Mobile Phones - US - June 2017
"From 2013-16, over 200 million phones sold in the US annually, and Mintel estimates that sales will stand at a record of 204 million units in 2017. Phone manufacturers have successfully and consistently driven upgrades via superior cameras, 4G (fourth-generation wireless network) chips, faster CPUs (central processing units), improved graphics, increased storage space, and larger screens. However, given that the majority of adults (75%, not shown) own a phone that is less than two years old, substantial advances in technology need to continue just to maintain sales."
- Billy Hulkower, Senior Technology Analyst
This report will cover the following areas:
- Massive historic sales difficult to surpass
- Duopoly dominates
- Durable phones may damage sales
What you get
What's included
- Consumer Attitudes and Behaviour
- Market data
- Competitive analysis
- Risks and Opportunities
- What’s Next
- Market Trends
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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Market
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Consumer
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
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Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
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Data
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

* This is a sample representation of the report layout and does not reflect the research included in this report.
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Table of contents
Overview
- What you need to know
- Definition
- What you need to know
Executive Summary
- The issues
- Massive historic sales difficult to surpass
- Figure 1: Total US unit sales and fan chart forecast of mobile phones, 2012-22
- Duopoly dominates
- Figure 2: Brand owned, January 2017
- Durable phones may damage sales
- Figure 3: Purchase of new phone because prior phone broke, by age, January 2017
- The opportunities
- Storage, camera, screen size to drive upgrades
- Figure 4: Satisfaction with current phone, January 2017
- Feature phone owners want directions, email, photos
- Figure 5: Motivations to switch from feature phone to smartphone, January 2017
- Teens and tweens to carry growth
- Figure 6: Cell phone ownership among teens, April 2015-November 2016
- What it means
- The issues
The Market – What You Need to Know
- Over 200 million units sold annually between 2013-17
- Conversion to smartphone still in progress
- Phones for kids add up
- Market hinged on postpaid plans
- Over 200 million units sold annually between 2013-17
Market Size and Forecast
- A billion units sold between 2013-17
- Hardware remains worthy of upgrades
- Impact of 5G
- Teens/tweens and feature phone conversion
- Figure 7: Total US unit sales and fan chart forecast of mobile phones, 2012-22
- Figure 8: Total US unit sales and forecast of mobile phones, 2012-22
- A billion units sold between 2013-17
Market Breakdown
- Feature phone sales crater
- Figure 9: Smartphone unit sales vs feature phone unit sales, 2015 vs 2017
- Directions, email, photos, most desired by feature phone owners
- Figure 10: Motivations to switch from feature phone to smartphone, January 2017
- Feature phone sales crater
Market Perspective
- Carrier postpaid plans prop up market
- Figure 11: Up-front purchase of current smartphone, by household income, January 2017
- Postpaid subs holding steady market share
- Figure 12: Subscriptions, prepaid vs postpaid, 2015 vs 2016
- Unbreakable phones
- Figure 13: Purchase of new phone because prior phone broke, by age, January 2017
- Carrier postpaid plans prop up market
Market Factors
- Conversion to smartphones still in progress
- Figure 14: Feature phone ownership, by age, January 2017
- Teen ownership rising
- Figure 15: Cell phone ownership among adults and teens, April 2014-November 2016
- Figure 16: Cell phone ownership among teens, by gender and age, April 2015-November 2016
- Potential sales among tweens and kids
- Figure 17: Population, by age, 2012-22
- Conversion to smartphones still in progress
Key Players – What You Need to Know
- Two dominant brands
- Sales not enticing
- Numerous competitors for leftovers
- Two dominant brands
What’s Working?
- Marketing winning sales
- Figure 18: Brand owned, January 2017
- Marketing winning sales
What’s Struggling?
- Lack of marketing support damning
- Figure 19: Brand owned, January 2017
- Sale pricing not a common driver
- Figure 20: Purchase of smartphone on sale or used, by household income, January 2017
- Figure 21: Purchase of smartphone on sale or used, by single parents and unemployed, January 2017
- Lack of marketing support damning
What’s Next?
- Rise of China Inc.
- Kids phones
- Insurance plans may create interest in private label
- Rapid glass repair at automated Apple Horizon machines
- Rise of China Inc.
The Consumer – What You Need to Know
- Three in four own a phone less than two years old
- iPhone fan girls drive brand loyalty
- Low levels of interest in next smartphone
- Smartphone users ready for next level of activity
- Three in four own a phone less than two years old
Length of Phone Ownership
- Two years remains the norm
- Figure 22: Age of phone, January 2017
- Age chief determinant of recent upgrade
- Figure 23: Age of phone, by age of owner, January 2017
- Dads buy in
- Figure 24: Age of phone, by parental status, January 2017
- Recent purchase nearly universal among Hispanic Millennials
- Figure 25: Age of phone, by Hispanic origin and generation, January 2017
- Two years remains the norm
Loyalty
- Stated loyalty limited
- In their own words:
- Figure 26: Brand loyalty, by age, January 2017
- Young women stuck on iPhone
- Figure 27: Brand loyalty, by gender and age, January 2017
- Limited distinctions outside of gender and age
- Figure 28: Brand loyalty, by race and Hispanic origin, January 2017
- Stated loyalty limited
Interest in Purchasing
- Less than a third ready for next smartphone
- In their own words:
- Figure 29: Interest in acquiring a new smartphone, by age, January 2017
- Higher-income groups more content with current phone
- Figure 30: Interest in acquiring a new smartphone, by household income, January 2017
- Some savings in cutting rural budgets
- Figure 31: Interest in acquiring a new smartphone, by area, January 2017
- Hispanic Millennials deserve attention
- Figure 32: Interest in acquiring a new smartphone, by race, Hispanic origin, and generation, January 2017
- Less than a third ready for next smartphone
Promoting New Activities
- Integrating with dashboard, television, and smart home
- Figure 33: Current activities and interest in activity adoption, January 2017
- Young men ready to adopt
- Figure 34: Current activities and interest in activity adoption, by gender and age, January 2017
- Urbanites atop interest
- Figure 35: Current activities and interest in activity adoption, by location of residence, January 2017
- Integrating with dashboard, television, and smart home
Reasons to Upgrade
- Storage, camera, screen size continue to drive sales
- In their own words:
- Figure 36: Reasons to upgrade, January 2017
- Usual suspects more interested in improving their phones
- Figure 37: Reasons to upgrade, by age, January 2017
- Figure 38: Reasons to upgrade, by location of residence, January 2017
- Figure 39: Reasons to upgrade, by Hispanic origin and generation, January 2017
- Storage, camera, screen size continue to drive sales
In Their Own Words – Qualitative Responses
- Keeping abreast of tech: Mobile just part of the mix
- Durability, battery remain areas for improvement
- Keeping abreast of tech: Mobile just part of the mix
Appendix – Data Sources and Abbreviations
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
- Data sources
Mobile Phones - US - June 2017