Awareness of 5G is relatively high in the US market but significant confusion exists, according to advisory services, consulting and actionable market intelligence firm Strategy Analytics. Overcoming the confusion among flagship buyers that believe they already have 5G is an industry-created problem that needs to be addressed.
A new report from the User Experience Strategies group at the firm has assessed consumer awareness, expectations, and potential adoption of 5G and found that smartphone price was overwhelmingly the biggest factor for not buying 5G.
Surveying consumers in the US via web-survey, key report findings include:
“Outside of Apple and Samsung, the battle for 5G will largely be in the mid-tier – smartphones with a retail price of $600 and below,” advises Christopher Dodge, Associate Director, UXS and report author. “A wave of new entrants for 5G from China, as well as new Nokia devices, could be also be damaging to brands such as LG and Motorola, who are most at risk given their low repeat purchase intentions in the 5G era.”
“But one of the biggest challenges to overcome is ensuring consumers know what they already have – and how they will benefit from 5G in the future,” adds Paul Brown, Director, UXIP. “Reliable connectivity and guaranteed quality are key drivers, but consumers are not prepared to pay over the odds for this technology. OEM’s must find a way to drive adoption through a demonstration of need, and by virtue of this need, fixing consumer pain-points. Brand and WOW factors alone will only go so far.”