Under 10% of Americans are purchasing $1,000 smartphones: Report
"Consumers are holding onto their smartphones for longer periods, which has presented a challenge for the smartphone market," Brad Akyuz, Executive Director, Industry Analyst, NPD Connected Intelligence, said in a statement.
A dismal under 10 per cent of American smartphone users are spending over $1,000 on their smartphones and since these users will be the target audience for 5G devices, which typically hit the market around the $1,200 price tag, this brings into question how quickly they will upgrade to 5G, says a new report.
According to market research firm NPD Group`s "Mobile Phone Tracking service" report, though the majority of consumers have not fully embraced devices at these high-end price points, those in the top 10 DMAs account for more than one-third or 39 per cent of $1,000+ active smartphones.
"Consumers are holding onto their smartphones for longer periods, which has presented a challenge for the smartphone market," Brad Akyuz, Executive Director, Industry Analyst, NPD Connected Intelligence, said in a statement.
"Manufacturers and carriers are expecting 5G to help reinvigorate the upgrade cycle, but pricing could present another hurdle," Akyuz added.
However, the good news is, 5G awareness and purchase potential is strong, according to the market research firm.
In fact, awareness has reached nearly 3 out of 4 consumers, thus, totaling 73 per cent, at the end of the first half of 2019.
Watch Zee Business live TV below:
This is up from 44 per cent at the end of the first half of 2018.
Alongside increasing awareness, 33 per cent of smartphone owners report interest in purchasing a 5G-enabled smartphone.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Fundamental picks by brokerage: These 3 largecap, 2 midcap stocks can give up to 28% return - Check targets
SBI Senior Citizen Latest FD Rates: What senior citizens can get on Rs 7 lakh, Rs 14 lakh, and Rs 21 lakh investments in Amrit Vrishti, 1-, 3-, and 5-year fixed deposits
Tamil Nadu Weather Alert: Chennai may receive heavy rains; IMD issues yellow & orange alerts in these districts
SIP+SWP: Rs 10,000 monthly SIP for 20 years, Rs 25 lakh lump sum investment, then Rs 2.15 lakh monthly income for 25 years; see expert calculations
Top 7 Mutual Funds With Highest Returns in 10 Years: Rs 10 lakh investment in No 1 scheme has turned into Rs 79,46,160 in 10 years
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
Retirement Planning: Investment Rs 20 lakh, retirement corpus goal Rs 3.40 crore; know how you can achieve it
08:57 AM IST