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. A sample target market profile focusing on demographics might read, "Male teens with parents who are college-educated and have incomes above $50,000." Demographic segmentation allows you to get more specific with your marketing strategies. The real question is this: who does Apple target as their primary customer for the iPhone? Th… Why does demographic data matter? The fastest growing purchasing demographic in smartphones today is the under $30k salary group and 90% of them are seeking to purchase a smartphone. This group is conveniently a market for the company. The solitude age group is 22-55. The Samsung Galaxy On5, for instance, is a sub-$100 Android smartphone released in 2015. The smartphones market is a rather competitive market dominated by established players such as Samsung, Huawei, Apple, Xiaomi, among others. Apple has a 15.3% market share of smartphone vendors and the global market share is virtually identical at 15.6%. A target audience is much more than phrases such as, “university students” or “North America”. Despite facing sanctions from the US government that are now entering their second year, Huawei has been able to mitigate impacts on its international business enough to compete with Samsung and finally claim the global top spot. 1, They target youngsters, middle-aged as well as old age … Apple took 65% of the demographic of households who make $100k per year or more in 2013. 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. Caucasians and Hispanics are the most likely to own an iPhone, although their ownership rates with Android phones is about equal. On the other hand, 77% of households in the 18-29 age demographic who make less than $30k will own a smartphone. 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 is considering the increasing share of e-commerce and changing consumer attitude towards online purchase. Compare this to Q3 2007 when only 270k iPhones were sold and the growth is phenomenal. Despite this fact, Applies average quarterly revenue on iPhones alone exceeds $26 billion. If 85% of your clients range from 20-35 years old, this is the segment you’re going to target. E-commerce portals like Amazon among others attract end-users with special discounts on smartphones and created an online buying culture. It is only in the United States where this trend has been reversed. Demographic segmentation is extremely important to all marketing departments since the data is easily available and does drastically affect buying patterns. Apple users tend to like living larger than life and pursue their dreams of career and happiness. There's everything from the … 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. Statistical Atlas: The Demographic Statistical Atlas of the United States Many businesses use Apple products because they have a higher quality that makes them incredibly useful and reliable. Samsung mobiles target a broad range of customers from different age groups, different social status, and different lifestyles. On the other hand, 42% of those households will choose to own an Android phone. After all, you don’t just own a smartphone. With larger screens and more intuitive features, when combined with the iOS 8, it is expected to be the fastest, most user friendly phone that this popular brand has created. The first thing that comes to my mind when I hear the brand name Apple is the iPhone, The revolutionary mobile phone which changed the market. Your target audience needs to be a specified group of people that share certain demographics and interests. For instance, at the IFA electronics show in Berlin, Qualcomm reported that its partners are developing over 150 designs using its 5G processors. Why Knowing Your Target Market Is Important. Samsung’s target audience are people from age 15 to 45 who follow the latest technology trends. 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. Samsung’s targets a very wide range of consumers ranging from normal day to day usage devices to industrial standard equipment. 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. Asia leads the smartphone market both in terms of production and sales as well. While companies have been increasing their revenues by launching new variant phones with increased frequency, the maturity state in a few regions might be challenging for their revenues. 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. That’s ultimately the goal that Apple has in marketing their smartphone. Apple might choose to keep things as status quo, however, because they currently maintain over 50% of smartphone usage in the US and Canada, which is above their actual market share for the iPhone. Report scope can be customized per your requirements. Work gets finished effectively and there are more communication options available. 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. 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 usual target age group of customers range from the 20s to 50s or even older, as long as the person has the ability to purchase and use the products that Samsung has to offer in the market. Those who make more than $150k as a household are primary targets. Hyper local Targeting: Does it Fit Your Needs. The target … Samsung Market Demographics. 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. All Rights Reserved to Mordor Intelligence. 