Smartfonestore.com, a leading reseller of premium mobile handsets, has announced the findings of a consumer survey* into attitudes toward smartphone use, insurance and costs. The consumer survey found that, while 50 percent of smartphone users are committed to a two-year contract with their operators, more than a third have had to replace their handset before an upgrade was due, with the majority of these being within the first six months. As 45 percent of consumers admitted to having no smartphone insurance, this study highlights the problems that can occur when devices are lost or damaged while still under contract.
The survey explored how consumers protect their smartphones, and how they mitigate the risk of being inconvenienced by loss of their device. Interestingly, of those consumers that have insured their mobiles, only a quarter are covered for accidental damage or loss – two of the most common grievances for smartphone owners. Unreasonable costs (40 percent) and doubt over ambiguous policy wording (20 percent) were the primary reasons for consumers opting out of smartphone insurance. However, when a replacement is needed, 82 percent of respondents feel that current offline prices – often in excess of £500 – are simply too high, and have to settle for a basic handset instead.
“There is no doubt that as a nation, we are well and truly addicted to our smartphones – the devices have become an integral part of our lives and many of us would feel lost without them,” said Olly Tagg, founder of Smartfonestore.com. “Given this dependence, it is surprising that so few consumers opt to purchase mobile insurance. They may feel that, given the relatively large investment of a two year contract, insurance costs would stretch budgets beyond their allowance. But when something goes wrong, the cost of replacement can quickly dwarf the original price of the insurance, which is why many people have to make do with inferior handset while still forking out for the expensive smartphone tariff. It is here that we identified the opportunity to offer high quality devices at second-hand prices.”
Indicating the depth of the current smartphone phenomenon, the survey also found that when buying a new phone, almost 60 percent of consumers prioritise handset model over price plan, mobile operator and contract length. The respondents also highlighted the discrepancies between advertised costs and actual monthly bills, for instance the average monthly cost as advertised by operators was approximately £25, whereas the average monthly bill was closer to £40 once additional calls, data and SMS were taken into account, with almost a fifth of respondents reporting monthly bills in excess of £60.
SmartFoneStore.com is a subsidiary of Corporate Mobile Recycling Ltd, which boasts more than ten years’ experience in the mobile phone industry and is environmentally accredited. With 80 percent of survey respondents finding 24 month contracts too long, SmartFoneStore.com offers an alternative to such contracts and enables consumers to have the freedom of the handset they want, together with the price plan that they choose. For example, consumers wanting to purchase a new iPhone currently face a costly long term contract or at least £599 when buying offline in the shop. With SmartFoneStore.com, the same phone is available for up to half the price and free from operator contract – in this respect, the company really is bringing the latest generation of smart devices to the masses. During the survey, 37 percent of consumers also admitted to fears over whether a used smartphone would work properly, but all products sold on SmartFoneStore.com are either fully refurbished or thoroughly tested, with a 60 day warranty – offering complete peace of mind.
“We wanted to offer a reliable outlet for businesses and consumers that are currently restricted to expensive tariff options, unreasonably long contracts or those that simply need a replacement smartphone – to prevent them having to turn to lesser known resellers, which can subsequently put them at risk,” continued Tagg. “The survey proves that price plan and operator come second to handset model for consumers. With that in mind, a top-end handset at a fraction of the ‘as new’ price, along with a cheaper SIM-only contract seems like the perfect marriage – particularly in the current economic climate where budgets are already stretched.”
Alongside the survey, and to further celebrate our smartphone addiction, SmartFoneStore.com ran a competition to establish the worst SMS faux pas that customers had ever experienced. Two of the best are listed below:
- Once I was on holiday in Portugal. I had to reply to text messages from a friend and my mum. I hit the wrong button and send the following to my mum: “Very hungover, wasted for 7 days on bounce. Copped off with lad last night, had to run through the streets in last night’s gear with make up running down my face to get to my surf lesson for 10 only to discover that the same guy was my instructor!” My mum then replied: “I do hope you are being careful.”
- I was meaning to text a friend, but accidently sent my boss a text which read: “Just pulled a sickie, so I can come along for a sunny day in Brighton with you after all!” The boss replied straight away with: “Enjoy Brighton and we need to talk tomorrow!’
* 1,000 consumers were surveyed in November 2011. The full findings can be found here:
http://www.johnsonking.com/library/Smartphone_survey-14_Dec_2011.pdfAccompanying photography can be downloaded here:
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