Smartphones Have Highest Near-Term Purchase Intent of Any Portable Connected Device
Published on: 16th May 2014
Smartphones have the highest near term purchase intent of any portable connected device category according to a survey by the USA's Consumer Electronics Association (CEA).
More than two-thirds (71%) of online U.S. adults say they own a smartphone, up five points from August 2013. Overall, 83 percent of online U.S. consumers plan to purchase a smartphone at some point in the future. Nearly half (42%) plan to purchase one within the next 12 months and 19 percent within the next six months, indicating the highest near-term purchase intent of any portable connected device category.
"The average smartphone is only a year old, which indicates a frequent replacement cycle for these devices," said Kevin Tillmann, senior research analyst, CEA. "There are signs that the smartphone market is beginning to reach its saturation point. However, because an overwhelming majority of current owners plan to upgrade in the future, the outlook remains bright for these devices."
Nearly all smartphone owners (96%) expect to upgrade their devices in the future. For consumers who do not currently own a smartphone, half (50 percent, down from 61 percent in August 2013) expect to purchase one at some point in the future. One in five (18 percent, down from 28 percent in August 2013) expect to purchase a smartphone within the next 12 months. These declines are additional indicators of the early signs of market saturation.
App Usage and Spending
One in four (27%) smartphone owners say they paid for at least one app in the past month to use with their device. The average smartphone owner spent $7.11, a total of nearly $303 million per month in smartphone app purchases. CEA anticipates total app expenditures among smartphone owners to total more than $3.6 billion in 2014.
A recent CEA study, The Intersection between Apps and Hardware, found that consumer demand for apps is likely to remain very strong as all app-enabled devices, such as smartphones, tablets and smart TVs, continue positive growth in 2014.
According to CEA, smartphone shipments will follow a very strong 2013, with solid growth both this year and the next. CEA predicts 152 million units will ship in 2014 (a 10 percent increase over 2013) and more than 168 million units are expected to ship in 2015 (an 11 percent increase over 2014). CEA forecasts resulting shipment revenues for smartphones to reach $41.1 billion in 2014 (up five percent from 2013).