Consumer Lens Archives - Counterpoint

itel a Preferred Brand in Sub-INR 8K Segment in India, Says Survey

Among the top three sub-INR 8,000 (sub-$100 approximately) brands in terms of ownership, itel users recommend their brand the most when it comes to value for money, ease of use and trust in the brand.
Similarly, itel users lead when it comes to rating the current mobile phone brand as the preferred brand for their next purchase in terms of brand trust, after-sales service, durability and localized marketing communications.
More than half of the current itel mobile users had itel as their first mobile phone.
itel users are also the least dissatisfied with their current mobile phones compared to other top brands in the sub-INR 8,000 (sub-$100 approximately) segment.

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – December 19, 2022

TRANSSION Holdings’ itel has emerged as a preferred brand in the sub-INR 8,000 (sub-$100 approximately) segment in India by reporting the biggest proportion of repeat users among first-time handset buyers in the segment, according to a consumer survey conducted by Counterpoint Research recently. As many as 55% of the respondents who started their mobile ownership journey with itel, have bought the brand’s device again. itel is followed by Samsung and Lava here.

Among the top three brands in the sub-INR 8,000 segment in terms of current mobile phone ownership, itel users showed the least dissatisfaction (<1%) with their current handsets. Besides, users rated itel on top as their next preferred brand on the parameters of brand trust, pricing, after-sales services, appearance, and durability. Based on the overall experience, 76% of the current itel users would recommend the brand to others. However, in terms of current mobile phone ownership, itel captured the third spot in the sub-INR 8,000 segment.

The offline consumer study was performed across 23 cities in India, mostly covering Tier 2 and Tier 3 cities, along with Tier 1 cities, from all zones. The focus of the study was to understand past as well as current mobile ownership, including brand awareness, brand preference and brand opinion, of feature phone and entry-level smartphone users from the sub-INR 8,000 price segment.

Top 5 Factors for Consumers Choosing itel as Current Mobile Brand

Source: India Mobile Phone Consumer Study in Sub-INR 8,000 Price Segment, November 2022

Counterpoint Research Analyst Arushi Chawla said, “The sub-INR 8,000 price segment is an important category, with over 370 million users relying on feature phones and entry-level smartphones in this segment. This is also the segment where most first-time mobile phone users start their digital journey. Users from this price segment require support from mobile brands in terms of value for money, features and reliability. itel is among the top players here, with a presence in both feature phone and entry-level smartphone segments. Users have chosen itel for their trust in the brand, easy availability and affordability, and this has been reflected in the brand’s efforts in the past few years to serve the user base in the sub-INR 8,000 segment. Clearly, itel is also playing a pivotal role in driving the digital progression in India by being a preferred brand for consumers transitioning from 2G to 4G”

Top 5 Factors for Consumers would Choose itel for Next Mobile Brand

Source: India Mobile Phone Consumer Study in Sub-INR 8,000 Price Segment, November 2022

Chawla added, “Unlike other segments, the sub-INR 8,000 segment consumers mostly depend on offline sources of information, especially word of mouth, to make their handset purchase. Among users preferring itel for their next purchase, most (65%) rely on word-of-mouth recommendations from friends and family. With the least number of dissatisfied users and strong recommendations from current users, itel is the most preferred brand in terms of recommendations from friends and family. This gives itel a solid momentum in terms of growth and presence.”

Methodology

The study was conducted in India using offline face-to-face interviews with a heterogeneous group of mobile users from sub INR 8,000 (sub-$100 approximately) price segment. With a total sample size of 1,575, responses were collected using the quota sampling methodology for a better representation of the universe as per the current smartphone brand share in the market. We expect the results to have a statistical precision of +/- 4%.

This survey was commissioned to better understand the brand’s presence in the sub-INR 8,000 (sub-$100 approximately) mobile phone market of India.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Tarun Pathak

Arushi Chawla

Counterpoint Research

User Survey: Apple Will Continue to Dominate Germany TWS Market

More than 40% of the current TWS users plan for a next TWS purchase in a year or less.
71% of the TWS users again plan to opt for a TWS for their next hearable purchase.
JBL among the top three TWS brands preferred for future purchase, along with Apple and Samsung.

