A MetaFacts TUPdate by Dan Ness, Principal Analyst

Ink refill usage is substantial, especially among some leading-edge market segments.

There’s an old marketing adage about giving away the razor to make it up selling razor blades. In the PC printer business, printer ink pays a lot of the bills, yet is increasingly at risk.

In our most recent wave of Technology User Profile, American adults told us they continue to prefer original ink versus compatible or refilled cartridges. However, the ink loyalty rate varies by PC printer brand and market segment. One bellwether segment is decidedly using refills or sharing photos online.

We started this analysis by first looking at the answers from 8,175 U.S. respondents in the Technology User Profile service and then drilled down further into their profiles including factors such as their printer brand, type of ink used, years of PC experience, and age. We also compared usage from our prior waves, including results from our identical surveys across nine other countries.

In U.S. homes, original is strongest. Kodak & Lexmark have the highest ink loyalty, at 81% and 79%, respectively. Eight in ten adults who use these PC printer brands as their primary printer used an original ink cartridge by the same manufacturer as the printer.

Ink Type by Printer Brand

HP’s ink loyalty rate is not the strongest, with HP ranked third. HP is maintaining its strength: its ink loyalty rate at 73% is slightly up from 70% the prior year.

These high ink loyalty rates may be satisfactory enough for some printer manufacturers, yet as consumers change their printing behaviors, and even non-printing behaviors, these rates are likely to change as well.

Use of refilled ink is highest for Dell and Brother, both with 27% of adult printer users. Due to HP’s dominant market share, the number of users of refills for HP printers is almost equal to users of refills for all other brands combined.

The refilled market is broad and diverse, so unlikely to change overnight. It it served by a diverse group – spanning drug stores such as Walgreens, franchises like Cartridge World, to a small army of entrepreneurs and do-it-yourselfers with pliers and squeeze bottles.

Direct competition is strong, although compatible inks trail refills as the least-preferred option across most brands. Use of competitive compatible inks is highest for Epson and Brother, at 19% and 18%, respectively.

Compared with many other developed countries, the U.S. has some of the most ink-loyal consumers. Our prior wave of Technology User Profile across key countries revealed that ink loyalty rates are strongest in Japan and the US and weakest in Germany and the UK, and that use of refills is highest in South Korea and Germany.

Home Photo Printing - Ink & Options

Looking ahead, the ink business continues to face challenges both from within the printer and ink industry as well as from substitutes.

Printer manufacturers hoping to reclaim refill customers face an uphill battle beyond pricing, since a higher rate of refill users share photos online and a lower rate print photos. Adults who use refills have higher rates of using online photo-sharing services, sharing images across a social network, sharing on their own websites or blogs, and sharing folders online through a cloud storage service. They are an attractive segment, though, because when they print, they print at higher volumes.

To the extent that younger users are bellwether of future buyers, it’s important to note that younger adults use refills at a higher rate than older adults.

Looking further ahead, increased online collaboration is expected to continue the erosion of home-printing photos. Of the 70.9 million adults with a home printer which they don’t use to print photos, most of their sharing is done online. The greatest upside is likely to come from the broad general increase in images from user’s own smartphones, feature phones and cameras, as well as the many photos they receive online from friends and others.

Source

The results in this TUPdate are drawn from the MetaFacts Technology User Profile Survey. Results specific to this topic can be obtained through a customized report and analysis. The MetaFacts Technology User Profile Overview Edition report is available immediately on www.metafactsstore.com, which covers the broader range of key trends. View findings in 25 pages of executive summary analysis, 200+ pages of charts and graphs, all supported by 95+ pages of detailed tables. The complete, 300+ page report is delivered to you electronically. This edition is for the U.S. based on the 2010 wave of Technology User Profile gathered among a scrupulously selected set of representative respondents, surveyed both online and offline.

To see other research coverage of Internet products and activities – from smartphones to feature phones, desktops to notebooks, social networking, demographics, and attitudes – see the many other questions TUP answers on www.technologyuser.com. Tech market research professionals who want a solid resource they can use immediately after industry events such as mergers, or even use prior to anticipated events, can license direct access to TUP.

