BOSTON--(BUSINESS WIRE)--According to the latest research from Strategy Analytics, awareness of 5G is high with 57% of owners claiming Basic Familiarity or to be Very Familiar with 5G. The good news is that almost half of Premium buyers ($1000+) are willing to pay more. The bad news is that Smartphone Price is overwhelmingly the biggest factor for not buying 5G for many.
The report “US 5G Awareness & Smartphone Brand Preferences” is available to subscription clients here.
- 25% of African American and 23% of Hispanics Expect to buy a 5G Device in next 5 months
- 1 in 4 list 5G as an important feature but 1 in 5 Don’t Yet See a Need or will Wait till 5G Proven
- Reliable Connectivity and Guaranteed Quality are top features sought.
- Apple Leads Samsung by 36 points in Gen Z and 11 points in the Hispanic segment in terms of 5G Purchase Intent.
- LG and Motorola are most at risk given their low repeat purchase intentions in the 5G era.
David Kerr, Senior Vice President at Strategy Analytics, noted, “3 in 4 Expect 5G to Increase Smartphone Prices but an element of sticker shock is likely as 1/3 expect prices to rise less than 10%. The reality of 5G device prices in 2019 is likely to be closer to $1000. Only about 7% of buyers spend that much today.” Kerr added, “The industry has created a 5G problem where one in five think they have 5G already. Even among Apple fans, 27% believe their flagship device is already 5G despite the fact that Apple does not yet have such a device.”
Ken Hyers, Director at Strategy Analytics, added, “Privacy/Security, Exclusive Apps and WOW features importance grow with 5G familiarity while faster download/upload speeds are table stakes. Work life balance and time management are emerging trends impacting replacement behavior and may offer opportunities for differentiation once table stakes items are addressed."
Strategy Analytics consumer insights team developed and analyzed results of an online survey with 2,500 smartphone owners using a US nationally representative sampling of owners 18-64 years.
Key groups analyzed include:
- Gen Z: 18 -24 Years
- Gen Y: 25 -39 Years
- Gen X: 40 – 54 Years
- Boomers: 55 -64 Years
- Price Paid Current Smartphone
- Replacement Cycle
About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.