For OEMs like Realme, Vivo, and Xiaomi, which focus on this market, the pandemic and governmental issues contributed to a problematic Q2/2020. Google/Heart+Mind Strategies, U.S., “Getting Things Done on Mobile,” n=1,847, A18+ smartphone … The iOS share of global smartphone shipments is above 35%, which means Apple is shipping more product globally then they are typically able to sell. of people say smartphones help them feel more confident and prepared. Apple, in fact, doesn’t actually start taking the lead in a salary demographic until a household reaches a $60k income level. Apple took 65% of the demographic of households who make $100k per year or more in 2013. In particular, market … The real question is this: who does Apple target as their primary customer for the iPhone? Otherwise, your marketing strategy is basically just a stab in the dark. That’s why changing the focus of the iPhone in some key areas, such as productivity, could create a tremendous advantage that could make sales skyrocket. Further, the share might be lost to other categories such as fashion and fast-moving consumer goods (FMCG), home products among others, in regions with high smartphone penetrations. Use Demographics to Understand Your Target Market (All Business) Know Your Target Market (Entrepreneur) Related Posts: Leveraging Trends. The smartphone market was valued at USD 714.96 billion in 2019 and is expected to reach USD 1351.8 billion by 2025, at a CAGR of 11.2% over the forecast period 2020 … We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination. The fastest growing purchasing demographic in smartphones today is the under $30k salary group and 90% of them are seeking to purchase a smartphone. Households that own a cell phone have a 1 in 4 chance of owning an iPhone, which is up from 1 in 10 households in 2011. The older someone is, the more likely they are to own an iPhone over an Android if they choose to own a smartphone. The trend isn’t just about device generations. However, tensions between the Indian and Chinese governments have impacted India's smartphone market, even though many Chinese OEMs have invested significantly over the last 18 months to increase their production and customer service operations in the country. Psychographic market segmentation examples include the promotion of products such as cars as these often reflect a customers lifestyle, and leisure activities. This explorative … Smartphone Marketing: Target Market Essay The past few years have seen an unprecedented rise in the usage and manufacture of Smartphone technology around the world. This is considering the increasing share of e-commerce and changing consumer attitude towards online purchase. As Apple transforms into a luxury brand, it will either do one of two things: shift the demographics into even wealthier areas where it becomes an exclusive brand OR build up desire within the lower income brands because it provides someone making less than $30k a way to be equal with someone who makes $150k. After all, you don’t just own a smartphone. It can save you money, increase profits, and can make or break a company. For example, a car business might identify customers who are interested in keeping the … 1 in 4 people in the 18-34 age demographic … The smartphones market is a rather competitive market dominated by established players such as Samsung, Huawei, Apple, Xiaomi, among others. Whatever the case may be on an individual level, there are two key demographics that will always be part of the Apple community: graphic designers and music professionals. However, 5G handsets and foldable phones are likely to provide them with new opportunities. That’s ultimately the goal that Apple has in marketing their smartphone. It is pretty clear that Apple is targeting the wealthier demographics in the United States and then trying to market their older products to cheaper price points around the world, but this might end up being a mistake. 1, They target youngsters, middle-aged as well as old age … Samsung Electronics is the largest affiliate of Samsung Group- a Korean brand. To understand key trends, Download Sample Report. According to Forbes (2013), it is the 20th biggest company in the world in term of market value. Apple has a 15.3% market share of smartphone vendors and the global market share is virtually identical at 15.6%. This way, the company expects to extend 5G to cheaper smartphones. Statistical Atlas: The Demographic Statistical Atlas of the United States 82.2% of the people in … Most of these players keep launching new models with small technology changes such as battery power, camera configuration and/processor. The online sale of smartphones has been further led by the Holiday shopping culture across regions. Apple needs to figure out a way to market new products to the lower income levels in order to reduce their growing revenue gaps that are creeping into their budget. 500 million of these devices have been iPhones. Nearly 700 million iOS devices have been sold since 2007, accounting for more than half of all people who have access to the internet at any given time. Example of Target Market Analysis. Samsung mobiles target a broad range of customers from different age groups, different social status, and different lifestyles. Spend Your Marketing … Parents are another target demographic because the iPhone can be used as an educational tool thanks to apps that teach phonics, reading, and math. On the whole, different … Could this be accomplished by lowering the overall profit margin or supplementing the purchasing price in effective ways, like cell carriers are doing right now for new customers? Apple actually has a greater share of the tablet market with their iPad, at 74% of total US tablet sales, but their average revenues per quarter from this product are just 25% of the iPhone. Smartphones, with strong hardware capabilities, extensive mobile operating systems, facilitating wider software applications, internet, and multimedia functionality (music, videos, and gaming), alongside core phone functions such as voice calls and text messaging, are considered in the scope. Apple users tend to like living larger than life and pursue their dreams of career and happiness. The Smartphones Market is segmented by Operating System (Android, iOS, Windows), Distribution Channel (OEM, Retailer, e-Commerce), Price Range (Premium Phones (USD 400 and above), Mid-range Phones, Budged Phones), and Geography. