The_Smartphone_Marketplace
The_Smartphone_Marketplace
The_Smartphone_Marketplace
Marketplace
GlobalWebIndex’s Insight report
on the smartphone marketplace
Contents
Key Insights�������������������������������������������������������� 04
Smartphone Ownership���������������������������������� 09
Notes on Methodology������������������������������������ 23
globalwebindex.com 02
The Smartphone Marketplace
Introduction M E THODOLOGY
GlobalWebIndex Insight reports take a deep-dive into the crucial topics of the industry. All figures in this report are drawn from GlobalWebIndex’s online
In this report, we focus on the smartphone buying perceptions and behaviors. research among internet users aged 16-64. We only interview
respondents aged 16-64 and our figures are representative of the
online populations of each market, not its total population.
Among others, this report covers the following topics in detail:
Each year, GlobalWebIndex interviews over 575,000 internet
01 he rate of smartphone
T
ownership around the world
04 he phone features most
T
important to UK and U.S.
users aged 16-64 via an online questionnaire. A proportion of
respondents complete a shorter version of this survey via mobile,
consumers hence the sample sizes presented in the charts throughout this
report may differ as some will include all respondents and others
02 he lifecycle of
T
will include only respondents who completed GlobalWebIndex’s
the smartphone
05 he purchase drivers and
T
frustrations for consumers’
Core survey via PC/laptop/tablet.
next upgrade
03 rand ownership vs consideration
B Where clearly stated, this report also draws on data from a
of different mobile brands bespoke survey from August 2019 among 2,545 (U.S.A.) and 2,738
(UK) internet users aged 16-64.
globalwebindex.com 03
The Smartphone Marketplace
Key Insights
Today, 96% of internet users have a smartphone, up by 15 A huge trend that is symbolic of the future of the Reflecting consumer’s biggest frustrations about their
percentage points since 2015. Predictably, the likelihood of smartphone market, and the ubiquity of smartphones current phone, core features such as battery life,
not owning a smartphone increases with age – 3% of Gen generally, is the development of mobile payment storage, and camera picture quality all top the list of
Zs don’t own one compared to 10% of boomers. systems. Device manufacturers are doubling down smartphone functionalities that are most important to
on tying other services in their ecosystem to their them. Towards the bottom of the list comes the fancier,
The smartphone’s lead is particularly pronounced in the devices, giving people more reasons to buy their more future-forward features such as AR/VR, biometric
Middle East and Africa where virtually everyone has a device beyond just the qualities of the handset. Given security features, and 5G compatibility.
smartphone and just over half have a computer, mainly that today more people have access to mobile devices
down to the important role the smartphone has played in than bank accounts, established financial institutions are For the consumers who purchased their phone via
the development of the internet landscape. Meanwhile, PC increasingly forming partnerships with mobile payment a contract, budget is the key motivator behind this
ownership is more ingrained in regions characterized by providers or developing their own services. decision. However, a third of UK and U.S. consumers
developed markets like Europe and North America, where believe a contract gives them the chance to upgrade
internet users likely first came online via PCs and where Since H1 2017, Huawei is virtually the only brand to their phone regularly as new technology comes out.
online populations tend to skew older. show any meaningful growth in current ownership The greater flexibility offered by upgrades clearly
globally, and this is despite the strenuous year they’ve resonates with a large percentage of contract owners.
Smartphones are integral to the lives of internet users in had. Huawei was blacklisted by the Trump administration
the APAC region, who are the most likely to say having in May over claims it posed a threat to U.S. security,
the latest technological products is very important to preventing American companies from providing it with
them, and to say they feel more insecure without their their latest tech. The current technology rivalry between
mobile compared to their wallet. This is also reflected the U.S. and China threatens to damage the reputation
in their purchase intentions, as they tend to have the of Chinese brands among Western consumers.
shortest purchase timeframe. Globally, though, phone
life cycles may start to get even longer as phone prices
soar year-on-year.
globalwebindex.com 04
01
The Smartphone Marketplace
The Device
Breakdown
The Smartphone Marketplace
globalwebindex.com 06
The Smartphone Marketplace
Question: Which
of the following
devices do you own?
