2010 signals end of recession for mobile market.
December 5, 2009
TNS released results of its annual Global Telecoms and Insight Study. The study was comprised of over 24,000 consumers in 35 markets. GTI 2010 is designed to offer a strategic framework that informs brand strategy, product development and channel planning throughout the mobile technology industry.
The study shows strong promise for the mobile phone market in 2010 with 53% of Americans (55% Canada) planning to buy a mobile phone in the next six months, up from just 24% (19% Canada) this time last year. Touchscreen phones are set to be the big winners, with 29% of consumers (28% Canada) looking to buy one as their next phone. Mobiles with Qwerty keyboards are also rising in popularity, with 23% (19% Canada) planning to purchase one as their next device.
According to Tom Buehrer, Senior Vice President of TNS, “Increased consumer confidence, pent-up demand and a raft of new smartphones have created conditions akin to a ‘perfect storm’ for 2010, and the industry stands to make out handsomely. Purchase intent is at unprecedented levels and has risen dramatically since last year, which presents the industry with an opportunity to drive handset sales and simultaneously build incremental revenue through content and data plans.”
Another mobile device that stands to do well in 2010 is the Netbook. Despite current penetration levels being relatively low, 19% of American consumers say they are likely to buy one in the next six months, compared to 19% for larger Notebooks and only 5% for desktop PC’s. (Canada is 20% Netbook, 22% Notebook, 5% Desktop).
But while these trends point towards an upturn in the sector, there are also new forces at work which will restrict the potential for growth unless properly dealt with. TNS’ research shows that consumers are faced with a plethora of new devices, and find it hard to distinguish one from the other. Also, 27% of Amercian consumers (Canada 29%) highlight ease of use problems as preventing them from using some of the new mobile services offered.
Buehrer mentioned: “There are potential barriers to growth. The sheer number of phones on the market means that network quality is deteriorating as operators struggle to cope with data overload. Also, competing devices such as netbooks and data access cards have the potential to take a large chunk of mobile data’s available bandwidth. If these challenges can be dealt with, the industry can look forward to what will be its most prosperous decade to date.”
To download study CLICK on link below:
http://www.tnsglobal.com/_assets/files/TNS_Market_Research_Insights_from_GTI2010.pdf>