Source: DataReportal 2021
The number of smartphone users reached 5.22 billion by the end of 2020, which represents 66% of the world’s population (DataReportal, 2021). 2020 brought in an additional 93 million users, a 1.8% increase from 2019’s year-end total.
Market growth in 2021 will be led by the Asia Pacific region—India and China in particular—making up 2.1 billion or 56% of the global market share. The six-year compound annual growth rate (CAGR) for Asia Pacific alone is +10.6%.
Average yearly 3% increases in worldwide smartphone penetration rates will boost smartphone penetration from the current rate of 41.49% to a projected 56.28% by the year 2024. In a time when smartphones are a must-have, it is interesting to note the 50% penetration threshold is yet to be reached.
It’s important to note the distinction between smartphones and other mobile devices. Mobile devices can include tablets, Internet of Things devices, and cellular phones that are not internet-capable (typically further subdivided into “dumb” or “feature” phones). As of 2019, unique mobile devices number 5.11 billion, 60% of which represent smartphones.
This article explores smartphone users’ preference in terms of the following main categories:
2020 was the peak year for smartphone ownership. Global numbers reached 5 billion users in that period (DataReportal, 2021). 2018, on the other hand, was the year that saw a decline in smartphone sales with 2019 figures reflecting negative growth but it did pick up in the succeeding year.
Source: Statista 2020
Though there is upward growth in smartphone ownership and penetration rates in developed countries, the same can not be said for low- to medium-income ones. There is still a lot to be done to make the world equally connected. Mobile phones go beyond social media use and serve as a portal to other services that enrich the lives of people.
Year |
World Population | Smartphones Users (in billions) | Penetration Rate |
---|---|---|---|
2016 |
7.464 |
4.70 |
62.97% |
2017 |
7.548 |
4.86 |
64.39% |
2018 |
7.631 |
5 |
65.52% |
2019 |
7.713 |
5.13 |
66.51% |
2020 |
7.795 |
5.22 |
66.97% |
Many would guess the country with the highest phone ownership rates to be the United States, as it is the home of the iPhone, arguably the most recognizable phone brand in the world, as well as other disruptive phone technologies. The smartphone ownership rate in the US in 2018 stand at 77% while the smartphone penetration rate is 69.60%.
The difference in figures is based on the metric that is measured; ownership rate refers to the number of mobile devices owned while mobile penetration rate is the number of active SIM cards in a country. Penetration rates are presented in percentages; individuals can have more than one active SIM card so total numbers can exceed 100%.
Smartphone penetration rates vary per region and research sample. India has 27.70% despite a booming population that nearly rivals China. The highest is a toss between the UK with a 82.20% smartphone penetration rate (Newzoo) and South Korea with 95% (Pew Research). The global average is at 39% for 2018 but is projected to reach 41.5% by the end of 2019.
Smartphone ownership continues to grow rapidly but the growth rate is not equal.
China and India are constantly mentioned across market reports as critical drivers of smartphone ownership growth in the world and the APAC region. China has a 55.30% penetration rate while India is at 27.70%. Penetration rates lower than 60% leave a lot of room to grow and demand to fill. Sources point to China and India as likely leaders of the smartphone ownership market in the world with an estimated combined number of 1.406 billion—18.50% of the projected world population numbers by 2020.
A Bloomberg report from August 2019 showed North Korea as the country with the lowest number of smartphone ownership per user in the world—0.15 phones per person (Bloomberg, 2019). In contrast, the country with the highest number of smartphone devices per individual is Macao, registering 3.29 smartphones per person. The extremes highlight the huge disparity in economic wealth—a leading barrier to mobile phone ownership—even between countries within the APAC region.
As far as country stats go, China has the highest number of smartphone users in the world. in 2020, it had over 911 million smartphone users (Newzoo, 2020). The numbers are staggering as it is only 63.4% of the country’s total population but is forecast to grow more. India follows with a more modest 439 million, with the US in third place with 270 million smartphone users.
China
India
United States
Indonesia
Brazil
Russia
Japan
Mexico
Germany
Vietnam
Source: Newzoo 2020
Designed byChina has the highest number of smartphone users at over 911 million compared to the US’s 270 million (Newzoo, 2020). Smartphone penetration rates in 2020 for these two countries are 63.4% and 81.6%, respectively. Overall, the US has the highest penetration rate, followed by the United Kingdom at 78.99%, Germany at 77.9%, France at 77.6%, and South Korea at 76.5%. The global penetration rate is 66% (DataReportal, 2021).
78.9% of UK users own a smartphone (Newzoo, 2020). Broken down into age groups, 16-24 and 25-34 year-olds have the same stats—95%—for smartphone ownership. The 35-54 age group is not far behind with 91% and 55-64 year-olds at 51%.
The demographics of age and gender are also indicators of phone ownership inequality.
