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Mobile Phones - UK - February 2012

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Mobile phones market forecast, by volume, 2006-16
Market factors
Consumers sticking with network providers for longer
Figure 2: How long ago current handset was bought, October 2010-11
High unemployment dampening youth demand for smartphones
Figure 3: Seasonally adjusted unemployment rate, by age, September 1992-November 2011
Companies, brands and innovation
Figure 4: Mobile phone ownership, by platform provider, October 2011
Figure 5: Mobile phone ownership, by manufacturer, October 2010 and October 2011
The consumer
Handset purchase considerations
Figure 6: Handset purchase considerations, October 2011
Mobile phone operating systems
Figure 7: Desire for future mobile phone operating system, by gender, December 2011
Consumer attitudes and behaviours towards mobile phones
Figure 8: Attitudes and behaviours towards mobile phones, December 2011
What we think
ISSUES IN THE MARKET
Who else could compete against Apple’s iOS and Google’s Android in the smartphone race?
How will the rise of smartphones impact on the consumption of information?
Will the form factor of mobile phones change in the next five years?
Why don’t consumers buy mobile handsets from general electronics retailers?
FUTURE OPPORTUNITIES
Trend: Many Mes
Trend: Switch Off
INTERNAL MARKET ENVIRONMENT
Key points
Mobile phone ownership
More consumers opting for pay-monthly contracts
Figure 9: Percentage-point change in type of consumer payment method, 2007-11
More consumers staying with their network providers
Figure 10: Length of time spent with current mobile network provider, 2007-11
Consumers are holding on to their handsets for a little bit longer
Figure 11: How long ago current handset was bought, October 2010-11
Ofcom’s 4G auction delayed until end of 2012
BROADER MARKET ENVIRONMENT
Key points
Uncertain economic climate to bolster sales of budget smartphones
Figure 12: GDP quarterly percentage change, Q1 2004-Q4 2011
Figure 13: GFK NOP Consumer Confidence Index, January 1988-2012
One in five 16-24-year-olds are unemployed
Figure 14: Seasonally adjusted unemployment rate, by age, September 1992-November 2011
Aging population could be a boon to the smartphone market
Figure 15: Trends in the age structure of the UK population, 2006-16
WHO’S INNOVATING?
Key points
Bigger, faster, and thinner – pushing the technical limits
Figure 16: Huawei Ascend P1 S at the Consumer Electronics Show, January 2012
Accessories for mobile phones enable a truly mobile lifestyle
Glucose monitor
Figure 17: iBGStar, January 2012
Baby monitor
Figure 18: BabyPing Video Monitor, January 2012
Health and fitness monitor
Using mobile phones as log-in tokens and ‘digital handshakes’
Mobile phone that keeps its charge for 15 years
Figure 19: SpareOne mobile phone, January 2012
MARKET SIZE AND FORECAST
Key points
Mobile phone market to grow, driven by smartphones
Figure 20: Volume sales of mobile phones, 2006-16
Figure 21: Value sales of mobile phones, 2006-16
Forecasts
Figure 22: Mobile phones market forecast, by volume, 2006-16
Figure 23: Mobile phones market forecast, by value, 2006-16
MARKET SHARE AND SEGMENT PERFORMANCE
Key points
Mobile phone by platform provider
Figure 24: Mobile phone ownership, by platform provider, October 2010-11
Figure 25: Mobile phone ownership by basic mobile vs. smartphone, by gender and age, October 2010-11
Mobile phone by manufacturer
Figure 26: Mobile phone ownership, by manufacturer, 2008-10
Figure 27: Mobile phone ownership, by manufacturer, October 2011
Figure 28: Mobile phone ownership by manufacturer, by age, October 2011
Mobile phone by release year
Figure 29: Mobile phone ownership, by release year, October 2011
Top ten mobile phones in the UK
Figure 30: Top 10 mobile phones owned in the UK, October 2011
COMPANIES AND PRODUCTS
Apple
Company overview
Financial information
Figure 31: Key financials, Apple Inc, 2010-11
Product range
Innovations
Marketing and promotion
Figure 32: Advertising expenditure on mobile phones by Apple in the UK, by phone model, 2009-11
HTC
Company overview
Financial information
Figure 33: Key financials, HTC Corporation, 2010-11