Source: GlobalWebIndex
Q2 2019 Base: 139,658
Internet Users aged 16-64
globalwebindex.com 07
The Smartphone Marketplace
It’s important to take a regional perspective here as well. All this being said, speaking of a shift to mobile or mobile This means that while mobile usage may be cannibalizing time
Although the smartphone (unlike the PC) is universally owned transition can be misleading. Rather, people are spending more spent on computers to some extent, they should be seen more
across all regions we track, internet users in North America and and more time online as mobiles have become a core aspect as a complementary screen serving a different purpose, and one
Europe still spend longer on their computers. This is mostly of their lifestyle. Mobiles, tablets and e-readers have come in which can be used on the go. But as smartphones have risen
pronounced in the former, where online adults spend 61% of as second screens, much as TV supplemented cinemas, and in importance, and they have become present in a wider range
their online time on PCs every day. cinemas supplemented radio and theater. Relative importance of contexts compared to stationary and big-screen units, more Question: On an average
shifts, but all in all media consumption continues to rise – behaviors have become mobile-first. day, how long do you
spend online on a mobile?
especially among higher-income groups. On an average day, how
long do you spend online
on a PC/laptop/tablet?
Source: GlobalWebIndex
Q2 2019 Base: 115,963
Internet Users aged 16-64
globalwebindex.com 08
02
The Smartphone Marketplace
Smartphone
Ownership
The Smartphone Marketplace
Phone life cycles may start to get even longer around the
world, as phone prices soar year on year. For example, the
OnePlus increased the price of its new “Pro” model by 22%
over the OnePlus 6T, and it still costs less than its closest
Galaxy S10E and iPhone XR rivals. 5G networks play a large
part in increasing price points past the $1000 mark, but
foldable phones are completely obliterating this barrier.
Samsung’s foldable Galaxy Fold starts at $1,980 for the 4G
version, a price that Samsung justifies by calling it a luxury
device that’s also a true phone-tablet hybrid. Meanwhile,
Huawei's foldable phone, the Mate X, will cost buyers
roughly $2,600.
Questions: How long
have you had your current
The fact that people buy increasingly costly handsets in mobile phone for? // When
the top tier underscores the importance of mobile as an do you plan to buy a new
mobile phone or upgrade
everything-device for communication, work, photography, your existing phone?
6 in 10 in the APAC region agree that having the latest technological products is very important to them, compared to 56% in MEA, 45% in LatAm and entertainment. As processing power, camera Source: GlobalWebIndex
Q2 2019 Base: 109,378
and 32% in Europe and North America. A similar number in this region say they feel more insecure without their mobile than their wallet, the technology, battery life and internet speeds keep improving,
Smartphone Owners aged
highest percentage across all five regions. This demonstrates how central the smartphone is for consumers in APAC. the value people attach to a phone will swell in parallel. 16-64
globalwebindex.com 10
• TRE N D I N AC TION •
62% of 16-64 internet users in India say when buying a product, the price is more important than the brand name (IDX 1.16)
globalwebindex.com 11
The Smartphone Marketplace
Question: When do
you plan to buy a new
mobile phone or upgrade
your existing phone?
Source: GlobalWebIndex
Q2 2019 Base: 164,228
Smartphone Owners
(H1 2017) and 264,961
Smartphone Owners
(H1 2019) aged 16-64
globalwebindex.com 12
The Smartphone Marketplace
Mobile Payments
A huge trend that is symbolic of the future of the smartphone market, and the ubiquity MOBILE ACTIONS
of smartphones generally, is the development of mobile payment systems. Given % who have done the following mobile actions in the last month
that today more people have access to mobile devices (96%) than bank accounts
(89%), it’s no surprise that established financial institutions are increasingly forming
partnerships with mobile payment providers or developing their own services.
Markets in APAC, such as Hong Kong (41%), Thailand (38%), China (37%), Taiwan
(36%) and India (35%), are at the forefront of the mobile payment trend. Within
these fast-growth countries, what are now commonly considered traditional payment
methods, such as credit or debit cards, never reached the same penetration rates
as they did in the likes of North America or Europe. Their ‘late mover advantage’ in
the financial ecosystem has allowed them to transition from primarily cash-driven
economies into digital payments hubs, and mobile is at the center of this.
Social networks are another part of the explanation as to why Asia Pacific outscores
other regions by such a considerable distance, and it’s rooted in the way mobile
payment providers in this region have chosen to approach the consumer. Services
targeting Western markets like Google Pay, Samsung Pay or Apple Pay are native to
mobile handsets or operating systems (although Huawei and Xiaomi have introduced
their own native services too). This tactic may boost sales to some extent, but this
inevitably limits their addressable market, especially in fast-growth economies in
which cheaper handsets prevail.
