Awareness and Interest In 5G-Enabled Smartphones Is On The Rise, But Will It Convert To Sales?

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Millennials report the highest interest in purchasing a 5G smartphone, reports NPD Connected Intelligence

While consumer sentiment is positive, cost, form factor, and availability of 5G services will ultimately determine whether consumers will upgrade to 5G-enabled smartphones to enjoy much faster connection speeds.

According to the latest Mobile Connectivity Report from NPD Connected Intelligence, 5G awareness has reached nearly 2 out of 3 consumers, totaling 64 percent, at the end of the second half of 2018. This is up from 44 percent at the end of the first half of 2018.

Alongside increasing awareness, the report shows purchase potential is strong, as 33 percent of smartphone owners report interest in purchasing a 5G-enabled smartphone once available. Consumers on unlimited data plans, who presumably value the ability to download and stream content as needed, are more eager to purchase a 5G-enabled smartphone, at 43 percent. However, millennials report the highest potential to make the move to 5G with nearly half (49 percent) indicating interest.

“In the last several days, we’ve seen the first 5G-enabled smartphone announcements and as expected, the devices are coming with a premium price tag, due to economies of scale, and a slightly larger form factor, given the hardware needs, than what consumers have become accustom to,” said Brad Akyuz, executive director, industry analyst, NPD Connected Intelligence. “While consumer sentiment is positive, cost, form factor, and availability of 5G services will ultimately determine whether consumers will upgrade to 5G-enabled smartphones to enjoy much faster connection speeds.”

Methodology

The results of The NPD Group Connected Intelligence Mobile Connectivity Report are based on consumer panel research that reached 3,600 U.S. cellphone users, aged 18+ from diverse regions and demographical backgrounds. This survey was completed in February 2019.

About Connected Intelligence
Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com.

About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup and @npdtech.

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Megan Scott
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