A new study that came out by Strategy Analytics shows that people who own smartphones in the US are delaying their upgrade purchases for 3 or more years. Strategy Analytics even goes to say that the average Apple device has been active for 18 months while Samsung devices are active for 16.5 months.
The team did an online survey with 2,500 smartphone owners of different age ranges to gender to ethnicity to price paid for current smartphone. 1 in 3 Caucasians tend to keep their phone for 3 or more years, while Baby Boomers are delaying they smartphone upgrades for 3+ years. While both go hand in hand for different age groups and ethnicity, it’s because smartphones are increasing in prices but may or may not offer a wow factor. Even if 5G is coming out, that’s not necessarily a reason to upgrade to another smartphone.
David Kerr, Senior Vice President at Strategy Analytics noted:
Operators and device brands face significant inertia given consumer perception of diminishing innovation or marginal value add in successive generations of flagship devices. At the same time vendor pursuit of profitability has seen smartphone prices rising towards and above $1,000. Prices for 5G phones will be a key barrier despite 1 in 4 recognizing it as being important for their next device.
There have been other highlights from the research that includes Apple and Samsung are the dominant brand loyalty above 70% with a huge separation to second-tier vendors LG and Motorola with repeat purchase intentions below 50%. Apple Dominates Hispanic and Asian Markets with market share above 50%. Samsung leads in market share among Gen X but trails Apple by almost 40 points among Gen Z in terms of purchase intent.
What are your reader’s thoughts about this new research study that Strategy Analytics came out with about replacing their current smartphone?