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The Wireless World According to CTIA, The Wireless Association, total annual industry revenues for wireless services at the end of 2016 were $

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Presentation on theme: "The Wireless World According to CTIA, The Wireless Association, total annual industry revenues for wireless services at the end of 2016 were $"— Presentation transcript:

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2 The Wireless World According to CTIA, The Wireless Association, total annual industry revenues for wireless services at the end of 2016 were $ billion, or a 1.8% decrease from 2015’s $ billion. Equipment sales increased 7.4% to $47.1 billion from $42.9 billion. US wireless subscribers increased 4.75% during 2016 from million for 2015, adding almost 18 million subscribers YOY. During 2016, although there were more wireless subscribers, revenue-per-unit decreased 7.6% to $41.50 from $44.65, following a decreasing per-unit-revenue trend.

3 Carriers Score High and Low with Consumers
During February 2017, Verizon and AT&T re-introduced unlimited data plans, which caused an immediate slowing of their networks as customers took advantage to stream more data. T-Mobile and Sprint’s speeds increased during the same period. Open Signal, which monitors the performance of global mobile operators, found that T-Mobile had the best 4G-coverage, the best 4G- download speed, 3G-download speed, overall download speed and 4G- and 3G-latency. In Consumer Reports, Verizon scored well on voice, text and Web performance, but poorly for perceived value. Customers were “fairly well-satisfied” with AT&T. T- Mobile did well on perceived value, but poorly on customer satisfaction. Sprint was the worst.

4 Smartphones, Tablets and Wearables, Oh My!
The number of smartphones sold in the US increased 14.7% during to million from million for Tablet sales increased 16.7%, from 41.0 million during 2015 to 47.9 million during comScore reported during June that Apple was the dominant smartphone manufacturer for the 3 months ending April 2017, with a 43.9% market share. Samsung’s was 28.9%, followed by LG, 9.9%; Motorola, 4.0%; and HTC, 2.2%. The average growth rate of wearable devices is almost 70% per year, and the wearables market is expected to increase to million devices worldwide by 2018.

5 Consumers Use of Mobile
According to The NPD Group, 28 million Americans own an unlocked smartphone, accounting for 12% of the market. Since new mobile phones now sell at full price, unlocked phones are more cost effective. Half of unlocked phones are bought online. Data usage during 2016 increased 42% from Of all mobile traffic, 61% is video content and it is projected to increase to 77% by Texting traffic decreased. For the first time, more than half (50.8%) of US households had only a mobile voice connection; more than two-thirds of Millennials are mobile-only. Adults spent, on average, 5 hours a day on smartphones/tablets during Q , an increase of 20%.

6 Consumers’ Mobile Buying Patterns
According to Deloitte, fewer consumers bought their mobile phone from carrier stores (-16%) and carrier Websites (-31%) during 2016, compared to 2015, preferring to buy direct from manufacturers’ stores and Websites. When asked if they buy the latest devices as soon as they enter the market, adults 25–34 were the largest group answering yes, at 44%, followed by adults 18–24 and adults 35–44, at 23% each, and adults 45–54, 4% and adults 55-64, 1%. The coveted target market of adults 25–34 was the least likely to buy their smartphone from a carrier, at 36%, compared to 53% for adults 18–24, 51%; adults 35–44; and adults older than 44, the low 60s.

7 Mobile’s Anticipated Advancements
Apple announced three new iPhone models: the 8, 8 Plus and the X (available November 2017) during September 2017, which are predicted to drive sales. The models have a faster processor, improved cameras, wireless charging, and, for the X, facial recognition. In Forbes, experts wrote that Apple will lead in augmented reality and virtual reality on mobile. Mobile payments are forecasted to increase, as well as the use of mobile as entertainment devices, connectors to other devices through IoT and digital assistants/AI. Some experts believe that mobile devices will replace or control content on televisions, allowing consumers to “cut the cord” to cable or satellite entertainment services.

8 Advertising Strategies
Since adults 18–24 are most likely to upgrade to the coolest new gadgets available, target them with a high-tech, 1st-among-your-friends approach. Emphasize the affordability of unlimited data plans, since this is the largest sore spot for customers with their current carrier. Be clear on all fees, so the customer knows upfront how much the phone and service will cost. Bundle prices into easy-to- understand and transparent packages to drive customer satisfaction.

9 New Media Strategies Reward loyal customers with a higher position on the waiting list to obtain new releases. Make it easy for existing customers to upgrade their phones and devices via SMS, integrated with your CMS that recognizes their phone numbers. Create social media content that explains how new features can be practically used. Cross-promote via blogs and campaigns.

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