While flagship smartphones with price tags of more than $1,000 received plenty of attention when they were first introduced, the reality is that the phones are out of the price range of most consumers – with less than 10% spending this amount, according to new smartphone price research from The NPD Group’s new Mobile Phone Tracking service.

With consumers already balking at the $1,000 price, it brings into question how many will pay more than $1,200 – the expected price for 5G-capable phones.

Unsurprisingly, consumers in major metropolitan areas dominate the demand for high-end smartphones. According to the research, those in the top 10 DMAs account for more than one-third (39%) of $1,000+ active smartphones, with consumers in New York City and Los Angeles most likely to purchase smartphones at the $1,000 price point.

Advertisement

Consumers in the top 10 DMAs make up nearly one third (29%) of the U.S. population, consumers in these areas over index in $1,000+ devices by 25% compared to the rest of the country.

5G awareness and purchase potential is strong, based on NPD’s Mobile Connectivity Report, with 73% of consumers aware of the advent of 5G, up from 44% at the end of the first half of 2018.

“Consumers are holding onto their smartphones for longer periods, which has presented a challenge for the smartphone market,” said Brad Akyuz, executive director, industry analyst, NPD Connected Intelligence, in a prepared statement. “Manufacturers and carriers are expecting 5G to help reinvigorate the upgrade cycle, but pricing could present another hurdle.”

He added: “Overall awareness and purchase intent reported by consumers is high, but only a small segment of the market can afford these $1,000+ devices. This provides an opportunity for both carriers and manufacturers to focus on diversifying their 5G portfolios by introducing more affordable mid-tier 5G models to enjoy faster adoption rates.”

Join the Conversation

Leave a Reply

Your email address will not be published.

Don’t Miss Any of Our Content

What’s happening with broadband and why is it important? Find out by subscribing to Telecompetitor’s newsletter today.

You have Successfully Subscribed!