Intelligent mobile phoneStrategy Analytics

Win new users in the smartphone market From Strategy Analytics

The following is the Win new users in the smartphone market From Strategy Analytics recommended by And this article belongs to the classification: Strategy Analytics, Intelligent mobile phone.

Strategy analytics conducted a new smartphone consumer survey in China, the UK and the United States to identify the key factors driving consumers’ switch behavior. The report explores the drivers and barriers that affect when and how consumers change smartphones

1. Executive summary

In order to explore the drivers and obstacles affecting smartphone replacement, strategy analytics conducted research on consumers in China, the UK and the United States. Our consulting team provided further analysis of each country.

Global shipments of smart phones exceed   1.3 billion, which is the biggest business opportunity in the consumer electronics market; In mature markets, 95% of sales come from aircraft replacement, while in developing markets, the ratio is   87%。

The study identified the motivation of consumers to change planes  / Five different models of drivers and barriers. These five modes   (also known as “market segments”) have different proportions in each country.

Although the sub group is defined by attitude and behavior variables, it is in the change behavior   (length of replacement cycle), price paid   There are significant differences in (ASP), manufacturer’s relative strength and a series of other variables.

The report discusses the challenges faced by smartphone manufacturers in improving their relationship with smartphone users. In general, existing smartphone users usually need to be persuaded to buy new devices because existing phones can continue to fully meet their needs.

Consumers generally strongly agree with the performance and reliability of their current equipment.

Only two of the five subgroups are actively seeking to include   Advanced functions including 5g. These are usually consumers who pay attention to the functions of new products.

The replacement needs of the other three sub groups focus on the brand, the practicability of smart phones, and balance  / Practical solutions. These consumers are price sensitive and tend to stick to their existing phones until their performance drops significantly.

The difference between the high and low groups is   12 months.

The report explores the need to develop insights into how consumer choices and decision priorities affect performance as part of an overall marketing strategy. In addition, the report also studies the unique attributes of China and the United States and their strategic implications.

2. Study the change decision

From Apple   Since the advent of the iPhone, smart phones have become the most successful consumer electronics products in history. Sold worldwide every year   1.3 billion smartphones, 15   Among adults over the age of, every year   five   There is a name   one   People buy smartphones.

Product adoption is not a problem. Smart phones are growing with the reduction of price and the expansion of service coverage, and the global market is quite mature. The market performance of manufacturers depends on whether they can become the choice of users when changing machines. At present, less than half of the smartphones sold in mature markets are first-time buyers   Less than 5% worldwide   13%。

The competition in the replacement market is very challenging. from   2007 to   2013 was a market growth stage in North America, Western Europe, Japan, South Korea and China. The competition mainly focused on physical functions and system performance, which is a value proposition on the differentiation of smartphone products. The new products provide better screen, battery life, performance, camera and interface experience. The difference of competition is to provide higher quality engineering solutions, all around products.

Consumers enthusiastically accept smartphones and indulge in using them. Competition has changed over the past five years:

The battery life is longer, the smartphone quality becomes more reliable, and the performance degradation caused by time has been steadily prolonged.

The practical functions and experiences of mobile phones are increasingly focused on applications rather than device or platform performance. Mobile phone, mobile phone, Instagram, Snapchat and tiktok are running well on the last smartphone, and they will be able to perform the same on their next phone.

The current market competition is about the drivers and obstacles of replacing existing equipment, about the timing and willingness to pay for a mature experience, rather than the initial product adoption.

In this new stage of market maturity, competition has intensified and evolved:

When the performance of the existing mobile phone is good, consumers are unlikely to replace the new mobile phone because the performance of the new product has improved

Considering the similarity between major products and mobile phone manufacturers, consumers can meet their functional needs at a lower cost in the product options of different brands.

Competition based solely on products may bring diminishing returns in the replacement market. In view of the competition of consumers’ decision-making, marketing must be based on consumers’ motivation and obstacle model.

The challenge faced by smartphone manufacturers is how to meet the needs and expectations of different segments in the process of changing phones.

The drivers of the switch decision involve less product specifications and more management of consumer expectations and attitudes.

A key factor in market performance is the use of marketing to improve consumers’ ability to replace their existing equipment with specific brand products.

Similarly, another key factor is to understand which marketing elements may affect and shorten the average change time of consumer segments.

For marketing elements, strategy analytics refers to the information, images and perceptions created through promotion that meet consumers’ expectations and needs.

Finally, the challenge is to understand how to influence consumers’ change decisions relative to the cost of inducing consumers’ purchase decisions.

