When we wonder what the consumer profile of Americans is like when it comes to smartphones, we think most of them have high-end devices like the iPhone 11 Pro Max or the Samsung Galaxy Note 10+. However, research by the NPD Group revealed that less than 10% of US consumers spend more than $ 1,000 on a new device. That means the transition to 5G may not give the US smartphone market a big boost, as many expect.
5G technology will provide download speed about 10 times faster than the current 4G LTE, which can attract consumers who don't normally spend four digits on a new phone. People who 'haven't taken the scorpion out of their pockets' for months (or even years) to buy a 5G phone. Yet there are a large number of Americans who would never spend $ 1,000 on a new device. For them, the price of 5G smartphones will have fallen sharply before their need to buy one.
The report noted that Americans living in large cities, such as New York, are better able to spend $ 1,000 or more on a new smartphone. However, it is not certain whether this is due to the higher income people earn in these cities. The NPD also suggests that cities like New York and Los Angeles that are media centers in the country, the major handsets have more media coverage than simpler models. Many Americans like to hear about high-end release features and technologies, even though most can't afford them.
Samsung has tried to capitalize on this data by ensuring that major US carriers offer at least one of their lowest priced Galaxy A models. Samsung's goal is to offer an intermediate smartphone with a good rear camera set, long battery life at a reasonable price. For example the Samsung Galaxy A50 (which in Tupiniquins lands around $ 1,300), at Verizon you buy for $ 24x with a new line, or $ 349.99 only the handset without line. And we are talking about the version with 4 GB of RAM and 128 GB of storage. An intermediate smartphone like this one, perfectly suits a large part of the users.
We took other examples like the Motorola One Hyper, with 6.5 inch FHD + display, a 32MP selfie camera, 4GB of RAM and 128GB of storage for $ 399.99. Now if the user's priority is battery power, the Moto G7 Power, with a 'soft' 5000 mAh battery that can give up to 3 days of autonomy, comes out for $ 250, but if you add a new line from T-Mobile, the handset is free! Device with a great camera? How about a Google Pixel 3a for $ 399?
Smartphones have reached up to 5% less than previous line models
If only 10% of Americans own a $ 1,000 phone, that means 90% of Americans have a device below this value, which is why iPhone 11 is selling more than iPhone 11 Pro and iPhone 11 Pro Max. Apple surprised everyone by pricing the 64 GB model at $ 699.99, $ 50 cheaper than the launch price of last year's 64 GB iPhone XR.
It will be interesting to review this data a few years after 5G technology becomes dominant. Which happens first: Will US consumers spend more on more expensive 5G smartphones, or will manufacturers lower their profit margins to maintain sales of future 5G devices?
(tagsToTranslate) smartphone market (t) mobile market (t) consumption profile (t) samsung (t) motorola (t) samsung galaxy a50 (t) galaxy (t) a50 (t) motorola one hyper (t) motorola one (t) motorola g7 power (t) g7 power (t) apple (t) iphone (t) iphone 11 (t) iphone 11 pro (t) iphone 11 pro max