America. Statista // July 17. 1: CAGR = Compound Annual Growth Rate. Source: Statista Consumer Market Outlook 2017. 2. A
CONSUMER ELECTRONICS TELECOMMUNICATIONS Segment Outlook Report, August 2017
Annual revenues from telecommunication hardware are rising while sales development remains steady Consumer Electronics market overview
Consumer Electronics revenues by segments in Europe and North America in 2016 Printers and Copiers Keyboards Storage Units Televisions PC Monitors and Projectors
Desktop PCs
Radios Digital Cameras Speakers Headphones
Telecommunication hardware segment The market segment Telecommunication hardware includes landline and mobile phones. Mobile phones comprises phones without Internet connectivity as well as feature phones with Internet connectivity and smartphones. Both B2C and B2B sales are included.
Telecommunication hardware sales in Europe and North America
TV, Radio und Multimedia Computing
161bn $
CAGR1 2010-2016
in 2016
+5.7%
400m units
CAGR1 2010-2016
Revenues
Laptops and Tables
Telecommunication
Mobile Phones Landline Phones
2
1: CAGR = Compound Annual Growth Rate Source: Statista Consumer Market Outlook 2017
Volume sales
in 2016
+0.1%
Statista // July 17
Switzerland and Norway have the highest per capita sales of telephones Comparison by country
Per capita volume sales telephones1 in 2016
0.26
3
1: Comprises Landline and mobile phones Source: Statista Consumer Market Outlook 2017
0.60
Statista // July 17
Phone sales in Europe from 2016 to 2017 are only increasing by 0.6% Market KPI comparison
Europe Revenues in million $ unit
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CAGR1 '10/'20
CAGR1 ‘16/‘17
Total
m$
55,290
62,088
68,703
74,173
78,973
81,870
84,557
86,885
88,843
90,499
91,885
5.2%
2.8%
Mobile phones
m$
53,412
60,201
66,813
72,278
77,092
80,016
82,689
85,024
86,989
88,651
90,041
5.4%
2.8%
Landline phones
m$
1,878
1,887
1,890
1,895
1,881
1,854
1,869
1,861
1,854
1,848
1,844
-0.2%
-0.4%
Sales in million units unit
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CAGR1 '10/'20
CAGR1 ‘16/‘17
Total
m units
197
205
211
215
218
218
220
221
222
223
224
1.3%
0.6%
Mobile phones
m units
163
172
179
184
188
189
191
193
195
196
197
1.9%
1.0%
Landline phones
m units
34
33
32
31
30
29
28
28
27
27
27
-2.4%
-1.8%
4
1: CAGR = Compound Annual Growth Rate Source: Statista Consumer Market Outlook 2017
Statista // July 17
Overall revenues and volume sales of phones in the US are declining from 2016 to 2017 Market KPI comparison
U.S. Revenues in million $ unit
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CAGR1 '10/'20
CAGR1 ‘16/‘17
Total
m$
55,670
59,735
61,465
65,622
67,544
67,036
67,379
67,068
66,135
64,629
62,642
1.2%
-0.5%
Mobile phones
m$
54,644
58,795
60,608
64,847
66,833
66,390
66,754
66,467
65,552
64,062
62,086
1.3%
-0.4%
Landline phones
m$
1,025
940
857
774
710
645
625
601
583
568
556
-5.9%
-3.7%
Sales in million units unit
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CAGR1 '10/'20
CAGR1 ‘16/‘17
Total
m units
187
179
179
178
177
169
165
161
156
150
144
-2.6%
-2.6%
Mobile phones
m units
167
161
161
162
162
155
152
148
143
138
132
-2.3%
-2.6%
Landline phones
m units
20
19
17
16
15
14
13
13
13
12
12
-4.7%
-2.8%
5
1: CAGR = Compound Annual Growth Rate Source: Statista Consumer Market Outlook 2017
Statista // August 17
Landline phones are more common among older target groups, mobile phones among younger groups Landline and mobile phone penetration
Share of households with landline phones by age and region 18 to 29 years
30 to 59 years
97% 87% 79%
55%
61%
UK
6
60 years and older
90%
95%
Share of households with smartphones by age and region 18 to 29 years
100%
94%
77%
30 to 59 years
98%
60 years and older
99% 91%
77%
75%
89% 75%
61%
U.S.
Germany
“Which of the following devices do you have in your household?“;multiple response; n=1.013, all persons surveyed Source: Statista Survey Telecommunications 2017, UK N=1.021, U.S. N=1.027, Germany N=1.013
UK
U.S.
Germany
Statista // July 17
Revenues from mobile phones in Europe and North America increased sharply until 2014 Market overview Mobile Phones
Development of the mobile phone market In 1994, IBM brought the first smartphone to market, but only 13 years later – on January 9, 2007 – did Apple propel a new era of telecommunications by launching the iPhone. In the past years, smartphones have become synonymous with mobile Internet and have triggered a wave of innovations that has reached software firms, computer manufacturers, raw material suppliers and above all social media, and continues to drive them until today. Between 2010 and 2016, revenues from mobile phones increased by 41%. In 2016, a turnover of 158 billion US Dollars was generated with mobile phones. In the same period, volume sales of mobile phones in Europe and North America only increased by 4% to 357 million units – more expensive smartphones are substituting the previous feature phones. While 2016 saw mobile phone volume sales of 357 million units, in 2017 the number decreased to 355 million units, suggesting that the limits of growth have been reached. A high number of consumers in Europe and the US own advanced smartphones while the number of competitors on the market has risen remarkably.
