Mobile Phones - UK - February 2013

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
 THE MARKET
Figure 1: Forecast value of mobile phone sales, 2007-17
Market factors
Mobile ownership has mostly plateaued
Frequent mobile internet use increases
Smartphone ownership likely to slow
Companies, brands and innovations
Figure 2: Mobile phone ownership, by device manufacturer, 2011-12
The consumer
Figure 3: Operating system running on consumers’ smartphones, November 2012
Figure 4: Most useful or valuable features on a smartphone, November 2012
Figure 5: Important factors that contributed to the choice of consumer’s most recently purchased smartphone, November 2012
Figure 6: Reasons that have prevented consumers buying smartphones, November 2012
Figure 7: Attitudes towards basic mobile phones, November 2012
What we think
ISSUES IN THE MARKET
What does the increasing prevalence of bring your own device (BYOD) schemes predict about smartphones sales?
How important will mobile wallets become?
What can be done to increase smartphone take-up by older consumers?
How can the remaining younger consumers be brought to smartphone ownership?
TREND APPLICATION
Trend: Who are the Joneses?
Trend: Many Mes
Mintel Futures: East Meets West
MARKET DRIVERS
Key points
Mobile ownership has mostly plateaued
Figure 8: Number of mobile phones owned by consumers, 2008-12
Long replacement cycles unlikely to shorten
Figure 9: Frequency with which consumers purchased or upgraded a mobile phone, 2010-12
Touchscreens continue to dominate
Figure 10: Features on mobile phones owned by consumers, 2008-12
Frequent internet usage increases
Figure 11: Frequency of using mobile phone to connect to the internet, 2011-12
Increase in mobile wallet services
Difficulty in defining category as ‘phablets’ gain popularity
Smartphones branch out into specialised features
Smartphone penetration likely to slow dramatically over 2013
Figure 12: Smartphone ownership, by age, September 2012
WHO’S INNOVATING?
Key points
O2 cuts down on chargers in new purchases
Flexible glass and batteries may well revolutionise handset design
Payments Council announces unified mobile payment service
HTC pairs phablet device with mini phone
MARKET SIZE AND FORECAST
Key points
Market on slow trickle to growth
Figure 13: Value of mobile phone sales, 2007-17
Forecasts
Figure 14: Forecast value of mobile phone sales, 2007-17
MARKET SEGMENTATION AND SHARE
Key points
Smartphone ownership fuelled by increasing dominance from Google
Figure 15: Mobile phone ownership by platform provider, 2010-12
Figure 16: Worldwide android activations per day, December 2011-September 2012
Select manufacturers increase market share
Figure 17: Mobile phone ownership by device manufacturer, 2011-12
4G network capable handsets have yet to impact meaningfully
Figure 18: 3G, 4G and GPRS/EDGE-capable handset ownership by age and gender, October 2012
CHANNELS TO MARKET
Key points
In-store purchasing remains most popular
Figure 19: Where consumers purchased or upgraded their last mobile phone, 2008-12
Older consumers take more recommendations from family and friends
Figure 20: Purchase or upgrade of consumers’ most recently obtained mobile phone over the internet, or through family/friends, by age, 2012
Operators the most effective handset retailer
Figure 21: Purchase locations of mobile phones (in-store and online), 2012
COMPANIES AND PRODUCTS
Apple Inc.
Company overview
Financial information
Figure 22: Key financials, Apple Inc, 2011-12
Product range
Recent activity/innovations
HTC Corporation
Company overview
Financial information
Figure 23: Key financials, HTC Corporation, 2011/Q4-2012/Q3
Product range
Recent activity/innovations
LG Electronics
Company overview
Financial information
Figure 24: Key financials, LG Electronics, 2011-12/Q3
Product range
Recent activity/innovations
Motorola Inc.
