2023
9
UK Smartphones Market Report 2023
2023-05-26T12:52:50+01:00
OX1156493
2195
163542
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Report
en_GB
“With smartphone brands potentially needing to make repairability a greater focus of their products, it is likely to mean that consumers keep hold of their devices for even longer. However,…

UK Smartphones Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Smartphones Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the UK smartphone market including smartphone market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • Outlines the brand of smartphone that consumers own and the impact of the updated iPhone SE on Apple’s smartphone market share.
  • The impact of the cost-of-living crisis on the UK smartphone market.
  • Preferred ways to buy a smartphone and how it affects future upgrade intentions.
  • Types of apps used on a smartphone.
  • The ongoing measures to tackle digital addiction.

UK Smartphone Market Outlook

The UK smartphone market is expected to decrease further in sales and value in 2023 due to consumers’ ongoing financial struggles. However, smartphones will still remain the priority technology purchase and take-up on 5G devices will continue to grow steadily.

  • UK smartphone market size: The mobile phones market is estimated to be worth £5.7 billion in 2022.

UK Smartphone Market Trends and Opportunities

Right to repair

Smartphones are expected to be added to the EU’s ‘Right to Repair’ regulation which aims to reduce the amount of waste created by consumers throwing away wearable technology and household appliances. The regulation, which was reviewed by leading smartphone companies, encourages brands to create devices or accessories that can be repaired by third-party repairers.

  • Smartphone market opportunity: 90% of consumers own a smartphone device, with 40% owning an iPhone.

Young millennials spurring phone contracts

While the larger majority of smartphone owners are more likely to have bought their current device in full upfront, younger millennials are more likely to favour buying on contract than other generations. They are currently particularly concerned about their financial situation and therefore will likely be less able or inclined to pay for a smartphone in full upfront. Therefore, they are a key audience to target with smartphone contracts to drive more frequent upgrades.

  • Smartphone market opportunity: 29% of consumers paid for their phone as part of a contract, with no upfront cost.

To learn how to connect with your audience, purchase our full UK Smartphone Market Report 2023.  Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Leading Brands in the UK Smartphone Market

Apple, Samsung, Motorola, Huawei, Pixel, Nokia, Oppo, Sony, Xiaomi, OnePlus, Blackberry.

Additional Features Included with Your Purchase

  • Interactive Data Book: This gives you unlimited access to a consumer confidence tracker that is segmented into 25 different demographic categories.
  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as Word and Excel.
  • Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.

Expert Insights from a Technology Analyst

This report, written by Zach Emmanuel, a leading technology industry analyst, delivers in-depth commentary and analysis to highlight current trends in the UK smartphone market and add expert context to the numbers.

With smartphone brands potentially needing to make repairability a greater focus of their products, it is likely to mean that consumers keep hold of their devices for even longer. However, it could give buyers more confidence to spend higher amounts, knowing that they will not need to buy another phone for a long time.”

Zach Emmanuel - Research Analyst

Zach Emmanuel
Consumer Technology Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Products covered in this Report
        • Executive Summary

            • Five-year outlook for smartphones
              • Figure 1: Category outlook for smartphones, 2023-28
            • The market
              • Mobile phones market decreased from £6.2 billion in 2021 to £5.7 billion in 2022
                • Figure 2: Value of mobile phones market, 2017-27
              • EU’s ‘Right to Repair’ regulation for smartphones expected to impact UK consumers as well
                • EE remains most popular mobile network provider
                  • Companies and brands
                    • Updated iPhone SE is likely to have been a key factor in increased Generation X engagement with Apple
                      • Figure 3: Brand of smartphone owned, 2020-23
                    • Apple launches iPhone 14, 14 Plus, 14 Pro and 14 Pro Max
                      • Oppo rivals Galaxy Flip4 with its first foldable, the Find N2 Flip
                        • The consumer
                          • Baby Boomers have been key in driving smartphone ownership since end of 2020
                            • Figure 4: Ownership of technology including smartphones, 2020-23
                          • Younger Millennials could drive increase in contract purchases and more frequent upgrades
                            • Figure 5: Method of paying for smartphone, 2023
                          • Consumers in a difficult financial position can drive sales of premium phones after the cost-of-living crisis
                            • Figure 6: Price range for next smartphone purchase, 2023
                          • Higher smartphone activity among iPhone users highlights importance of promoting lesser-known wellbeing apps
                            • Figure 7: Frequency of specific app usage, 2023
                          • Smartphones are still the priority technology purchase despite cost-of-living impact
                            • Figure 8: Impact of cost-of-living crisis on buying smartphones, 2023
                          • Market could shift towards fewer but more expensive upgrades
                            • Increasingly important to highlight long-term use of super-fast charging phones
                              • Figure 9: Attitudes towards smartphones, 2023
                          • Issues and Insights

