BY Rachel Cagle
"While flagship smartphones that carry a hefty price tag are often at the forefront of technology news, data from The NPD Group’s new Mobile Phone Tracking service reveals that just under 10% of consumers are spending over $1,000 on their smartphones. Since these consumers will be the target audience for 5G devices, which typically hit the market around the $1,200 price point, this may bring into question how quickly consumers will chose to upgrade to 5G."
“'Consumers are holding onto their smartphones for longer periods, which has presented a challenge for the smartphone market,' said Brad Akyuz, executive director, industry analyst, NPD Connected Intelligence. 'Manufacturers and carriers are expecting 5G to help reinvigorate the upgrade cycle, but pricing could present another hurdle.'”
"Though the majority of consumers have not fully embraced devices at these high-end price points, those in the top 10 designated market areas (DMAs) account for more than one-third (39%) of $1,000+ active smartphones. Since consumers in the top 10 DMAs make up 29% of the U.S. population, consumers in these areas over index in $1,000+ devices by 25% compared to the rest of the country. As such, these markets should be a primary target for manufacturers, as well as where carriers should focus on developing or advancing 5G networks and educating consumers."
"The good news is, 5G awareness and purchase potential is strong, based on NPD’s Mobile Connectivity Report. In fact, awareness has reached nearly three out of four consumers, totaling 73%, at the end of the first half of 2019. This is up from 44% at the end of the first half of 2018. Alongside increasing awareness, 33% of smartphone owners report interest in purchasing a 5G-enabled smartphone."
“'Overall awareness and purchase intent reported by consumers is high, but only a small segment of the market can afford these $1,000+ devices,' noted Akyuz. 'This provides an opportunity for both carriers and manufacturers to focus on diversifying their 5G portfolios by introducing more affordable mid-tier 5G models to enjoy faster adoption rates.'”
Many Smartphone Shoppers are frugal, according to AudienceSCAN. Their favorite types of emails to receive from businesses include coupons/discount codes and limited-time offers/sales, and within the last 30 days, 51.6% have used the internet to find coupons or discount codes.
AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. In addition, AdMall contains industry profiles on electronics and accessories stores and telecommunications carriers/sellers, as well as lead lists at the local level. Media companies, sales reps and agencies can access this data with a subscription to AdMall from SalesFuel.