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 40 Enticing iPhone Target Market Demographics, 20 Cell Phone Repair Industry Statistics and Trends, Apple's Mission Statement and Vision Statement Explained, 23 Headphone Industry Statistics and Trends, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. So why wait? More than half of most demographic groups have a smartphone. Compare this to Q3 2007 when only 270k iPhones were sold and the growth is phenomenal. Only 3 out of the Top 40 downloads for the iOS are utility apps, whereas 9 of the Top 40 Android apps are utilities. China has the highest number of smartphone users – more than 782 million. Th… Good products at lower price points could drive this, but when everyone is purchasing an iPhone 6 and you’re stuck trying to get an iPhone 4, there’s actually a negative societal stigma associated with it. For instance, 91% of U.S. households own smartphones and are packed with vital features at different price points. The primary vendor Huawei Technologies Co., Ltd, shipped 55.8 million units in Q2/2020 and surpassed Samsung, which shipped 54.3 million units in Q2/2020. With nearly 10 million iPhone 6 and 6+ models sold in the first week of their release, Apple is expecting good things with the latest generation of their phone. And, of course, age is one of the most significant factors to consider. But with different products, the age dimension varies. A target audience is much more than phrases such as, “university students” or “North America”. Home » Statistics » 40 Enticing iPhone Target Market Demographics. © 2020. In the Q1 2014, Apple sold over 50 million iPhones for the first time. Smartphones Market - Growth, Trends, and Forecasts (2020 - 2025). The fastest growing purchasing demographic in smartphones today is the under $30k salary group and 90% of them are seeking to purchase a smartphone. Every year since 2011, 10% of households in the United States choose to become smartphone owners for the first time. Samsung’s targets a very wide range of consumers ranging from normal day to day usage devices to industrial standard equipment. The usual target age group of customers range from the 20s to 50s or even older, as long as the person has the ability to purchase and use the products that Samsung has to offer in the market. With its ability to listen to playlists, access social networks, and other socialization apps and features that are readily available, even the good camera in the iPhone makes it a tempting purchase. There are 4 type of Market segmentation which are most commonly used. As technology increases and more tech jobs become available, unless something changes from where it is today, Apple might just find itself losing their market share in the near future. Women are more likely to own an iPhone than men. 35% of households that own a cell phone have one that is not considered a smartphone and another 9% of households don’t own a cell phone at all, providing a unique iPhone target demographic for Apple. The region houses a significant number of smartphone makers such as Huawei Technologies Co., Ltd. China has been the go-to-market for any technology company. ", 18 Exceptional Business Holiday Greeting Ideas, 13 Commitment Ceremony Invitation Wording Ideas, 14 Core Values of Amazon: Its Mission and Vision Statement, Is AliExpress Legit and Safe: 15 Tips for Buyers, How Does Zoom Make Money: Business Model Explained, A Look at Southwest Airlines Mission Statement: 10 Key Takeaways, Apple’s Mission Statement and Vision Statement Explained, How Does WhatsApp Make Money: Business Model & Revenue Explained, How Does Discord Make Money: Explanation of Business Model, Is Mercari Legit and Safe: 15 Tips for Buyers and Sellers, NEO PI-R Explained: Neuroticism vs Extraversion vs Openness vs Agreeableness vs Conscientiousness, 100 Powerful Gratitude Affirmations to Fill You with Joy. In 2013, 33% of Apple’s sales went to households that make at least $100k per year. The only country where Apple truly dominates the market is in the US. Drama and comedy is the preference of the typical iOS user, while Android users tend to prefer action or horror movies. The Trends of Apple’s Target Market Demographics. Teenagers to early adults (age 14 ‘ 25) ‘ This age group of Samsung product consumers is usually Samsung’s smartphone target customers as they are mostly technology savvy. It is only in the United States where this trend has been reversed. However, in regions such as India, where the smartphone sales do not seem to slowdown, the smartphone companies including Xiaomi, Samsung, Vivo & Oppo are aggressively expanding their offline stores into the Indian smartphone market to leverage the market opportunity. The launch added a new iPhone model into Apple’s product mix just as lockdown restrictions had reached important markets, such as the USA. Demographic information is key to the success of your business. Consequently, the manufacturers of Smartphone have faced the challenge of continuously fulfilling the dynamic needs of their target customers. According to a report, there is a 15.7% decline year-on-year in unit shipments from 331.8 million in Q2/2019 to 279.7 million in Q2/2020. MARKET OPPORTUNITIES AND FUTURE TRENDS. "Adidas Originals has always been … They are typically in the market for a device to help them get in shape. Why Knowing Your Target Market Is Important. The most disturbing part of this set of demographic statistics is the fact that people in tech jobs prefer an Android platform instead of the iPhone. 