• Strategy Analytics: US 5G: 1 in 5 Most Familiar with 5G Plan to Switch Mobile Service Provider while 1 in 4 Are Willing to Pay More for 5G Device

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Strategy Analytics: US 5G: 1 in 5 Most Familiar with 5G Plan to Switch Mobile Service Provider while 1 in 4 Are Willing to Pay More for 5G Device

Category:

September 3, 2019

Dateline:

BOSTON

1 in 5 Most Familiar with 5G Plan to Switch Service Providers. Opportunity or Challenge for #AT&T, #Verizon, #T-Mobile, #Sprint?

BOSTON--(BUSINESS WIRE)--According to the latest research from Strategy Analytics, while awareness of 5G is high, there is a potential risk for operators as premium customers who buy flagship devices are most likely to switch mobile provider when they buy a new device.

Strategy Analytics consumer insights team developed and analyzed results of an online survey with 2,500 smartphone owners using a US nationally representative sampling of owners 18-64 years.

The report “US 5G Mobile Service Provider Awareness & Perceptions” is available to subscription clients here.

Key Findings

  • More Reliable, Better Quality Connectivity Tops 5G Wish List
  • Asian Americans top willingness to pay more for 5G
  • 1 in 4 list 5G as an important feature but 1 in 5 Don’t Yet See a Need or will Wait till 5G Proven
  • Those most familiar with 5G also seek Balance and a Better Way to unplug/manage time
  • Premium Flagship Buyers $1000+ who replace annually are most at risk of churning and being targeted by mobile competitors, creating both risk and opportunity for US carriers

David Kerr, Senior Vice President at Strategy Analytics noted “AT&T’s marketing engine works well as 1 in 5 claim to be Very Familiar with 5G while 29% think they have a 5G device already! Despite some consumer confusion, interest in 5G is strong and is driven by the device replacement cycle. More reliable connectivity, supporting high quality connections even in busy locations and Guaranteed Better Quality network service are top priorities overall. Less lag time is significantly more important for Gen Z customers.”

Susan Welsh de Grimaldo, Director at Strategy Analytics, added, “5G represents an opportunity to disrupt normal churn patterns with the most valuable customers who spend most on devices and on service indicating a willingness to switch mobile operator when they buy their next smartphone. Clearly carriers need to do more work to educate users about 5G and design marketing and offers that best target needs of flagship smartphone owners in their own customer base and among competitors.”

Strategy Analytics consumer insights team developed and analyzed results of an online survey with 2,500 smartphone owners using a US nationally representative sampling of owners 18-64 years.

Key groups analyzed include:

  • Gen Z: 18 -24 Years
  • Gen Y: 25 -39 Years
  • Gen X: 40 – 54 Years
  • Boomers: 55 -64 Years
  • Gender
  • Ethnicity
  • Price Paid Current Smartphone
  • Replacement Cycle

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.

For more information about Strategy Analytics

Service Provider Team: Click here

Consumer Insights Team: Click here

Multimedia Files:

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Strategy Analytics Online Survey July 2019 with 2500 US Smartphone Owners (Business Wire).
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Contact:

Analyst Contacts:
Contact: David Kerr, +1 617 614 0720, dkerr@strategyanalytics.com

Susan Welsh de Grimaldo, +1 617 614 0724, swelshdegrimaldo@strategyanalytics.com