Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept and close

Description

Description

“The trend towards full-screen displays and larger screens has seen prices for flagship smartphones grow considerably, motivating many people to keep their smartphones longer. With extended battery life a priority for consumers, incremental updates and minor innovations are proving insufficient in driving regular upgrades. A large proportion of people are buying phones outright to find cheaper, more flexible contracts with network providers. To accommodate this trend in the face of rising flagship smartphone prices, trade-in schemes and upgrade programmes will become increasingly important.”

- Adrian Reynolds, Consumer Technology Analyst

This report will look at the following areas:

  • Can innovations still entice consumers to upgrade regularly?
  • Insurance and screen replacement plans gain importance as prices rise

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Market struggling for growth as people delay upgrades
              • Figure 1: Value of mobile phone sales in the UK, 2012-22
            • Big two manufacturers dominate over 72% of the market
              • Figure 2: Smartphone ownership, by brand, February 2018
            • Smartphone ownership struggling for growth
              • Figure 3: Ownership of smartphones, January 2013-December 2017
            • Major product launches in 2017 boosted advertising spend
              • Figure 4: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, 2014-17
            • The consumer
              • Over half of people have owned their phone more than a year
                • Figure 5: Length of time people have owned smartphone, February 2018
              • Mobile network providers remain the most popular purchase location
                • Figure 6: Purchase location, February 2018
              • Fingerprint scanning is the most popular unlocking method
                • Figure 7: Preferred method of unlocking smartphone, February 2018
              • Social media is the most popular smartphone activity
                • Figure 8: Most popular smartphone activities, February 2018
              • Most people stick to the same operating system and manufacturer
                • Figure 9: Smartphone behaviours, February 2018
              • Nearly two thirds of people will upgrade smartphones in the next two years
                • Figure 10: Plans to upgrade, December 2016 and February 2018
              • Extended battery life is a growing priority
                • Figure 11: Important factors when upgrading, February 2018
              • What we think
              • Issues and Insights

                • Can innovations still entice consumers to upgrade regularly?
                  • The facts
                    • The implications
                      • Insurance and screen replacement plans gain importance as prices rise
                        • The facts
                          • The implications
                          • The Market – What You Need to Know

                            • Market struggling for growth as people delay upgrades
                              • Smartphone ownership struggling for growth
                                • Growth of ‘phablets’ encroaching on the tablet market
                                  • Economic factors remain important despite necessity of smartphones
                                    • Relaunches focus on nostalgia and second phone market
                                    • Market Size and Forecast

                                      • Market struggling for growth as people delay upgrades
                                        • Figure 12: Value of mobile phone sales in the UK, 2012-22
                                        • Figure 13: Value of mobile phone sales in the UK, 2012-22
                                      • Forecast methodology
                                      • Market Drivers

                                        • Smartphone ownership struggling for growth
                                          • Figure 14: Ownership of smartphones, January 2013-December 2017
                                        • Economic factors remain important despite necessity of smartphones
                                          • Figure 15: Proportion of consumers who have bought electrical goods in the last three months and expect to buy in the next three months, September 2015-February 2018
                                        • Growth of ‘phablets’ encroaching on the tablet market
                                          • Figure 16: Apple’s iPhone 8 and iPhone 8 Plus
                                        • Relaunches focus on nostalgia and second phone market
                                          • Figure 17: Nokia’s 8110 4G ‘Banana phone’
                                      • Companies and Brands – What You Need to Know

                                        • Big two manufacturers dominate over 72% of the market
                                          • Apple overtakes Samsung as the most popular brand
                                            • Samsung launches new flagship S9 range
                                              • Apple’s iPhone X becomes the most expensive smartphone
                                                • Major product launches in 2017 boosted advertising spend
                                                • Market Share

                                                  • Big two manufacturers account for over 72% of smartphone ownership
                                                    • Figure 18: Smartphone ownership, by brand, February 2018
                                                  • Apple overtakes Samsung as the most popular brand
                                                    • Figure 19: Smartphone ownership, by brand, December 2016 and February 2018
                                                  • iPhone ownership varies more than Samsung in terms of demographics
                                                    • Figure 20: Ownership of Apple and Samsung smartphones, by selected demographics, February 2018
                                                • Launch Activity and Innovation