10% of the total iPhones that have been sold all time were purchased in Q4 2013. There are a wide range of electronic devices which are provided by Samsung such as refrigerators, air conditioners, cameras, tablets, phones, especially TVs and smart … Students at any level, in fact, are iPhone target demographics because the use of an Apple product is a bit of a status symbol. Many businesses use Apple products because they have a higher quality that makes them incredibly useful and reliable. Maybe a better question to ask would be who isn’t a target demographic for the Apple iPhone. Why does demographic data matter? Asia leads the smartphone market both in terms of production and sales as well. Here are some of the best reasons why demographics matter. Men outnumber women on a 2:1 basis when it comes to purchasing Apple products. For instance, at the IFA electronics show in Berlin, Qualcomm reported that its partners are developing over 150 designs using its 5G processors. You own an iPhone! Apple might choose to keep things as status quo, however, because they currently maintain over 50% of smartphone usage in the US and Canada, which is above their actual market share for the iPhone. Those who make more than $150k as a household are primary targets. Increased consumer spending across regions has driven the sales of Smartphone markers for years. All Rights Reserved to Mordor Intelligence. Despite this, however, Apple does have a wide influence in every demographic and virtually anyone who wants a smartphone will consider an iPhone at some point in time while shopping. When you start digging into the personalities that are in each demographic, you begin to see some clear definitions toward who prefers Apple and who does not. Click here. The target … In July 2020 - Samsung Electronics introduced the Galaxy Z Flip 5G. Although they do not dominate the lower tiers of income demographics, Apple does consistently lead in overall brand share, which means more households have more than one iPhone at the higher income bracket. Caucasians and Hispanics are the most likely to own an iPhone, although their ownership rates with Android phones is about equal. But nowadays the … Android users might have less education overall and lower incomes, but they are also more pragmatic and tech-savvy. E-commerce portals like Amazon among others attract end-users with special discounts on smartphones and created an online buying culture. Your target audience needs to be a specified group of people that share certain demographics and interests. It targets a very specific demographic: consumers who want to pay as little as possible for a smartphone. Component suppliers are ramping up their production to support the efforts of smartphone makers. According to Ericsson, the number of mobile 5G subscriptions in North America will reach 325 million compared to 3 million in 2019. The average age of an Apple customer is 35-44. However, due to the outbreak of COVID-19, smartphone shipments saw a declining stage as countries are still dealing with the pandemic. Marketing demographic data can supply important information about your ideal target market. Because this demographic can get a comparable phone from Samsung at a 50% discount on a brand new phone, Apple is losing dramatically with their price points. Work gets finished effectively and there are more communication options available. With brand saturation causing many to at least look at the iPhone, there is no better form of advertising in the world today. There Were 1.8 Billion Global Digital Buyers in 2018 ()As of writing, there are 7.7 billion people in the World.. That means 21.55 percent of the World’s population … Samsung’s target audience are people from age 15 to 45 who follow the latest technology trends. Apple products make it easier in many ways to create these items and that will always give them a specific market share. That will help them to continue reaching out to other demographics who may not choose the iPhone as their smartphone of choice with their first impression. Target Audience: Demographics and Psychographics The target audience for this ad is men and women ranging in ages from 25 to 40 who want to be more active on a daily basis. There is certainly a rich vs. poor feeling to the target audience of Apple. Apple does have three solid shopping apps in GroupOn, Target Cartwheel, and Black Friday, but Android dominates with everyday shopping environments like eBay and Amazon. The growth of the market is, however, plateauing, considering intense penetration levels. 1 out of every 2 households at this income level has at least one iPhone. There's everything from the … The production cost of the iPhone is typically under $50 per unit, yet the average retail price of one is above $600. They’re still making billions per year, of course, which is a pretty amazing statistic in itself, but that trend is waning more dramatically every year. To change this stigma, a good low-end iPhone that is brand new could dramatically change the mobile market in the US and around the world. Market segmentation is one of the oldest marketing trick in the books. It’s almost like those who don’t have a lot of money are willing to purchase an iPhone just so it seems like they can fit in with the demographics that they want to be in. This makes it pretty clear who Apple wants to target: business professionals, those who are young and have disposable income, and households that approach the magic 1% of income earners in the United States year by year. The first thing that comes to my mind when I hear the brand name Apple is the iPhone, The revolutionary mobile phone which changed the market. According to Philip Kotler, Marketing Professor at the Kellogg School of Management at Northwestern University, the mass market has fractured into a plethora of micro-markets, each with its own profile and buying criteria. On the other hand, 77% of households in the 18-29 age demographic who make less than $30k will own a smartphone. Despite this fact, Applies average quarterly revenue on iPhones alone exceeds $26 billion. When looking at the best iOS apps, five out of the top ten downloads are games, compared to just 2 out of the top ten Android downloads. Only 8% of households that are 65+ and make less than $30k per year have decided to invest into a smartphone. Your stereotypical views might be wrong: Millennials might be digital natives, but it’s Gen-Xers who … This group is conveniently a market for the company. To understand geography trends, Download Sample Report. Because of their popularity, another demographic that is generally overlooked are mobile phone carriers, who often supplement the purchasing price of the phone with an extended contract. With over 1.2 million apps at a global annual revenue of $1.7 billion, it could be said that everyone is a target for Apple if the conditions are right. Younger people tend to have less income, which means they typically prefer Android because it is a more affordable platform. Interestingly enough, the 18-24 group is more likely to own an Android and the 25-34 group is second in this demographic. Globally, the only brands that Apple dominates are the ones that aren’t Android related. 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