By Dr Morten Boyer from GfK Australia
One effect of Australia’s growing smartphone penetration is that it has left many of us hungry for more — more data, that is. This appetite has seen sales of faster 4G handsets increase to now account for well over 50 per cent of the total smartphone market, according to GfK’s retail tracking figures from January to June 2013.
So is this merely manufacturer-led or are consumers actually prioritising 4G functionality? As always, sales only tell part of the story.
Analysis of buying behaviour from ConsumerScope revealed that 4G has indeed become important to 59 per cent of all mobile phone buyers, although it is not yet a deal-breaking benefit, with only 11 per cent listing it as a Top 3 product feature.
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However, the importance of 4G seems destined to rise, especially when you consider that an optimised experience of most new Smartphone features requires users to be online, with a fast and stable connection, and (ideally) with a generous data allowance.
This is evidenced by the fact that most mobile phone usage trends are now flat (for example: making calls, SMS, taking photos/videos and playing games), but of the few that have increased significantly, almost all require internet access: emailing (58 per cent), Wi-Fi networking (57 per cent), GPS navigation (46 per cent) and video streaming (34 per cent).
So the mobile phone industry is approaching a critical juncture, whereby 4G may evolve from being a “very nice to have” to a “must have”.
Furthermore, this emerging group of 4G users is a segment worth prioritising, since they have some very attractive attributes: tech-savvy and early adopter attitudes, greater interactivity with the advanced features of their handsets, significantly lower price sensitivity for both handset and network spend and biggest monthly expenditure (70 per cent are on $59 caps or higher).
Dr Morten Boyer is the general manager of Media and Market Insights at GfK Retail and Technology ANZ.