About TUPdates

MetaFacts releases ongoing research on the market shifts and profiles for Smartphones, Netbooks, Mobile PCs, Workplace PCs, Home PCs, Web Creators, Broadband, and many other technology industry trends and facts. These TUPdates are short analytical articles in a series of specific topics utilizing the Technology User Profile Annual Edition study, which reveals the changing patterns of technology adoption around the world. Interested technology professionals can sign up at www.metafacts.com for complimentary TUPdates – periodic snapshots of technology markets.

About MetaFacts

MetaFacts, Inc. is a market research firm focusing exclusively on the technology industries. MetaFacts’ Technology User Profile (TUP) survey is the longest-running, large-scale comprehensive study of its kind, conducted continuously since 1983, the year before Apple released the Apple Macintosh. The detailed results are a primary market sizing and segmentation resource for leading companies providing consumer-oriented technology products and services, such as PCs, printers, software applications, peripherals, consumer electronics, mobile computing, and related services and products. TUP analyzes key trends and the data-rich source can be dived into more deeply for custom analysis. For more information about the syndicated research service, analysis tools, publications and datasets, contact MetaFacts at 1-760-635-4300.

The market for changing technologies is always in flux, and mobile PCs are not exception to the rule. It’s important to know your market, and know it well–is the coffee-shop CEO the leader of the mobile PC pack, or is it the high-school gamer?

Oftentimes the original die-hards for a product are no longer its current audience.  Strong research on changing demographics brings the new market to the forefront.

Below are a few examples of questions addressed in TUP related to the mobile PC market. The full TUP service enables drilling down beyond the answers to these questions to identify which other technologies, services and behaviors are disruptive and to profile which market segments are and aren’t adopting. TUP is much more than a one-dimensional market view or opinion piece, since it provide solid answers to the following questions as well as many others.

