Apple’s iPhone is dominating the market in Japan. To explore what is underlying, we investigated the user profiles and reasons for continuous use through a survey online. The survey was conducted among general smartphone users nationwide in Japan, using Nikkei Research's panel. A total of 1,623 responses were collected.
iPhone’s market share in Japan is extremely high, it accounts for up to nearly half. Comparing with other competitors, Xperia and AQUOS, 27% of iPhone users say they would “definitely choose the same product brand” the next time (Figure 1). It is clearly shown that they have higher intentions to repeat which indicating there are many hooked-up fans.
Figure 1. Likeliness to choose the same product brand by current product brand
Why do people like iPhones so much? To investigate, we took the open-ended answers from the survey and ran an analysis using NLP (Natural Language Processing) techniques for extracting the features.
By dividing the iPhone users into three groups, based on their intentions toward continuous use, the differences among them were revealed.
| Segments | Reason to purchase again / Good points |
Bad points |
|---|---|---|
| Loyal user | ・Easy to transfer data ・Syncing with iPad and MacBook ・Unlikely to malfunction ・Been using it for a long-time |
・Not matching my hand size |
| General user | ・Familiar using it ・Laborsome, for getting used to the new one when switching |
・Needs recharging (short battery life) ・Frequent OS updates |
| Potential Churners | ・Many people use it, makes it easy to ask something | ・High price |
We took iPhone “Loyal” users as people who would “definitely choose iPhone” the next time. Most of them mentioned the “easiness of data transfer”. In addition, “reliability of unlikely to malfunction” and "syncing with iPad and MacBook” were also widely appreciated. It indicates that Loyal users are fans of Apple’s product in general, and they take full advantage of Apple's ecosystem.
On the other hand, some respondents were dissatisfied with the size, not matched to their hands. They seem to be not welcoming the iPhone going bigger.
Table 1. Feature words of iPhone Loyal users from the responses to open-ended questions
| Rank | Features of characteristic |
|---|---|
| 1 | Reason to purchase again = Easy |
| 2 | Reason to purchase again = Transfer |
| 3 | Reason to purchase again = Reliable |
| 4 | Reason to purchase again = Smartphone |
| 5 | Reason to purchase again = Long Time |
| 6 | Place of Use - Current Smartphone = XXX is good (better) |
| 7 | Good points - Current Smartphone = Malfunction |
| 8 | Good points - Current Smartphone = Synching |
| 9 | Bad points - Current Smartphone = Hand |
| 10 | Reason to purchase again = Data |
We defined “General” iPhone users as those who would “probably choose iPhone” the next time. When thinking of switching from their long-time “familiar” iPhone, they think it’s too “laborsome” to have to re-learn “how to use”. They are people who are not willing to pay the learning cost.
To the current iPhone they use, there were complaints about the “recharging (short battery life)” and “frequent updates”.
Table 2. Feature words of iPhone General users from the responses to open-ended questions
| Rank | Features of characteristic |
|---|---|
| 1 | Reason to purchase again = Familiar in using |
| 2 | Reason to purchase again = Usability |
| 3 | Reason to purchase again = Laborsome |
| 4 | Reason to purchase again = Current |
| 5 | Reason to purchase again = Get used to |
| 6 | Reason to purchase again = Easy to |
| 7 | Reason to purchase again = Change |
| 8 | Bad points - Current Smartphone = Recharging |
| 9 | Bad points - Current Smartphone = Frequent |
| 10 | Reason to purchase again = Usage |
“Potential Churners” are those who said they are "undecided" or "would not choose iPhone" the next time. They seem to be picky, thinking about the cost performance whether if it is worth the "high price". They would be "considering" carefully for the next time they "replace" their iPhone.
Table 3. Feature words of Potential Churners from the responses to open-ended questions
| Rank | Features of characteristic |
|---|---|
| 1 | Reason to purchase again = Price |
| 2 | Reason to purchase again = Become |
| 3 | Reason to purchase again = High |
| 4 | Reason to purchase again = Probably would... |
| 5 | Reason to purchase again = Purchase |
| 6 | Reason to purchase again = Cheap |
| 7 | Reason to purchase again = Replace |
| 8 | Reason to purchase again = Feel |
| 9 | Reason to purchase again = Consider |
| 10 | Reason to purchase again = Understand |
The iPhone SE was introduced as (1) a low price and (2) a relatively small size compared to the recent series. The size may satisfy Loyal users who are not welcoming big models. The price may attract everyone but it will presumably affect the Potential Churners, especially.
We are all in the midst of adopting the new normal.
“How would the consumers’ purchase behavior of smartphones change?” -- this will be an interesting topic to see how it would come out.