Product range
Innovations
Marketing and promotion
Figure 34: Advertising Expenditure on mobile phones by HTC in the UK, by phone model, 2009-11
Nokia
Company overview
Financial information
Figure 35: Key financials, Nokia Corporation, 2010-11
Product range
Innovations
Marketing and promotion
Figure 36: Advertising expenditure on mobile phones by Nokia in the UK, by phone model, 2009-11
Research In Motion
Company overview
Financial performance
Figure 37: Key financials, Research In Motion, 2010-11
Product range
Innovations
Marketing and promotion
Figure 38: Advertising expenditure on mobile phones by Research In Motion in the UK, by phone model, 2009-11
Samsung Telecommunications
Company overview
Financial information
Figure 39: Key financials, Samsung Electronics, 2010-11
Product range
Innovation
Marketing and promotion
Figure 40: Advertising expenditure on mobile phones by Samsung in the UK, by phone model, 2009-11
Sony Mobile Communications (formerly Sony Ericsson)
Company overview
Financial performance
Figure 41: Key financials, Sony Ericsson, 2010-11
Product range
Innovations
Marketing and advertising
Figure 42: Advertising expenditure on mobile phones by Sony Ericsson in the UK, by phone model, 2009-11
BRAND RESEARCH
Brand map
Figure 43: Attitudes towards and usage of brands in the mobile phone sector, November 2011
Correspondence analysis
Brand attitudes
Figure 44: Attitudes by mobile phone brand, November 2011
Brand personality
Figure 45: Mobile phone brand personality – macro image, November 2011
Figure 46: Mobile phone brand personality – micro image, November 2011
Brand experience
Figure 47: Mobile phone brand usage, November 2011
Figure 48: Satisfaction with various mobile phone brands, November 2011
Figure 49: Consideration of mobile phone brands, November 2011
Figure 50: Consumer perceptions of current mobile phone brand performance, November 2011
Figure 51: Mobile phone brand recommendation – Net Promoter Score, November 2011
Brand index
Figure 52: Mobile phone brand index, November 2011
Figure 53: Mobile phone brand index vs. recommendation, November 2011
Target group analysis
Figure 54: Target groups, November 2011
Figure 55: Mobile phone brand usage, by target groups, November 2011
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists
CHANNELS TO MARKET
Key points
Channels used to obtain personal mobile phone
Figure 56: Channels used to obtain personal mobile phone, October 2011
Network operators and mobile phone contracts
Figure 57: Consumers who obtained their personal mobile phone from network operators, by age and gender, October 2011
Mobile specialist retailers favoured by female consumers
Figure 58: Consumers who obtained their personal mobile phone from specialist mobile retailers, by age and gender, October 2011
Tesco has the lion’s share of supermarket sales of mobile handsets
Figure 59: Advertising expenditure on mobile phones by UK supermarkets, by media, 2011
HANDSET PURCHASE CONSIDERATIONS
Key points
Network quality is the top handset purchase consideration
Figure 60: Handset purchase considerations, October 2011
Trusting the advice of retail salespeople
MOBILE PHONE FEATURES AND ATTRIBUTES
Key points
Display size getting larger
Figure 61: Ownership of mobile phone, by diagonal display size, October 2010-11
Candybar is the winning form factor
Figure 62: Ownership of mobile phone, by form factor, October 2010-11
Mobile phones are equipped with more built-in storage
Figure 63: Ownership of mobile phone by built -in storage, by percentage change between October 2010 and 2011
MOBILE PHONE OPERATING SYSTEMS
Key points
Apple iOS is still ‘most wanted’ but only by a small margin
Figure 64: Desire for future mobile phone operating system, December 2011
Female consumers may be more open to switching operating system
Figure 65: Desire for future mobile phone operating system, by gender, December 2011
Figure 66: Importance of phone operating system to handset purchase considerations, October 2011
Apple iOS users are most loyal to their operating system
Figure 67: Desire for future mobile phone operating system, by ownership of current mobile phone, by operating system, December 2011
Is there room for competition after Apple iOS and Android?