Mobile Phone sales in Europe and North America
Volume sales in m
180$
Revenue in bn US $
158bn $
162bn $
m units
160$
350
140$
120$
300 113bn $
250
100$ 80$
363 358 357 355 353 349 344 342 344 352 358
60$
50
20$
7
Source: Statista Consumer Market Outlook 2017
150 100
40$
0$
200
2010
2012
2014
2016
2018
2020
0
Statista // July 17
Switzerland and Norway have the highest annual revenues per capita from mobile phones Per capita sales of mobile phones, by country
Volume sales and revenues per capita in 2016 Volume sales per capita
385$
350$
Revenues per capita in US $
300$
0.5
244$
250$
0.4
205$
200$
192$
203$
150$
178$
185$
165$
166$
159$
164$
152$
156$
100$
151$
151$
0.3 114$
140$
106$
100$
102$
93$
98$
88$ 90$
76$
0.0
Croatia
Slovakia
Slovenia
Bulgaria
Hungary
Latvia
Czech Republic
Estonia
Lithuania
Poland
Spain
Greece
Germany
Austria
Portugal
Sweden
Belgium
Ireland
Denmark
Finland
Italy
France
Great Britain
Netherlands
U.S.
Canada
Norway
Source: Statista Consumer Market Outlook 2017
0.2 0.1
83$
0.53 0.57 0.38 0.47 0.52 0.46 0.43 0.41 0.39 0.35 0.30 0.33 0.36 0.36 0.33 0.35 0.34 0.28 0.26 0.27 0.25 0.29 0.22 0.26 0.22 0.27 0.27 0.23 0.23
Switzerland 8
104$
104$
50$ 0$
0.6
376$
Rumania
400$
Statista // July 17
To substitute a broken smartphone is the most important reason for buying a new device Purchase drivers smartphones
Reasons to buy a new smartphone, by region U.S.
Germany
UK
69% 60%
59%
36%
36%
43% 34%
31%
29%
31%
34% 31%
33%
24%
28%
26%
17% 18%
Smartphone/mobile phone is broken
9
Deteriorating battery performance
Mobile phone is lost/stolen
Cheap offer for a more modern phone
„In general terms, for what reasons can you imagine buying a new smart phone? “; multiple response; n=1.013, all respondents Source: Statista Survey Telekommunikation 2017, UK N=1.021, U.S. N=1.027, Germany N=1.013
New model is launched
Need a bigger memory
Statista // July 17
61% of US Americans cannot imagine a life without smartphones Opinions on smartphones
Agreement Top 2 („totally agree“, „rather agree“) UK
USA
Germany 81%
Mobile data for smartphones should be cheaper
79%
71%
Smartphones are too expensive
55%
Smartphones destroy face-to-face communication
54%
I cannot imagine a life without smartphones There is a trend back towards conventional mobile phones without Internet access 0%
10
87%
80% 81%
56%
59%
43%
61%
14% 10%
18% 20%
25% 30%
40%
50%
60%
70%
„Please state to what extent you agree with the following statements“, matrix question; Survey DE n=1013, all respondents; Survey UK n=1021, all respondents; Survey US n= 1027, all respondents Source: Statista Survey Telecommunications 2017, UK N=1.021, U.S. N=1.027, Germany N=1.013
80%
90%
100%
Statista // July 17
In Germany, the UK and the US, Samsung and Apple have a market share of 60% of phone ownership Brand use smartphones
Share of smartphone brands owned by region, 2017
other
other Sony 16% Windows Huawei HTC 2% 1% 1% 1%
Apple 34%
Apple
15%
20%
6% Windows 2%
3% 4% LG
33%
43% Samsung
Samsung
U.S.
„Which brand is your smartphone?“; single response; n=1.013, all respondents Source: Statista Survey Telecommunications 2017
38%
Sony 5% Windows 2% 2% Huawei 3% HTC 2% LG
HTC
11
19%
Sony
Huawei 7%
LG 13%
other
Germany
Apple
30%
Samsung
UK
Statista // July 17
Samsung has established the strongest image in Germany, the UK and the U.S. Image of smartphone producers
Positive image development in the past five years
49%
33%
47% 43%
39%
40% 23%
31% 25%
U.S.
12
45%
32%
23%
34% 22% 19%
18%
27% 21%
22%
Germany
“How large is your monthly data volume?“; single response; DE survey n= 613, US survey n= 546; UK survey n=698 Source: Statista Survey Telecommunications 2017, UK N=1.021, U.S. N=1.027, Germany N=1.013
19%
18%
UK
Statista // July 17
Over a quarter of smartphone users in the UK and the US have data volumes of more than 3 GB/month Mobile data use
Share of smartphone users with the respective data volume per month