Company overview
Financial information
Figure 25: Key financials, Motorola Mobility, 2010-12/Q1
Product range
Recent activity/innovations
Nokia Corporation
Company overview
Financial information
Figure 26: Key financials, Nokia Corporation, 2011-12
Product range
Recent activity/innovations
Research In Motion Limited
Company overview
Financial performance
Figure 27: Key financials, Research In Motion, 2011-12
Product range
Recent activity/innovations
Samsung Telecommunications
Company overview
Financial performance
Figure 28: Key financials, Samsung Electronics, 2011-12/Q4
Product range
Recent activity/innovations
Sony Mobile Communications
Company overview
Financial information
Product range
Recent activity/innovations
BRAND RESEARCH
Brand map
Figure 29: Attitudes towards and usage of brands in the mobile phones sector, December 2012
Correspondence analysis
Brand attitudes
Figure 30: Attitudes by mobile phones brand, December 2012
Brand personality
Figure 31: Mobile phones brand personality – macro image, December 2012
Figure 32: Mobile phones brand personality – micro image, December 2012
Brand experience
Figure 33: Mobile phones brand usage, December 2012
Figure 34: Satisfaction with various mobile phones brands, December 2012
Figure 35: Consideration of mobile phones brands, December 2012
Figure 36: Consumer perceptions of current mobile phones brand performance, December 2012
Figure 37: Mobile phones brand recommendation – Net Promoter Score, December 2012
Brand index
Figure 38: Mobile phones brand index, December 2012
Figure 39: Mobile phones brand index vs. recommendation, December 2012
Target group analysis
Figure 40: Target groups, December 2012
Figure 41: Mobile phones brand usage, by target groups, December 2012
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
Adspend dominated by premium brands
Figure 42: Top 10 companies by adspend on mobile phones and smartphones, 2008-12
Retailers account for just 15% of total 2012 adspend
Figure 43: Proportion of adspend attributable to manufacturers, operators and retailers in the top 20 companies by spend on mobile devices or mobile services, 2008-12
SMARTPHONE OS OWNED BY CONSUMERS
Key points:
Android now on nearly half of smartphones
Figure 44: Operating system running on consumers’ smartphones, November 2012
iOS attracts a younger base
Figure 45: Ownership of a smartphone OS, by age, November 2012
Figure 46: Ownership of a smartphone OS, by gross annual household income, November 2012
MOST VALUABLE OR USEFUL SMARTPHONE FEATURES
Key points
Traditional phone functions remain important
Figure 47: Most useful or valuable features on a smartphone, November 2012
Younger consumers substitute calling for social network access
Figure 48: Consumers who list calling, texting, emailing or social networking as one of the most valuable or useful features on their smartphones, by age, November 2011
Android’s mixed pedigree shows in lack of enthusiasm for smartphone features
Figure 49: Interest in smartphone features and mobile features, by smartphone operating system, November 2012
Areas of interest for iOS, BlackBerry and Windows Phone
Figure 50: Consumer interest in smartphone and mobile features, by smartphone operating system, November 2012
IMPORTANT FACTORS IN PURCHASING A SMARTPHONE
Key points
Handset branding remains important
Figure 51: Important factors that contributed to the choice of consumers’ most recently purchased smartphone, November 2012
25-34s most likely to just dive in
Figure 52: Proportion of consumers who list cost consideration and the ability to test a phone in store as important factors contributing to the choice of their most recent device, by age, November 2012
In-store tests benefit from salesperson input
Windows Phone handsets would particularly benefit from in-store recommendations
Figure 53: Importance of the brand of the manufacturer, cost considerations and the recommendations of a salesman in the purchase of consumers most recently obtained smartphone, by device OS, November 2012
REASONS THAT HAVE STOPPED CONSUMERS BUYING SMARTPHONES
Key points
Lack of necessity becomes primary hindrance to upgrades
Figure 54: Reasons that have prevented consumers buying smartphones, November 2012
Cost primarily a concern to younger consumers