Figure 68: Current ownership of and desire for Android, BlackBerry, and iOS, by age, December 2011
BlackBerry
Windows Phone 7
ATTITUDES AND BEHAVIOURS
Key points
Figure 69: Attitudes and behaviour towards mobile phones, December 2011
Consumers are demanding more from their mobile phones
Figure 70: Agreement with the statement ‘As long as I can make calls and texts, I don’t care about other features or functions’, by age, December 2010-11
‘Alarming’ marketing opportunities on smartphones
Figure 71: Mobile phone owners who use their handset as an alarm clock, by ownership of mobile phone operating system, December 2011
Figure 72: Mobile phone owners who use their handset as an alarm clock, by age, December 2011
Are mobile phones an essential or a distraction?
Figure 73: Agreement with the statement ‘My mobile phone is an essential part of my life’, by age, December 2011
Figure 74: Agreement with the statements ‘My mobile phone is a distraction from friends and family sometimes’ and ‘I sometimes feel overwhelmed by being always reachable on my mobile’, by age, December 2011
The call for mobile-optimised, bite-size content
Figure 75: Agreement with the statement ‘My mobile phone is often the first thing I reach for when I have a spare moment’, by age, December 2011
Figure 76: Agreement with the statement ‘My mobile phone is often the first thing I reach for when I have a spare moment’, by ownership of mobile phone operating system, December 2011
Can fun and functional co-exist?
Figure 77: Agreement with the statement ‘It is important that mobile phones are fun as well functional’, by age, December 2011
Figure 78: Agreement with the statement ‘I think my mobile phone goes with my image’, by age, December 2011
Getting messages across on a silent mobile phone
Figure 79: Agreement with the statement ‘I usually have my mobile phone on silent or vibrate-only mode’, by age, December 2011
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 80: Type of mobile phone payment plan, 2007-11
APPENDIX – BRAND RESEARCH
Figure 81: Brand usage, November 2011
Figure 82: Brand commitment, November 2011
Figure 83: Brand momentum, November 2011
Figure 84: Brand diversity, November 2011
Figure 85: Brand satisfaction, November 2011
Figure 86: Brand recommendation, November 2011
Figure 87: Brand attitude, November 2011
Figure 88: Brand image – macro image, November 2011
Figure 89: Brand image – micro image, November 2011
Figure 90: Profile of target groups, by demographic, November 2011
Figure 91: Psychographic segmentation, by target group, November 2011
Figure 92: Brand usage, by target group, November 2011
Brand index
Figure 93: Brand index, November 2011
APPENDIX – CHANNELS TO MARKET
Figure 94: Channels used to obtain personal mobile phone, October 2011
APPENDIX – HANDSET PURCHASE CONSIDERATIONS
Figure 95: Handset purchase considerations, October 2011
APPENDIX – MOBILE PHONE FEATURES AND ATTRIBUTES
Figure 96: Ownership of mobile phone, by diagonal display size, October 2010-11
Figure 97: Ownership of mobile phone, by form factor, October 2010-11
Figure 98: Ownership of mobile phone, by built-in storage, October 2010-11
APPENDIX – MOBILE PHONE OPERATING SYSTEMS
Figure 99: Ownership and desire for mobile phone by operating system, December 2011
Figure 100: Ownership and desire for current mobile phone by operating system, by demographics, December 2011
Figure 101: Ownership and desire for future mobile phone by operating system, by demographics, December 2011
APPENDIX – ATTITUDES AND BEHAVIOURS
Figure 102: Attitudes towards mobile phones, December 2011
Figure 103: Most popular attitudes towards mobile phones, by demographics, December 2011
Figure 104: Next most popular attitudes towards mobile phones, by demographics, December 2011
Figure 105: Other attitudes towards mobile phones, by demographics, December 2011
Figure 106: Attitudes towards mobile phones, by ownership of current mobile phone by operating system, December 2011
Figure 107: Attitudes towards mobile phones, by desire for future mobile phone by operating system, December 2011

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