According to The NPD Group, lower prices and larger selections of smartphones at Boost, Metro, Virgin, and other pre-paid mobile phone carriers are causing a decline in pre-paid smartphone sales of new phones from AT&T, Verizon, T-Mobile, and other tier-one carriers. In the third quarter (Q3) of 2012, 70% of smartphone buyers who purchased their phones on a prepaid carrier had switched from a tier-one carrier. Overall Smartphone penetration rose to 70% in Q3.
Tag: mobile phones
Over 4 in 10 (42%) adults say that if they were to upgrade their mobile phone, it would be because their contract is over and they are eligible for an upgrade, according to a new poll of more than 1,000 adults conducted by Ipsos Public Affairs on behalf of RetailMeNot.com. Women are more likely than men to upgrade their phone because they are eligible (46% vs. 38%), while men are more likely than women to do so because they want the latest technology (16% vs. 10%).
Marketers attempting to understand consumer habits that influence mobile marketing can get a revealing glimpse into the mindset of the mobile consumer through the newly released “2011 Mobile Consumer Report” from Experian Simmons. According to the research, 29% of cell phone owners today believe their phone will be the primary device for their entertainment needs in the future. Fifty-six percent of smartphone owners access the Internet from their phone; 27% watch video.
Consumers are looking for ways to streamline expenditures. One likely target of the new focus on finances may be the mobile phone. Up until the last few years, the monthly telecommunications bill for most people was a steady and predictable budget item. But the new need for connectivity has seen the cost of communications rise for many consumers. A significant percentage of consumers have already cut the landline cord to save money. But many more are considering making service changes to bring their wireless bills under control.
According to a recent survey by the Pew Research Center, six in ten American adults now go online wirelessly using either a mobile phone or a laptop with a wireless internet connection. Nearly half of all adults (47%) go online with a laptop using a Wi-Fi connection or mobile broadband card (up from the 39% who did so as of April 2009) while 40% of adults use the internet, email or instant messaging on a mobile phone (up from the 32% of Americans who did this in 2009). African-Americans and English-speaking Latinos continue to be among the most active users of the mobile web.
The Android operating system (OS) continued to shake up the U.S. mobile phone market in the first quarter (Q1) of 2010, moving past Apple to take the number-two position among smartphone operating systems, according to The NPD Group. Carrier distribution and promotion continue to play a crucial role in determining smartphone market share. “Recent previews of BlackBerry 6, the recently announced acquisition of Palm by HP, and the pending release of Windows Phone 7 demonstrates the industry’s willingness to make investments to address consumer demand for smartphones and other mobile devices,” said Ross Rubin, executive director of industry analysis for NPD. “Carriers continue to offer attractive pricing for devices, but will need to present other data-plan options to attract more customers in the future.”
As the use of mobile phones becomes nearly ubiquitous, about 87% of U.S. consumers now own these devices, marketers can begin targeting users by type to improve the effectiveness of their campaigns. Experian Simmons has divided U.S. mobile phone users into several types based on how they most frequently use these devices.
Competition is heating up in the phone market which means that marketing programs are sure to follow. According to a recent USA Today report, AT&T is launching a new mobile phone that is positioned to dominate a new category called Quick Messaging Device. If AT&T succeeds with its news strategy, the company could build loyalty with users who might be tempted to defect to competing products offered by Apple or Google.
By any measure, telecommunications is a heavyweight industry with respect to marketing and should remain so for the foreseeable future. As in any young successful industry, rapid growth and competition are the orders of the day. The mobile phone industry’s future is further complicated by the shifting functionality of its devices. Phones that were traditionally used for voice communications are becoming the new personal computer.
According to the September 2008 Ad-ology Media Influence on Consumer Choice survey, 60.5 percent of U.S. consumers who recently purchased a mobile or wireless phone said online product reviews and user comments had some or significant influence on their purchase decision. Nearly 30 percent also rated information from blogs with the same level of influence.