Thursday, April 25, 2024

Devices, apps, services and infrastructure are the cash cows


February 18, 2022 – The German market for smartphones, apps, mobile telecommunications services and mobile communications infrastructure is expected to grow to EUR 36.8 billion in 2022. Compared to the previous year (36.2 billion euros), this is an increase of 1.8 percent.

by Sebastian Halm

This is the result of current calculations by the digital association Bitkom
. The spread of smartphones reached a new high in 2022. According to a representative Bitkom survey, 83 percent of people in Germany aged 16 and over use a smartphone. That corresponds to 57.4 million users.

For almost all users (96 percent), smartphones make everyday life much easier. Nine out of ten (90 percent) can no longer imagine life without a smartphone. Almost half of the users are mindful. For example, 45 percent have fixed places or times when they deliberately do not use their smartphone. And one in seven (15 percent) controls screen time.

Smartphone ecosystem stands for growth and innovation

The growth in the smartphone market is being driven by investments in the network infrastructure and rising revenues from telecommunications services. Voice and data services make up the largest share at 20.6 billion euros. The segment is expected to grow by 1.6 percent this year. Investments by network operators in mobile infrastructure are increasing even more, by 2.5 percent to 2 billion euros in 2022. Added to this are the expenses for frequencies, buildings and construction work, which are not included.

With the smartphones themselves, 10.9 billion euros are to be implemented. This is a slight decrease of 1.5 percent compared to 2021, when sales of 11.0 billion euros were achieved. Sales are also declining. In 2022, 19.7 million devices will be sold, 3.9 percent fewer smartphones than in the previous year with 20.4 million. According to Bitkom, this is at least partly due to the chip crisis and supply bottlenecks for components. On the other hand, the average price per device has increased significantly. If a smartphone still cost 539 euros on average in 2021, it will be 553 euros in 2022 – an increase of 2.6 percent. The app market is developing by far the most dynamically. Sales of mobile applications increased by 15.0 percent to 3.3 billion euros.

Sustainability is almost always an issue when buying a smartphone

In addition to quality, keeping the hardware up-to-date is also very important. Most of the devices currently in use are accordingly new. Six out of ten (60 percent) bought their smartphone within the last twelve months. A fifth (22 percent) use devices between the ages of 13 and 24 months. 8 percent use smartphones at the age of two to three years, another 8 percent have older devices.

Conserving resources and avoiding waste are also playing an increasingly important role. Sustainability is important to 96 percent of users when buying a smartphone. In addition, attention is paid to a good display, long battery life, good workmanship and the long-term supply of updates. When it comes to the display, it is particularly about robustness (96 percent) and the display quality (90 percent); size is also important for the majority (80 percent). Battery life (92 percent) and wireless charging (78 percent) are important purchase criteria. The photo and video function is also a decisive factor, because camera quality (76 percent) and the number of camera lenses (70 percent) are important for the majority when making a new purchase. In general, almost all (95 percent) pay attention to the processing quality. The long-term supply of software updates (86 percent) also has priority, as does the brand (60 percent). When asked specifically about brand loyalty, the verdict is clear: three out of four users (76 percent) say that they remain loyal to their brand when buying a new smartphone.

Increasing willingness to pay for new equipment

The willingness to spend more money on a new smartphone is increasing. On average, users want to spend 232 euros on their next device. That is 32 euros or 16 percent more than in the previous year. 14 percent are willing to invest 300 to 499 euros. Only 11 percent want to pay 500 euros and more. On the other hand, 28 percent would like to spend less than 100 euros.

The thought of handing over their smartphone to someone else is uncomfortable for many users. One in four (26 percent) would not give anyone access to their private smartphone. Even among relatives and friends, the reluctance is great. Four out of ten (38 percent) would give access to their own children, 36 percent to their spouse or partner. Three out of ten (29 percent) would grant access to friends, while only one in six (17 percent) would give their own parents access. 9 percent would entrust the smartphone to work colleagues and only 7 percent to a stranger, for example to make a phone call.

Mobile customers book more data volume

The strong growth of recent years in data throughput in mobile communications networks is continuing. The need for data volume is correspondingly large. More than half (56 percent) of users state that the monthly inclusive volume is not sufficient. In contrast, only 3 percent say that their contract contains more volume than required. Most have a contract with 1 to 3 gigabytes (23 percent) or 3 to 5 gigabytes (21 percent) included volume. One fifth (19 percent) have more than 5 gigabytes available, one eighth (12 percent) surf the mobile network without restrictions.

Consumer demands on mobile networks are increasing. High demands are made when choosing a mobile phone provider. Almost all users (98 percent) want the highest possible network coverage and the best possible mobile reception at their place of residence. Fast surfing is important to nine out of ten (91 percent). The price sensitivity is high. 93 percent want to pay as little as possible despite high demands. Seven out of ten (69 percent) look for an attractive offer that includes a smartphone. More than half (54 percent) attach importance to an attractive combination offer when choosing a network, for example with a landline or television connection. Soft selection criteria also play a role. Seven out of ten (69 percent) pay attention to the location of the network operator. Two thirds (67 percent) prefer a company headquarters in Germany. Social commitment (66 percent), customer service (65 percent), climate neutrality (60 percent) and environmental commitment (59 percent) also play a role in the choice of provider.

Hardly anyone can imagine that smartphones will disappear from everyday life in the near future. When asked about the scenario up to 2030, nine out of ten users (91 percent) expect that the importance of smartphones will continue to increase. Three quarters (77 percent) think that smartphones will take on additional functions. In contrast, only three out of ten users believe that smartphones will be replaced by data glasses (31 percent) or smartwatches (28 percent). 13 percent can imagine intelligent voice assistants replacing smartphones. And only 3 percent expect smartphones to be replaced by chips implanted in the body.

The market forecasts are based on data from the market research institute I.D.C
and calculations of Bitkom Research
. The information on smartphone and mobile phone use is based on a representative survey conducted by Bitkom Research on behalf of the Bitkom digital association. In January and February 2022, 1,002 Germans aged 16 and over were surveyed.

Rate this post

Leave a Reply

Latest News

More Articles Like This