As the price of a new generation of smartphones gets higher, the number of customers willing to spend a lot of money on such devices is falling, according to a study by NPD Group in the United States. Less than 10 percent of consumers are willing to spend more than $1,000 on smartphones, a finding that will attract particular attention ahead of next year’s 5G iPhone launch.
Research shows that consumers in New York and Los Angeles are most likely to buy devices that cost more than $1,000, but other than that, potential buyers are looking for cheaper ones. Brad Akyuz, executive director of industry analysts at NPD Connected Intelligence, said: “Consumers are using the same smartphone for longer, which is a challenge for the smartphone market as manufacturers and operators expect 5G to help revive the upgrade cycle. But prices can pose another obstacle. “
The data also shows the huge difference between what to buy and actually buy ingress with a new smartphone. Not so long ago, a new generation of iPhones were willing to buy at record levels, but surveys show that only a few of them can afford it. Consumers’ overall awareness and willingness to buy are high, but only a small percentage of consumers can afford devices that cost more than $1,000. This provides operators and manufacturers with the opportunity to focus on a diversified 5G portfolio by introducing more affordable midrange 5G models to enjoy faster adoption rates.
2020 will be 5G years, as most smartphone makers will launch 5G smartphones. All iPhones released next year are likely to support 5G, according to people familiar with Apple’s plans.