Table of Contents
Executive Summary
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- The issues
- US smartphone market highly saturated
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- Figure 1: Cell phone brands used, December 2015
- Consumers still uncomfortable with putting personal information on cell phones
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- Figure 2: Interest in making purchases on cell phones, by household income, December 2015
- Continued pressure to be price competitive
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- Figure 3: Important features for cell phone purchasing, December 2015
- Broken or old phones are top purchasing motivations
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- Figure 4: Cell phone purchase inspirations, December 2015
- The opportunities
- First-time smartphone buyers remain among specific demographic groups
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- Figure 5: Cell phone brands used to receive service, by race, December 2015
- Market mobile payment to encourage comfort
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- Figure 6: Interest in making purchases on cell phones, by age, December 2015
- Mobile and next generation media content
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- Figure 7: Factors considered when purchasing new phones, by gender and age, December 2015
- Create the perception of value
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- Figure 8: Cell phone research resources, Hispanic origin, December 2015
- What it means
The Market – What You Need to Know
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- Unit sales declining
- Smartphone growth slowing
- 5G networks could spur interest in higher quality content
Market Size and Forecast
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- Figure 9: Total US volume sales and fan chart forecast for mobile phones, 2010-20
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Market Breakdown
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- Smartphone segment growth slowing down
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- Figure 10: Total US volume sales and fan chart forecast for smartphones, 2010-20
Market Factors
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- 5G cellular networks are on the horizon
- Mobile content evolves: 4K video, virtual reality
Key Players – What You Need to Know
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- iPhone maintains market growth
- Middle of the market hurt by price competitiveness
- Xiaomi likely to enter the US smartphone market
What’s Working?
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- Apple sees continued growth in market share
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- Figure 11: Leading cell phone brands owned, 2012-15
What’s Struggling?
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- Low- and mid-tier device market struggles to find consistency
What’s Next?
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- Xiaomi could disrupt the US mobile phone market
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- Figure 12: Brand of current smartphone (China), October 2014 and 2015
The Consumer – What You Need to Know
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- Apple sees continued gains in market share
- Mobile payment meets consumer concern over information security
- Price is the most prominent factor for purchase
- Online research is a key part of path-to-purchase
Cell Phone Ownership and Brands Owned
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- Apple continues to climb in the market
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- Figure 13: Leading cell phone brands owned, 2012-15
- Apple and Samsung in tight competition among most age groups
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- Figure 14: Cell phone brands used to receive service, by age, December 2015
- Apple sees continued success among higher income households
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- Figure 15: Cell phone brands used to receive service, by household income, December 2015
- First-time smartphone buyers remain among Black consumers
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- Figure 16: Cell phone brands used to receive service, by age, December 2015
Length of Primary Cell Phone Ownership
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- Cellular contracts continue to define mobile phone replacement cycles
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- Figure 17: Length of time primary cell phone has been owned, December 2015
- Men and women aged 55+ show longer replacement cycles
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- Figure 18: Length of time primary cell phone has been owned, by age, December 2015
Consumer Opinions Regarding Cell Phones and Cell Phone Purchasing
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- Interest in customization high among cell phone owners
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- Figure 19: Consumers' opinions regarding cell phones, December 2015
- Interest in making purchases via mobile is high, tendency to do so is low
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- Figure 20: Interest in making purchases on cell phones, by age, December 2015
- Many consumers feel information stored on cell phones is unsecure
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- Figure 21: Comfort with putting personal information on cell phones, by household income, December 2015
- Consumers from households with children more receptive to used phones
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- Figure 22: Receptiveness to used phones, by number of children in household, December 2015
Cell Phone Purchasing Inspirations
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- Broken or old device lead purchase inspirations
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- Figure 23: Cell phone purchase inspirations, December 2015
- Consumers aged 25-34 are excited about new phones from their favorite brands
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- Figure 24: Cell phone purchase inspirations, by age, December 2015
- Usage of promotional deals trends upward with household income
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- Figure 25: Cell phone purchase inspirations, by age, December 2015
- Apple customers more excited about new phones from their favorite brands
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- Figure 26: Cell phone purchase inspirations, by age, December 2015
- Brand loyalty rises among all early adopters
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- Figure 27: Cell phone purchase inspirations, by early adopters, December 2015
Important Cell Phone Features for Purchasing
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- The majority of cell phone owners see price as the most important purchasing factor
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- Figure 28: Important features for cell phone purchasing, December 2015
- Consumers in the Midwest and South show heightened price sensitivity
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- Figure 29: Factors considered when purchasing new phones, by region, December 2015
- Older consumers put strong emphasis on call quality
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- Figure 30: Factors considered when purchasing new phones, by age, December 2015
Resources Used on Path to Purchase
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- Customer reviews slightly ahead of expert reviews on path-to-purchase
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- Figure 31: Cell phone research resources, December 2015
- Men aged 18-34 show heightened tendency to research phones online
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- Figure 32: Cell phone research resources, by gender and age, December 2015
- Expert research sources resonate with Hispanics
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- Figure 33: Cell phone research resources, Hispanic origin, December 2015
- Magazines are an important resource for early adopters
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- Figure 34: Inspiration for cell phone purchases – CHAID – Tree output, December 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Figure 35: Total US volume sales and fan chart forecast for basic mobile phones, 2010-20
- Figure 36: US volume sales of mobile phones, 2010-15
- Figure 37: US volume sales of mobile phones, 2010-15
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Appendix – Consumer
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- Cell phone brand ownership
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- Figure 38: Cell phone brands owned, 2012-15
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- Figure 39: Cell phone brands owned – Any ownership, by age, December 2014
- Early adopters attitudes and behaviors
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- Figure 40: Price sensitivity among early adopters, December 2015
- Cell phone purchase inspirations
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- Figure 41: Cell phone purchase inspirations, by household income, December 2015
- Consumer opinions regarding cell phones
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- Figure 42: Consumers' opinions regarding cell phones, December 2015
- Important features when purchasing a new phone
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- Figure 43: Factors considered when purchasing new phones, December 2015
- CHAID analysis
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- Figure 44: Inspiration for cell phone purchases – CHAID – Table output, December 2015
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