The gender gap in smartphone ownership reflects the disparities in social, political, and educational attitudes, as well as economic opportunities between men and women. The worldwide gender gap average in mobile phone (figure includes smartphones and feature phones) ownership is at 10%. The rate has been holding steady from 2017 to 2018 based on the latest Mobile Gender Gap Report from GSMA Intelligence (Newzoo, 2020). Overall, women from low- to medium-income countries are 10% less likely than men to own a mobile phone. South Asia has the highest phone ownership gap at 28% despite the current trend of lower prices for entry-level phones and the upward growth of smartphone penetration.
Of the continents included in the survey, South Asia has the lowest phone ownership for women—62% leaving 219 million women unconnected. Sub-Saharan Africa follows with a 69% mobile ownership rate and 81 million women unconnected.
Smaller gender gaps in phone ownership can be found in East Asia and the Pacific region, which has a 93% mobile phone ownership rate and a 1% mobile ownership gender gap. Europe and Central Asia follow next, boasting of a 90% mobile phone ownership rate which translates to a -2% gender gap.
The gap shrank in the same period by 50% for the following continents: Europe, Central Asia, Latin America, and the Caribbean. Increases were seen in the Middle East and North Africa with 12.5% and South Asia registering a 3.7% growth.
Age is also a determinant of phone ownership. In the US, the 18-29 age group has a 96% smartphone ownership rate (Pew Research, 2020), followed by 30-49 year-olds with 92%. The 50-64 set is at 79% while the 65 and up are at 53%.
The younger generations—Generation Z and Millenials—are the most connected age group with Gen-Xers and Boomers not far behind in adoption rates. Adults aged 18-34 have high smartphone ownership rates. This statistic is true whether the country is classified as an advanced economy like South Korea, Australia, or the US, or an emerging one like Brazil, South Africa, or India.
The gender gap in mobile phone ownership is linked to the following demographics:
For women living in low- and medium-income countries, the following reasons compound the gender gap in phone ownership:
Rank |
All Countries |
Africa |
Asia |
Latin America |
||||
---|---|---|---|---|---|---|---|---|
Women |
Men | Women | Men | Women | Men | Women |
Men |
|
1 |
affordability |
affordability | affordability | affordability | literacy & skills | literacy & skills | affordability |
affordability |
2 |
literacy & skills |
literacy & skills | literacy & skills | literacy & skills | affordability | affordability | safety & security |
safety & security |
3 |
safety & security |
safety & security | safety & security | safety & security | relevance | relevance | literacy & skills |
literacy & skills |
4 |
relevance |
relevance | network coverage | relevance | family does not approve | safety & security | relevance |
relevance |
These demographic barriers aren’t limited to low- to medium-income countries only. Pew Research shows three demographic determinants that affect phone ownership even in countries with advanced economies — location, education, and annual income.
These determinants hold true in the US, the UK, and the rest of the world. For those in the US, living in urban and suburban areas have the highest rates of smartphone ownership. Smartphones are ubiquitous and can even be bought from convenience stores. The infrastructure and technology to use the latest devices are also readily available.
Education and annual income show a skew towards college graduates: 91% smartphone ownership rate compared to 72% for high school graduates. Those with an annual income of $75,000 have a 95% ownership rate vs 71% for those earning less than $30,000 a year.
Mobile phones are viewed as a necessity, rooted in the need for communication and staying connected. But for those making $30,000 or less a year, it is an additional expense that some will have to choose over other essentials such as food, rent, or healthcare. Thirty thousand a year comes up to bi-weekly take-home pay of $1,154. A phone budget of $15-$40 a month will easily eat into that.
Android democratized smartphone ownership. Google distributed the operating system and some services for free with the aim of matching the iPhone and getting a slice of the smartphone market. The gamble paid off with 8 out of 10 smartphones on the market today powered by an Android OS.
Various sources put the total number of Android smartphones at 3 billion worldwide against 900 million active iPhones. According to StatCounter, Android has a market share of 71.93% as of January 2021 (StatCounter, 2021). iOS takes 27.47% of the market pie. The remaining segments cover Windows and other small players in the smartphone race.
Source: StatCounter 2021
Why is Android the preferred smartphone operating system? With close to 80% in market share, Android has taken over the worldwide smartphone market. Bloomberg data points to Bangladesh as the country with the highest number of Android users at 98%. The worldwide median average is 83% and continues to grow.
Below are the countries with the highest and lowest number of Android-based smartphone users per region.
Region |
Most |
Least |
||
---|---|---|---|---|
The Americas | Bolivia |
95% |
Canada |
46% |
Asia and Oceania | Bangladesh |
98% |
Japan |
30% |
Europe | Poland |
96% |
Sweden |
46% |
Middle East | Syria |
97% |
Kuwait |
69% |
Africa | Algeria |
96% |
Madagascar |
49% |
Android is King in countries with low smartphone penetration rates as the technology is cheap and readily available. Still, low ownership and penetration rates persist, even for Android, due to a practical consideration: the price tag. The monthly minimum wage in Bangladesh is 8,000 Tk or roughly $95. In contrast, average prices for low-tier smartphone models in Bangladesh run between 7,500 Tk – 8,500 Tk. There is no room for seemingly frivolous purchases on such a tight budget.
