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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. For instance, in April 2020, Apple launched the iPhone SE. Compare this to Q3 2007 when only 270k iPhones were sold and the growth is phenomenal. Hyper local Targeting: Does it Fit Your Needs. 1 in 4 people in the 18-34 age demographic … With brand saturation causing many to at least look at the iPhone, there is no better form of advertising in the world today. "Furthermore, the new smartphone generation has brought new lifestyle products to the market, which are definitely interesting for Adidas Originals target group," she said. Samsung’s targets a very wide range of consumers ranging from normal day to day usage devices to industrial standard equipment. Apple users tend to prefer alternative and indie music over the classic rock, metal, and country of Android users. © 2020. Example of Target Market Analysis. Drama and comedy is the preference of the typical iOS user, while Android users tend to prefer action or horror movies. Component suppliers are ramping up their production to support the efforts of smartphone makers. Most iOS users are in some sort of professional or managerial role, while Android users tend to be more likely to have a tech job. According to Forbes (2013), it is the 20th biggest company in the world in term of market value. Only 8% of households that are 65+ and make less than $30k per year have decided to invest into a smartphone. On the other hand, 77% of households in the 18-29 age demographic who make less than $30k will own a smartphone. As a second example, you could … Asia leads the smartphone market both in terms of production and sales as well. 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. But nowadays the … 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. Optimize your marketing strategies. Younger people tend to have less income, which means they typically prefer Android because it is a more affordable platform. 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. Interestingly enough, the 18-24 group is more likely to own an Android and the 25-34 group is second in this demographic. 6.1.4 Vivo Communication Technology Co. Ltd. 6.1.6 Guangdong OPPO Mobile Telecommunications Corp., Ltd, 9. Globally, the only brands that Apple dominates are the ones that aren’t Android related. 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. 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. 10% of the total iPhones that have been sold all time were purchased in Q4 2013. 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. For instance, 91% of U.S. households own smartphones and are packed with vital features at different price points. This way, the company expects to extend 5G to cheaper smartphones. Their target demographics are only growing by 4% in a year-over-year comparison, compared to the 42% growth rates seen at the under $30k salary demographic. Only those ages 65 and older (30% of whom own smartphones) and those who do not have a high school education (41% own smartphones… The Galaxy Z Flip 5G is the first device in Samsung’s Galaxy line-up to feature the Qualcomm® Snapdragon™ 865 Plus 5G Mobile Platform. On the whole, different … Some of the recent developments in the market are: 1.1 Study Assumptions and Market Definition, 4.5 Industry Attractiveness - Porter's Five Force Analysis, 4.5.2 Bargaining Power of Buyers/Consumers, 5.1.4 Others (Blackberry, Sailfish, Tizen), 5.3.1 Premium segment (USD 400 and above). Marketing demographic data can supply important information about your ideal target market. 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. Many businesses use Apple products because they have a higher quality that makes them incredibly useful and reliable. On the other hand, 42% of those households will choose to own an Android phone. 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. This means the company is expanding 5G across its product line to make 5G accessible to over 2 billion smartphone users. The Samsung Galaxy On5, for instance, is a sub-$100 Android smartphone released in 2015. "Adidas Originals has always been … 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. The solitude age group is 22-55. 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 … This group is conveniently a market for the company. According to Ericsson, the number of mobile 5G subscriptions in North America will reach 325 million compared to 3 million in 2019. Every year since 2011, 10% of households in the United States choose to become smartphone owners for the first time. 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. Part 1: Demographics 1. In August 2020 - Xiaomi's launched Redmi 9 Prime. 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. 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. 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. The phone comes with a 6.53-inch touchscreen display with a resolution of 1080 pixels by 2340 pixels at a PPI of 394 pixels per inch. College students are one of the primary target demographics for Apple as they typically have more disposable income and a need for the technology. Click here. 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. 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. 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. Increased consumer spending across regions has driven the sales of Smartphone markers for years. Your stereotypical views might be wrong: Millennials might be digital natives, but it’s Gen-Xers who … 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 - 2025. They are typically in the market for a device to help them get in shape. The target … Psychographic segmentation splits up a sales market of a business based on such things as the social class, lifestyle choices, personality traits, tastes, attitudes, and the opinions of its customers. Apple has a 15.3% market share of smartphone vendors and the global market share is virtually identical at 15.6%. After all, you don’t just own a smartphone. Those who make more than $150k as a household are primary targets. Despite this fact, Applies average quarterly revenue on iPhones alone exceeds $26 billion. The older someone is, the more likely they are to own an iPhone over an Android if they choose to own a smartphone. A target audience is much more than phrases such as, “university students” or “North America”. 82.2% of the people in … 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. 