- More than a fifth of Britons bought their phone directly from Apple or Samsung
- SIM-only plans are starting to dominate
- AI features could rejuvenate smartphone sales, but the jury is still out on foldables
- Pent-up demand for unlimited data, as usage is set to rise further
- Research shows positive reaction to the Vodafone–Three merger
London, 30 January 2025: CCS Insight’s seventh annual survey into UK consumers’ buying behaviour for mobile phones and connectivity reveals another fascinating set of findings.
In an important market shift, the survey highlighted strong growth in phone purchases made directly from Apple and Samsung. This is how more than a fifth of people took their primary personal device, compared with just one in 20 in our 2018 survey.
In fact, Apple’s retail store or website was the second-top channel in the research, accounting for 14% of purchases, up from only 3% six years ago. Among iPhone owners, it is the preferred destination, at 31%, ahead of mobile providers, at 26%.
The trend to buy directly from a phone-maker reflects several important dynamics: the dominance of Apple and Samsung in the UK, which together represent eight in 10 mobile phones in use; growing use of online channels, which make up more than half of the market; and rising interest in trade-in and refurbishment schemes.
Kester Mann, Director of Consumer and Connectivity at CCS Insight, says that the trend raises alarm bells for telecom operators: “Mobile providers used to dominate device sales with their combined phone and airtime deals. Now this channel represents only about a quarter of the market”. He adds, “If Apple and Samsung start to keenly push direct phone sales with airtime packages, they could become more influential, making it harder for mobile operators, which would find far fewer opportunities to engage with customers and upsell new services”.
Another important finding shows how SIM-only plans are starting to dominate, as replacement cycles for mobile phones lengthen and airtime prices stay low. Over four in 10 people now take such a deal, ahead of bundled airtime and device contracts (30%) and pay-as-you-go (28%). The survey suggests further growth, with a huge 80% of people currently on a SIM-only deal expecting to stay on this type of plan in two years’ time.
With AI a red-hot topic, the CCS Insight survey probed into people’s views on the technology for the first time. The findings reveal strong interest in some AI-infused smartphone features, notably photo editing. And encouragingly for the connected devices market, more than four in 10 people would be willing to pay more to access these capabilities.
The research suggests the jury remains out on foldable phones, however. About half of respondents said owning one would be appealing, and 40% would consider buying one, but many still feel that they don’t need one, don’t like the design or are put off by the price.
Loyalty to phone brands appears set to strengthen. Seven in 10 people (70%) told us they’d keep the same brand of phone next time, up slightly on recent surveys. Loyalty is highest among Apple (81%) and Samsung (76%) customers, but plummets among owners of other brands (37%). CCS Insight again noticed more people switching from Samsung to Apple than the other way around, although this trend appears to be slowing.
The survey also uncovered pent-up demand for unlimited data tariffs, a new area of focus this year. Nearly two-thirds (64%) said they would consider an all-you-can-eat option next time they change or upgrade their plan, including 80% of people aged between 18 and 34. This supports CCS Insight’s latest market forecast, which projects average data usage per customer per month hitting 20 GB in 2029.
Satellite connectivity is another hot topic in the industry and the subject of a recent CCS Insight Spotlight report. Encouragingly for the sector, more than four in 10 people said they would pay to send messages in areas with no mobile coverage. This figure rises to more than 70% among those aged under 35.
When exploring people’s views of the Vodafone–Three merger, the survey found that awareness of the ground-breaking deal — cleared by regulators last month — is already at 40%. And encouragingly for the joining parties, four times as many people think it’s a good thing as those who think it’s bad news.
Notes to Editors
The research was conducted in December 2024. CCS Insight surveyed 1,009 mobile phone users in the UK aged 16 and over, representative of the population by age, gender and region. When answering questions, people were asked to consider their primary mobile phone for personal use.
The survey focused on multiple areas, including where and how people buy mobile phones, willingness to take second-hand and refurbished devices, different ways to interact with telecom providers, views on annual price rises, the trend of online activities, use of trade-in and part-exchange schemes, unlimited data, opinions on AI, interest in accessory items, and knowledge of the Vodafone–Three merger.
More details of CCS Insight’s extensive research into mobile network operators and mobile phones can be found at: https://www.ccsinsight.com/research-areas/
About CCS Insight
CCS Insight is a global analyst company focusing on current and future trends in technology. The firm offers comprehensive services tailored to meet the individual needs of its clients, helping them make sense of the connected world and optimize their strategies. CCS Insight provides valuable insights and analysis to navigate the complex technology landscape. Follow @CCSInsight on X or learn more at www.ccsinsight.com.
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