Mobile Phones in Denmark

TRENDS

Smartphones saw a more stable performance in 2017 as retail volume sales saw only a very marginal decrease. This development was tied to the absence of compelling reasons for consumers to upgrade their models ahead of their usual replacement cycles. Smartphone models were constantly relaunched with incremental improvements, without offering something truly novel or innovative. Thus, consumers did not break established replacement cycles due to the absence of new model offering a new departure or experience. For example, the feature phone Nokia 3310 was introduced in late May 2017. The relaunch was informed by the consumer desire for a digital detox and an appeal to nostalgia and simplicity. Nevertheless, the launch is viewed as a fun complement to existing smartphone ownership rather than as a replacement.

COMPETITIVE LANDSCAPE

DORO (Doro) remained the leading player in feature phones with a 50% share of retail volume sales in 2017, despite a significant drop in share. The company has successfully targeted the elderly demographic, which demands simple, easy-to-use mobile phones. Other mobile phone manufacturers largely directed their attention to smartphones. However, Microsoft Danmark saw dynamic retail volume growth in feature phones following the relaunch of the Nokia 3310 model. As a result, the company’s retail volume share increased by 20 percentage points in 2017 to reach 32%.

PROSPECTS

Smartphones has reached the maturity stage of its product life cycle in Denmark and register volume sales decline is expected over the forecast period. To counteract this, manufacturers will need to develop truly innovative upgrades to compel consumers to replace their existing models. This is especially important in the context of emerging product groups within consumer electronics, such as smart wearables. Without a compelling reason to replace and upgrade, consumers may prefer to purchase smart wearables as opposed to a new smartphone.

Files are delivered directly into your account within a few minutes of purchase.