                            • EU’s ‘Right to Repair’ Regulation will cause consumers to make fewer but more expensive smartphone purchases
                              • Driving the market to fewer but higher-priced upgrades
                                • Samsung’s guaranteed trade-in prices can help it to wrestle top spot back from Apple
                                • Market Size and Performance

                                  • Mobile phones market decreased from £6.2 billion in 2021 to £5.7 billion in 2022
                                    • Figure 10: Value of mobile phone sales, 2017-22
                                    • Figure 11: Volume of mobile phone sales, 2017-22
                                • Market Forecast

                                  • Five-year outlook for smartphones
                                    • Figure 12: Category outlook for smartphones, 2023-28
                                  • Mobile phones market forecast to be worth £5.7 billion in 2027
                                    • Figure 13: Market forecast for the value of the mobile phones market, 2017-27
                                    • Figure 14: Market forecast for the volume of sales in the mobile phones market, 2017-27
                                • Market Drivers

                                  • Inflation is the key concern for consumers and brands
                                    • Number of consumers in a healthy financial position remains low
                                      • Figure 15: Consumers’ financial confidence, 2021-23
                                      • Figure 16: Financial confidence for upcoming year, 2021-23
                                    • EU’s ‘Right to Repair’ regulation for smartphones expected to impact UK consumers as well
                                      • Initiative called for replaceable smartphone parts and durability testing
                                        • Google welcomed initiative but raised concerns over safety of users replacing battery parts
                                          • Samsung echoed battery replacement concern
                                            • Apple starts its own user repair programme for the iPhone 12 and 13
                                              • Traditional phone contracts begin to edge back up in popularity
                                                • EE remains most popular mobile network provider
                                                • Market Share

                                                  • Updated iPhone SE is likely to have been a factor in increased Generation X engagement with Apple
                                                    • Figure 17: Brand of smartphone owned, 2020-23
                                                • Launch Activity and Innovation

                                                  • Apple launches iPhone 14, 14 Plus, 14 Pro and 14 Pro Max
                                                    • iPhone 14 Pros add Dynamic Island experience to front-facing camera
                                                      • iPhone 14 and iPhone 14 Plus include some camera improvements but keep same processor
                                                        • Samsung releases Galaxy S23s with the Ultra, including a 200MP camera
                                                          • Galaxy Z Fold4 and Galaxy Z Flip4 improve in internal specifications
                                                            • Oppo rivals Galaxy Flip4 with its first foldable, the Find N2 Flip
                                                              • Google also enters foldables market with Pixel Fold
                                                                • Nothing keeps transparent design with first smartphone
                                                                • Advertising and Marketing Activity

                                                                  • Google drives strong growth in smartphone advertising spend in 2022
                                                                    • Samsung prioritises spending on Z Flip4 but unlikely to cause noticeable increase in foldable ownership
                                                                      • Focusing advertising of foldables on productivity could convince people to buy
                                                                        • Figure 18: Total above-the-line and online display advertising expenditure on smartphones, 2019-22
                                                                        • Figure 19: Total above-the-line and online display advertising expenditure on smartphones, by advertiser (top five), 2022
                                                                        • Figure 20: Total above-the-line and online display advertising expenditure on smartphones, by advertiser (top five), 2021
                                                                      • Nielsen Ad Intel coverage
                                                                      • Brand Research

