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Latest iPhone Releases Drive Smartphone Demand to Three-Year High

Posted on 13. Dec, 2017 by in android, Cloud, Developement, Gaming, internet, iPhone, mobile, Programming, smartphones, Uncategorized

Consumer Smartphones: 90 Day Outlook
Latest iPhone Releases Drive Smartphone Demand to Three-Year High

Overview: 451 Research’s September consumer smartphone survey, conducted right after the Apple iPhone 8, 8 Plus and X announcements, shows overall purchasing plans have increased to a three-year high, with Apple the key beneficiary.

The survey of 3,840 primarily North American consumers from 451 Research’s Leading Indicator panel focused on smartphone buying trends, including customer satisfaction and OS preferences.

Jump in Planned Smartphone Buying

This latest survey shows an upswing in overall consumer smartphone purchasing, with 18.6% of respondents saying they’re buying a smartphone over the next 90 days – 7.3 points higher than June. This is the highest reading in three years.

Next 90 Days: Smartphone Manufacturer Demand

Apple. Buying plans for individual smartphone manufacturers point to Apple driving the bulk of the industry’s growth for the next 90 days. More than two-thirds (69%) of planned smartphone buyers say they will get an iPhone – a 17 point jump from June and the best September planned buying level since the release of the iPhone 6/6 Plus in 2014.

For the first time, Apple simultaneously announced three new iPhones to celebrate the tenth anniversary of the iPhone. Two became available in September and another will be released later in the fall. Not surprisingly, these newest models are garnering the greatest demand among iPhone buyers. Interest in the premium iPhone X (43%) is highest, followed by iPhone 8 (16%) and 8 Plus (14%).

Samsung. In a trend seen over the past five years, the upswing in demand for Apple over the next 90 days is primarily impacting its number one competitor Samsung. A total of 13% of planned buyers say they’ll purchase a Samsung smartphone – down 6 points from previously.

Nonetheless, the results for Samsung demand are nearly identical to the past five September surveys.

The Galaxy S8 (28%) is most popular among planned buyers, closely followed by the newly released Note 8 (27%).

Other Manufacturers. Demand for Motorola is showing a 1 point uptick with 3% saying they’ll buy a Motorola phone. The survey shows declines for Google (2%; down 1 point), BlackBerry (1%; down 2 points) and LG (1%; down 1 point).

Customer Satisfaction

Apple leads in customer satisfaction as well, with 60% of iPhone owners saying they’re Very Satisfiedwith their smartphone. Nearly half (49%) of Samsung owners say they’re Very Satisfied, while approximately two in five report they are Very Satisfied with Motorola (43%) and LG (38%).

In terms of brand consistency among smartphone buyers, 95% of current iPhone owners who plan on buying a new smartphone in the next 90 days say it will be another iPhone – 5 points higher than previously and matching the reading of a year ago.

Samsung is seeing a slight downtick in repeat customers with 53% of current Samsung owners who plan on purchasing saying they’ll get another Samsung smartphone – down 1 point. That said, these results are better than a year ago.

Mobile Operating Systems: iOS vs. Android

Apple’s iOS leads among planned smartphone buyers, with 68% saying they prefer iOS – a 19 point jump.  A total of 25% say they prefer Android – down 10 points.

This is not surprising given buying intentions for iPhones have increased this quarter. Motorola is the only OEM producing Android-based smartphones to show an increase in purchase intentions in the current survey, which is not nearly enough to impact the seasonal drop Android experiences in September.

OS Customer Satisfaction. Looking at OS customer satisfaction, Apple maintains the lead, with 60% of iOS users saying they’re Very Satisfied, compared to 46% for Android.

Other Smartphone Trends

Demand for 5 to 5.9 inch screens has increased for the sixth consecutive survey, with 62% saying they’re most interested in that size – up 3 points from June. Another 20% say they would prefer a 6 inch screen or larger – but that’s down 4 points.

Security Measures. As these surveys have shown, security concerns in relation to technology are an ever-present issue for consumers. Focusing on smartphones purchased within the past year, respondents were asked what measures they take to enhance the security of their devices.

Use a password to unlock device (58%) and update mobile operating system when new updates become available (57%) come out on top.

Those using iOS are more likely to take advantage of the security features available on their devices vs. Android. That said, the security features available on Android smartphones vary depending on the model owned.

Which of the following measures do you take to enhance the security of your smartphone? (Check All That Apply)

Bottom Line

This latest consumer smartphone survey shows a jump in overall purchasing plans – with buying intentions reaching the highest level in three years.

This year Apple announced three new devices – iPhone 8, 8 Plus and X – which are generating the bulk of the next 90 day momentum. Demand for Apple is at the highest September planned buying level since the release of the iPhone 6/6 Plus in 2014. Among the three new devices, the iPhone X is the most in-demand among next 90 day buyers.

Apple’s success is coming at the expense of Samsung, a trend typically seen in September surveys. While demand for Samsung has dropped, it nonetheless remains at the same level seen the past five Septembers.

The Galaxy S8 is the most popular model among Samsung buyers, closely followed by the newly released Note 8.

In other smartphone trends, demand for large screen devices remains strong. Apple’s iOS has increased its lead over Android in preferred OS and remains first in customer satisfaction as well.

The iPhone X will be available for pre-order on October 27 and will begin shipping on November 3, so we will be tracking the impact of this in our next smartphone survey in December.

Summary of Key Findings

Jump in Overall Smartphone Demand

18.6% of respondents plan on buying a smartphone in next 90 days – 7.3-pts higher than June
Highest reading in 3 years
Three New Apple iPhones Driving Momentum

Apple (69%) leads in planned buying – a 17-pt jump
Demand for premium iPhone X (43%) is higher than iPhone 8 (16%) and 8 Plus (14%)
Best Sep planned buying level since 6/6 Plus in 2014
Samsung Takes Typical September Hit
13% of planned buyers say they will get a Samsung smartphone, which is down 6-pts from June but similar to demand trend of the past 5 September surveys
Customer Satisfaction

Smartphone Ratings
Apple (60% Very Satisfied)
Samsung (49%)
Motorola (43%)
LG (38%)
Brand Consistency
95% of current iPhone owners buying a new phone in next 90 days say it’ll be another iPhone
53% of Samsung owners who plan on buying say they’ll get another Samsung
Mobile OS Market

Preferences – Next 90 Days
Apple iOS (68%)
Android OS (25%)
OS Very Satisfied Ratings
Apple iOS (60%)
Android OS (46%)
Security Measures Taken by Smartphone Owners

58% Use a password to unlock device
57% Update mobile operating system when new updates become available
46% Use fingerprint recognition to unlock device
Preferred Screen Size
62% of planned buyers say they’re most interested in a 5-5.9 inch screen – up 3-pts
20% prefer a 6 inch screen or larger – down 4-pts
Little Demand for Other Manufacturers
Motorola (3%; up 1-pt)
Google (2%; down 1-pt)
BlackBerry (1%; down 2-pts)
LG (1%; down 1-pt)

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