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Smartphone user more price conscious when choosing provider

Smartphone user more price conscious when choosing provider

Smartphone users are becoming more price conscious when choosing a mobile service provider, according to Telecompaper’s latest ‘Dutch Smartphone User’ report for Q3 2015. Price is also becoming more important when choosing a handset, the report found. 

Almost half the smartphone owners surveyed named the monthly fee/costs as a reason for choosing their mobile provider. The importance of price increased by 5 percentage points in three quarters, going from 43 percent of smartphone users in Q1 2015 to 48 percent in Q3 2015. More people also named price as an important factor in choosing a smartphone (+3 percentage points). 

In the third quarter of 2015, 84 percent of Dutch consumers owned a smartphone. Apple’s iPhones are more successful in attracting the younger age groups; Apple’s share decreases as smartphone users become older. Over a third (37%) of teenagers had an Apple smartphone in Q3 2015, compared to 19 percent of the elderly (65-80 years old). Samsung shows the opposite trend, with market shares of 36 percent among teenagers and 49 percent of the elderly. This results in an average age difference between Samsung and Apple owners of six years. This may be explained by the wider range of models offered by Samsung, while Apple offers only high-end models.

Among other phone brands, Microsoft (Nokia) still has a majority of customers using feature phones -only 38 percent have smartphones. The brand is quickly gaining smartphone users though, with the share of smartphone users in the customer base up by 15 percentage points compared to a year ago (23% in Q3 2014). However, it still has a long way to go, with a smartphone penetration gap of 46 percentage points with the overall market. As Microsoft withdraws from the feature phone market, Samsung is gaining share in this segment. In contrast, Samsung’s share of the smartphone market is down 3 three percentage points since Q4 2014, while Apple gained the same amount in the period. HTC’s share is also under pressure in the Dutch smartphone market and halved in the past year. 

This report is based on the responses of over 12,000 participants in the Telecompaper Consumer Panel during the period July – September 2015. It also includes the results from Q3 2014 to Q2 2015.

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