A dismal under 10 per cent of American smartphone users are spending over $1, 000 on their smartphones and since these users will be the target audience for 5G devices, which typically hit the market around the $1, 200 price tag, this brings into question how quickly they will upgrade to 5G, says a new report.
According to market research firm NPD Group's "Mobile Phone Tracking service" report, though the majority of consumers have not fully embraced devices at these high - end price points, those in the top 10 DMAs account for more than one - third or 39 per cent of $1, 000+ active smartphones.
"Consumers are holding onto their smartphones for longer periods, which has presented a challenge for the smartphone market, " Brad Akyuz, Executive Director, Industry Analyst, NPD Connected Intelligence, said in a statement.
"Manufacturers and carriers are expecting 5G to help reinvigorate the upgrade cycle, but pricing could present another hurdle, " Akyuz added.
However, the good news is, 5G awareness and purchase potential is strong, according to the market research firm.
In fact, awareness has reached nearly 3 out of 4 consumers, thus, totaling 73 per cent, at the end of the first half of 2019.
This is up from 44 per cent at the end of the first half of 2018.
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