10
Leading Companies and Brand Qualities
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- Key points
- Leading companies
- Trended ownership by brand
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- Figure 17: Brand owned, 2002/03-2008/09
- iPhone most popular phone in 2009
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- Figure 18: Most popular phones in use in the U.S., 2009
- 18-24s favor LG, Samsung, 25-34s Apple and RIM
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- Figure 19: Brand of mobile phone owned, by age, November 2008-December 2009
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- Figure 20: Brand of mobile phone owned, by household income, November 2008-December 2009
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- Figure 21: Brand of mobile phone owned—teens, by gender and age, November 2008-December 2009
- Nokia lags further with online consumers
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- Figure 22: Brand of primary mobile phone—online respondents, March 2010
- Brand qualities
- Apple
- LG
- Microsoft
- Motorola
- Nokia
- Research in Motion/RIM
- Samsung
Social Media Buzz about OS and App Stores
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- Key points
- Discussion of manufacturers and brands
- Apple far in the lead in mentions by brand
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- Figure 23: Total app store/OS mentions, by brand, January 2010-June 2010
- Android passes Blackberry in brand mentions in late 2009
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- Figure 24: Trended mentions, by brand, October 2009-June 2010
- Major feature discussions
- Natural approach finds games most buzzed about
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- Figure 25: Total mentions, by primary application/topic, January 2010-June 2010
- Games and social networking pulling ahead in 2010
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- Figure 26: Total mentions, by primary application/topic, monthly trends October 2009-June 2010
- Apple leads in gaming mentions, Android in social networking
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- Figure 27: Total mentions of application/topic, by OS, January 2010 – June 2010
- Buzz primarily positive
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- Figure 28: Total mentions of application/topic, positive and negative, by OS, January 2010-June 2010
Innovation and Innovators
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- HTC
- Modu
- A hotspot in your pocket
Advertising and Promotion
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- Figure 29: Advertising spending by leading cell phone manufacturers, 2008 and 2009
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Print Advertising
Television Advertising
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- Apple leverages apps
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- Figure 30: Apple iPhone ad, 2010
- BlackBerry tries to break out of its business suit
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- Figure 31: BlackBerry/RIM ad, 2009
- HTC makes it all about you
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- Figure 32: HTC ad, 2009
- Motorola puts it all in your hand
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- Figure 33: Motorola ad, 2009
Online Advertising
Ownership and Intent to Purchase
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- Key points
- Adult ownership approaches 90%
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- Figure 34: Trended ownership, 2000/01-2008/09
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- Figure 35: Cell phone penetration, by gender, age and household income, December 2008-November 2009
- One in six in the market for new phone
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- Figure 36: Cell phone plan purchase intent, by age, March 2010
- High levels of interest in Android seen in smartphone owners
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- Figure 37: Smartphone platform purchase interest, March 2010
Spend
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- Key points
- Over half of respondents spent less than $60 on their last phone
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- Figure 38: Cost of most recently purchased cell phone, by gender, age and household income, December 2008-November 2009
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- Figure 39: Cost of most recently purchased cell phone, by age, March 2010
Purchasing Behavior and Motivations
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- Key points
- 20% of 18-34s have spent $200 or more
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- Figure 40: Attitudes on spending on cell phones, by age, March 2010
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- Figure 41: Attitudes on spending on cell phones, by household income, March 2010
- Cost still leading factor selected
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- Figure 42: Overall factors driving cell phone choice, March 2010
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- Figure 43: Overall factors driving cell phone choice, by age, March 2010
- Figure 44: Overall factors driving cell phone choice, by household income, March 2010
- Phone size, style matter more for older users
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- Figure 45: Hardware features driving cell phone choice, March 2010
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- Figure 46: Hardware features driving cell phone choice, by gender, March 2010
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- Figure 47: Hardware features driving cell phone choice, by age, March 2010
Attitudes and Motivations
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- Key points
- Younger users most open to cell phones’ potential
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- Figure 48: General attitudes on cell phones, by age, November 2008-December 2009
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- Figure 49: General attitudes toward cell phones, by household income, November 2008-December 2009
- Older respondents prefer clamshells
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- Figure 50: Attitudes on phone hardware, by age, March 2010
- Younger users most positive on mobile web
