Category Archives: Basic cell phones

Generational Wealth – in Tech Devices [TUPdate]

Millennials may be getting bad press for lagging in real estate and financial investments, but they’re well invested in tech devices. Millennials use the largest number of connected devices per capita, including more than the next-younger generation – GenZ. PCs are the major device for all generations, while tablets have tumbled in usage among younger adults.

This TUPdate shares a top-level view into generational differences – in their use of technology devices, and their financial net worth and assets. The results are based on TUP/Technology User Profile waves from 2014 through 2019 in the US, and the US Government’s Survey of Consumer Finances along with estimates from the Federal Reserve Bank. The US Federal Reserve Bank made headlines earlier this year when they released the latest DFA – Distribution of Financial Accounts.

GenZ settling down faster? Or Millennials hanging on?

Each successive generation has been using more devices than the one older, however that’s recently changed. When the first members of the GenZ generation (born 1997 and after) turned 18 in 2015, their average number of devices was the highest ever seen by any generation – 5.8 on average.

Since 2015, GenZ has bucked the trend of their elders by reducing their tech device usage faster than those slightly older. Beginning in 2017, GenZ use fewer devices than Millennials. It’s not only that GenZ reduced use, but also that Millennials are continuing to use more than most. From 2014 through 2019, American Millennials have used 20% more devices than the average American.

Overall drop in number of devices used

The year 2015 marked a turning point for connected devices in the US, as the national average number of devices in regular use by adults began consolidation. In 2015, online Americans used an average of 4.5 devices – smartphones, tablets, PCs, and game consoles. This has declined steadily each year with the current average in 2019 being 3.8.

This widespread reduction is due to many reasons. One major factor in consolidation is what people do with their devices. Although cross-platform and browser-based apps have been available for some time, we’re seeing users stretch beyond their habitually favored devices to slowly but steadily extend activities across more than single devices. With growth in spreading activities across devices, this in turn reduces the need to use as many. For example, while in the past many would primarily use a home desktop PC for online banking, a growing number have moved their banking to their tablets or smartphones. (For more details on these shifts, please see Smartphones Rise, PCs and Printers Float, Tablets Waver – User Trends)

PC reigns as essential

PCs continue as a bedrock device for all generations. However, they are a smaller share among GenZ than among older generations. 36% of the connected devices GenZ use are PCs, and this share rises with each generation, reaching almost half (46%) of connected devices used by the Silent and earlier generations. Smartphones are a solid second device among all generations and make up between 25% to 30% of devices in active use. Game consoles rank highest among GenZ and Millennials, versus tablets for older generations. And to the extent basic cell phones are being used by anyone, they are most firmly in the hands of the oldest generation.

Tablets recede among GenZ while elders get smarter

In 2015, the mix of devices by generation was like 2019 in most respects, with several crucial differences. Among GenZ, tablets were stronger and have since then faded to be replaced by wider PC use. The Boomer generation has nearly let go of their basic cell phones and moved to smartphones. Game consoles were just as youth-oriented in 2015 as in 2019 and are continuing in active use even as each generation ages.

American Millennial Tech Wealth

Most connected devices are in the hands of Millennials. 37% of total connected devices – mobile phones, PCs, tablets, and game consoles – are in the hands of millennials – American adults born between 1981 to 1996. This is far above the tech holdings of GenX and Boomer generations.

The share of devices nationally for Millennials and Gen Xers has not shifted significantly over the last five years. The share of tech devices among Boomers, meanwhile, has dropped. Some of this reduction is due to boomers leaving the workforce, and so no longer using employer-provided PCs.

Boomers and GenX are nearer to each other in size, as both are shrinking and yielding to younger generations.

Consumer Durables by generation

Looking more broadly beyond tech devices shows a similar but more delayed pattern. As Federal Government economists measure consumer durables, tech devices are only a fraction. Millennials show a growing share of American consumer durables as their numbers grow, but a much smaller share than their share of tech devices. Also, Baby Boomers and Silent and Earlier have a relatively larger share of consumer durables than tech devices.

Millennials are showing stronger and growing participation in the economy. Their share of consumer durables is still smaller than other generations. However, its growth is on par. Despite having higher debt levels than other generational groups, Millennials are continuing to buy tech and durable products.

