5G Adoption Intention in Germany Is Positive

German smartphone owners are optimistic of quick return to normalcy after COVID-19, according to Strategy Analytics. These are good news for operators like Telekom, Vodafone and O2 as well as Apple, Samsung and Huawei which that control 80% of sales.

The Service Provider Strategies (SPS) service report finds that 20% of customers may consider switching mobile operator to benefit from lower priced service plans due to the COVID-19 impact. A report on smartphone purchase delays due to COVID-19 tracks changing consumer brand preferences and purchase intentions.

“The COVID-19 pandemic has posed challenges for mobile operators right as they are aiming to grow 5G subscriptions. On the positive side, 26% of Germans are likely to adopt 5G as planned or sooner than planned despite COVID-19. On the negative side, like other countries, German consumers in the 18-24 and 25-34 age groups are least committed to their current operator, with over a third of the Gen Z and Millennials likely to switch operator to get lower prices.Risk of churn is especially high among subscribers that are most likely to upgrade to 5G: nearly half of likely churners are actively planning 5G upgrade, whereas nearly three quarters of more loyal subscribers have no current intentions to move to 5G,“ said Susan Welsh de Grimaldo, a Director at Strategy Analytics.

“In Germany, 37% will buy a new smartphone as planned or sooner than planned despite the impact of COVID-19. However, it is concerning that almost 25% of Apple and Huawei and 15% of Samsung owners expect to pay less for their next smartphone. While Samsung and Apple enjoy 80%+ loyalty, the uncertainty over Huawei creates a window of opportunity for emerging vendors especially among the 55+ group where about one third has not decided on their next smartphone vendor,“ noted David Kerr, SVP Wireless and Broadband at Strategy Analytics.