2022
9
UK Smartphones Market Report 2022
2022-05-21T04:16:25+01:00
OX1101883
2195
151299
[{"name":"Smartphones","url":"https:\/\/store.mintel.com\/industries\/technology\/smartphones"}]
Report
en_GB
"While interest in getting a 5G phone has increased over the past two years, it has not increased as much as it might have. With the early adopters now owning…

UK Smartphones Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Smartphones report identifies consumer attitudes towards smartphone brands, ownership and interest in foldable smartphones, and the environmental impact of smartphones in the UK. This market report covers the smartphone market size, smartphone market share, market segmentation and industry trends for the UK Smartphones market.

Click here to view our German market research on Smartphones 2022.

 

Current Market Landscape

Around a third of smartphone owners agree brand is more important that features, with these consumers seeing their smartphone as a status symbol and are likely to be a strong target market for luxury accessories.

  • 32% of smartphone owners agree that the brand of a smartphone is more important than its features. Of these, 34% agree that it is embarrassing not to have the latest smartphone model.
  • 47% agree how a smartphone looks also more important than its features.
  • 82% of smartphone owners agree that all smartphones should be recycled after use.

With real wages being squeezed by inflation and household budgets under strain, more consumers are keeping hold of their devices for longer. This is also reflected in the increasing popularity of SIM-only plans.

Future Market Trends in the Smartphone Industry

This is one of the biggest threats to the smartphones markets as fewer people upgrade and those who do pick a cheaper device than they otherwise might have. Both scenarios will restrict the growth of the smartphones market, although it can benefit the challenger brands that often operate at cheaper prices to the wellknown devices from Apple and Samsung.

57% of Generation Z smartphone owners agree that environmental innovations are more important than features. Therefore, the challenger brands should offer several smartphones built specifically for sustainability in their line-up to convince people in this generation to move away from Samsung and Apple.

Read on to discover more details or take a look at all of our UK Technology and Telecoms market research

Quickly understand

  • Brand of smartphone owned and length of ownership.
  • Expectation to get 5G in the next two years and reasons for doing so.
  • Ownership of and interest in buying foldable smartphones with trended data.
  • Attitudes towards the pricing and branding of smartphones, upgrades and environmental impact of these products.

Covered in this report

Brands: Samsung (Galaxy), Apple, Huawei, Motorola, Sony, Nokia, Google Pixel, Xiaomi, Oppo, OnePlus, Back Market.

Expert analysis from a specialist in the field

This report, written by Zach Emmanuel, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

While interest in getting a 5G phone has increased over the past two years, it has not increased as much as it might have. With the early adopters now owning 5G devices, manufacturers will need to persuade everyone else by demonstrating the practical benefits of 5G over 4G in a side-by-side comparison.

Zach Emmanuel - Research AnalystZach Emmanuel
Consumer Technology Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • Five-year outlook for smartphones
      • Figure 1: Category outlook for smartphones, 2022-26
    • The market
    • Mobile phones market grows 5% in 2021 to £6.2 billion
      • Figure 2: Market forecast for the value of the mobile phones market, 2016-26
    • Samsung needs to focus on entry level market for Generation X
      • Figure 3: Market share for smartphones, 2022
    • Companies and brands
    • Apple announces iPhone 13 mini, 13 and 13 Pro with design refresh
    • Samsung updates foldables based on community feedback
    • Samsung increased advertising of premium devices
    • The consumer
    • Entry-level Android devices to benefit from older consumers getting smartphones
      • Figure 4: Ownership of smartphones, 2012-22
    • Keeping the same device for longer is restricting the success of the smartphones market
      • Figure 5: Length of ownership of smartphone, 2022
    • Financial concerns mean many consumers will keep their phone for at least another year
      • Figure 6: Intent to upgrade smartphone in next two years, 2020-22
    • Manufacturers face a challenge persuading those who are not early adopters of 5G
      • Figure 7: Intent to upgrade to a 5G smartphone in the next two years, 2022
    • Highlight quality of video calling to prompt 5G uptake
      • Figure 8: Biggest motivators to get a 5G smartphone, 2022
    • Ownership of and interest in foldable smartphones stagnates
      • Figure 9: Ownership of or interest in buying foldable smartphones in the future, 2022
    • Challenger brands can target those who prioritise features over brand
    • Luxury smartphone design caters to audience who use device as a status symbol
    • Eco-phones from challenger brands will engage Generation Z
      • Figure 10: Attitudes towards upgrades, environmental impact and pricing of smartphones, 2022
  3. Issues and Insights

    • Showcase how a smartphone range can cater to every price point
    • Network providers face a challenge convincing more consumers to shift to 5G
    • Trade-ins will appeal for older consumers from an environmental perspective
  4. Market Size and Performance

    • Mobile phones market grows 5% in 2021 to £6.2 billion
      • Figure 11: Value of mobile phones sales in the UK, 2016-21
      • Figure 12: Volume of mobile phone sales in the UK, 2016-21
  5. Market Forecast