The Federal Reserve Bank develops this information from the ongoing Survey of Consumer Finances (SCF) and Financial Accounts of the United States. (Note: The Fed does not yet include GenZ in this data.)

Net Financial Wealth by Generation

In one the most widely cited measures from the Fed’s results, net financial wealth, Millennials have the lowest financial net worth. Millennials, defined as Americans born between 1981 and 1996, have less net financial net wealth than any other generation. Net worth accounts for the value of assets above liabilities.

Looking ahead
Just as economic mobility doesn’t shift quickly, neither do habits around technology usage nor buying. Looking ahead, I expect Millennials to continue to lead in number of tech devices used and GenZ to have slightly less. As to device types, game consoles will continue to skew younger and are unlikely to reach much of a larger share of user’s devices than today’s levels. PCs will continue to be the major device among older adults, although falling out of top usage among GenZ somewhat.

About this TUPdate

The analysis in this TUPdate is based on results drawn from multiple waves of TUP (Technology User Profile), including the 2019 edition which is TUP’s 37th continuous wave. This survey-based study details the use of technology products by a carefully-selected and weighted set of respondents drawn to represent online adults.

Resources
Current TUP subscribers may request the supporting TUP information used for this analysis or for even deeper analysis. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

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Filed under Basic cell phones, Demographics & Econographics, Desktops, Devices, Market Research, Mobile Phones, Multiple Devices, Notebooks, Smartphones, Tablets, TUP 2019, TUPdate

Alone Americans – Overlooked Technology Users? [TUPdate]

Sometimes the slow-moving trends are the ones that get missed. Coupled with preconceived notions, these have the makings of blind spots. For many tech companies, single-person American households may be an overlooked market segment.

Based on research by the U.S. Census and our TUP/Technology User Profile service, 1-person American households are a sizable and growing segment with more to them than may be apparent at first. Also, they are not created equally, especially in which technology products and services they actively use.

Tech marketers often advertise with images of bustling families juggling their lives and devices. Soccer moms abound. This perpetuates a myth that’s leaving many out in the less connected and underserved cold. Furthermore, many companies from Amazon to Spotify and T-Mobile have created family plans that financially favor multi-person households, making their offerings less attractive to the many 1-person households.

While it makes sense for any marketers to focus on the biggest-seeming opportunities, and families are big tech consumers, sometimes this is done out of habit or custom, which may mean missing opportunities.

The number of single-person households has grown in share and number

The US Census reports that single-person households make up 28% of households in 2018, up substantially up from 13% in 1960. Similarly, the number of households has also grown, at 35.7 million in 2018, up from 6.9 million in 1960. Whether through preference or necessity, 1-person households are a substantial slice of the American market. Most forecasts indicate the share remaining stable for years to come.

On First Glance, 1-Person Households Seem Tech-Avoidant

When it comes to the devices Americans in 1-person households use, our TUP/Technology User Profile service shows that as a group, they’re behind the curve. American 1-person households appear to be languishing in technology’s past. They are 27% more likely than the average online American adult to still be using a home PC using Windows 7, the Microsoft operating systems nearing its end of life. The replacement for Windows Vista officially came off Microsoft’s mainstream support four years ago – in January 2015. Extended support has been available, yet that support is scheduled to be discontinued in less than one year, by January 2020. Also, 1-person households are well above average (22% higher than average) in their use of a home-owned basic feature phone.

In contrast, American households where children are present have well above-average rates of using many key devices – Windows tablets, game consoles, and Apple Notebooks. This simple view may clarify why some companies prefer to simply tailor their products and services to larger households and avoid smaller ones.

However, looking more deeply into 1-person households, there’s more than household size and core technology that reveals their differences.

A Deeper Look – Young and Old Singles

Within 1-person households, there’s a striking difference between younger and older adults in the profile of their technology usage. The highest usage index for Windows 7 home PCs is among older (age 35+) singles, at 48% higher than the national average. Similarly, there’s an index of 131 for use of a home-owned basic feature phone.

In stark contrast, among younger 1-person households, usage is strongly higher for many key technology devices: game consoles, Apple iPhones, Apple PCs (Macs), Apple notebooks, and Windows tablets.