3. Key modes of machine change behavior

Smartphone users have a wide range of experiences, needs, preferences and expectations for their current and future devices. Since the introduction of smart phones, many consumers have owned three or more smart phones. Their decisions on the timing and nature of replacing existing equipment mainly include:

Cognition and expectation  –  How long is their current device likely to last? How similar is their next device to their current device? How do they make the decision to change planes?

Economy – given the expected improvement in equipment performance and its requirements, what is their willingness to pay?

demand  –  What activities do they want to perform on their future devices compared to the tasks they do on their current devices? How are these needs changing? What are their perceived needs for devices?

The impact of strategy analytics on China, the United States and the United Kingdom   A survey of 5000 consumers shows that there are five main behaviors in smartphone replacement decision-making  / Attitude model.

These five crowd patterns are defined based on the attitude and behavior statements on matters related to the possession and replacement of smart phones, and the potential characteristics of each group are identified through the potential classification hybrid modeling method. These patterns provide insight into smartphone replacement behavior. Each segment can be regarded as a consumer portrait, which can support the formulation of marketing strategies for the segment.

three point one     Brand enthusiasts (12%)

This crowd is most concerned about the brand. They seem to be very satisfied with the quality and function of the current equipment and are not particularly interested in new functions. They believe that their existing equipment will last longer than their previous equipment. When they finally need to change machines, they will replace products of the same brand.

3.2 status hungry (23%)

The relationship between status hungry groups and their smartphones is contradictory. On the one hand, they like high-end equipment of top brands; On the other hand, they plan to spend less money on the next device and will consider buying “second-hand” products   (this is the only group that finds this concept attractive). The impact of economic pressure obviously plays a role in this youngest consumer group, but they “need” the advanced features and functions provided by 5g and other high-end devices.

three point three   Value maximizer (25%)

Value maximizers adopt a balanced and practical way to own smart phones. They believe that the features and functions of the next mobile phone will be basically the same as those of the existing mobile phone. As experienced buyers, they appreciate good design and advanced features, but also know that if they wait, the price of the flagship model will fall. They also see no reason to replace existing equipment that is functioning well.

three point four   Technology enthusiasts (24%)

For the product developers of smart phone manufacturers, the market segmentation of technology enthusiasts is their best choice. This group first requires their smart phones to have the latest technology, and pursues and expects to obtain the latest devices before others. As typical early users, although they prefer high-end brands, if the value proposition of mobile phone manufacturers brings them to the forefront of science and technology, they will try new brands. They need excellent design, advanced technology and   5G。

three point five   Low cost and practical (16%)

For the low-cost practical group, smart phone is a device that provides practical functions. This group of consumers has the highest average age, and they only seek the most basic functions on any device. When the existing equipment cannot work, they will choose the cheapest new machine. They do show a certain degree of brand loyalty and believe that the brand they currently own will also have a reliable performance at the next purchase. Their experience is that each new machine purchased provides enough functions, while the reliability continues to improve and the price continues to decline.

4. Replacement index

One sign of the market segments that can be used for marketing operations is that when analyzed, these groups show significant differences in key behaviors. The key behavior of this study is the replacement cycle of smart phones. In the chart below, the change periods of different subgroups in the three countries involved in the study are analyzed.

The index is defined as follows: replacement cycle  = Average ownership time of the current device  + Estimated time to purchase replacement equipment in the United States – the average replacement cycle is 41 months

Segment groups #2 and #4   average   32-33 months

Segment groups #1 and #3   average   45 months

Segment groups #5   Expected to exceed   50 months

UK – the average change cycle is 38 months

Segment groups #2 and #4   average   30-33 months

Segment groups #1 and #3   average   38-40 months

Segment groups #5   estimate   44 months

Existing equipment holding   19 months and will be in the future   Replacement within 19 months

China – the average replacement cycle is 28 months

Segment groups #2 and #4   average   24-26 months

Segment groups #1   And #3   average   32-34 months

Segment groups #5   estimate   40 months

Existing equipment holding   14 months and will be   Replacement within 14 months

5. Competitive performance

A key reason for implementing such segmentation is to develop strategies to improve market share and performance.

First of all, in the U.S. market, the dominance of apple and Samsung is quite obvious. It is worth noting that these figures represent the market stock share rather than the current shipment share. It should also be noted that the purpose of this study is not to accurately measure a specific market share, but to measure the relative distribution of suppliers. Some preliminary observations include:

Apple to those who buy for the brand   (#1) younger people eager for status   (#2) and people who see Apple as a technology leader   (#4) more attractive. Subdivided groups #2 and #4 have shorter replacement cycles. Apple has another advantage, that is, it is regarded as a local brand in the United States.

