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Samsung – American Customer Profile – TUPdate

Samsung has a strong number-two market position in the US, especially with smartphones, and has a distinctive customer profile from market leader Apple. This is based on our MetaFacts TUP/Technology User Profile 2019 survey and prior waves.

Samsung for the not-so-young

Samsung’s penetration is strongest among age 35-54, mostly spanning Generation X. One third or more of online adults this age are using at least one Samsung connected device: a phone, tablet, or PC. Of these devices, Samsung’s smartphones are in the most solid position. More than one in four online Americans use a Samsung smartphone, with Samsung’s highest penetration by age group at 28% of online Americans age 45 to 54.

Marketing penetration of Samsung’s tablets and PCs are among less than one in 10 Americans.

Samsung missing the young Americans

Samsung’s smartphones have yet to attract or dominate the most youthful American adults, which is Apple’s strongest suit. Where 39% of Apple’s iPhones are in the hands of American adults age 18 to 34, only 30% of Samsung’s are. Samsung is below the total national average in this respect, too, which is 35%.

Samsung for the not-so-busy

Samsung’s market penetration for its smartphones has declined among Americans using the greatest number of connected devices. Between 2018 and 2019, Samsung’s share dropped by 3 or more percentage points among users with 2, 3, 4, or 6 connected devices (phones, PCs, tablets, or game consoles). The only segment where Samsung gained is among those few Americans who only use one connected device.

Samsung’s Strong, Yet Sagging Share

Samsung has lost ground between 2017 and 2019, with its overall market penetration dropping or staying flat for its phones, tablets, and PCs. In the US, Samsung’s overall penetration has shrunk to 30% in 2019 and 34% in 2018 to 33% in 2017. The largest decline was in Samsung’s tablet penetration, which dropped nearly in half, from 11% in 2018 to 6% in 2019. This is due in part to Apple’s dominant market position with iPads. It is also a general retrenchment for tablets during a period when consumers have reduced the breadth of their tech device collection.

Samsung’s overall decline has been similar in China. In Germany, however, Samsung has effectively maintained its leading position.

Not Only Handsets

Smartphone subscribers choose more than a handset brand, also selecting their carrier. Verizon currently has the largest number of American subscribers, with 30% of online adults using a smartphone connected by Verizon with any smartphone brand. Verizon is followed by AT&T with 24%, T-Mobile with 13%, and Sprint with 8%. Among all these US major carriers, Apple’s iPhones dominate among their subscribers. Samsung is in a strong number-two position. Samsung’s share is three-fourths of Apple’s share with T-Mobile, one-half of Apple’s share on Verizon and Sprint, and one-third on AT&T.

Looking ahead

As the deployment of 5G makes its shaky rollout across the US, handset makers and carriers alike will need to tread lightly and deliberately. Those emphasizing 5G connections for subscribers without ample supporting coverage will lead to disappointment. On the other hand, those not incorporating 5G into their handsets run the risk of customers churning to other brands or carriers.

Samsung’s recent (February 2020) release of S20, S20+, and S20 Ultra smartphones emphasized their cameras and ability to capture and share high-resolution images and videos. However, users without a higher-speed connection or unlimited data plan are likely to have difficulty fully enjoying these capabilities. These phones include a MicroSD card slot, which will help address this issue to some degree.

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.

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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 Desktops, Devices, Mobile Phones, Smartphones, Tablets, TUP 2019, TUPdate

The Second Life of Home PCs – TUPdate

Home PCs enjoy a longer life than in the hands of their original owners, as many are ultimately enjoyed by someone else. This is more strongly true in developed countries than in developing ones.

For each of the last five years, one in 9 home PCs in the U.S. active installed base were used/refurbished home PCs. In the UK and Germany, the rate has been similar. In three major developing countries – China, India, and Brazil – the rate is much lower. This is based on the most recent five waves of MetaFacts TUP/Technology User Profile, from 2015 through 2019, developed through surveys of 11,625 respondents in 2019 and similar sample sizes in other waves.

Home PC reuse rates like other tech devices

Home PCs aren’t the only used/refurbished tech devices in active use. Across the US, China, and especially Germany, basic cell phones/feature phones have a high share acquired from a prior user. At a similar rate to home PCs, 11% of US basic cell phones in active use are used/refurbished. In Germany, this rate is one in six, the highest rate among these countries. The lower rate (8%) in China can be attributed in part to the more recent adoption of smartphones as a user’s first mobile phone, so there are fewer feature phones available for reuse.