However, age alone does not adequately describe 1-person households and their technology usage, nor does combining age and household size. There are yet other factors.

Size, Age, and Employment Status

Drilling down into the TUP/Technology User Profile results even more deeply, the combination of household size, age group, and employment status shows even stronger differences.

Have a job – part-time or full-time or even self-employed – and be younger than 40, and you’ll be among the highest technology adopters among 1-person households.

They are above average in using a Windows or Android Tablet, an Apple PC, iPhone, and game console.

The lowest technology adopters are those not employed outside the household and in 1-person households, both younger and older. These have the highest relative levels of using Windows 7 home PCs and home basic cell phones.

Family Plans Aren’t Only Used by Families

Interestingly, even while family/multi-person plans are ostensibly targeted at larger households, a substantial number of 1-person households are using them.

Nearly one-fourth (24%) of 1-person households have a smartphone plan with 2 or more lines. Similarly, “family” paid media subscriptions such as for music or TV are being used by 18% of America adults in 1-person households.

Looking ahead

Shifts in population may seem glacial especially by those in technology industries who are accustomed to frequent shifts. People change their living situations less quickly than they change their adoption of technology. Consequently, technology companies would be better served, as would 1-person households, to the extent these users are included in their offerings.

About this TUPdate

The analysis in this TUPdate is based on results drawn from the 2018 wave of TUP (Technology User Profile), which is TUP’s 36th continuous wave. This survey-based study details the use of technology products by a carefully-selected and weighted set of respondents drawn to represent online adults.

Resources
Current TUP subscribers may request the supporting TUP information used for this analysis or for even deeper analysis. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

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Filed under Basic cell phones, Consumer research, Demographics & Econographics, Households, Market Research, Market Segmentation, Market Sizing, Notebooks, Smartphones, Tablets, TUP 2018, Usage Patterns

How central and vital are home PCs? [TUPdate]

Home PCs users are very active, yet they don’t only stay at home on their computers. They use a wide variety of other connected devices. The majority of home PC users (82% to 95%) also use a mobile phone. Of these, smartphones dominate. It may some surprise those steeped in technology that basic cell phones/feature phones persist in the hands of many – from 9% to 28% of home PC users.

These findings are based on results from our TUP/Technology User Profile 2018 survey, including 11,294 online adult home PC users.

Active home users

Home PC users spend more time with their home PCs than with other devices. In China, smartphone use us nearly at parity. Among home PC users in China, weekly hours using a PC are 33.2, only slightly more than the 32.5-hour average for smartphone use. By contrast, in the UK and Germany, home PC users spend nearly the same amount of time with their home PCs as do users in the other countries surveyed. However, in these countries, users spend far fewer hours with their smartphones. Across all countries surveyed, Tablets are a distant third place, being used for a third to a quarter as many hours as home PCs.

Looking ahead

I expect home PCs to continue as a solid staple among the majority of consumers. Although an increasing number of users are relying on their mobile phones for a growing range of regular activities, users prefer home PCs over smartphones or tablets for certain activities. Both thoughtful shopping and movie watching are helped with the clearer and larger images on bigger screens, such as those attached to traditional home desktops or integrated with all-in-one designs.

The biggest threat to home PCs usage is user’s willingness to shift their activities from one device type or ecosystem to another. Users are showing their growing acceptance of and demand for cross-platform applications while still expressing their incessant demands for convenience and simplicity. As users continue to increase their literacy and comfort with multiple ecosystems, and developers continue to streamline the multi-device/multi-OS experience, users will continue to follow the enticing cookies of compatibility through the forest of interoperability and may yet give up on their home PCs. Meanwhile, user inertia and habit are the greatest friends of the home PC.

About this TUPdate

The analysis in this TUPdate is based on results drawn from the most-recent wave of TUP (Technology User Profile), the 2018 edition which is TUP’s 36th continuous wave. This survey-based study details the use of technology products by a carefully-selected and weighted set of respondents drawn to represent online adults. This specific wave spanned the US, UK, Germany, India, and China. In the TUP survey, we identified the connected devices being actively used, from those acquired with home/personal funds to those that are owned by employers, schools, or others. From these, we selected adults who are using at least one home PC.