    • Five-year outlook for smartphones
      • Figure 13: Category outlook for smartphones, 2022-26
    • Mobile phones market forecast to be worth £6.36 billion in 2022
    • Market to remain level in upcoming years
      • Figure 14: Market forecast for the value of the mobile phones market, 2016-26
      • Figure 15: Market forecast for the volume of the mobile phones market, 2016-26
  6. Market Drivers

    • The conflict in Ukraine will hurt the UK economy
    • Consumers’ financial wellbeing has slipped from its recent high point …
      • Figure 16: Household financial wellbeing index, 2016-2022
    • Inflation means consumers have even more of a reason to keep their current phones
    • Price of flagship devices falls despite chip shortages
  7. Market Share

    • Samsung needs to focus on entry level market for Generation X
    • Ads focusing on social media performance will engage even more women to buy the iPhone SE
      • Figure 17: Market share for smartphones, 2022
  8. Launch Activity and Innovation

    • Apple announces iPhone 13 mini, 13 and 13 Pro with design refresh
    • iPhone 13 mini and 13
    • iPhone 13 Pro
    • Apple continues environmental focus of iPhones
    • Apple brings 5G to iPhone SE
    • Samsung updates foldables based on community feedback
    • Galaxy Z Flip3 5G
    • Galaxy Fold3 5G
    • Xiaomi launches 11T Pro with 17-minute charging time
  9. Advertising and Marketing Activity

    • Spending on smartphone adverts increases to £102.9 million
    • Companies placed greater focus on outdoor ads in 2021 than in previous three years
      • Figure 18: Total above-the-line and online display and advertising expenditure on smartphones, 2017-21
      • Figure 19: Total above-the-line and online display advertising expenditure on smartphones, by media type, 2017-21
    • Significant changes to the top five smartphone advertisers
    • Samsung increased advertising of premium devices
    • Apple’s spending dropped due to upcoming iPhone SE
    • Huawei only spent £1.1 million on advertising in 2021
      • Figure 20: Total above-the-line and online display advertising expenditure on smartphones, by advertiser (top five), 2020
      • Figure 21: Total above-the-line and online display advertising expenditure on smartphones, by advertiser (top five), 2021
    • Nielsen Ad Intel coverage
  10. Brand Research

    • Brand map
      • Figure 22: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 23: Key metrics for selected brands, 2022
    • Many consumers see Apple as a brand that is consistently high quality
      • Figure 24: Attitudes, by brand, 2022
    • Google Pixel is in the top three for being viewed as a fun brand
      • Figure 25: Brand personality – macro image, 2022
    • Almost four in 10 people who have heard of Samsung say it is stylish
      • Figure 26: Brand personality – micro image, 2022
    • Brand analysis
    • Users of Samsung are most likely to have had a positive experience
    • Apple is most likely to be viewed as expensive but worth paying more for
    • One in five consumers who have heard of Motorola describe it as outdated
    • Google’s ban means far fewer consumers would consider using Huawei
    • Eight in 10 Google Pixel users would recommend it
    • Nearly half of consumers have now heard of Xiaomi
    • OnePlus is joint third with Xiaomi in being described as an excellent experience
  11. Smartphone Ownership

    • Entry level Android devices to benefit from older consumers getting smartphones
      • Figure 27: Ownership of smartphones, 2012-22
  12. Length of Ownership

    • Keeping the same device for longer is restricting the success of the smartphones market
    • Showcase range of devices to highlight value
      • Figure 28: Length of ownership of smartphone, 2020/22
  13. Intent to Upgrade

    • Financial concerns mean many consumers will keep their phone for at least another year
      • Figure 29: Intent to upgrade smartphone in next two years, 2020-22
  14. Intentions and Motivations to get 5G

    • Manufacturers now face challenge of persuading those who are not early adopters of 5G
      • Figure 30: Intent to upgrade to a 5G smartphone in next two years, 2022
    • Highlight quality of video calling to prompt 5G uptake
    • Video streaming incentive could encourage Gen Z to switch away from Samsung and Apple
      • Figure 31: Biggest motivators to get a 5G smartphone, 2022
  15. Ownership of and Interest in Foldable Smartphones

    • Ownership of and interest in foldable smartphones stagnates
    • Price and questions over target market holding back success of foldables
      • Figure 32: Ownership of or interest in buying foldable smartphones in the future, 2020-22
  16. Smartphone Pricing and Upgrades

    • Refurbished models of flagship devices can convince users to upgrade
      • Figure 33: Attitudes towards pricing of smartphones and upgrading considerations, 2022
  17. Smartphone Features

    • Challenger brands can target those who prioritise features over brand
      • Figure 34: Attitudes towards the latest features on smartphones, 2022
  18. Smartphone Aesthetics and Branding

    • Luxury smartphone design caters to audience who use device as a status symbol
      • Figure 35: Attitudes towards branding and how smartphones look, 2022
  19. Environmental Impact of Smartphones

    • Brands which promote recycling as part of trade-ins will be most engaging to consumers
    • Eco-phones from challenger brands will engage Generation Z
      • Figure 36: Attitudes towards smartphones and sustainability, 2022
  20. Segmentation Analysis: Categorising Smartphone Owners

      • Figure 37: Consumer segmentation for smartphones, 2022
  21. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research 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.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

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.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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