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – March 4, 2021

Apple will continue to dominate Germany’s TWS (True Wireless Stereo) market with 72% of the respondents in a Counterpoint Research Consumer Lens user survey preferring the brand for their next purchase, followed by Samsung and JBL. Besides, the survey, conducted in early 2021, reveals that more than 40% of the current TWS users in Germany plan for the next TWS purchase in a year or less. Based on the respondents’ price preference for their future purchase, the ASP (average selling price) will increase, with the €101-€200 price band having a stronger grip.

Commenting on the study’s overview, Research Analyst Arushi Chawla said, “With speedy digitization and expanding online content, hearable devices hold greater importance in today’s world. This has translated into new products and features in the hearables segment. TWS is one of the latest additions here, and its popularity is growing swiftly. According to Counterpoint’s TWS Tracker, Germany saw sales of 1.3 million TWS units in Q3 2020 as the country started to recover from COVID-19 restrictions. In the latest Consumer Lens study, we attempt to deep-drive into the reasons for the strengthening German TWS market by understanding the consumer persona, current choices and future preferences of TWS device users. We also try to ascertain the popularity of TWS earbud features like Active Voice Assistant and Active Noise Cancellation.”

Discussing the study findings, Chawla added, “It is interesting to note that with an overall ‘very satisfactory’ to ‘satisfactory’ experience, more than 70% of current TWS users plan for the same hearables type, i.e., TWS, for their next purchase. Besides, more than 40% of the respondents using TWS look forward to the purchase in a year or less. One of the major reasons behind this is to have a spare hearable device. This indicates growing dependence on hearables for various activities.”

Key Insights from Germany TWS Consumer Study

Source: Germany TWS Consumer Study, Counterpoint Research

Discussing brand preference, Senior Analyst Pavel Naiya said, “Apple will retain its throne in the coming times with an even stronger user base. According to the survey, key buying factors for Apple TWS users were sound quality, brand name and appearance. Furthermore, the pre-existence of a massive market share of iPhone users in Germany holds an undeniable influence on the TWS brand preference. Somewhat similar is the case with Samsung, the brand at the second spot.”

Naiya added, “As the market is maturing, and the consumer is looking to have more than one TWS device, there is scope for new brands to capture market share. With TWS reaching the affordable segment, value-for-money aspects like price and battery life are now more important, translating into opportunities for more brands in different price segments.”

The study was successful in understanding the exponentially flourishing TWS market of Germany. It throws light on how factors like COVID-19, changing user preferences and stronger approach by OEMs have contributed towards the swift expansion of the TWS market. For the full report, click here.

Methodology:

The study was conducted in Germany using an online survey panel of a heterogeneous group of TWS users. Localization of the questionnaire was done for seamless interaction with the target group, as the majority of Germany’s population is composed of non-native English speakers. A total sample of 600 respondents was collected using the quota sampling methodology for better representation of the universe as per the current TWS brand share in the market. We expect the results to have a statistical precision of +/- 4%.

Background:

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Pavel Naiya

Arushi Chawla

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our latest research and insights, or for press enquiries.

Survey: Online Smartphone Sales Sustain Growth in UK, Germany, Spain

While a cheaper deal is important, UK smartphone consumers are looking at convenience (55%) most, even after COVID-19.
Consumers in Germany and Spain will look at the pricing and offers in a more engaged manner, with most preferring full upfront payment.
For the next purchase, a big proportion in these three countries is not actively looking at reducing touchpoints during the experience.

Just as in other parts of the world, European countries have been hit hard by COVID-19 when it comes to smartphone sales. Our latest Consumer Lens surveys reveal that many consumers here have opted for reduction in budget for the next smartphone and extension of ownership period before the next purchase. In a silver lining of sorts, a higher than normal growth has been witnessed in online smartphone purchases.

In this article, we cover three big markets in Europe — United Kingdom, Germany and Spain — to understand consumer preferences for the modes of next purchase, based on the Consumer Lens surveys.

Offline vs Online

With ~35% of smartphone sales in the UK happening online, the proportion of online sales has gradually increased since Q1 2020. Interestingly, this growth was sustained even after the physical stores opened following the COVID-19 triggered lockdowns.