                                                                          • Brand map
                                                                            • Figure 21: Attitudes towards and usage of selected brands, 2023
                                                                          • Key brand metrics
                                                                            • Figure 22: Key metrics for selected brands, 2023
                                                                          • Samsung edges ahead of Apple in being the brand that is most likely to be viewed as consistently high quality
                                                                            • Figure 23: Attitudes, by brand, 2023
                                                                          • Over half of those who have heard of Samsung or Apple describe those brands as fun
                                                                            • Figure 24: Brand personality – Macro image, 2023
                                                                          • Reliability is the strongest association that people have with Google Pixel
                                                                            • Figure 25: Brand personality – Micro image, 2023
                                                                          • Brand analysis
                                                                            • Samsung Galaxy improves in excellent user experiences and consumers’ preference for it over other brands
                                                                              • Growth in Apple being viewed as expensive but also as stylish
                                                                                • Google Pixel moves forward in usage and positive associations
                                                                                  • Consumer’s positive opinions of Huawei continue to fade
                                                                                    • Xiaomi improves in being viewed as affordable, and there is growth in the percentage of positive experiences
                                                                                      • Find N2 Flip should help to change the opinion that Oppo does not stand out from other brands
                                                                                      • Smartphone Ownership

                                                                                        • Baby Boomers have been key in driving smartphone ownership since end of 2020
                                                                                          • EE’s widespread 5G coverage could be key in edging ahead of O2 for Millennials
                                                                                            • Figure 26: Ownership of technology including smartphones, 2020-23
                                                                                            • Figure 27: Ownership of 5G smartphone, 2023
                                                                                        • Smartphone Purchase Method and Pricing

                                                                                          • Younger Millennials are a key audience for contract purchases and more frequent upgrades
                                                                                            • Figure 28: Method of paying for smartphone, 2023
                                                                                            • Figure 29: Younger Millennials’ method of paying for smartphone, 2023
                                                                                            • Figure 30: Attitude towards changing or upgrading smartphones, crossed by method of purchase for current smartphone, 2023
                                                                                          • Consumers in a difficult financial position can drive sales of premium phones after cost-of-living crisis
                                                                                            • Figure 31: Price range for next smartphone purchase, 2023
                                                                                            • Figure 32: Price for next smartphone, split by financial situation, 2023
                                                                                        • Apps Used on Smartphones

                                                                                          • Higher smartphone activity among iPhone users highlights importance of promoting lesser-known wellbeing apps
                                                                                              • Figure 33: Category of apps used on smartphone, 2023
                                                                                              • Figure 34: Daily usage of selected app categories, by Samsung and Apple owners, 2023
                                                                                              • Figure 35: Cutting down on screen time over last year, 2023
                                                                                          • Impact of Cost-of-living Crisis on Smartphone Purchases

                                                                                            • Smartphones are still the priority technology purchase despite cost-of-living impact
                                                                                              • Samsung’s guaranteed £100 trade-in could help it to win market share back from Apple
                                                                                                • Figure 36: Impact of cost-of-living crisis buying and selling smartphones, 2023
                                                                                                • Figure 37: Impact of cost-of-living crisis on buying and selling smartphones, crossed by Apple and Samsung owners, 2023
                                                                                            • Attitudes towards Smartphones

                                                                                              • Market could shift towards fewer but more expensive upgrades
                                                                                                • Increasingly important to highlight long-term use of super-fast charging smartphones
                                                                                                  • Figure 38: Attitudes towards smartphone upgrades and features, 2023
                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                  • Abbreviations
                                                                                                    • Consumer research methodology
                                                                                                    • Appendix – Market Size and Forecast

                                                                                                      • Market forecast and prediction intervals
                                                                                                        • Figure 39: Market forecast for the value of the mobile phones market, 2022-27
                                                                                                        • Figure 40: Market forecast for the volume of sales in the mobile phones market, 2022-27
                                                                                                      • Market drivers and assumptions
                                                                                                        • Forecast methodology

                                                                                                        About the report

                                                                                                        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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