Tablets

Compared to home PCs, tablets have a lower rate of being used/refurbished. For Android tablets, one issue has reduced longevity – newer operating system versions and older versions and devices not being supported for long. Some tablet manufacturers have maintained a short service life, making used Android tablets less useful to a potential new owner. Apple has taken a different approach, extending the life of older iPads with an operating system that spans a wide range. Even with the latest version, iOS 13, released in 2019, Apple released a new fork for iPads named iPadOS which is backward compatible through earlier iPads such as iPad Air 2 (released in 2014).

Smartphones

Smartphones have lower reuse rates than home PCs, tablets, or basic feature phones. This is due to several factors. From the customer demand perspective, many smartphone users crave newer models, as manufacturers continue to innovate and entice customers to upgrade. Also, as carriers continue to update their networks, some older equipment is retired or deprecated, making affected mobile phones less useful.

Who uses the used?

There’s a strong economic factor at play dividing users of new and used/refurbished technology devices. The highest rate of used/refurbished home PC use is among currently unemployed Americans. In the US, this rate is 20% of the home PCs in active used by the unemployed. The used/refurbished home PC rate is also strong among homemakers and part-time employees. Unlike the unemployed, homemakers, or even part-time employees, a higher-than-average share of full-time employees use their home PCs for work-related activities, from creating presentations to being involved in group chats, web-based group meetings, and video calls.

Whose Home PCs lasts the longest?

The use of used/refurbished home PCs appears to be more related to country and culture than to the specific brand.

Dell has the highest rate of used/refurbished home PCs actively used by American adults, representing 12% of the Dell home installed base. Acer’s rate closely follows with 11%, and HP’s and Lenovo’s rates are 10%. In Germany, Dell also ranks highest, matching Lenovo, each with 14%. In China, the overall reuse rates do not vary strongly by brand.

Looking ahead

It’s unlikely we’ll see major changes in the way PC makers offer refurbished home PCs. For most manufactures, programs have been in place for years mostly to manage overstock and asset recovery of returned PCs, and less to spur demand among consumers for more used/refurbished home PCs. Apple is exceptional, in that it offers trade-in value for a wide range of their products, from iPhones and iPads to Macs. This is a prominent part of their positioning as being an environmentally aware technology maker.

Consumer demand is unlikely to change quickly. Consumers will continue to find a new home for their home PCs as they buy additional ones, either within their own families, neighborhoods, or friends.

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 Desktops, Market Research, Mobile Phones, Notebooks, Smartphones, Tablets, TUP 2019, TUPdate

Who Are The Tablet-First Pioneers? [TUPdate]

Will Tablets go mainstream, so much so that they’re the first device consumers reach for? A persistent yet small group of Americans use their Tablet more than a smartphone or PC. Are the rest missing something? Might this edge group grow?

Over the last five years, the share of connected adults using a tablet as their primary device grew and then shrunk.

This is based on results from five years of our TUP/Technology User Profile study, each wave with over 7,500 representative respondents in the US.

In our 2014 wave of TUP, we found that 5.6% of adults were using a tablet as their primary device – before a PC, mobile phone, or game console. In TUP 2016, the tablet-first rate had grown to 9.3%, or one in 11 online adults. By TUP 2018, this dropped to 7.5%, or nearer to one in 13 online adults.

What other devices do they use?

Tablet-first users may choose to first use their Tablet, yet most have other devices to choose from. Nearly two-thirds of tablet-first users (62%) regularly use a PC, and almost three-fourths (74%) regularly use a Smartphone. They have other mobile devices, such as a Notebook (35%) or Desktop (47%).

Growing Tablet Reliance Among the Stalwart Tablet-First

Most tablet-first users have more devices than their tablet – 94% have 2 or more. Seventy-five percent have 3 or more connected devices they regularly use.

Over the last three years, this number has shrunk somewhat. While in 2016 tablet-first users used an average of 4.3 connected devices, this number has dropped to 3.8.

What are these tablet-first tablets being used for?

Tablet-first users fully enjoy them. The users of Tablets as their primary device are busy with their tablets, checking email, shopping, having fun, and social networking. Over half of adults using a tablet as their primary device regularly use it for a wide range of activities. While checking personal email ranks at the top, shopping is nearly as strong.

What’s notably absent from the list of major activities are more-intensive productivity or graphical activities such as creating presentations. Most of the activities so far are more passive than actively creative.

That may seem odd to Apple-watchers, since much of the iPad’s advertising and development has featured the Apple Pencil for drawing and sketching, as well as creative video apps. Samsung has similarly touted their S-Pen for their Galaxy Tabs. It looks like the installed base hasn’t quite caught the creative bug, since these are relatively recent additions and emphases. Or, more likely, it’s harder to inspire the less-creative to start creating than it is to attract creative types.

Looking ahead

I don’t expect the tablet-first segment to grow beyond being a small group. Size is a key dimension affecting the future of tablets. As smartphones get larger, tablets will continue to be affected. The largest smartphones are encroaching on the size of the smallest tablets. Also, as companies such as Apple position tablets as computers, and those like HP and Dell create 2-in-1 and convertible designs, there’s likely to be further user confusion.