                                                  • Samsung launches new flagship S9 range
                                                    • Figure 21: Samsung’s Galaxy S9 smartphone
                                                  • Apple’s iPhone X becomes the most expensive smartphone
                                                    • Figure 22: Apple’s iPhone X
                                                  • Google boosts market presence with innovative Pixel 2
                                                    • Figure 23: Google’s Pixel 2 smartphone
                                                  • Qi wireless charging becoming the standard technology
                                                    • Figure 24: Apple’s wireless charging on iPhone 8 and iPhone X
                                                  • Purism set to launch security-focused smartphone
                                                    • Figure 25: Purism’s Librem 5 smartphone
                                                • Advertising and Marketing Activity

                                                  • Major product launches in 2017 boosted advertising spend
                                                    • Figure 26: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, 2014-17
                                                    • Figure 27: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, by media type, 2014-17
                                                  • Television remains the key advertising outlet for phones
                                                    • Figure 28: Total above-the-line, online display and direct mail advertising expenditure on mobile phones, by manufacturer, 2017
                                                  • Nielsen Ad Intel coverage
                                                  • Brand Research

                                                      • Brand map
                                                        • Figure 29: Attitudes towards and usage of selected brands, February 2018
                                                      • Key brand metrics
                                                        • Figure 30: Key metrics for selected brands, February 2018
                                                      • Brand attitudes: Apple iPhone perceived as worth the higher price
                                                        • Figure 31: Attitudes, by brand, February 2018
                                                      • Brand personality: Google Pixel and Samsung Galaxy deemed the most fun brands
                                                        • Figure 32: Brand personality – Macro image, February 2018
                                                      • Google Pixel considered the most desirable brand, with iPhone considered expensive
                                                        • Figure 33: Brand personality – Micro image, February 2018
                                                      • Brand analysis
                                                        • Samsung Galaxy is the most recommended brand
                                                          • Figure 34: User profile of Samsung Galaxy, February 2018
                                                        • Apple iPhone seen as an expensive and exclusive brand
                                                          • Figure 35: User profile of Apple iPhone, February 2018
                                                        • Google Pixel deemed innovative, fun and stylish
                                                          • Figure 36: User profile of Google Pixel, February 2018
                                                        • Sony Xperia considered user-friendly and reliable
                                                          • Figure 37: User profile of Sony Xperia, February 2018
                                                        • HTC lacks a strong brand identity
                                                          • Figure 38: User profile of HTC, February 2018
                                                        • Chinese brand Huawei viewed as basic but good value for money
                                                          • Figure 39: User profile of Huawei, February 2018
                                                      • The Consumer – What You Need to Know

                                                        • Over half of people have owned their phone more than a year
                                                          • Mobile network providers remain the most popular purchase location
                                                            • Fingerprint scanning is the most popular unlocking method
                                                              • Social media is the most popular smartphone activity
                                                                • Most people stick to the same operating system and manufacturer
                                                                  • 24% of people have broken the smartphone screen in the last two years
                                                                    • Nearly two thirds of people will upgrade smartphones in the next two years
                                                                      • Extended battery life is a growing priority
                                                                      • Purchase Patterns

                                                                        • Over half of people have owned their phone more than a year
                                                                          • Figure 40: Length of time people have owned smartphone, February 2018
                                                                        • Mobile network providers remain the most popular purchase channel
                                                                          • Figure 41: Purchase location, February 2018
                                                                        • Upfront payment is focused on retailers and manufacturers
                                                                          • The rising expense of flagship phones is supporting network contracts
                                                                            • Figure 42: Smartphone payment methods, February 2018
                                                                          • 16-24-year-olds least likely to get smartphones from network providers…
                                                                            • …while men are most likely to pay for phones in full up front
                                                                            • Smartphone Security

                                                                              • Fingerprint scanning is the most popular unlocking method
                                                                                • Figure 43: Preferred method of unlocking smartphone, February 2018
                                                                              • Over half of iPhone owners prefer to use fingerprint scanners
                                                                                • Figure 44: Preferred method of unlocking smartphone, by brand owned, February 2018
                                                                            • Smartphone Activities