Resources
Current TUP subscribers may request the supporting TUP information used for this analysis or for even deeper analysis. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

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Filed under Basic cell phones, Consumer research, Desktops, Entertainment, Market Research, Mobile Phones, Multiple Devices, Notebooks, Shopping, Tablets, TUP 2018, TUPdate

Working Women Worldwide Have Broad Technology Usage (TUPdate)

Women in nearly every employment role are using a broad mixture of technology devices, from PCs to Smartphones, Printers, and Tablets. The strongest users of connected devices are among women employed in marketing, information technology, and finance or accounting roles.
This is based on the results of the multinational TUP/Technology User Profile 2018 survey, with 3,824 online female adults employed outside the home in the US, UK, Germany, China, and India.

About this TUPdate
The analysis in this TUPdate is based on results drawn from the most-recent wave of TUP (Technology User Profile), the 2018 edition which is TUP’s 36th continuous wave. This survey-based study details the use of technology products by a carefully-selected and weighted set of respondents drawn to represent online adults. This specific wave spanned the US, UK, Germany, India, and China, and this TUPdate focused on the U.S.

Resources
Current TUP subscribers may request the supporting TUP information used for this analysis or for even deeper analysis. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

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Filed under Basic cell phones, Consumer research, Demographics & Econographics, Desktops, Market Research, Multiple Devices, Notebooks, Printers, Smartphones, TUP 2018, TUPdate

Retro to the future? Turntable players as predictors (TUPdate)

Vinyl turntables?! Windows XP?! Basic cell phones?!

Is it true that users of older technology are uninterested in new technology? We tested that hypothesis using several indicators, and found that this stereotype is partly true, and partly not true. We’ve found an interesting group that spans the old and the new, and who are distinct from those who match the laggard stereotype.

Users of older technology are a substantial part of the marketplace. While some slog along with what they have, others eagerly anticipate and even create the future. More pedestrian ones hold on to what they have because they aren’t seeing the value in new technology products and services, or don’t have the means or motivation to do so.

Based on our most research results, from the MetaFacts Technology User Profile (TUP) 2018 wave, 18% of online adults globally use a basic feature phone and 4% use a turntable to play vinyl records. This is based on our balanced survey of 14,273 adults actively online using any PC, mobile phone, tablet, or game console.

Many types of older products are also in everyday use. One in eight (12%) of the primary PC being used by adults was acquired in 2013, two years before Windows 10 was released to the public. One in twelve online adults (8%) are using a printer as old, and one in sixteen (6%) are using a tablet also from 2013 or earlier.

Old-school isn’t necessarily old, as vinyl record turntables have toyed with a resurgence over the last decade. They’ve recently withered into usage by only one in twenty-five (4%) online adults.

However, this small and stalwart group has substantially broader and more ambitious technology purchase plans than most online adults, and certainly more than those who simply hang on to old PCs, tablets, or printers.

Turntable users are 3.5 times as likely, or more, to be planning to purchase a 3D printer, home projector, or portable Wi-Fi hotspot. They also stand out for their strong interest in Google Android/Chrome devices – whether a Chromebook, Chrome desktop, or for a Wi-Fi Android tablet. They also have the highest intentions to purchase an Apple iPod Touch, the almost-iPhone quietly targeted as a music or social communication device.

These same technology products have lured the interest of another group – basic feature phone users – although to a lesser extent. These simple cellphone users have above-average intentions for each of these same products.

Does these mean that the future for 3D printers and Chromebooks are only among these small segments? No, it’s that innovation and openness attracts other segments besides the newest-technology crowd.

In fact, the desires and intentions of these music-loving, vinyl-spinning innovation and novelty seekers run circles around the average online adult.

About this TUPdate

This TUPdate includes a complimentary brief summary of recent MetaFacts TUP (Technology User Profile) research results. These results are based on results of the MetaFacts Technology User Profile 2018 survey, its 36th consecutive wave. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

Resources

Current TUP subscribers may request the supporting TUP information used for this analysis or for even deeper analysis.

 

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Filed under 3D Printers, Basic cell phones, Consumer research, Tablets, TUP 2018, TUPdate