Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Market sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Rapid growth behind, rapid growth ahead
- Soft spots in penetration among seniors
- Subsidies, style, new features drive sales
- Eyeing the competition: Wi-Fi phones, PMPs, GPS, Cameras and Laptops
- Style and cost most important to phone selection
- Online minorities more engaged with cell phones
- Cell phone technology seen as stylish
- Advertising and promotion
- Market Size and Forecast
- New functions drive growth despite poor macroeconomic conditions
- Figure 1: Total manufacturer sales of mobile phones, at current prices,
2002-12
- Figure 2: Total manufacturer sales of mobile phones, at
inflation-adjusted prices, 2002-12
- Figure 3: Units sold by manufacturers and average selling price, 2001-08
- Competitive Context
- Overview
- Skype Wi-Fi phones
- Convergence phones
- MP3 players
- Figure 4: MP3 player ownership, 2002-07
- Digital cameras
- Laptop
- PND (Personal Navigation Devices)
- Segment Performance
- Market transitions to smartphones
- Figure 5: Sales of smartphones versus traditional phones, 2006 and 2008
- Smartphones
- Smartphones the market' s growth engine
- Figure 6: Total manufacturer sales of smart mobile phones, at current
prices, 2004-10
- Figure 7: Total manufacturer sales of smart mobile phones, at
inflation-adjusted prices, 2004-10
- Carrier subsidies the driving engine behind smartphone sales
- Figure 8: Mobile phone unit sales and average selling price, 2004-08
- Traditional Phones
- Sales of "dumb" phones on the decline
- Figure 9: Total manufacturer sales of traditional mobile phones, at
current prices, 2004-10
- Figure 10: Total manufacturer sales of traditional mobile phones, at
inflation-adjusted prices, 2004-10
- Figure 11: Unit sales and average selling price of traditional mobile
phones, 2004-08
- Market Drivers
- Overview
- Carrier subsidies keep mass interest in low-cost flip phones intact
- Figure 12: Favorite styles of phone, by age, June 2008
- Premium phones driven by desire to utilize data and entertainment features
- Figure 13: Use of and future interest in cell phone features, June 2008
- Camera and picture messaging most popular features
- Figure 14: Additional services available and used on phones, by age,
February 2007-March 2008
- Features trickle up from 12-24s into older segments
- Figure 15: Phone features used in the last 30 days, by age, February
2007-March 2008
- Males aged 15-17 tend to be the most active users of advanced features
- Figure 16: Phone features used by teens in the last 30 days, by
gender/age, February 2007-March 2008
- Service contract expiration, lost phones, style drive phone purchases
- Figure 17: Reasons for acquiring last cell phone, by age, June 2008
- Most consumers will wait until their contract ends to get a new phone
- Figure 18: Action taken when last service contract expired, by age, June
2008
- Affluent more likely to get a new phone when contract expires
- Figure 19: Expected action when current cell phone contract ends, by
household income, June 2008
- Applications
- Google' s Android to drive global application development
- Open phone carrier systems
- 3G and D2D entertainment
- iPhone a driving force of smartphones in general
- Increased use of public transportation
- Interest in selling ads could increase subsidies of smartphones
- Leading Companies
- Motorola and LG ownership up, Nokia down
- Figure 20: Trended cell phone brand ownership, June 2002-June 2007
- Brand equity from other CE segments
- Global unit shipments
- Figure 21: Number of units shipped worldwide, by leading companies, 2006
and 2007
- Figure 22: Change in global share of shipments, by volume, Q1 2007 and
Q2 2008
- Brand Qualities
- Key point
- Wide array of products, carrier distribution make branding difficult
- Figure 23: Brand of cell phone owned, by age, February 2007-March 2008
- Figure 24: Penetration of leading handset manufacturers, by gender,
race/Hispanic origin, and household income, February 2007-March 2008
- Awareness high, loyalty low
- Figure 25: Brand familiarity, June 2008
- Figure 26: Brand awareness, by age, June 2008
- It' s the phone, not the brand
- Nokia phones
- Samsung phones