Outlets like Carphone Warehouse and Currys PC World stores have been subject to quite a few shutdowns and layoffs. However, the managements of these brands are looking to stay committed to the brick & mortar outlets and their employees. Their recent efforts for boosting in-store sales include:

Customers choosing to shop from home are given a ShopLive video as a personal shopping experience.
Retailers like Currys PC World will also offer free recycling of any electrical or electronics item brought in store.

Companies have also realized that consumers would rather buy smartphones from large format stores instead of smaller standalone mobile shops.

A big proportion of consumers in the UK would ideally want to experience the purchase in a more engaged manner. For example, buyers opting for upfront payments are less likely to choose online sources like Amazon.com or Buymobile.com. Our survey reveals that for more than 90% of the respondents, electronic stores and supermarkets are among the first three channel options.

Other countries prefer online modes:

In Germany, 35% of the respondents purchased their current phone online. For their next purchase, online is one of the main channels for 95% of the respondents.

In Spain, this proportion was 30% for current smartphones. For the next purchase, 76% chose online as one of the main channels.

What drives consumers now

UK: Most of the respondents will make their next smartphone purchase at an operator store.

The reason: Convenience, followed by probability of it being cheaper.

Exhibit 1: Reasons for Choosing a Purchase Source

Source: Counterpoint Consumer Lens

Interestingly, there are different dynamics at play here:

Almost 60% of these respondents have a monthly income less than £ 1600.
More than 40% of those planning to go in for an operator are self-employed individuals.
Among those opting for full upfront payment, more than 50% are either homemakers or unemployed.

Irrespective of the demographic, most UK consumers still look at the benefits of contract smartphones. Established players like Carphone Warehouse continue to underline benefits like:

Latest phone ownership without the hassle of upfront full payment.
Bundling plan charges with phone installments over the period.
Direct debit options with offers and treats.

Germany and Spain: While operators do not sway consumers in Germany and Spain as much, full upfront payment is the most preferred method. Also, consumers are most likely to choose online retailers like Amazon in these countries. Electronics stores and mass merchandisers like Media Markt, Saturn and Comtech in Germany, and Fnac, Conectrol and Walmart in Spain are also big options.

Key points:

Germany: 41% choose to pay upfront, with the salaried making up 42% of these respondents.
Spain: 53% choose to pay upfront, with the salaried making up 61% of these respondents.

For both Germany & Spain:

Consumers who choose to buy it upfront earn less than €1,900 per month.
The main motivators for going in for full upfront payment are cheaper deals and better offers.

Bottomline

Average selling prices (ASPs) will decrease as consumers are highly likely to reduce their smartphone budgets. While these budgets reduce, consumers are looking to opt for full upfront payment to reduce a deferred liability.

We also asked the consumers who purchased their current smartphone by making full upfront payment, whether they would buy it the same way next time. A good proportion of such consumers will continue to prefer a one-time payment:

Exhibit 2: Upfront Buyers and Their Next Purchase

Source: Counterpoint Consumer Lens

COVID-19 effect:

Lastly, we made sure to understand their concern levels with regard to COVID-19 and whether it would affect their behaviour on the touchpoints involved in a smartphone purchase:

Source: Counterpoint Consumer Lens

For their next purchase, a big proportion of the respondents in all three countries said they were not actively looking to reduce touchpoints during the experience.

It remains to be seen how offline and online channels lure the potential consumers as things go back to the new normal. While there are multiple routes to the end customer, brands and distribution channel stakeholders are likely to sweeten the deal further.

Podcast: Video Streaming Takes a Bigger Slice of Digital Life Amid Pandemic

The COVID-19 pandemic has caused a big shift in consumer behavior and spending patterns. As more people stay at home to work or learn remotely, the spending on smartphone apps has increased as well. According to Counterpoint Research’s latest Consumer Lens Survey, video streaming has emerged as the highest spending smartphone app category in the US.

The pandemic has forced people to limit their outdoor activities. As a result, they are spending more time on entertainment through mobile devices. Monthly average spending on video streaming in the US is around $13. Students spend the highest, followed by salaried employees. Gaming and music streaming take the second and third spots, respectively. The pandemic has also made the right pitch for podcasts.

