In the wake of COVID-19, with the economic uncertainty that many are suffering, a competitively priced smartphone is an attractive prospect for consumers looking to rationalise their spending.
Latest data from Kantar’s Worldpanel ComTech panel shows that consumers are highly concerned about their finances.
56% in China, 31% in Australia, 23% in EU5 (the highest levels of concern in Italy at 39% and Spain at 35%) and 33% in the US. The level of financial concern is correlated to personal financial impact: the greater the financial concern, the greater the proportion of consumers whose personal income has been impacted.
Many consumers who plan to buy a smartphone within the next six months, have decided to delay spending; 31% in China, 47% in Australia, 25% in EU5 and 27% in the US, where the proportions skew higher among those financially impacted by COVID-19.
Among financially impacted consumers, the likelihood to spend less on a smartphone is disproportionately higher than those unaffected, thus fuelling the demand for low-mid tier devices.
Demographically, across all markets, the consumers financially impacted are more likely to be under 45 years old, employed, with low personal income and (with the exception of China) have children present in the household, indicative of a family set up.
