According to a study by Teads, 91% of the gen Z and 88% of millennials (89% overall) are likely to switch brands when purchasing a new smartphone. The study also revealed that men have a higher tendency to switch brands (90%) than women (86%).
The study suggests that the desire to have the latest device hasn’t changed, with most mobile intenders having had their phones for less than six months and nearly half of them, having it for less than a year. This is despite the fact that 71% of the respondents were 'very satisfied' with their phones.
76% of the respondents agreed that a phone isn’t just a tech product, but also a part of their fashion/identity.
When it comes to buying a new smartphone this is what consumers were looking for:
1: Warranty/after sales service - 63%
2: Innovative hardware - 61%
3: Cashback - 58%
4: Innovative design - 51%
5: New releases - 50%
The Teads study further revealed that 78% of the consumers would look for brands that help the environment. 76% would pay more for eco-friendly products and 79% of the respondents wanted brands to be socially responsible.
Ioanna Stagia, VP - global client partner insights and measurement, Teads, said, “As comparing smartphones based on performance and features has become harder over the years, it’s interesting to see consumers’ decisions being shifted to areas where brands can have a greater level of distinction. As consumers become increasingly concerned about the environment, the ability for manufacturers to easily repair their devices in order to increase device life-cycle and reduce impact on the planet, is only going to become more important. It is therefore up to carriers and manufacturers to decide how they’re going to approach these decisions and communicate these updates to mobile intenders.”
James Aylott, SVP, strategic accounts, Teads, added, “January 2022 was a defining moment for the smartphone market globally as sales penetration of 5G-capable smartphones reached 51%, representing the first time it exceeded that of 4G smartphones. Our research demonstrates a clear appetite for audiences to upgrade their devices and the latest smartphones will certainly be part of the consideration, but perhaps most interestingly consumers may now be more willing than ever to consider switching to a new smartphone brand. With such a variety of factors at play in determining the next smartphone a consumer chooses, our research shows that advertising can have a substantial role to play in communicating key features and benefits to consumers.”
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