In the latest episode of ‘The Counterpoint Podcast’, host Maurice Klaehne is joined by research director Jeff Fieldhack and senior analyst Pavel Naiya to discuss how Americans are entertaining themselves amid the lockdowns. Pavel offers insights on different apps and services consumers are spending their money on. Jeff, on the other hand, sheds light on how carriers were well prepared to offer uninterrupted internet access, even with the spike in usage. He also talks about different promotional offers that carriers have been running for streaming services.

For those interested in a detailed analysis of app spending and other smartphone consumer behavior, the report is available on our research portal for subscribed clients.

Hit the play button to listen to the podcast

Also available for listening/download on:

Survey: Samsung Top Choice for Future Smartphone Purchase in UK

Samsung is the most preferred brand for future smartphone purchases in the UK, followed by Apple and Huawei, according to the latest Consumer Lens survey. Chances of consumers shifting from Apple to Samsung are high as three-quarters of the current iPhone users count Samsung among their top three choices for a future purchase. On the other hand, Samsung users gave equal importance to the iPhone and Android alternatives. About half of the respondents are using a smartphone no more than a year old. Female respondents are holding their devices slightly longer than males while homemakers are the ones retaining their devices for the longest period among all categories.

Senior Analyst Pavel Naiya said: “Samsung took the lead with its latest SKUs and continuous promotion, whereas prospective iPhone buyers are mostly waiting for its first 5G device. Apple users give more importance to the rear camera than Samsung users. It may be a result of the Apple advertisements focusing on camera. Battery life, price and build quality are the three most influencing factors for future purchases.”

UK: Most preferred smartphone brand for future purchase

Note: Multi-response question
Source: Counterpoint Consumer Lens

An overwhelming majority (86%) of the respondents were concerned about the COVID-19 pandemic, with 37% stating that they would wait longer than usual for the next smartphone purchase. Students are the least affected by this. Three in four students see no change in the timeline for their planned purchase. The anti-China sentiment is not strong in the UK, with about half of the respondents saying it does not matter.

Research Associate Arushi Chawla said: “UK is one of the markets which were severely affected by the COVID-19 pandemic. However, the country managed to quickly control its spread with lockdowns and maintenance of social distancing. This is also reflected in consumer sentiment. Though most of the respondents are concerned about COVID-19, it will not affect their planned smartphone purchase. Two-thirds of the respondents are planning to spend as usual, whereas only 11% of them are interested in cutting their budget by 20% or more.”

Other key insights from the survey:

Since it is an operator-driven market, operator stores are the most popular choice for the location of purchase, followed by mass merchandisers and brand stores.
Operator stores are most popular among the respondents aged above 35 and least among the respondents aged below 25 or those who are unemployed. Brand stores are the most popular choice for iPhone users while the online mode is most popular for Huawei users.
About one-fourth of the respondents are interested in spending £478 and above ($600 and above) for their next smartphone purchase.
Cameras are more important for female respondents than males. They are also a distinctive feature for students to decide their next purchase.

If you are interested in a detailed analysis of smartphone consumer behaviour, it is available for the subscribers on our research portal.

Methodology:

The Consumer Lens survey was conducted among smartphone users in seven countries during May-June 2020. The consumer opinions are drawn from a heterogeneous group in terms of age, monthly income, gender and occupation. Data points abided with all the logical checks throughout the analysis section and gave a better representation of the ongoing smartphone trends and future purchase intentions.

Analyst Contacts:

Pavel Naiya

Arushi Chawla

Feel free to contact us at press(at)counterpointresearch.com for further questions regarding our latest in-depth research and insights, or for press enquiries.

More than a third of Germans to spend less on next smartphone: Survey

34% of respondents will wait longer than usual for their next smartphone purchase

42% of prospective iPhone buyers have postponed their next purchase

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – August 05, 2020

According to the latest Consumer Lens survey conducted by Counterpoint Research, people in Germany are planning to trim the budget for their next smartphone purchase. Lockdowns across the nation due to the prolonged presence of COVID-19 forced people to stay at home. While many jobs in Germany were preserved through furlough schemes, the pandemic has affected the economy and consumer confidence. As a result, 34% of survey respondents plan to delay their next smartphone purchase. More than half of these further plan to reduce the amount they intend to spend on a future smartphone purchase. More than a fifth of respondents intend to cut their budget by more than 10%. However, the majority (~70%) are planning to buy a phone costing more than €270. The extent of reduction in budget varies with age, occupation, and future brand preference:

Nearly 40% of male respondents plan to cut their budget for the next smartphone; higher than for females.
37% of salaried respondents intend to trim budgets for future smartphone purchases.
While around a quarter of respondents under the age of 25 plan to cut their budget by no more than 10%, those aged above 25 are more frugal, expecting to reduce their budget by more than 10%.
Prospective iPhone buyers are most affected among the top smartphone brands, with more than 40% looking to postpone their next purchase as well as cut their budget.

