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

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 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

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