A new Analyst Report sees Apple's Push into 5G a Key Driver for Growth while finding Apple's iPhone 12 mini an interesting Marketing Move
In a new analytical report published this morning about the iPhone and 5G demand, they pointed to Apple offering of 4 models in this year’s line-up being a very interesting strategy, particularly in the premium-tier price range (one tier below super-premium) with iPhone 12 mini.
Unlike previous flagships, iPhone 12 mini gives customers all of the latest specifications and 5G capability, but in a smaller form factor at lower cost, in-line with many areas of market growth.
While share growth over the last couple of years has been for larger screen sizes, Apple is tackling both ends of the spectrum with this launch, as at least a third of smartphones owned in all markets except China have a screen size less than 5.5" and over 12% buyers chose their model specifically for "how it fits in my hand/pocket." Although it's a small niche, Apple believes catering to this segment could be a win for them. Time will tell if that strategy pans out for them.
On 5G, Kantar's report states: "As more 5G-enabled devices launch, '5G capability' as a reason for choosing specific models bought, although still small relative to other drivers, has increased across all reported markets since Q4 2019, particularly in China increasing by 23% pts.
Among customers who plan to purchase a smartphone in the next 6 months, at least 45% across all markets intend to buy 5G; the highest being in China at 89% followed by the US at 69%.
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Commercially, the benefits of 5G is being marketed as delivering high speeds and uninterrupted connectivity to support activities such as gaming, streaming video on demand and video calling.
During the iPhone 12 event Verizon highlighted a new service wherein future sporting events will be streamed live on Apple's 5G iPhone 12 phones with up to 5 camera angles simultaneously. For sports fans, this is going to be a killer app that only 5G will deliver in certain key U.S. markets.
5G can offer support to improve consumer experiences in the day-to-day activities they use their smartphones for. That said, how consumers value this is an area we will understand better as the market evolves. In the latest quarter, based on how smartphone owners used their devices daily to every few days, we observed increased usage of GPS QoQ in EU5, Japan and China as countries slowly started to open up more businesses and relaxed lockdown rules.
In the last month, the proportion of consumers using their smartphone for streaming video services increased YoY (except in Spain and Japan), at least 1 in 3 are playing games and 1 in 5 have streamed music from their smartphone. for more on this, read the full Kantar report.