Commenting on this trend, Counterpoint Research Associate, Arushi Chawla said: “34% of the respondents are looking to postpone their planned purchase of a smartphone. Further, the impact of coronavirus has been deep enough to create uncertainty about future income. Due to this, the delay in the next purchase varies between different income groups. 43% of the non-working and 35% of salaried respondents will likely postpone their next smartphone purchase with males more likely to postpone than female respondents. We were surprised that prospective iPhone buyers are intending to postpone purchasing and/or cut the budget more than prospective buyers for other top brands. This is not the behavior we have seen in other European markets”

Brand-Wise Cut in Smartphone Budget by More Than 10% Due to COVID-19

Source: Counterpoint Consumer Lens

The study also sheds light on the portion of respondents who want to boycott Chinese-origin smartphones. Respondents under the age of 35 are more prompted to explore smartphones manufactured outside China. Also, many (36%) of the salaried respondents will be strictly looking for a smartphone other than from China.

Commenting on the issue of smartphone manufacturing location, Counterpoint Research Senior Analyst Pavel Naiya said: “Many consumers globally look at China as a starting point of the pandemic. However, most respondents from Germany are not bothered about the manufacturing origin of their smartphones. Many seem to believe that most smartphones and their components are, in any case, coming from China. Other than a few international brands, most of the leading smartphone brands can trace their origin to China. However, the coronavirus pandemic has promoted the diversification of manufacturing and supply chain mechanisms for many leading smartphone brands to reduce the dependency on one country.”

Naiya added, “Around a quarter of respondents are unaware of the origin of their smartphone and look forward to increase awareness on the matter. This brings an opportunity for many global and regional players to increase awareness among these consumers. With respondents postponing and/or cutting their budget, the dynamics might change for the German smartphone industry in the short run. However, to make a long-term impact on consumers’ perception will be an uphill task.”

If you are interested in a detailed analysis of app spending and other smartphone consumer behavior, the full report is available for subscribers on our research portal.

Methodology:

The Consumer Lens survey was conducted among smartphone users in seven countries during May and June 2020. The consumer opinions are drawn from a heterogeneous group in terms of age, monthly income, gender, and occupation. Data points were selected which abided with all the logical checks throughout the analysis section and gave a better representation of the ongoing smartphone trends and future purchase intentions.

Analyst Contacts:

Pavel Naiya

Arushi Chawla

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

UK: Six in Ten Surveyed Hearable Users Plan To Buy TWS Within a Year

One in two respondents plans on having ANC in their next TWS device.

Apple and BOSE are the most preferred brands for future TWS purchases.

New Delhi, Mumbai, Hong Kong, Seoul, San Diego, London, Buenos Aires – 24^th June 2020

Six out of ten hearable users in the UK plan to buy a True Wireless Stereo (TWS) headset within a year, according to a Counterpoint Research Consumer Lens study. This consumer research study highlights the inclination of consumers towards TWS, with one-third preferring TWS for regular use. The UK’s TWS market is set to grow at a 64% CAGR to 17 million units in 2022.

Looking at the future potential of TWS hearables, users who currently only have wireless hearables, 70% of them are interested in buying a TWS in the future. Among users who have both wired and wireless hearables, 60% of them are interested in TWS. The interest level is lowest among users who only have wired hearables, where only 44% of them are interested in a TWS purchase in the future. However, this is, at least partially, driven by users simply making use of the headphones supplied with most smartphones.

Commenting on the UK hearables market, Arushi Chawla, Research Associate at Counterpoint Research, said, “In this transitional phase towards a wireless lifestyle, hearables are part of the journey. Advancing technologies lead to smaller form factors and new designs that make hearables comfortable to wear and part of the day to day fashion. Further democratizing the technology is occurring as economies of scale are leading more and more smartphone brands to include TWS as a part of their portfolios.”