Figure 55: Top six reasons that have prevented consumers purchasing smartphones, by age, November 2012
High crossover in price considerations suggests ample room in the market for budget operator
ATTITUDES TOWARDS BASIC MOBILE PHONES
Key points
Smartphone subsidies support perception of poor value for money contracts
Figure 56: Attitudes towards basic mobile phones, November 2012
Women best shot for discount plans
Younger consumers are more likely to think basic mobile phones would last longer
Figure 57: Agreement with the statement “I think basic mobile phones will last longer than smartphones”, by age, November 2012
Dislike of devices may be based on fear of the unknown
APPENDIX – MARKET SIZE AND FORECAST
Figure 58: Value of mobile phone sales, 2009-17
APPENDIX – BRAND RESEARCH
Figure 59: Brand usage, December 2012
Figure 60: Brand commitment, December 2012
Figure 61: Brand momentum, December 2012
Figure 62: Brand diversity, December 2012
Figure 63: Brand satisfaction, December 2012
Figure 64: Brand recommendation, December 2012
Figure 65: Brand attitude, December 2012
Figure 66: Brand image – macro image, December 2012
Figure 67: Brand image – micro image, December 2012
Figure 68: Profile of target groups, by demographics, December 2012
Figure 69: Psychographic segmentation, by target groups, December 2012
Figure 70: Brand usage, by target groups, December 2012
Brand index
Figure 71: Brand index, December 2012
APPENDIX – SMARTPHONE OS USED BY CONSUMERS
Figure 72: Operating system running on consumers’ smartphones, November 2012
Figure 73: Smartphone operating system, by demographics, November 2012
APPENDIX – MOST USEFUL OR VALUABLE SMARTPHONE FEATURES
Figure 74: Most useful or valuable features on a smartphone, November 2012
Figure 75: Most useful or valuable features on a smartphone, by most popular useful or valuable features on smartphones, November 2012
Figure 76: Most useful or valuable features on a smartphone, by next most popular useful or valuable features on smartphones, November 2012
Figure 77: Most useful or valuable features on a smartphone, by smartphone operating system, November 2012
Figure 78: Most popular useful or valuable features on smartphones, by demographics, November 2012
Figure 79: Next most popular useful or valuable features on smartphones, by demographics, November 2012
APPENDIX – IMPORTANT FACTORS IN PURCHASING A SMARTPHONE
Figure 80: Important factors contributing to the choice of consumer’s most recently purchased smartphone, November 2012
Figure 81: Important factors contributing to the choice of consumer’s most recently purchased smartphone, by most important factors contributing to the choice of consumer’s most recently purchased smartphone, November 2012
Figure 82: Important factors contributing to the choice of consumer’s most recently purchased smartphone, by next most important factors contributing to the choice of consumer’s most recently purchased smartphone, November 2012
Figure 83: Important factors contributing to the choice of consumer’s most recently purchased smartphone, by smartphone operating system, November 2012
Figure 84: Most important factors contributing to the choice of consumer’s most recently purchased smartphone, by demographics, November 2012
Figure 85: Next most important factors contributing to the choice of consumer’s most recently purchased smartphone, by demographics, November 2012
APPENDIX – REASONS THAT HAVE STOPPED CONSUMERS BUYING SMARTPHONES
Figure 86: Reasons that have prevented consumers buying smartphones, November 2012
Figure 87: Reasons that have prevented consumers buying smartphones, by reasons that have prevented consumers buying smartphones, November 2012
Figure 88: Reasons that have prevented consumers buying smartphones, by demographics, November 2012
APPENDIX – ATTITUDES TOWARDS BASIC MOBILE PHONES
Figure 89: Attitudes toward basic mobile phones, November 2012
Figure 90: Attitudes towards basic mobile phones, by attitudes towards basic mobile phones, November 2012
Figure 91: Attitudes towards basic mobile phones, by reasons that have prevented consumers buying smartphones, November 2012
Figure 92: Reasons that have prevented consumers buying smartphones, by attitudes towards basic mobile phones, November 2012
Figure 93: Attitudes toward basic mobile phones, by demographics, November 2012