In contrast, in a handful of Asian markets, major social media services have sought
to offer their own mobile payment services which are indiscriminate of which
Question: Which of these
mobile brand or operating system a consumer uses, and have been met with have you done on your
considerable success. 3 in 10 digital consumers in China use WeChat Pay and 14% of mobile in the last month?
Just under half of all internet users aged 16-64 have transferred Source: GlobalWebIndex
those in South Korea use Kakao Pay – both services provided by the countries’ most
popular messaging platforms. money to family or friends on their mobile in the last month Q2 2019 Base: 139,658
Internet Users aged 16-64
globalwebindex.com 13
• TRE N D I N AC TION •
1 in 4 iPhone owners have used Apple Pay in the past month Device manufacturers are doubling down on tying other services in their
ecosystem to their devices, giving people more reasons to buy their device
beyond just the qualities of the handset. Mobile payments and m-commerce are
a huge part of this and, if trust is the currency of the payments industry, Apple
may well top the list as the most competitive entrant in this space. Alongside
a trusting audience, Apple has also created a hardware ecosystem. But this
doesn’t mean Apple will put banks out of business – PayPal, a relative veteran in
the world of digital wallets, actually helps businesses accept Apple Pay in-store,
despite having a credit offering and physical card of their own. In the payments
industry, collaboration is often more useful than competition.
globalwebindex.com 14
The Smartphone Marketplace
Brand Consideration
Question: Which brand(s)
BRAND CONSIDERATION: would be your top choice
when you next upgrade or
MARKET BREAKDOWN buy a new mobile phone?
% who say the following brands Source: GlobalWebIndex
would be their top choice when they Q2 2019 Base: 132,936
Smartphone Owners aged
next upgrade or buy a new phone
16-64
globalwebindex.com 15
The Smartphone Marketplace
globalwebindex.com 16
The Smartphone Marketplace
Brand Ownership
The impact on Western consumers’ perceptions of Chinese tech brands remains to be seen. These The current technology rivalry between the U.S. and China threatens to damage the reputation
Chinese tech brands are now boasting valuations similar to that of Western ones, and like the Chinese of Chinese brands among Western consumers. In the past, Apple has very publicly denied U.S.
government, they’re increasingly looking abroad for business. These Chinese tech brands have an authorities access to their user data, even in the face of threats to public safety concerns. For Chinese
important role to play in the future smartphone marketplace. This is especially the case in fast growth tech brands, their relationship with the Chinese government is very different thanks to China’s political
markets such as in Africa where Chinese brands like Tecno have played such an important part in system. As such, a similar scenario with a Chinese tech brand may potentially end in a very different
putting smartphones into the hands of the local populace. But even in mature markets, consumers result. Such an event may never materialize, but it highlights a danger of distrust among Western
have been gravitating to brands like Huawei and Xiaomi which give top handset specifications for consumers in light of President Donald Trump’s current rhetoric, and shows how trust will be extremely
affordable prices, compared to Western competitors. important in Chinese brands’ business abroad.
globalwebindex.com 17
03
The Smartphone Marketplace
Phone Features
In our blog released at the beginning of the Nearly a year on, we surveyed another 2,545 TOP MOST DESIRED FEATURES
year, looking at which smartphone features U.S. and 2,738 UK consumers to delve % who say the following smartphone features and attributes are important to them
really matter to UK and U.S. consumers, we deeper into the features most important to
found that that while fancy new features may them to better understand what would drive
create the most buzz, improvements to the them to purchase. Reflecting consumer’s
core phone features are actually likely to biggest frustrations about their current
drive more sales. The UK and U.S. are among phone, core features such as battery life,
the most challenging markets to incentivize storage, and camera picture quality all top
people to upgrade, where smartphone the list of smartphone functionalities that
ownership is universal and mid-level phones are most important to them. This holds true
offer similar functions to top-level ones. These across all age groups, but importance does
markets are the epitome of smartphone drop slightly for our oldest consumers.