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. We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination. If they can reach out to tech groups and create cost-effective products, even if it is in a yet-to-be created off-brand, then Apple will dominate well into the future as they are today in the US market. For households that make $149k or less, just 16% of African American households will choose to invest into an iPhone. Apple took 65% of the demographic of households who make $100k per year or more in 2013. Spend Your Marketing … 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 … 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. 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. More than half of most demographic groups have a smartphone. Demographic segmentation is extremely important to all marketing departments since the data is easily available and does drastically affect buying patterns. The fastest growing purchasing demographic in smartphones today is the under $30k salary group and 90% of them are seeking to purchase a smartphone. 500 million of these devices have been iPhones. If 85% of your clients range from 20-35 years old, this is the segment you’re going to target. of people say smartphones help them feel more confident and prepared. However, 5G handsets and foldable phones are likely to provide them with new opportunities. But with different products, the age dimension varies. 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. We know it’s exciting to own the latest smartphones on the market, and Target adds to the excitement with amazing online deals and discounts. E-commerce portals like Amazon among others attract end-users with special discounts on smartphones and created an online buying culture. You own an iPhone! For example, a car business might identify customers who are interested in keeping the … 1, They target youngsters, middle-aged as well as old age … Market segmentation is one of the oldest marketing trick in the books. Th… 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. Samsung’s target audience are people from age 15 to 45 who follow the latest technology trends. Samsung Market Demographics. 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. 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. The launch added a new iPhone model into Apple’s product mix just as lockdown restrictions had reached important markets, such as the USA. It is only in the United States where this trend has been reversed. Only 3 out of the Top 40 downloads for the iOS are utility apps, whereas 9 of the Top 40 Android apps are utilities. Your target audience needs to be a specified group of people that share certain demographics and interests. There's so much about Samsung's soon-to-be-released foldable phone that's just so, well, far-out and wildly different from everything else on the market today. 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. Android users are fatalistic, sad, and looking for some sort of escape and this is something that Apple could tap into with the right plan. Maybe a better question to ask would be who isn’t a target demographic for the Apple iPhone. 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. 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. For instance, at the IFA electronics show in Berlin, Qualcomm reported that its partners are developing over 150 designs using its 5G processors. Smartphone is becoming an important part of retail sales, as they are an ever-increasing part of consumers’ lives. To understand key trends, Download Sample Report. Android users might have less education overall and lower incomes, but they are also more pragmatic and tech-savvy. Samsung mobiles target a broad range of customers from different age groups, different social status, and different lifestyles. This explorative … ", 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. 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. People aged 25-34 are the most likely to own an iPhone, followed by the 18-24 age group. 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 … The trend isn’t just about device generations. Here are some of the best reasons why demographics matter. In 2013, 33% of Apple’s sales went to households that make at least $100k per year. 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. Parents are another target demographic because the iPhone can be used as an educational tool thanks to apps that teach phonics, reading, and math. In July 2020 - Samsung Electronics introduced the Galaxy Z Flip 5G. 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 … This is considering the increasing share of e-commerce and changing consumer attitude towards online purchase. So why wait? The real question is this: who does Apple target as their primary customer for the iPhone? Report scope can be customized per your requirements. Apple products make it easier in many ways to create these items and that will always give them a specific market share. Smartphones used for industrial purposes or otherwise known as rugged phones are not considered in the scope. In the Q1 2014, Apple sold over 50 million iPhones for the first time. 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. The smartphones market is a rather competitive market dominated by established players such as Samsung, Huawei, Apple, Xiaomi, among others. That’s ultimately the goal that Apple has in marketing their smartphone. There is certainly a rich vs. poor feeling to the target audience of Apple. 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. Grab that must-have cell phone along with the … The overall goal of Apple, however, seems to be to transform into a luxury goods brand, especially with their hiring of Burberry’s CEO to run their retail business division. Smartphones Market - Growth, Trends, and Forecasts (2020 - 2025). Use your answers to the questions above to help you identify these demographics. MARKET OPPORTUNITIES AND FUTURE TRENDS. 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. 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. Otherwise, your marketing strategy is basically just a stab in the dark. However, due to the outbreak of COVID-19, smartphone shipments saw a declining stage as countries are still dealing with the pandemic. 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. 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. Last month, smartphones passed the number of feature phones on the market, with the worldwide smartphone market growth at 42.5 percent year over year in Q1 2012. 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