• What do most people do with their mobile phone as compared to their PC? Which align with which platforms?
• Netbooks – how soon and with which market segments?
• Are mobile computers used longer or shorter than desktops? If so, what’s the difference, and who uses them longest?
• Primacy – what is the center of the user’s world? Their home PC, work PC, mobile phone? Is it one device or many?
• How are smartphones challenging mobile PCs? Which market segments are coalescing around which platforms?
• How does PC and online usage vary cross segments such as workplace company size or industry?
• Most-mobile customers – where do they go and what do they do?
• How much have PC users integrated PCs into their personal lives?
• How has the division of work vs. personal use of technology products continued to blur?
• Who’s busiest – desktop users or notebook users? How do their profiles differ?
• Used/Refurbished PCs – who buys them?
• Who is buying the highest-end PCs? Are there brand differences? What else do users buy and what else do they use?
• What are the leading PC brands among Hewlett Packard printer users?  How does this differ for the other major printer vendors?
• How have PC/Online & Mobile Phone activities changed? How might this affect apps?
• What channels do people use for buying PCs? How about printers and printer supplies?
• Age-related market adoption – which products and services are age-skewed? Which are skewed toward older rather than younger users?
• Do PC users behave differently as they gain more experience? Are Newbies or Vets mostly focusing on certain activities versus a broad mixture?
• How does the life and lifespan of a PC vary by form factor? Does it vary by brand? By user segment?
• Which industry groups have varied levels of adoption?
• Do users find their PCs to be more useful or less useful? Which users are the most practically-oriented?
• Who is using mobile payments?
• What is the impact on privacy in use of social networking?
• How is HP’s PC penetration within the overall HP footprint?
• Birth order = brand order? Does top brand have similar draw cross-countries?
• Who is videoconferencing, and using which platform?
• Netbooks – are they replacing notebooks? Stalling smartphones? Withering?
• Which segments are keeping their files, calendars, or other information synchronized or backed up online?
• Do game players bring their gaming with them into the workplace? To what extent? Which market segment does this the most?
• Which operating systems dominate within which segments?
• What are the overall future trends for the Internet?
• iPhone users – who are they really? How do they compare with Android, Windows and Blackberry users?
• What’s typically bundled with a PC?
• Are PC users primarily accessing the Internet at home, in the workplace, using friends or neighbor’s computers, or in public places such as libraries or cybercafés? Which users use other’s PCs and which have many to choose from? Are smartphones or netbooks changing this?
• When do you grow up and give up on your Apple? When do get one again, if you do?
• Which PC brands dominate the PC market? How does this vary within brand segment?
• How many screens do people view? Which market segments view more screens than other segments?
• How much is assisted navigation part of life – and on which platform?
• To what extent have Dell and Lexmark penetrated the printer market? Which segments have they penetrated?
• What is Hewlett Packard’s share among Dell computer owners and Dell or Lexmark printer owners and has this changed?
• How prominent is printing images from mobile phones?
• How do consumer attitudes about purchasing technology differ between Apple, Hewlett Packard and Dell customers?
• Entertainment primacy – what is the center of the user’s home entertainment world? Is it one device or many? Which devices and services, and among which segments?
• What is the mix of communication products and services – landline, wireless, email, IM, etc. – by segment?
• Which tech buyers focus more on retail than shopping online and vice versa?
• How are users communicating, given all their communication options?
• What do users sync or store in the cloud? How does this differ between mobile phones and PCs? How do users share images – social networking sites or photo-specific sites? Which users are the most active?
• Multitasking – who’s using lots of devices for lots of apps, few devices many apps, etc.?
• Which segments are utilizing the cloud? For which activities?
• Is it really one to a customer? How often are PCs shared? Which market segments use more than one PC?
• Which segments are using which devices & carriers?  For which activities?
• What other activities are just outside the box for gamers? Online dating? Social Networking? Music? Movies? Entertainment in general?
• How does Hewlett Packard’s market share differ between the different types of printers (inkjet, multifunction, laser, etc.)?
• What other items (printers, software, monitors/displays, extended service plan, etc.) do people typically buy with their PC purchase?
• Which market segments are renting movies? Are they renting DVDs at a retailer, by mail, or at a kiosk? Do they watch them online?
• What’s the likely near-term outcome for an OS upgrade?
• Which segments are the most music-intensive? What is the overlap of music-centered products and services by segment?
• Which activities are different for dial-up than broadband? What’s driving bandwidth needs?
• Are Apple’s best customers really unique?
• What happens to old PCs? Are they dumped? Recycled? Sold? Which segments dispose in which way?
• Which market segments are dating online? What else do they frequently do online?
• How many and which segments are watching and renting movies on which platforms?
• How social-network active are the various tiers of gamers?
• Special printer paper? Who uses it and what for? Is it only photos, or something else?
• Who are the true early adopters and laggards? How does this vary by actual usage of specific products and technologies?
• What makes a smartphone a smartphone in the consumer’s eyes? How does usage compare to basic mobile phones? What are the user segments?
• Is the smartphone killing PC shopping?
• Which social networking sites are used most frequently by which segments?
• What are consumers planning to buy? (in consumer electronics, connected home, computers, Internet, etc.)
• To what extent does game-playing drive online usage specifically and tech usage overall?
• Which segments have recently paid for a downloaded mobile phone app?
• Tech adoption cycles may not be as fast as the tech-focused think. How many and which users still use film cameras?
• How many people use calendars on their PC, their mobile phone, or both? Which types of people are these?
• Navigation, online maps, location-based mobile phone services, and GPS – who’s getting directions?
• How do ad volumes affect usage?
• Which market segments are blogging? How do they compare to social networkers?
• How tech-sophisticated are game-players, within key gaming segments?
• How do online shopping activities differ between Hewlett Packard, Apple and Dell customers?
• Is social networking only for certain age groups?
• How many seniors are online? How is their behavior different than younger online users?
• What is the tech-owning profile of active gamers? High-bandwidth or dial-up? Many consumer electronics entertainment products or focused on gaming? Many computers or few? How does this vary by segment?

If solid answers any of these questions would help your work in creating the future, please contact MetaFacts.

MetaFacts, Inc. helps technology marketers find and measure their best and future customers.

Current subscribers of  Technology User Profile may obtain this information directly from MetaFacts, as well as additional customized drilling down into the full dataset.

For more information on the results delivered in TUP and about how to subscribe, please contact MetaFacts.

The above questions are answered with the TUP 2010 edition, and even more questions are answered in the TUP 2011 edition.