saturation, so understanding their sentiments
towards their phones and upgrading is Towards the bottom of the list comes the
a good indicator of what is happening fancier, more future-forward features such as
elsewhere. AR/VR features, biometric security features,
and 5G compatibility. Those in the Top 25%
What frustrated UK and U.S. consumers are more likely to think of these features as
the most about their current handset was important, although they still come nowhere
poor battery life, which stands significantly near core functionalities of smartphones.
above all other frustrations. This grievance While we found that 37% of consumers in
was most acute among owners of mid- the UK and U.S. will switch to 5G as soon as
Question: Which of the
range smartphones, who make up around it becomes available, the more conspicuous
smartphone features,
three-quarters of those planning to upgrade features aren’t yet competitive purchase functionalities or attributes
their handset in the next 12 months. Other drivers until their value is made clear. listed below are most
important to you?
factors like storage space, slow performance Source: GlobalWebIndex
and poor camera quality also featured August 2019
Those in the Top 25% income segment are 1.6x more likely to Base: 2,738 (UK) and
prominently.
cite digital wellness features as an important smartphone feature 2,545 (U.S.) Internet Users
aged 16-64
globalwebindex.com 19
• TRE N D I N AC TION •
An iFixit teardown of the new iPhone 11 has found that it might have a more powerful battery than the iPhone XR –
while the iPhone 11’s battery is smaller than the XR’s battery, it has around 7% more capacity. Additionally, the phone
has only one connector on the battery, leading iFixit to speculate that the two cables in the 11 Pro may have been for
reverse wireless charging. This feature would allow users to charge other devices by setting them on their phone.
What is less certain is the promise of “Apple Tags”, the exciting feature that would allow the tracking of physical location
of items lost in the real world. This would work as a “Find My Friends” extension from an exciting Apple device towards
much smaller standalone tags, presumably through bluetooth. This would be a push from Apple to keep consumers
locked into Apple’s software and services. The question is now whether Apple will release this feature as a promotional
boost during the life of the iPhone, or whether it will remain hidden until the launch of a redesigned iPhone 5G in 2020.
globalwebindex.com 20
The Smartphone Marketplace
Factors in Purchasing
REASONS FOR PAYING FOR A CONTRACT CONTRACT FRUSTRATIONS POST-CONTRACT INTENTIONS
% of contract owners who say the following are reasons % of contract owners who say the following % of contract owners who say they intend to do
for choosing to pay for a handset/data using a contract are frustrations of owning a contract the following once their contract expires
It allowed me to get a better mobile within my budget 37% I don’t like to be locked into such a long contract 30% I plan to trade in the handset and
31%
upgrade to a new one
I couldn’t afford to pay for the handset outright 35% The monthly bill can sometimes increase in cost 27%
I plan to keep using my existing handset and
23%
continue with a data contract
I often end up paying too much for the smartphone overall 26%
It gives me the chance to upgrade my phone regularly
35%
as new technology comes out I plan to keep the handset and upgrade to a new one 21%
I don’t like having to wait such a long time to upgrade
23%
my handset
It was simpler than having to buy a mobile separately 23% I plan to keep using my existing handset
12%
The cost of exceeding my monthly data plan 21% and switch to a SIM-only deal
Better customer service/warranty 19%
I don’t plan to do anything 10% Questions: Thinking
I’m worried about the phone breaking during the contract 20%
about your main personal
There was little difference in price between a data-only plan smartphone, what kind
16%
and a plan which covers both the handset and the data The phone becomes outdated compared to new models 20% Other 3% of deal do you use to
pay for the handset and
the data? // Why did you
choose to pay for your
handset and data using
For the consumers who purchased their phone via a contract, they plan to trade in the handset and upgrade to a new one once 35% of consumers in the UK and U.S. a contract? // What are
budget is one of the key motivators behind this decision. 37% their current handset expires. your main frustrations
say they did so because it allowed them to get a mobile within
purchased their phone with a one or two with using a contract for
their budget, and 35% did because they couldn’t afford to pay However, there are certain frustrations associated with having a year contract, 32% paid outright using a both the handset and
the data? // Which of the
outright for the handset. However, a similar percentage did contract. Namely, being locked into such a long contract (30%), pay-as-you-go SIM below best describes
what you intend to do
so because it gives them the chance to upgrade their phone monthly increases in cost (27%) and ending up paying too much once your current handset
regularly as new technology comes out. The greater flexibility for the smartphone compared to just paying outright (26%) top contract has expired?