Samsung has a strong attraction in subdivided groups #3 (those who maximize value) and #5 (those who are low-cost and practical). In addition to the lower average purchase price, the replacement cycle of these segments is longer.

From the perspective of positioning, in the U.S. market, apple is relatively regarded as a technology leader with status and advantages among young people, while Samsung is positioned as a balanced and practical choice for older consumers.

The UK shows many of the same relative positioning as the US:

Among the technology enthusiasts, Samsung seems to have a better comparative advantage than apple.

Among brand lovers #1, apple accounts for   61%。

Huawei  / Glory ranks third in the UK market competition and has a comparative advantage in #3 and #5 segments. It is positioned as a practical and balanced choice.

In the Chinese market, Huawei dominates the stock market of all segments with an average share of 50%, and shows its home advantage.

Apple continues to show comparative advantages among the “brand lovers” (#1) and “status hungry” (#2) groups.

Huawei has a comparative advantage in the group of technology enthusiasts, accounting for   56%。

Xiaomi has a relatively good positioning in the user groups #3 and #5. Among these two sub groups, Xiaomi is considered a practical and balanced choice. In the #4 group, Xiaomi is also in a good position as a technology leader.

Oppo and   Vivo is a value maximizer   (#3) shows its strength as a balanced and practical choice.

6. Strategic Implications

Through behavior  / Attitude segmentation, we can make a high observation on the smartphone market in three countries. Although the inherent characteristics of complex devices such as smart phones always need to pay constant attention to the improvement of technology, function and product performance, consumer oriented marketing will continue to be the key to success. Through marketing, we describe a process that usually focuses on creating brand awareness by transmitting marketing information to distinguish the attractiveness of the brand from the perceived needs and expectations of consumers.

It is very challenging to improve performance by improving brand assets and positioning, so as to obtain higher market share, shorter replacement cycle and higher average selling price in the increasingly popular mobile phone business. Especially for the market players of Android ecosystem, the competition is fierce, and the competitive advantage is often short-lived.

Strategy analytics often hears smartphone manufacturers mention that they use specific age groups as a way to focus. This approach is rarely effective because demographic variables produce little differentiated consumer response. Especially when studying complex behaviors such as changing planes, the research shows that age and other demographic variables are poor predictors.

Although this report focuses on how to segment the market based on consumer behavior and analyzes the different switching behaviors of each segment of the population, it only provides the first level information needed to formulate the strategy. More reading: strategy Analytics: in 2021, the total global smartphone wholesale revenue in Q1 exceeded US $100 billion. Strategy Analytics: in 2021, the global smartphone shipment in Q2 increased by 11% year-on-year, Reached 314.2 million strategy Analytics: Q2 global Tablet PC shipment market share in 2019 strategy Analytics: Q3 Android and IOS global smartphone market share reached 96% in 2014 strategy Analytics & IDC: Q3 Xiaomi mobile phone global shipment ranked third in 2014 strategy Analytics: Samsung’s smartphone market share in Q4 China in 2017 was less than 1% strategy Analytics: 2020 global smartphone market share Smartphone shipments reached 1.26 billion, down 11% year-on-year. Strategy Analytics: it is estimated that global smartphone shipments will reach 1.38 billion in 2021. Strategy Analytics: the survey shows that the popularity of color iPhone XR is not high. Strategy Analytics: consumers’ acceptance of larger smartphones has improved. Strategy Analytics: Apple’s iPhone sales in Q4 in 2018 were 65.9 million, down 11.4 million year-on-year Department of strategy Analytics: the global Smartphone Application Processor (AP) market scale in Q1 2018 was US $4.5 billion. Strategy Analytics: the global smartphone shipment share in Q1 2018 ranked the top four for iPhone. Strategy Analytics: artificial intelligence in devices drives one-third of smartphones. Strategy Analytics: the smartphone replacement cycle in Western Europe will be shortened to 33 months in 2025

If you want to get the full report, you can contact us by leaving us the comment. If you think the information here might be helpful to others, please actively share it. If you want others to see your attitude towards this report, please actively comment and discuss it. Please stay tuned to us, we will keep updating as much as possible to record future development trends. is a website that focuses on future technologies, markets and user trends. We are responsible for collecting the latest research data, authority data, industry research and analysis reports. We are committed to becoming a data and report sharing platform for professionals and decision makers. We look forward to working with you to record the development trends of today’s economy, technology, industrial chain and business model.Welcome to follow, comment and bookmark us, and hope to share the future with you, and look forward to your success with our help.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button