Chawla further added, “Tough competition between brands and the fast replacement cycles of hearables are acting as catalysts which will increase the penetration of TWS in the near to mid-term. According to our survey results, more than half of prospective TWS buyers are planning to spend between £50-£150 for their next hearable purchase. This is because many wireless hearable users are moving toward higher ASP TWS devices. Many first-time hearables buyers are also aiming to buy TWS hearables due to their wide availability. This will further push the sweet spot of the overall hearables market from below £50 towards £51-£100 in the next year.”

Exhibit 1: Hearable Purchase Intention by Price Band

Source: Counterpoint Research Consumer Lens Survey, May 2020

Analyzing the most sought-after features in future purchases, nearly 90% of our survey respondents expressed interest in active noise cancellation (ANC). One in every two is interested in having ANC in their next TWS purchase and more than half of them are ready to pay up to 20% extra for ANC.

Pavel Naiya, Senior Analyst at Counterpoint Research, highlights, “The interest in ANC over other features like auto volume adjustment, real-time translation, voice search, etc. is due to the multiple use cases for ANC in our daily life. It is helpful to create an uninterrupted environment when listening to music or an audiobook or a more distraction-free environment during work or study. ANC features in TWS are also praised for providing better sound quality, but concern was also expressed about the potential for ANC to drain batteries faster.”

Commenting on the OEM preference, Mr. Naiya added “Apple will continue its dominance of the UK hearable market because of its loyal smartphone user base. Bose is well-known for its wireless headphones and this popularity is translating also to TWS, helped by recent attractive offers. Sony’s high ratings in media reviews have helped it secure the third strongest brand preference – similar to Bose.”

Exhibit 2: UK: Future TWS Brand Preference

Source: Counterpoint Research Consumer Lens Survey, May 2020

Methodology:

A consumer-level survey was conducted with hearable users in the UK during May 2020. The consumer opinion belongs to a heterogeneous group in terms of age, monthly income, gender, and occupation. Data points were selected which abided all the logical checks throughout the analysis section and gave a better representation of the ongoing hearable trend and future opinion in the UK.

Contact Us:

The comprehensive and in-depth report on the UK- Six out of Ten Surveyed Hearables Users Plan for a TWS Purchase Within a Year is available for subscribing clients. Please feel free to contact us at press@counterpointresearch.com for further questions regarding our in-depth latest research, insights, or press inquiries.

Analyst Contacts:

Arushi Chawla

Pavel Naiya

Liz Lee

Majority of Potential Premium Smartphone Buyers in India Planning a Replacement in next 12 Months

Dust and water resistance are the most sought after features in premium smartphones

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

July 3rd, 2019

More than half of the respondents of Counterpoint Research’s India Premium Smartphone Consumer Survey are interested in purchasing a premium smartphone in the next 12 months. Further, data from the survey reveals that replacement cycles among the potential premium smartphone buyers (who are currently using a smartphone priced above INR 20,000 or roughly US$280) are around 25 months.

Commenting on the findings, Pavel Naiya, Senior Analyst at Counterpoint Research, said, “The Indian market has been growing at a healthy rate. There is a close competition between Samsung and OnePlus in the premium segment. Our survey reveals Samsung users replace their smartphones slightly faster than average while OnePlus users hold onto their devices for a bit longer. Almost six out of ten Samsung users are interested in replacing their smartphone within the next year. About four out of every ten users of OnePlus plan to buy a new smartphone in the next year.”

In India, while Apple struggles to gain momentum in the premium segment, Chinese brands like OPPO, Huawei, and Vivo are trying hard to break into the segment. Counterpoint conducted this study to better understand why consumers are choosing a particular brand or purchase channel, their future intention of buying a premium smartphone, and their spending patterns. For the study, we targeted upper-mid and premium segment (>INR 20,000) Android smartphone users. The survey had 800 respondents from the top cities in India.

Exhibit I: Next Purchase Intention by Current Brand

Source: Counterpoint Consumer Lens

According to the survey’s findings, almost half of the respondents are interested in spending INR 40,000 (roughly US$580) or more for their next purchase. Further, one in every five respondents is interested in spending more than INR 60,000 (roughly US$870) or more. And around 8% of these respondents indicated their interest in spending INR 80,000 (roughly US$1,150) or more.