Source: GlobalWebIndex
offered by upgrades clearly resonates with a large percentage of the list of frustrations with using a contract for both the handset
August 2019
contract owners, especially given that 31% of contract owners say and the data. Base: 2,161 Smartphone
Contract Owners in the UK
and U.S. aged 16-64
globalwebindex.com 21
The Smartphone Marketplace
globalwebindex.com 22
The Smartphone Marketplace
All figures in this report are drawn from OUR QUOTAS MOBILE SURVEY RESPONDENTS
Argentina 1,565 Netherlands 1,311
GlobalWebIndex’s online research among
Australia 4,056 New Zealand 1,298
internet users aged 16-64. Please note that To ensure that our research is reflective of From Q1 2017 on, GlobalWebIndex has
we only interview respondents aged 16-64 the online population in each market, we offered our Core survey on mobile. This allows Austria 1,291 Nigeria 958
and our figures are representative of the set appropriate quotas on age, gender, us to survey internet users who prefer using a Belgium 1,282 Philippines 1,627
online populations of each market, not its total and education – meaning that we interview mobile or are mobile-only (who use a mobile
Brazil 2,355 Poland 1,875
population. representative numbers of men vs women, of to get online but do not use or own any other
Canada 2,301 Portugal 1,288
16-24s, 25-34s, 35-44s, 45-54s and 55-64s, and device). Mobile respondents complete a
OUR RESEARCH of people with secondary vs tertiary education. shorter version of our Core survey, answering China 15,215 Romania 1,309
50 questions, all carefully adapted to be Colombia 1,330 Russia 2,273
Each year, GlobalWebIndex interviews over To do this, we conduct research across a range compatible with mobile screens. Denmark 1,257 Saudi Arabia 1,537
575,000 internet users aged 16-64 across of international and national sources, including
Egypt 1,788 Singapore 2,714
45 markets. Respondents complete an online the World Bank, the ITU, the International Please note that the sample sizes presented in
questionnaire that asks them a wide range of Labour Organization, the CIA Factbook, the charts throughout this report may differ as France 5,152 South Africa 1,548
questions about their lives, lifestyles and digital Eurostat, the US Bureau of Labor Statistics as some will include both mobile and PC/laptop/ Germany 5,176 South Korea 1,278
behaviors. We source these respondents in well as a range of national statistics sources, tablet respondents and others will include Ghana 847 Spain 5,114
partnership with a number of industry-leading government departments and other credible only respondents who completed GWI’s Core
Hong Kong 1,813 Sweden 1,314
panel providers. Each respondent who takes a and robust third-party sources. This research survey via PC/laptop/tablet. For more details
GWI survey is assigned a unique and persistent is also used to calculate the ‘weight’ of each on our methodology for mobile surveys and India 7,594 Switzerland 1,291
identifier regardless of the site/panel to which respondent; that is, approximately how the questions asked to mobile respondents, Indonesia 1,855 Taiwan 1,783
they belong and no respondent can participate many people (of the same gender, age, and please download this document. Ireland 1,269 Thailand 1,570
in our survey more than once a year (with the educational attainment) are represented by
Italy 5,363 Turkey 1,536
exception of internet users in Egypt, Saudi their responses.
Arabia, and the UAE, where respondents are Japan 1,877 UAE 1,804
allowed to complete the survey at 6-month Kenya 958 UK 10,146
intervals). Malaysia 1,533 USA 25,037
Mexico 2,619 Vietnam 1,604
Morocco 947
globalwebindex.com 23
The Smartphone Marketplace
This table provides GlobalWebIndex forecasts on internet penetration Please note that the sample sizes presented in the charts throughout India 42% Switzerland 96%
(defined as the number of internet users per 100 people) in 2019. This this report may differ as some will include both mobile and PC/laptop/ Indonesia 39% Taiwan 83%
forecasted data is based upon the latest internet penetration estimates tablet respondents and others will include only respondents who Ireland 87% Thailand 58%
from the International Telecommunication Union (ITU) for each market that completed GWI’s Core survey via PC/laptop/tablet. For more details on
Italy 62% Turkey 71%
GlobalWebIndex conducts online research in. our methodology for mobile surveys and the questions asked to mobile
respondents, please download this document. Japan 92% UAE 95%
Kenya 43% UK 96%
Malaysia 83% USA 80%
Mexico 69% Vietnam 55%
Morocco 69%
globalwebindex.com 24
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