Japan ranks as the country with the most number of iPhone users worldwide, earning 70% of the total market share. Worldwide median average iPhone ownership stands at 14%. iPhone users have a cult-like devotion to the device and continue to favor it despite the prohibitive cost. iPhone prices have bucked the trend of falling smartphone prices, with the iPhone retailing at an average selling price of $750-$800.
Price is not an issue for iPhone die-hards though. The list below shows countries with the highest iPhone ownership. The US is the biggest regional market for the Cupertino, California-based company. The rest can be categorized as countries with advanced economies in their respective regions enjoying higher living and wage standards when compared to their low iPhone user counterparts.
Region |
Highest |
Lowest |
||
---|---|---|---|---|
The Americas | Canada and the US |
56% |
Bolivia |
4% |
Asia and Oceania | Japan |
70% |
Bangladesh |
1% |
Europe | Sweden |
54% |
Poland |
2% |
Middle East | Kuwait |
31% |
Syria |
2% |
Africa | Morocco | 28% | Madagascar |
1% |
The high and low values are basically exchanged between the two countries in the high and low end of the ownership scales with the exception of Africa. Sub-Saharan Africa has the lowest penetration rates out of all the continents but is also one of the fastest-growing smartphone markets in the world. CAGR growth projections for unique mobile subscribers are at 4.6% for the period of 2018-2025. More smartphones are coming to Africa, just not iPhones.
Statista estimates 1.589 billion smartphones sold by the end of 2021 (Statista, 2020). Broken down into vendor sales, the top smartphone vendors as of December 2021 are Samsung, Huawei, Apple, Xiaomi, and Oppo (Statista, 2021). In a surprising turn of events in the last quarter of 2020, Apple managed to relinquish the top spot from Samsung, a feat it has not done since 2017, as it held a 23.4% of the market. Samsung, however, remained consistent at 19.1% since the fluctuations of its share have been modest since the second quarter of 2019.
Source: IDC 2021
Xiaomi, OPPO, and Huawei continue to defy expectations with consistent growth despite the US trade ban and the suspension of its Google Android license. As of the fourth quarter of 2020, the three are battling it out for the third to fifth spots, respectively, with Xiaomi’s 11.2%, OPPO’s 8.8%, and Huawei’s 8.4% (Statista, 2021).
Source: StatCounter 2021
As far as market share goes, Samsung is undoubtedly at the forefront with a 31.33% worldwide slice of the pie. The number of Samsung smartphones in the market comes up to 1.033 billion. With these numbers, where do we factor in the iPhone’s cult-status symbol?
Filtered through a worldwide lens, Apple has sold 44.8 million units compared to Samsung’s 79.2 million units sold as of the third quarter of 2019. Specific markets like the US, Canada, and Japan show a preference for the iPhone. Apple fans also buy accessories, apps, and Apple-specific services that are valued in the billions. Aside from individual end-users, Apple devices are also the preferred business phone for work-related use of its business integrations and services.
Bottom line: is Android or iPhone more popular? Androids outnumber iPhones 3 to 1 in the worldwide market. US numbers differ with the iPhone leading with a 55% market share compared to Android’s 44%. The minute difference is shared among small players like Windows, KaiOS, and Samsung. Based on the figures, Android is more popular among smartphone users.
Time spent on a smartphone continues to increase with US adults spending more time on their mobile devices than watching TV. As of the last quarter of 2020, the global average is 4 hours and 10 minutes, which is an increase of 20% from 2019 due to COVID-19 (DataReportal, 2021). People have been tinkering with apps 92% of the time while the remaining 8% use browsers.
Prior to COVID-19, the US averaged 3 hours and 40 minutes. The figure is not much different in other parts of the world: China averages 3 hours 54 minutes, South Korea clocks in at 3 hours 51 minutes, and the UK is at 3 hours 37 minutes. During the pandemic, however, Russia exhibited the largest increase in time spent on mobile devices at 40%, followed by Canada (39%), India (37%), and Brazil (28%) (Statista, 2020).
Source: Forbes 2020
The time spent on smartphones and mobile devices is a lot, but what do people do on their smartphones?
It starts just after you wake up: you pick up your phone to turn off the alarm or check the time. You take a few minutes scrolling through social media and quickly browse through the news. You check on work email, send texts, make calls, and this pattern continues throughout the day. These small pockets of time throughout the day are what marketers call micro-moments. Usually lasting 8-10 minutes, micro-moments make us check our phones for the news, for deals, for information, and recommendations—where to eat, where to go, what to do, basically everything.
These moments add up to about 52 times a day. Smartphones are the preferred device for reading news, taking photos, social networking, watching short videos, making video calls, doing online banking, and using mobile payments. Smartphones also become the hub used to control other devices and keep track of calorie intake or health stats.
Phones are primarily used for communication—personal and for work—with text messaging topping the list at 93%, followed by phone calls at 87%, and email at 82%. The values differ slightly when used for work.
References:
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