                                                                              • Social media is the most popular smartphone activity…
                                                                                • …closely followed by calls and messages
                                                                                  • Figure 45: Most popular smartphone activities, February 2018
                                                                                • There is a clear age split in popular smartphone activities
                                                                                  • Calls and SMS the only activities selected less by younger demographics
                                                                                    • Figure 46: Most popular smartphone activities, by age, February 2018
                                                                                  • Wide range of activities has driven storage capacity needs
                                                                                  • Behaviours of Smartphone Owners

                                                                                    • Most people stick to the same operating system and manufacturer
                                                                                      • Free screen repair is set to grow in importance
                                                                                        • Over half of people keep their old phone as a spare
                                                                                          • Figure 47: Smartphone behaviours, February 2018
                                                                                        • 16-34-year-olds are the most likely to stick with OS and manufacturer
                                                                                          • Figure 48: Smartphone behaviours, by age, February 2018
                                                                                        • Those aged 18-24 and upgrading regularly are more likely to break screens
                                                                                          • Figure 49: Target groups based on statements about smartphones – CHAID – Tree output, February 2018
                                                                                          • Figure 50: Target groups based on statements about smartphones – CHAID – Table output, February 2018
                                                                                      • Plans to Upgrade

                                                                                        • Nearly two thirds of people will upgrade smartphones in the next two years
                                                                                          • Figure 51: Plans to upgrade, December 2016 and February 2018
                                                                                        • Owners of Sony smartphones are more likely to upgrade
                                                                                          • Figure 52: Plans to upgrade, by brand owned, February 2018
                                                                                        • Price and incremental updates encouraging some to keep phones
                                                                                          • Increased trade-in deals could boost upgrade affordability
                                                                                            • Figure 53: Reasons for not upgrading, December 2016 and February 2018
                                                                                        • Important Factors when Upgrading

                                                                                          • Extended battery life is a growing priority
                                                                                            • Manufacturers are pushing wireless charging
                                                                                              • Men are more likely to want bigger and better screens
                                                                                                • Figure 54: Important factors when upgrading, February 2018
                                                                                              • Improved camera quality is the second most important factor…
                                                                                                • …and even more important for younger demographics
                                                                                                  • Figure 55: Important factors when upgrading, by age, February 2018
                                                                                                • Vast majority of people focus on multiple upgrade factors
                                                                                                  • Figure 56: Repertoire of important factors when upgrading, February 2018
                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                  • Abbreviations
                                                                                                    • Consumer research methodology
                                                                                                      • Market size and forecast
                                                                                                        • Fan chart forecast
                                                                                                          • Value
                                                                                                            • Figure 57: Best- and worst-case forecast for the value of the UK mobile phone market, 2017-22
                                                                                                          • Brand research
                                                                                                            • Brand map
                                                                                                              • CHAID analysis – Methodology
                                                                                                                • Figure 58: Target groups based on statements about smartphones – CHAID – Table output, February 2018

                                                                                                            About the report

                                                                                                            This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                            • The Consumer

                                                                                                              What They Want. Why They Want It.

                                                                                                            • The Competitors

                                                                                                              Who’s Winning. How To Stay Ahead.

                                                                                                            • The Market

                                                                                                              Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                            • The Innovations

                                                                                                              New Ideas. New Products. New Potential.

                                                                                                            • The Opportunities

                                                                                                              Where The White Space Is. How To Make It Yours.

                                                                                                            • The Trends

                                                                                                              What’s Shaping Demand – Today And Tomorrow.

                                                                                                            Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                            Trusted by companies. Big and small.

                                                                                                            • bell
                                                                                                            • boots
                                                                                                            • google
                                                                                                            • samsung
                                                                                                            • allianz
                                                                                                            • kelloggs
                                                                                                            • walgreens
                                                                                                            • redbull
                                                                                                            • unilever
                                                                                                            • Harvard
                                                                                                            • pinterest
                                                                                                            • new-york-time