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Wireless & Mobile Landscape

U.S. Mobile Device Insurance Forecast, 2012-2017: A Market Driven by Smartphone Sales

As an increasing number of U.S. consumers purchase smartphones, as opposed to basic mobile handsets, they are becoming dependent on the advanced functionality, such as email, social networking, and web browsing. In order to protect their investment and ensure the continued availability of these services, more and more U.S. consumers are choosing to purchase insurance.

Most major cellular service providers offer insurance that covers loss, theft, accidental damage, and out of warranty malfunctions. This insurance is offered for an additional monthly fee, typically between $5 and $8 per device per month. Since most operators offer two levels of insurance, it is important to understand that iGR’s study addresses the insurance for lost, damaged or stolen devices and does not include the ‘enhanced’ packages that include data backup or support. Furthermore, the forecast only includes insurance sold by mobile operators and does not include insurance, such as Apple Care, sold directly by Apple or other OEMs.

This market study provides an overview of U.S. consumers’ adoption of insurance policies sold by their wireless/cellular service providers, including emerging trends regarding the likelihood to purchase insurance and how demographic variables relate to this likelihood to purchase insurance. The report also includes a 5-year forecast of the number of mobile phones and tablets sold with insurance and the total revenues of the mobile device insurance market.

The data in this report is based on a Web-based survey of 1,043 U.S. consumers that iGR fielded during March 2013.


Key Questions Answered

  • What is the forecasted size of the mobile device insurance market from now until 2017?
  • What trends are emerging regarding consumers’ purchase of device insurance?
  • What percentage of subscribers have recently purchased damage, theft and loss insurance through the mobile operators?
  • What is the average price of device insurance, by cellular carrier?
  • What is the tendency by type of mobile phone, primary use of phone, and the respondents’ gender, marital status, and geographic region to purchase device insurance?
  • How do the operating system and the brand of planned smartphone purchases relate to U.S. consumers’ plans to purchase mobile device insurance?

Who Should Read

  • Insurance companies offering mobile device insurance services
  • Mobile operators
  • Device OEMs
  • Financial analysts and investors.

Table of Contents

  • Abstract
  • Executive Summary
    • Trends in Consumer Mobile Insurance
    • Mobile Insurance Market Forecast Methodology
  • Methodology
  • Consumer Mobile Insurance
    • Price of Insurance
    • Trends Regarding Purchases of Mobile Phones with Insurance
    • Trends Regarding Planned Purchases of Insurance
  • Demographic Variables on Recent Purchasers of Insurance
    • Insurance and Gender
    • Insurance and Marital Status
    • Insurance and Region
    • Insurance and Primary Use of Phone
    • Insurance and Type of Device
  • Demographic Variables on Planned Purchases of Insurance
    • Planned Purchase of Insurance and Operating System
    • Planned Purchase of Insurance and Brand of Phone
  • U.S. Mobile Device Insurance Forecast, 2012-2017
    • Handsets and smartphones Sales
    • Tablet Sales
    • Connected Handsets
    • Mobile Device Insurance Revenues
  • Consumer Demographics
    • Demographic Profile of U.S. Consumer Respondents
  • Definitions
    • General
    • Device Types
    • Services
    • Network Technology
  • About iGR
    • Disclaimer

List of Tables

  • Table 1: Service Providers’ Price of insurance
  • Table 2: Percent of Recent Mobile Phone Purchases with Insurance
  • Table 3: Plans to Purchase Insurance on Next Mobile Phone
  • Table 4: Insurance Purchased in Last 60 Days by Gender (indexed)
  • Table 5: Insurance Purchased in Last 60 Days by Marital Status (indexed)
  • Table 6: Insurance Purchased in Last 60 Days by Region (indexed)
  • Table 7: Insurance Purchased in Last 60 Days by Primary Use (indexed)
  • Table 8: Insurance Purchased in Last 60 Days by Type of Device (indexed)
  • Table 9: Planned Insurance Purchase by Operating System (indexed)
  • Table 10: Planned Insurance Purchase by Brand of Phone (indexed)
  • Table 11: U.S. Handset and Smartphone Sales, 2012 - 2017
  • Table 12: Percent of U.S. Handsets and Smartphones sold with insurance, 2012 - 2017
  • Table 13: U.S. Handsets and Smartphones sold with insurance, 2012 - 2017
  • Table 14: Total tablets sold in the U.S. and those with insurance, 2012 – 2017
  • Table 15: U.S. Connected Handsets and those with device insurance, 2012 – 2017
  • Table 16: U.S. Mobile device insurance revenues, 2012 – 2017
  • Table 17: Respondent Age
  • Table 18: Respondent Gender
  • Table 19: Respondent Ethnic Background
  • Table 20: Respondent Annual Household Income
  • Table 21: Respondent Level of Education
  • Table 22: Age of Children in Household
  • Table 23: Respondent Region
  • Table 24: Respondent Marital Status

List of Charts and figures

  • Figure A: of Recent Mobile Phone Purchases with Insurance, 2012 vs. 2013
  • Figure B: Types of Recent Mobile Phone Purchases, 2012 vs. 2013
  • Figure C: Percent of U.S. Handsets and Smartphones sold with insurance, 2012 - 2017
  • Figure D: U.S. Handsets and Smartphones sold with insurance, 2012 - 2017
  • Figure E: Tablets sold in the U.S. with insurance, 2012 - 2017
  • Figure F: U.S. Mobile device insurance revenues, 2012 – 2017 ($M)
  • Figure 1: Service Providers’ Price of insurance
  • Figure 2: Percent of Recent Mobile Phone Purchases with Insurance
  • Figure 3: Plans to Purchase Insurance on Next Mobile Phone
  • Figure 4: Insurance Purchased in Last 60 Days by Gender (indexed)
  • Figure 5: Insurance Purchased in Last 60 Days by Marital Status (indexed)
  • Figure 6: Insurance Purchased in Last 60 Days by Region (indexed)
  • Figure 7: Insurance Purchased in Last 60 Days by Primary Use (indexed)
  • Figure 8: Insurance Purchased in Last 60 Days by Type of Device (indexed)
  • Figure 9: Planned Insurance Purchase by Operating System (indexed)
  • Figure 10: Planned Insurance Purchase by Brand of Phone (indexed)
  • Figure 11: U.S. Handset and Smartphone Sales, 2012 - 2017
  • Figure 12: Percent of U.S. Handsets and Smartphones sold with insurance, 2012 - 2017
  • Figure 13: U.S. Handsets and Smartphones sold with insurance, 2012 - 2017
  • Figure 14: Total tablets sold in the U.S. and those with insurance, 2012 – 2017
  • Figure 15: U.S. Connected Handsets and those with device insurance, 2012 – 2017
  • Figure 16: U.S. Mobile device insurance revenues, 2012 – 2017
  • Figure 17: Respondent Age
  • Figure 18: Respondent Gender
  • Figure 19: Respondent Ethnic Background
  • Figure 20: Respondent Annual Household Income
  • Figure 21: Respondent Level of Education
  • Figure 22: Age of Children in Household
  • Figure 23: Respondent Region
  • Figure 24: Respondent Marital Status

For additional information on the U.S. Mobile Device Insurance Forecast, 2012-2017 market research report, please contact Iain Gillott, at (512) 263-5682 or by email.