In terms of features, a majority of the respondents indicated that dust and water resistance is something that they want in their next smartphone. Almost six out of ten respondents think it is a must have and are willing to pay for the feature. Commenting on the consumer preferences for features, Tarun Pathak, Associate Director at Counterpoint Research said, “In-display fingerprint, facial recognition, dual or more cameras, and AI capabilities came up as key features, where almost four out of every ten respondents thought that these are a ‘must have’ in their future premium smartphones. Longer battery life along with fast charging, higher memory storage, new designs, and multiple cameras are the other key features which will influence future purchase decisions. Punch hole displays and foldable displays are yet to make any significant impact on consumers minds in India.”

Exhibit II: Consumer Payment Intention by New Features

Source: Counterpoint Consumer Lens

The full report can be accessed here for our subscribed clients. Please feel free to contact us at sales(at)counterpointresearch.com for further questions regarding our latest in-depth research, insights or press enquiries.

Samsung is the Most Preferred Brand for Next Purchase in the UK

The UK is a mature smartphone market driven by operator channels. Apple and Samsung dominate the best-selling list. Competition is intensifying with the likes of Huawei and Google coming out with very capable models in the premium segment. However, the results of Counterpoint’s Consumer Lens Study suggest that the rivalry between Apple and Samsung is expected to continue in 2019 and beyond.

Our study was conducted to understand factors influencing consumers buying smartphones in the UK. The study also examines consumer preferences in terms of brands, price bands, features, and more. We find that both Apple and Samsung have similar brand loyalty. As nine out of ten users of Apple and Samsung indicated that their next device will be from the same brand. Both brands also have their own set of fans in terms of age groups. For example, salaried respondents above the age of 35 showed a preference for Samsung. On the other hand, Apple is most popular among students and respondents in the 16-24 age group. Huawei is a distant third in both categories even though the P20 and the Mate 20 series, with their vibrant product design and camera features, were able to capture some interest among the youth.

However, looking at the overall market, Samsung is the clear leader in terms of being the preferred choice brand for the next purchase. Our study reveals that the future spending intention of consumers is one of the key reasons behind Samsung’s popularity. Nearly 40% of our survey’s respondents said they want to spend between US$100-US$300 for their next smartphone. Samsung’s strong portfolio in this mid-tier price band has helped it capture the mind share of British consumers.

Top Brands Considered for Next Smartphone Purchase in the UK

Source: Counterpoint Consumer Lens

Maintaining its lead will be difficult for Samsung. Rapid democratization of new technology has helped reduce the cost of a feature-packed smartphone. Mid-tier phones now look almost as good as premium devices and are even packed with high-end features. The likes of Huawei, OPPO, Vivo, Xiaomi, and others focusing on European expansion will start to challenge Samsung soon.

Samsung will also need to buck up its game if it wants to become the leader in the ultra-premium segment (>US$800). In this segment, Apple takes the crown for the most preferred brand for future purchase. Apple’s premium brand perception still intact with its offerings. However, this has led to many old iPhone users holding onto their phones for a longer duration.

While Samsung has a healthy lead in terms of being the most preferred brand for future purchases, the Korean brand cannot rest on its laurels. Devices in the Android ecosystem are seeing high levels of innovation by brands like Huawei, OPPO, Vivo, Xiaomi, and others. The year 2019 will be known for innovation like punch-hole display, lossless zoom, foldable smartphone, and 5G devices rollout.

Getting users to switch from iOS to Android and vice-versa has had a limited scope so far in mature smartphone markets like the UK. Therefore, sales are mostly dependent on the upgrade cycle. More than half of the respondents to our survey bought their smartphones in the last one year and of these, one in three are planning to replace their device in the next one year. We believe, the UK smartphone market will be flat in 2019 and is likely to grow at a steady pace from 2020 with the increase of 5G penetration and introduction of new use cases.

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Insights Tag: Consumer Lens

itel a Preferred Brand in Sub-INR 8K Segment in India, Says Survey

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Hit the play button to listen to the podcast

Also available for listening/download on:

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