Both smartphone and basic feature phones today are much more than a phone.  At least, they can be.  With all the capabilities of the modern mobile device, it can be difficult to discern what exactly which consumers are after which capabilities, and what they ultimately use.  Do they use their phone for the texting, for the web, or as a PDA?  As a camera or a gaming tool?  Or do they use it mostly as a traditional telephone?  These questions beg for extensive answers that only careful, detailed market research can provide.

Below are a few examples of questions addressed in TUP related to mobile phones. The full TUP service enables drilling down beyond the answers to these questions to identify which other technologies, services and behaviors are disruptive and to profile which market segments are and aren’t adopting. TUP is much more than a one-dimensional market view or opinion piece, since it provides answers to these and many other key questions.

• iPhone users – who are they really? How do they compare with Android, Windows and Blackberry users?
• How do the market segments of mobile phone platforms vary?
• How are smartphones challenging mobile PCs? Which market segments are coalescing around which platforms?
• What makes a smartphone a smartphone in the consumer’s eyes? How does usage compare to basic mobile phones? What are the user segments?
• Which segments have recently paid for a downloaded mobile phone app?
• Which smartphone OS is leading, and with which market segments?
• Who is using mobile payments?
• Which segments are the most music-intensive? What is the overlap of music-centered products and services by segment?
• How have PC/Online & Mobile Phone activities changed? How might this affect apps?
• What is the mix of communication products and services – landline, wireless, email, IM, etc. – by segment?
• How many and which segments are watching and renting movies on which platforms?
• What is the impact on privacy in use of social networking?
• Most-mobile customers – where do they go and what do they do?
• Who is videoconferencing, and using which platform?
• What do most people do with their mobile phone as compared to their PC? Which align with which platforms?
• Is email dying because of ads? Being replaced by alternatives such as social networking, texting, or IM?
• Are Apple’s best customers really unique?
• Who are the true early adopters and laggards? How does this vary by actual usage of specific products and technologies?
• Is the smartphone killing PC shopping?
• Which segments are using which devices & carriers? For which activities?
• What’s the expected market demand for a Google Droid – Verizon – Motorola trio?
• How much have PC users integrated PCs into their personal lives?
• Multitasking – who’s using lots of devices for lots of apps, few devices many apps, etc.?
• Have game-players been the first to adopt new products such as the Apple iPhone? Or, are they generally later adopters?
• What is surprisingly strong “killer app” on both basic mobile phones and smartphones?
• How are users communicating, given all their communication options?
• How do Verizon’s subscribers compare to AT&T’s?
• How prominent is Home PC renting versus outright purchase?
• How prominent is printing images from mobile phones?
• Netbooks – are they replacing notebooks? Stalling smartphones? Withering?
• Are mobile computers used longer or shorter than desktops? If so, what’s the difference, and who uses them longest?
• What about the anti-social – those that aren’t in an online social network? Who are they?
• Primacy – what is the center of the user’s world? Their home PC, work PC, mobile phone? Is it one device or many?
• Age-related market adoption – which products and services are age-skewed? Which are skewed toward older rather than younger users?
• To what extent does game-playing drive online usage specifically and tech usage overall?
• How many screens do people view? Which market segments view more screens than other segments?
• How strong is name-brand dominance?
• How social-network active are the various tiers of gamers?
• Which social networking sites are used most frequently by which segments?
• Do PC users behave differently as they gain more experience? Are Newbies or Vets mostly focusing on certain activities versus a broad mixture?
• What do users sync or “store” in the cloud? How does this differ between mobile phones and PCs? How do users share images – social networking sites or photo-specific sites? Which users are the most active?
• Which market segments are dating online? What else do they frequently do online?
• Which market segments are renting movies? Are they renting DVDs at a retailer, by mail, or at a kiosk? Do they watch them online?
• What about the unemployed? Are they more or are they less tech-focused?
• How many seniors are online? How is their behavior different than younger online users?
• How tech-sophisticated are game-players, within key gaming segments?
• Entertainment primacy – what is the center of the user’s home entertainment world? Is it one device or many? Which devices and services, and among which segments?
• Which industry groups have varied levels of adoption?
• In reality, how deeply has the Apple iPod penetrated the market, and into which market segments?
• Which segments are keeping their files, calendars, or other information synchronized or backed up online?
• Which tech buyers focus more on retail than shopping online and vice versa?
• Is social networking only for certain age groups?
• How has the division of work vs. personal use of technology products continued to blur?
• How much of the game-playing population is older versus younger?
• Special printer paper? Who uses it and what for? Is it only photos, or something else?
• Online shoppers – are they everyone, or unique?
• How many people use calendars on their PC, their mobile phone, or both? Which types of people are these?
• How much is assisted navigation part of life – and on which platform?
• What is the tech-owning profile of active gamers? High-bandwidth or dial-up? Many consumer electronics entertainment products or focused on gaming? Many computers or few? How does this vary by segment?
  What are consumers planning to buy? (in consumer electronics, connected home, computers, Internet, etc.)
• Do game players bring their gaming with them into the workplace? To what extent? Which market segment does this the most?
• Tech adoption cycles may not be as fast as the tech-focused think. How many and which users still use film cameras?
• Navigation, online maps, location-based mobile phone services, and GPS – who’s getting directions?
• What are the overall future trends for the Internet?
• How are users incorporating digital images, through the use of digital cameras, scanners, downloading images, as well as how are they producing output?
• Are PC users primarily accessing the Internet at home, in the workplace, using friends or neighbor’s computers, or in public places such as libraries or cybercafés? Which users use other’s PCs and which have many to choose from? Are smartphones or netbooks changing this?
• Netbooks – how soon and with which market segments?
• What other activities are just outside the box for gamers? Online dating? Social Networking? Music? Movies? Entertainment in general?
• Who’s busiest – desktop users or notebook users? How do their profiles differ?
• Which market segments are blogging? How do they compare to social networkers?