Tablet-first users are functioning well with a broad collection of devices, so it seems unlikely that one single device will capture their hearts and fingers.

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.

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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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Digital Publication Readership – To Be Saved by Apple News+? [TUPdate]

Magazine and newspaper writers envision a world of digitally-connected readers hanging on their every word. Despite the ubiquity of connected devices, from smartphones and PCs to tablets, that’s not currently the case. Fewer than half of online adults regularly read a magazine, newspaper, or periodical using any one of these connected devices. Also, while Apple’s customers are more active digital readers than most, Apple’s News+ service is being launched into a chilling headwind. This is based on results from our TUP/Technology User Profile survey of 14,273 adults across five countries.

Only in India and China do the majority of online adults regularly use any of their devices to read periodicals. In the US, UK, and Germany, this rate is nearer to four-tenths of online adults.

Active readers are appearing to favor convenience over multi-device accessibility. Across the countries surveyed, nearly two-thirds of active digital readers do so with whichever of their devices is their primary device.

Also, it’s not as if even active readers do their reading across multiple types of devices. Instead, the net number of active readers is close to the sum of readers using their PC, tablet, or smartphone.

No single device stands out universally as the digital publication reading favorite. PCs are a favored reading device in the US, UK, and Germany. In China and India, slightly more choose smartphones over PCs.

The image of magazine readers sprawling on their couches, kicking back with their iPads to catch up on a beautifully graphical long read, only represents a small part of the market. Tablet news-reading is only done by a few. Across the five countries surveyed, only around one in ten online adults use a tablet for such reading.

Part of this single preferred-device approach may be due to the inconsistencies between publications across platforms. While some publications design for a large-screen experience, others aim for the smaller screens of a smartphone. Yet others haven’t seemed to do much aiming or development, seemingly settling with exporting PDFs of their printed pages.

Using connected devices to read subscriptions has sagged in the last year. Across all the countries surveyed, regular readership rates have dropped. The reduction has been most pronounced in India and China, dropping from 85% of online adults to 71% in India, and 65% to 53% in China.

Service such as Apple’s recently announced Apple News + may help to change that. Making subscribing easier through a simplified app and bundled price may just raise the number of active digital readers, if not also subscription rates. Because Apple’s service was launched to only run on an iOS or MacOS devices, this a subset of the entire market. However, this subset is sizable. As of mid-2018, TUP finds that Apple has 100.3 million adults in the US actively are using an iPhone, iPad, or Mac, which is 46% of all online US adults. This rate is similar among online adults in China (50%), and lower in the UK (44%), India (35%), and Germany (23%).

Apple’s customers are above-active readers. Among Apple’s customers, there is a higher rate of actively reading digital publications than among the general population. Half (50%) of users of any Apple iOS or MacOS device (iPhone, iPad, or Mac) in the US regularly use a connected device to read digital publications. Across the UK, Germany, China, and India, the pattern is the same: more of Apple’s users are active digital readers.

Looking ahead

Services like Apple News+ will likely be good for Apple and moreover good for Apple’s customers. Since Apple’s customers are already above-average readers, we expect subscriptions to be strong. In addition to the revenue flow to Apple and publishers, it could help deepen the connection and loyalty Apple’s users have with its other offerings – services and devices alike.

On first glance, services like Apple News+ may not seem attractive to publishers. If they view their TAM as only around half to a quarter of online users (Apple’s current foot print is 50% in China, 46% in the US, 44% in the UK, 35% in India, and 23% in Germany) this might seem like a glass-half-empty approach. Were Apple enable Apple News+ to more platforms beyond iOS and MacOS, the next-largest active-reader platforms are Windows PCs and Android smartphones. While this would likely entice more publishers, it might threaten Apple’s exclusive experience within its platforms. Also, for these platforms, Apple may need to make extra efforts to fulfill its promise of subscriber privacy.

However, to the extent publishers consider such a service as bonus readership, this may entice them and others to join. Apple’s customer base continues to have a higher than average socioeconomic profile.

And, as Apple continues to roll out additional subscription services such as movies and TV, many customers will likely expand and deepen their connections and loyalty to Apple. Also, we expect more readers to return to reading as they discover the digital experience to be more enjoyable and straightforward.

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 desktop tower PCs, to all-in-one, notebook, and convertible PC form factors, to tablets, smartphones and basic feature phones. For the four devices used most often, we asked respondents to choose from among 71 activities that they do most regularly with each device.

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 Behaviors and Activities, Desktops, Entertainment, Information and Search, Notebooks, Smartphones, Tablets, Trends, TUP 2018, TUPdate