US tech and telco – trends and insights roundup for 2024
The tech and telco landscape in the United States continues to evolve as the year ends, reflecting a mix of innovation, shifting consumer priorities, and persistent challenges. This article dives deep into the trends shaping consumer behavior in mobile networks, artificial intelligence, virtual reality, and beyond.
AI integration – Divided opinions and emerging opportunities
Artificial intelligence continues to reshape consumer technology, but opinions on its integration remain divided. Two in five Americans report a more negative view of AI tools than they had a year ago (40%), and over half are uncomfortable relying on AI for tasks. Privacy and data security concerns persist, with 72% expressing apprehension about AI-enabled wearables.
In creative fields such as music, half of Gen Z Americans express interest in AI-enhanced music compositions (49%), though concerns about originality, employment impacts, and ethical implications remain top of mind. Young adults also lead in adopting AI-powered applications. From image generation to personalized workout plans, the 18-34 age group consistently shows higher interest than older demographics.
In the mental health space, AI chatbots are gaining recognition for their accessibility and anonymity. However, privacy concerns and skepticism about the emotional depth of AI-driven interactions limit widespread adoption. Eight in 10 Americans prefer AI mental health tools to be integrated into existing services rather than functioning as standalone platforms (80%), reflecting a desire for human oversight alongside technological convenience.
Virtual reality and VR headsets
As major players like Apple enter the VR and spatial computing market, consumer interest in virtual reality is growing. Gaming remains the primary driver, with nearly half of Americans seeing VR as a tool to enhance the experience (48%). Other applications, such as virtual tourism (32%) and immersive movie-watching (30%), also show potential, though productivity-related uses like virtual meetings (10%) have yet to capture widespread interest.
Affordability (47%), battery life (45%), and screen resolution (43%) are the top considerations for consumers evaluating VR headsets. With price sensitivity evident — 25% of Americans are only willing to spend $250 or less.
The rise of MVNOs
Mobile Virtual Network Operators (MVNOs) have garnered increased attention from American consumers, with nearly three in ten considering a switch from traditional providers (29%). The primary driver? Cost savings. For those interested, affordability is the most compelling reason (50%), followed by flexible contracts (45%) and positive customer reviews (33%). Specialized services, such as data-intensive plans for streaming and international calling options (32%), are also gaining traction.
However, network reliability remains a significant concern for those hesitant to switch (43%). Some 55% trust their current providers as reasons to stay put. For MVNOs to capture a larger share of the market, addressing these pain points will be critical.
Consumer interest in buying foldable cell phones
Foldable smartphones are capturing the imagination of younger consumers, with 83% of those aged 18-29 expressing interest. Key features driving their appeal include long battery life (75%), durability (67%), and high-quality displays (66%). However, concerns about cost (53%) and the longevity of foldable screens deter consumers, with 56% citing durability and screen damage as a barrier.
The market for foldable devices holds promise, but manufacturers will need to address these concerns to broaden their appeal beyond tech-savvy younger demographics.
Cell phone recycling schemes – A missed opportunity
Despite efforts by mobile networks to promote device recycling schemes, consumer participation remains alarmingly low. Only 9% of Americans have engaged with these programs, largely due to a lack of awareness. A third of Americans reported not knowing enough about these initiatives (33%), while others cited preferences for gifting old devices to friends or family (17%).
When should kids have smartphones?
When it comes to children and smartphones, opinions remain divided. A small minority of parents believe children under nine should have access to smartphones (6%), while a larger group suggests waiting until the teenage years, with ages 15 (12%) and 16 (14%) being the most common recommendations.
Concerns about the negative influence of smartphones on children persist. Half of Americans view smartphones as a negative force (49%), though parents express slightly more optimism, with 27% seeing the devices as having a positive impact (vs. 43% feeling negative).
Cracked screens and consumer habits
Cracked phone screens are a common reality for American consumers, with over a third opting to continue using their devices despite the damage (34%). Others seek immediate professional repairs (30%), while a smaller group relies on warranty or insurance options (13%).
Younger consumers are more likely to persist with cracked screens (38%), while older adults show a higher inclination to replace damaged devices entirely (11%). The relatively low adoption of phone insurance reflects a gap in consumer education and product accessibility.
The road ahead
As 2024 concludes, the tech and telco sectors reveal a landscape of innovation tempered by consumer caution. From the rise of foldable phones and VR headsets to the complexities of AI integration, companies must navigate evolving expectations, address privacy concerns, and deliver value-driven solutions. The road ahead promises to be as challenging as it is transformative, with consumer trust and adaptability at the heart of success.