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Strategy Analytics: Germany: 5G Adoption Intention Positive but 1 in 3 Among 18-34 Age Group at Risk of Churn

 Consumers show strong Device Brand Loyalty but seek better service value   

BOSTON–(BUSINESS WIRE)–Strategy Analytics German Smartphone owners are optimistic of quick return to normalcy after COVID-19 spelling good news for operators like Telekom, Vodafone and O2 as well as Apple, Samsung and Huawei which that control 80% of sales.


Strategy Analytics today released two reports on the German mobile market analyzing consumer survey research. First, the Service Provider Strategies (SPS) service report, “Germany: COVID-19 Impact on Mobile Churn and 5G Adoption” finds that 20% of customers may consider switching mobile operator to benefit from lower priced service plans due to the COVID-19 impact.

Susan Welsh de Grimaldo, a Director at Strategy Analytics comments, “The COVID-19 pandemic has posed challenges for mobile operators right as they are aiming to grow 5G subscriptions. On the positive side, 26% of Germans are likely to adopt 5G as planned or sooner than planned despite COVID-19. On the negative side, like other countries, German consumers in the 18-24 and 25-34 age groups are least committed to their current operator, with over a third of the Gen Z and Millennials likely to switch operator to get lower prices. Risk of churn is especially high among subscribers that are most likely to upgrade to 5G: nearly half of likely churners are actively planning 5G upgrade, whereas nearly three quarters of more loyal subscribers have no current intentions to move to 5G.”

A second report from the Smartphone Country Share program “Germany: Smartphone Purchase Delays due to COVID-19” tracks changing consumer brand preferences and purchase intentions.

David Kerr SVP Wireless and Broadband noted: “In Germany, 37% will buy a new smartphone as planned or sooner than planned despite the impact of COVID-19. However, it is concerning that almost 25% of Apple and Huawei and 15% of Samsung owners expect to pay less for their next smartphone. While Samsung and Apple enjoy 80%+ loyalty, the uncertainty over Huawei creates a window of opportunity for emerging vendors especially among the 55+ group where about one third has not decided on their next smartphone vendor.”

Source: Strategy Analytics, Inc.

#SA_ServiceProviders

About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

For more information about Strategy Analytics

Service Provider Strategies: Click Here
Smartphone Country Share: Click Here

Contacts

European: Phil Kendall, pkendall@strategyanalytics.com

US: Susan Welsh de Grimaldo, swelshdegrimaldo@strategyanalytics.com

US: David Kerr, dkerr@strategyanalytics.com

Staff

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