If solid answers any of these questions would help your work in creating the future, please contact MetaFacts.

MetaFacts, Inc. helps technology marketers find and measure their best and future customers.

Current subscribers of Technology User Profile may obtain this information directly from MetaFacts, as well as additional customized drilling down into the full dataset.

For more information on the results delivered in TUP and about how to subscribe, please contact MetaFacts.

The above questions are answered with the TUP 2010 edition, and even more questions are answered in the TUP 2011 edition.

Dell, which enjoyed increased share in the first half of 2008, has a higher share of the older installed base – acquired in 2006 and earlier. Dell’s share of the installed base of mobile PCs acquired in the first half of 2008 is over one-third (34%), up slightly from its 31% share of actively-used mobile PCs acquired in 2007. This is sharply down from Dell’s 39% share of mobile PCs acquired in 2006, itself down from the previous year.

HP, on the other hand, has a higher share of recently acquired mobile PCs than in prior years. In fact, HP has an increasing share for each of the last two years of mobile PC acquisitions. Nearly a quarter (23%) of mobile PCs acquired in the first half of 2008 were HP-branded, up markedly from the one-sixth (17%) acquired in 2007, and up again from the 14% share of those acquired in 2006.

Apple’s share of the installed base varies by only one or two percentage points for any given year of acquisition. Part of this share reflects the high pass-along rate of Apple computers to others as used/refurbished computers.

PC makers that have a larger total share of the installed base have a smaller relative focus on mobility. Dell and HP, the market leaders, have less than one third of their installed base made up of mobiles, at 31% and 28%, respectively.

Apple has been a persistent genius in leading market perception. Watch a Hollywood movie, and if a computer is being shown, chances are good that Apple’s product placement experts will have made sure the Apple logo or product is prominent.

Similarly, Apple has a higher share among computers being used in public places, which might lead a casual café observer to expect Apple is the dominant brand. Nearly twice as many Apple Home PCs are used in public places than Windows Home PCs. This is due in part to the larger share of Apple Home PCs that are mobile than Windows PCs. Taking this into account, Apple’s share of public mobile Home PCs is 14%, much higher than Apple’s 8% share of mobile Home PCs. Also, Apple’s notebook users are more mobile than Windows notebook & tablet users, using their mobile computers regularly in 4.0 locations on average, compared with 2.8 locations for Windows mobile PC users.

Locations Where Apple and Non-Apple Home Computers are Used - Apple Profile Report 2008

However, just because a higher share of Apple’s computers are used in public places, it doesn’t mean that Apple has the dominant share of public or notebook PCs. In cybercafés and coffee shops, Apple ranks number two with 18% of the installed base of Home PCs being used in these locations.

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