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. According to Ericsson, the number of mobile 5G subscriptions in North America will reach 325 million compared to 3 million in 2019. The only country where Apple truly dominates the market is in the US. As a second example, you could … 500 million of these devices have been iPhones. Samsung Electronics is the largest affiliate of Samsung Group- a Korean brand. Otherwise, your marketing strategy is basically just a stab in the dark. And, of course, age is one of the most significant factors to consider. 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. In the Q1 2014, Apple sold over 50 million iPhones for the first time. Marketing demographic data can supply important information about your ideal target market. 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. 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. 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. The growth of the market is, however, plateauing, considering intense penetration levels. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 40 Enticing iPhone Target Market Demographics, 20 Cell Phone Repair Industry Statistics and Trends, Apple's Mission Statement and Vision Statement Explained, 23 Headphone Industry Statistics and Trends, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. 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. 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. The Trends of Apple’s Target Market Demographics. Smartphone is becoming an important part of retail sales, as they are an ever-increasing part of consumers’ lives. Apple does have three solid shopping apps in GroupOn, Target Cartwheel, and Black Friday, but Android dominates with everyday shopping environments like eBay and Amazon. 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. Click here. Consequently, the manufacturers of Smartphone have faced the challenge of continuously fulfilling the dynamic needs of their target customers. It helps clarify your vision, have more direction with future advertising plans, and optimize your resources, time, and budget. Most of these players keep launching new models with small technology changes such as battery power, camera configuration and/processor. While customer segmentation for mobile services is typically based on demographics and reported use, smartphone measurement software enables to add directly observed user behavior. of people say smartphones help them feel more confident and prepared. 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. China has the highest number of smartphone users – more than 782 million. 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. 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. The answer to that question would be the lower income African American community. 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. Your stereotypical views might be wrong: Millennials might be digital natives, but it’s Gen-Xers who … Home » Statistics » 40 Enticing iPhone Target Market Demographics. However, due to the outbreak of COVID-19, smartphone shipments saw a declining stage as countries are still dealing with the pandemic. 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. The launch added a new iPhone model into Apple’s product mix just as lockdown restrictions had reached important markets, such as the USA. Spend Your Marketing … Posted in Market Research, Uncategorized Tagged American Marketing Association Tampa Bay Chapter, targeting customers, understanding demographics Interestingly enough, the 18-24 group is more likely to own an Android and the 25-34 group is second in this demographic. Students at any level, in fact, are iPhone target demographics because the use of an Apple product is a bit of a status symbol. Could this be accomplished by lowering the overall profit margin or supplementing the purchasing price in effective ways, like cell carriers are doing right now for new customers? This explorative … 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. This way, the company expects to extend 5G to cheaper smartphones. The average age of an Apple customer is 35-44. Component suppliers are ramping up their production to support the efforts of smartphone makers. Maybe a better question to ask would be who isn’t a target demographic for the Apple iPhone. The trend isn’t just about device generations. Women are more likely to own an iPhone than men. 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 … They are typically in the market for a device to help them get in shape. 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. It can save you money, increase profits, and can make or break a company. Globally, the only brands that Apple dominates are the ones that aren’t Android related. 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). Smartphones used for industrial purposes or otherwise known as rugged phones are not considered in the scope. 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. To understand geography trends, Download Sample Report. 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. Teenagers to early adults (age 14 ‘ 25) ‘ This age group of Samsung product consumers is usually Samsung’s smartphone target customers as they are mostly technology savvy. The older someone is, the more likely they are to own an iPhone over an Android if they choose to own a smartphone. 82.2% of the people in … 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. Use Demographics to Understand Your Target Market (All Business) Know Your Target Market (Entrepreneur) Related Posts: Leveraging Trends. 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. Here are some of the best reasons why demographics matter. There is certainly a rich vs. poor feeling to the target audience of Apple. To understand key trends, Download Sample Report. 