Only 48% of consumers plan to purchase a smartphone in the
next 12 months, according to the 2016 Accenture Digital Consumer Survey for
communications, media and technology companies.
The largest drops in purchase intent are in countries that previously
experienced rapid growth in smartphone purchases, including China, India and
South Korea. In the U.S. and U.K., consumers’ love affair with the latest and
greatest appears to be over, with just 38% of consumers intending to make new
One reason for the flattening of demand is that nearly half
of consumers not planning to buy a smartphone say they are happy with their
current device. Another 26% say they recently purchased a new smartphone, and
4% point to a lack of innovative features in new devices that interest them.
Another reason: Consumers report that price is the top
barrier to the purchase of Internet of Things (IoT, or highly interconnected
devices), with 62% believing these devices are too expensive. Russia, Romania
and the Philippines report the highest share of consumers stating price as a
Security has moved from being a nagging problem to a top
barrier as consumers are now choosing to abandon IoT devices and services over
security concerns. More than two-thirds of the consumers surveyed are aware of
the recent security breaches such as hacker attacks resulting in stolen data or
Out of the consumers aware of hacker attacks and owning or
planning to own IoT devices in the next five years, 18% decided to terminate
the use of the devices and related services until they get safety guarantees.
An additional 24% decided to postpone purchase of an IoT device or service
subscription they were planning due to concerns over security.
Among other findings:
- Four out of five online consumers own a smartphone, a huge
increase of market penetration over the last five years. Globally, only Japan,
Slovakia and Turkey have less than 70% smartphone ownership.
The survey also revealed a 9-point drop in
purchase intent for tablets, an 8-point drop in televisions and a 6-point drop
for laptop computers. Overall, a fifth of consumers surveyed plan to decrease
spending; only 13% plan to increase spending on smartphones, tablets and