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- Figure 51: Attitudes on web usage on phones, by age, March 2010
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- Figure 52: Attitudes on web usage on phones, by household income, March 2010
Teen and Kid Usage
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- Room to grow in adoption by kids and teens
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- Figure 53: Penetration of cell phone ownership, kids and teens, December 2008-November 2009
- Teens embrace new cell phone capabilities
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- Figure 54: Teen attitudes about cell phones, November 2008-December 2009
Smartphones and Apps
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- Key points
- Smartphone ownership highest with young and high-income consumers
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- Figure 55: Type of phone owned and availability of advanced capabilities, by age, March 2010
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- Figure 56: Type of phone owned and availability of advanced capabilities, by household income, March 2010
- App downloading limited, but frequent among those who do download
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- Figure 57: Incidence of app downloading, by gender, age, household income and race/Hispanic origin, March 2010
- Only one in six see app availability as a driver in next phone purchase
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- Figure 58: General attitudes on apps, March 2010
- Engagement with apps limited
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- Figure 59: Positive attitudes toward cell phone apps, March 2010
- A noticeable share of users lose interest in apps
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- Figure 60: Negative attitudes on cell phone apps, March 2010
Cluster Analysis
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- Websters
- Demographics
- Characteristics
- Opportunity
- Flippers
- Demographics
- Characteristics
- Opportunity
- Basics
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 61: Mobile phone clusters, March 2010
- Figure 62: Hardware features driving phone selection, by mobile phone clusters, March 2010
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- Figure 63: Attitudes toward phone style and pricing, by mobile phone clusters, March 2010
- Figure 64: Purchases of apps and media, by mobile phone clusters, March 2010
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- Figure 65: Price paid for most recent phone, by mobile phone clusters, March 2010
- Cluster demographics
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- Figure 66: Mobile phone clusters, by gender, March 2010
- Figure 67: Mobile phone clusters, by age, March 2010
- Figure 68: Mobile phone clusters, by household income, March 2010
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- Figure 69: Mobile phone clusters, by race, March 2010
- Figure 70: Mobile phone clusters, by Hispanic origin, March 2010
- Cluster methodology
Impact of Race/Hispanic Origin
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- Key points
- Asians, Hispanics spend most on phones
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- Figure 71: Ownership of mobile phones, by race/Hispanic origin, November 2008-December 2009
- Figure 72: Mean spend on mobile phones, by race/Hispanic origin, November 2008-December 2009
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- Figure 73: Brand of phone owned, by race/Hispanic origin, November 2008-December 2009
- Figure 74: Hardware features driving cell phone choice, by race/Hispanic origin, March 2010
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- Figure 75: Web feature usage on phones, by race/Hispanic origin, March 2010
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- Figure 76: Type of phone owned and availability of advanced capabilities, by race/Hispanic origin, March 2010
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- Figure 77: Incidence of app downloads, by race/Hispanic origin, March 2010
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- Figure 78: Positive attitudes on cell phone apps, by race/Hispanic origin, March 2010
Custom Consumer Groups
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- Families, urbanites most likely to use smartphones and the web
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- Figure 79: Incidence of cell phone content downloads, by presence of children, March 2010
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- Figure 80: Web feature usage on phones, by presence of children, March 2010
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- Figure 81: Web feature usage on phones, urban vs. suburban vs. rural, March 2010
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- Figure 82: Type of phone owned and availability of advanced capabilities, by presence of children, March 2010
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- Figure 83: Type of phone owned and availability of advanced capabilities, urban vs. suburban vs. rural, March 2010
Appendix: Other Useful Consumer Tables
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- Gender differences
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- Figure 84: Attitudes on phone hardware, by gender, March 2010
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- Figure 85: Web feature usage on phones, by gender, November 2008-December 2009
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- Figure 86: Attitudes on spending on cell phones, by gender, March 2010
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- Figure 87: Type of phone owned and availability of advanced capabilities, by gender, March 2010
- Differences by household income
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- Figure 88: Incidence of cell phone content downloads, by household income, March 2010
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- Figure 89: Cost of most recently purchased cell phone, by household income, March 2010
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- Figure 90: Hardware features driving cell phone choice, by household income, March 2010
Appendix: Trade Associations
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