Top

US Consumers Expecting to Pay More for 5G Smartphones; Excited for Rollout of 5G

Over 80% of consumers have a very positive opinion about 5G; Faster download speeds are the expected key benefit

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

July 19th, 2019

Out of the total number of US consumers polled by Counterpoint Research’s 5G Consumer Opinion Survey, 81% find 5G ‘appealing’ or ‘very appealing’ over 4G service. Further, purchasing intent for 5G handsets is high. Over 59% of respondents were ‘very interested’ or ‘extremely interested’ for purchasing a 5G smartphone.

Commenting on the findings, Tom Kang, Research Director at Counterpoint Research, said, “This study is good news for handset OEMs and carriers who have invested heavily in 5G. Consumers have a very positive opinion about 5G despite not having a clear understanding of its capabilities. The study revealed there is tremendous interest in 5G and that over 30% of consumers are willing to buy a 5G device even if 5G is not yet available where they live.”

Another insight the Counterpoint survey revealed was that consumers do not have high initial expectations of 5G. Consumers look forward to faster download speeds and improved network experience of currently available applications.

Exhibit I: 5G Consumer Poll: What are the Key Benefits of 5G?

5G Consumer Poll: What are the Key Benefits of 5G?

Source: Counterpoint Consumer Research

Despite rather low service expectations, 95% of respondents expect to pay more for their 5G smartphone than what they paid for a 4G smartphone. A total of 75% of the respondents commented they expected to pay US$1,000 or less.

Research Director Jeff Fieldhack commented, “There appears to be a price ceiling at US$1,000 for most consumers. This is an important data point for handset OEMs. The positive news for handset OEMs is that there is very high brand loyalty when buying 5G devices. Even handset OEMs with low overall market share had brand loyalty above 82%. The loyalty is not nearly as high on the carrier side. Almost 50% of respondents were willing to switch carriers for access to 5G. The big four US carriers were smart to all launch 5G nearly simultaneously and not fall behind on the marketing war.”

Other insights include:

  • Younger respondents had a more favorable opinion of 5G, however there was no significant difference between the ages of 18 and 44. There was a dropoff in the reporting of the significance of 5G in respondants 45 years of age and above.
  • 95% of respondants expected to pay more for their 5G smartphone than what they had paid for their 4G smartphone.
  • The majority of respondents using 4G smartphones priced $800 and were willing to spend more than 20% to upgrade to a 5G smartphone.
  • Most respondents using Samsung smartphones were willing to spend 10% to 30% more on their upgrade to 5G.

Please feel free to contact us at sales@counterpointresearch.com for further questions regarding our latest in-depth research, insights or press enquiries.

Analyst Contacts:

Jeff Fieldhack

 
Tom Kang

Follow Counterpoint Research
press(at)counterpointresearch.com    

Jeff has 25+ years experience in technology research, business development, competitive intelligence, and business management. Prior to joining Counterpoint Research, Jeff held various research & product development roles at Microsoft, Nokia, Roth Capital Partners, and Gartner. Jeff is a member of many telecom industry organizations including Colorado Wireless Association, repair.org, CommNexus, and is a regular speaker at major telecom industry events. He was a 4x NCAA all-American in tennis and is a 12-time finisher of the Hawaii Ironman World Championships.

Apple Snack Pack

PREMIUM

Understanding iPhone

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.