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. The production cost of the iPhone is typically under $50 per unit, yet the average retail price of one is above $600. For OEMs like Realme, Vivo, and Xiaomi, which focus on this market, the pandemic and governmental issues contributed to a problematic Q2/2020. 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. There are 4 type of Market segmentation which are most commonly used. In particular, market … Grab that must-have cell phone along with the … For instance, in April 2020, Apple launched the iPhone SE. More than half of most demographic groups have a smartphone. In July 2020 - Samsung Electronics introduced the Galaxy Z Flip 5G. So why wait? On the whole, different … Let’s say you are feeling pretty good about your current social … Only 8% of households that are 65+ and make less than $30k per year have decided to invest into a smartphone. Part 1: Demographics 1. As technology increases and more tech jobs become available, unless something changes from where it is today, Apple might just find itself losing their market share in the near future. "Adidas Originals has always been … College students are one of the primary target demographics for Apple as they typically have more disposable income and a need for the technology. Every year since 2011, 10% of households in the United States choose to become smartphone owners 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. Example of Target Market Analysis. However, tensions between the Indian and Chinese governments have impacted India's smartphone market, even though many Chinese OEMs have invested significantly over the last 18 months to increase their production and customer service operations in the country. Apple products make it easier in many ways to create these items and that will always give them a specific market share. Apple users tend to prefer alternative and indie music over the classic rock, metal, and country of Android users. 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. Demographic information is key to the success of your business. Only 3 out of the Top 40 downloads for the iOS are utility apps, whereas 9 of the Top 40 Android apps are utilities. Only those ages 65 and older (30% of whom own smartphones) and those who do not have a high school education (41% own smartphones… Men outnumber women on a 2:1 basis when it comes to purchasing Apple products. 6.1.4 Vivo Communication Technology Co. Ltd. 6.1.6 Guangdong OPPO Mobile Telecommunications Corp., Ltd, 9. Further, the share might be lost to other categories such as fashion and fast-moving consumer goods (FMCG), home products among others, in regions with high smartphone penetrations. 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. For instance, 91% of U.S. households own smartphones and are packed with vital features at different price points. 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. The fastest growing purchasing demographic in smartphones today is the under $30k salary group and 90% of them are seeking to purchase a smartphone. 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. Android users might have less education overall and lower incomes, but they are also more pragmatic and tech-savvy. Market segmentation is one of the oldest marketing trick in the books. With around 50% of smartphone penetration, on average, across regions, the replacement cycle is lengthening, which prompts the decline of the unit sales, especially in regions such as U.S., and China among others. 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. However, 5G handsets and foldable phones are likely to provide them with new opportunities. For example, a car business might identify customers who are interested in keeping the … The STP analysis reveals that the company does not categorises and targets a narrow part of the demographic attributes but focuses on almost everyone who wants an unsurpassed smartphone which is limited in availability. You own an iPhone! 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. MARKET OPPORTUNITIES AND FUTURE TRENDS. People aged 25-34 are the most likely to own an iPhone, followed by the 18-24 age group. 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. This new platform maximizes the power of 5G with revved up performance to deliver faster and more efficient on-device processing with sharper imagery through improved graphics rendering. 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. Psychographic market segmentation examples include the promotion of products such as cars as these often reflect a customers lifestyle, and leisure activities. Since 2009, Android market shares have increased dramatically while Apple shares have remained relatively the same. For households that make $149k or less, just 16% of African American households will choose to invest into an iPhone. 10% of the total iPhones that have been sold all time were purchased in Q4 2013. 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. This means the company is expanding 5G across its product line to make 5G accessible to over 2 billion smartphone users. 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. Huawei overtook Samsung to become the smartphone market leader by share of units shipped during the Q2 2020, accounting for 20 percent of the overall market. 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. © 2020. Use your answers to the questions above to help you identify these demographics. Younger people tend to have less income, which means they typically prefer Android because it is a more affordable platform. Increased consumer spending across regions has driven the sales of Smartphone markers for years. 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