- Motorola phones
- Apple phones
- BlackBerry phones
- LG phones
- Sony Ericsson phones
- Palm phones
- Sidekick phones
- Advertising and Promotion
- Key points
- Campaign themes
- Adspend
- Figure 27: iPhone, BlackBerry and LG Chocolate bar ad spending, 2006 and
2007
- Third-party and UGM video reviews to become more important
- Manufacturer and phone-specific promotional websites
- Sidekick' s Pitch to young males
- The iPhone Guided Tour
- Television ads
- Social Networking and Mapping Features
- Figure 28: Helio television ad, 2008
- Figure 29: Helio television ad, 2008
- LG uses product placement to suggest its products are from the future
- Figure 30: LG television ad, 2008
- BlackBerry--for life, not just business use
- Figure 31: BlackBerry "Life on BlackBerry" TV Ad, 2008
- Combining humor with specific applications
- Figure 32: Motorola moto 9QC TV ad, 2008
- Figure 33: Motorola RAZR2 TV ad, 2008
- Figure 34: Verizon/palm TV ad, 2008
- Chasing the music enthusiast
- Figure 35: Motorola rokr TV ad, 2008
- Figure 36: Samsung electronic juke TV ad, 2008
- Figure 37: Samsung upstage TV ad, 2008
- Figure 38: Samsung upstage TV ad, 2008
- Innovation and Innovators
- The iPhone sets the standard and the stage
- Nokia' s N-series may revitalize the brand
- Samsung/Helio Fin--a flip-style smartphone
- BlackBerry appeals to business professionals
- Sony Ericsson raises the bar for camera phones
- Samsung appeals to serious music enthusiasts
- Fashion label-branded phones build identity with technology
- miCoach
- Garmin Nuvi
- Ownership
- Key points
- Penetration increases slowly in 2007
- Figure 39: Cell phone ownership, April 2000-June 2007
- Four in 10 seniors do not have a cell phone
- Figure 40: Cell phone ownership, by age, June 2008
- Nearly half of under-$25Ks do not have a cell phone
- Figure 41: Cell phone ownership, by household income, June 2008
- Attitudes and Motivations
- Key points
- Size/shape/style and cost key decision-making criteria
- Figure 42: Factors in selecting current phone, by age, June 2008
- Higher-income respondents seek style and pay more attention to interface
- Attitudes toward memory and screen size
- Figure 43: Attitudes towards phone screen size, internet and memory, by
age, June 2008
- Memory cards important to many 18-44 year olds
- Figure 44: Attitudes towards memory cards in phones, by age, June 2008
- 18-24s have the highest affinity for their phones
- Figure 45: Affinity for cell phones, by age, June 2008
- Brand associations
- Figure 46: Brand attributes, by brand, June 2008
- 18-34s more likely to describe cell phone brands as stylish
- Figure 47: Brands associated with term "stylish," by age, June 2008
- Features and Cost
- Key points
- Contacts, calendar, picture, and video are top
- Figure 48: The phone versus other handhelds for use in internet, music,
GPS, and video, June 2008
- 18-34 year olds spend more on phones
- Figure 49: Cost of most recently acquired cell phone, by age, June 2008
- Age more relevant to spend than income
- Figure 50: Cost of most recently aqcuired cell phone, by household
income, June 2008
- Race and Hispanic Origin
- Key point
- Hispanics and blacks under-index on usage
- Figure 51: Cell phone ownership, by race/Hispanic origin, February
2007-March 2008
- Figure 52: Cell phone ownership, by Hispanic language preferences,
February 2007-March 2008
- Minorities online pay more for advanced features
- Figure 53: Cost of most recently acquired cell phone, by race/Hispanic
origin, June 2008
- Asians and blacks more likely to acquire new phone at end of contract
- Figure 54: Reasons for acquiring last cell phone, by race/Hispanic
origin, June 2008
- Minorities more likely to use advanced features and services
- Figure 55: Cell phone services used in the last 30 days, by
race/Hispanic origin, February 2007-March 2008
- Size/shape/style and prices are important considerations for all segments
- Figure 56: Factors in selecting current phone, by race/Hispanic origin,
June 2008
- Minorities more likely to report that they "love" their phone
- Figure 57: Attitudes towards cell phones, by race/Hispanic origin, June
2008
- Appendix: Trade Associations
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