Strategy Analytics: Only 1 in 5 smartphone users have purchased device insurance

199IT original compilation

Only one in five smartphone buyers choose to add device insurance. Therefore, there is huge room for growth for both traditional and emerging players. Strategy Analytics surveyed consumers in five markets, including Australia, Brazil, Germany, the UK and the US.

Smartphone insurance is largely untapped outside the United States.

The premium rate for smartphone insurance in the US is twice as high as in other countries. Apple iPhone devices have a higher share of the base. Outside the US, awareness of insurance options is significantly lower.

Germans are more likely to use insurance to repair their smartphones than to replace them.

Accelerated 5G sales, the emergence of foldable models and the ongoing imaging feature war will drive up retail ASPs and further encourage insurance investment.

One-third of prospective buyers want to buy insurance for their next smartphone, showing great upside potential. Brazilian online users are 20 percentage points more likely to buy insurance for their next smartphone. As expected, insurance acceptance is positively correlated with device price, with Apple users being the most likely to buy insurance, 7 points higher than Samsung users.

Xiaomi and Motorola users are the least likely to purchase insurance, but both companies expect strong growth for their next generation of smartphones.

One-third of users believe they do not need insurance because they are careful with their smartphones. Results vary by country and demographic.

However, the industry may be missing an important opportunity: One-third of the uninsured report that they either do not have insurance or are unaware of the benefits of insurance.

The insurance market for smartphones and the broader smart home products such as smart wearables and smart speakers remains relatively underdeveloped.

199IT.com Originally compiled from: Strategy Analytics. Please do not reprint without authorization