Device study 2010 The US results Presentation
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1 Device study 2010 The US results Presentation Ericsson ConsumerLAb Niklas rönnblom Ann-Charlotte Kornblad Stakeholders Kajsa Arvidsson (Networks) Patrick Westerlund (Networks)
2 For further information For more information or help with presentations please contact: Ericsson ConsumerLab Niklas Rönnblom Ann-Charlotte Kornblad mail: mail: or Business Unit Networks Kajsa Arvidsson Patrick Westerlund mail: mail: ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 2
3 Main findings
4 Main findings The app phone becomes mainstream Once an app phone never a traditional phone again The app phone shapes the demand for future devices The app phone triggers extensive internet usage The app phone blurs the line between private and work Positioning services are now a natural part of the phone experience Growing market for ipads and Tablet PCs Limited battery capacity restricts usage of services ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 4
5 From smartphone to app phone
6 The mobile phone is very personal What is your relationship with your mobile phone? My iphone is my baby. I got it almost two years ago and I don t remember what life was like without it! Ben, 28, NYC LIKE LIKE very much Love ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 6
7 Shaping of a new mind set The app phone Change in behavior, attitude and usage fun Easy to use quick intuitive useful My needs My interest Reflect who I am Both private and business Definition of an app phone Touch screen App-functionality The user define the content Please note that the term app phone is not used by the users themselves. ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 7
8 Usage of new devices Intensified competition among mid-sized screens? Mobile phone App-phone Laptop Desktop E-book Tablets Netbook ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 8 Ericsson Internal
9 Choosing what devices to use
10 the next device in line App phone 19% Laptop 16% Tablet computer Desktop computer 12% 13% Purchase decision Emotional & rational Netbook E-book Stationary game console Digital camera Digital video camera 6% 6% 4% 4% 3% ipad & Tablet PC Huge expectations on the ipad/tablet PC A threat to both the netbook and the e-book Digital Photo frame 3% GPS device 2% MP3 player 2% Portable game console 1% Portable Media Player 1% Other 2% None I can think of 6% 0% 10% 20% Base: All (US) ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 10
11 Different devices different roles Laptop/App phone Out and about App phone Planned Spontaneous Desktop/laptop Laptop/App phone At home The model illustrates how the preference for Internet devices varies depending on the circumstances ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 11
12 Factors influencing our choice What do you carry with you Proximity to the device The need for privacy Emotional attachment and user experience Time required to reach the content Mindset/mood Level of specialization Base: All (US) ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 12
13 Usage through out the day While commuting Synchronization and update Prepare and execute easy work tasks Get energized/in the right mood Out and about Minimize things to carry Planning and coordination In the morning Update and synchronization Planning and coordination Get energized/in the right mood At work Stay in touch throughout the day Planning and coordination Change of focus, small breaks At home in the evening Relaxation/entertainment Social interaction Planning and coordination ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 13
14 Device usage through out the day 100% Usage of each device through out the daily situations 80% 60% 40% 20% Android iphone Laptop Tablet computer MP3 player Portable game console Digital camera 0% At home in morning To/from school/work At school/work Out and about At home at night Device requirements Weekdays Focus on everyday coordination Personal devices Weekends Also including social consumption of media Large screens, quality Base: Users of each device (US) ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 14
15 Apps in all aspects of life
16 acquiring apps Apps are downloaded anywhere and at any time Download charts and friends spark ideas Downloading apps is rewarding in itself I got it maybe four months ago, and, you know, I always have it in my hand. I m on it all the time. Getting apps is just very addicting. It s like going shopping in your phone, but you don t pay for it, because it s free. Nikki, 31, NYC Limited willingness to pay for apps How often do you download new apps? 19% 31% 3% 20% 28% Daily Several times a week Several times a month Less often Never How many of the apps in the phone are paid for? 32% 15% 23% 30% None Less than half About half More than half Note: The result shows how many of the apps that are still kept on the phone that are paid for. Base: All (US) ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 16
17 Most have the same basic apps Differentiating APPs Sports/Fitness Entertainment/games Specific interests Lifestyle-defining Basic functions The fundamental APPs Social networks Public transport Maps and places News and weather ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 17
18 APPs in everyday life Staying part of the social loop Building image and appearance Managing everyday chores Improved mobile phone usage areas Engaging in anything at any time Instant access to know-how Structure and self-discipline Receiving inspiration/ideas Immediate updates on areas of interest New mobile phone usage areas Infinite entertainment/distraction ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 18
19 Internet in all aspects of life
20 increased internet usage The traditional approach: Selecting from a multitude of content Internet Explorer Facebook The app approach: Aiming directly at specific content Facebook Facebook Quick Easy Used in micro moments Have your total time spent on the internet changed since you got your app phone? Total 34% 37% 27% 2% Increased significantly Increased somew hat Didn t change 0% 20% 40% 60% 80% 100% Decreased somew hat or ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 20 Base: All (US)
21 Effects on everyday life Apps a crucial part of everyday life Habits and rituals are quickly established More extensive usage than expected ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 21
22 Payment
23 Payment Unrestricted Internet access is a prerequisite Unwillingness to go back to pay per use A switch to pay-per-use is likely to affect usage Roaming costs are incomprehensible Most of the users say that they are on fixed price plans Subscription chaos why pay for Internet several times? Mobile Fixed Internet + App phone + ipad 3G? Broadband + Base: All (US) ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 23
24 The battery issue
25 The battery issue How often do you charge your phone in relation to how often you consider it to be acceptable? 16% 61% 23% More often than acceptable As often as acceptable More seldom than acceptable 88% of the participants say that they change their phone usage when the battery is running low What would you stop using if the battery was low? Music Video Apps GPS Notifications WiFi Make calls Texting ReceiveCall Other None 3% 8% 16% 44% 41% 37% 30% 24% 23% 66% 64% 58% 0% 20% 40% 60% 80% Base: All (US) ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 25
26 New devices
27 the ipad & tablet PC The unique user experience is very appealing Difficult to predicting ones initial ipad usage The ipad is a great threat to both the e-book and the netbook I want to see what the latest gadgets are about. I guess the biggest issue for me is that there's no phone in the ipad. I can't slip my iphone in and hit an eject button or something. I think if they had that, then I'd probably get one. I like to have everything in one device Male, 27, NYC Compared to both the app phone and the laptop Mobile phone expectations Camera / Phone 3G/Internet at all times Super simple Instant access & mobile Laptop expectations Keyboard functionality Good screen Multiple sessions More powerful Note: This study was carried out just after the release of the ipad ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 27
28 Changing attitudes towards usage of services
29 Changing perceptions of positioningservices From GPS function a part of the phone No control Integrity-threatening To Positioning embedded in relevant apps In control Natural and relevant part of the apps Providing lots of benefits 64% claim they started/increased their usage of GPS services as a result of the app phone Three levels of integrity concerning LBS information 1 The service provider knows my location 2 Not anonymous but in control over location-info 3 No control (available for everyone) Base: Employed or self-employed app phone users (US) ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 29
30 Why is Over the top services such a big phenomena? Note: Over The Top services are services delivered through the operators network but managed and handled by another players than the operators, often on a proprietary platform. Some examples are: Spotify, Netflix and Skype Price Operator independent Larger selection Possible scenario Consumers no longer tolerate restrictions Operators will be forced to change Simplicity Platform independent Base: Employed or self-employed app phone users ConsumerLab Device study External Presentation Ericsson Internal 11:1408, Rev A Page 30
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