Tuesday, August 24, 2010

Tablet Buyers Are Early Adopters: What Does That Mean Now, and for Future Sales?


U.S. online consumers who own or intend to buy iPads and other tablets fit a typical early-adopter profile, and their characteristics have implications for product strategists designing tablets to compete with the iPad, says Forrester Research analyst Sarah Rotman Epps.

They own multiple PCs and connected devices; they’re voracious media consumers; and they have an affinity for other Apple products but aren’t exclusively “Apple-ites.”

On average, consumers who own or intend to buy an iPad (“iPad buyers”) have 3.6 PCs at home, compared with three PCs for consumers who own or intend to buy a tablet (“tablet buyers”) and 2.3 for all US online consumers, says Rotman Epps.

All of that is important for manufacturers who want to enter the market now. What remains unclear is how characteristics might need to be modified to appeal to the greater mass of "typical" users who are not early adopters, may not own so many other devices, and arguably will be less willing to spend as much money on a tablet.

Of particular note is the rate of netbook ownership: 24 percent of iPad buyers already own a netbook, compared with 16 percent of tablet buyers and eight percent of all U.S. online consumers.

Potential iPad buyers also live in an ecosystem of connected devices, she says.  A whopping 69 percent of iPad buyers and 57 percentof tablet buyers also own a latest-generation game console,  compared with 37 percent of all US online consumers. Also, iPad buyers are four times as likely as U.S. online consumers to own a connected TV (nine percent, compared to two percent).

Some 24 percent of iPad buyers own wireless speakers compared to six percent of other U.S. online consumers.

Also,  iPad and tablet buyers are more likely to store data in the cloud.  Some 33 percent of iPad buyers say they store files in their email inbox and 12 percent say they use an online storage service. About 24 percent of all online users say they store files in their email inbox and four percent say they use an online storage service.

Tablet buyers really care about media as well. Compared with all U.S. online consumers, they are more likely to use every type of media. In addition, they spend more hours consuming all types of media than all US online consumers do, with the exception of offline TV.

These characteristics have obvious implicaions for would-be tablet manufacturers.

Tablets don’t have to, and shouldn’t, recreate the complexity of the PC. Curated computing experiences
that are simple and streamlined, seem both possible and desirable.

Better media experience and tablets optimized for enterprise use also suggest design avenues.  Perhaps there are ways to provide a better media experience or are designed for business use. Specialized devices aimed at children also are conceivable.

Also, other devices and peripherals might assume new importance as complementary to tablets. For example, consumers who own tablets will still need computers with keyboards, bigger screens, and more processing power, but they may not need the portability of a laptop anymore, so desktops could see some renewed interest if marketed correctly, says Rotman Epps. They’ll also need printers and other peripherals that “talk” to tablets.

It is pretty clear where demand is right now. The bigger question, over the longer term, is how tablet characteristics might have to be modified to appeal to most consumers who are not early adopters.

Chomp Launches, Provides iPhone App Search

Chomp's new iPhone app provides an app search function for iPhone apps, including a recommendation engine.

Monday, August 23, 2010

Broadband Access, Video and Mobility Drive Consumer Market

The residential services market is in rapid transition, Infonetics Research says. The decline of traditional fixed-line voice service and the rise of broadband access, video, and mobile data is speeding up.

PC-based mobile broadband subscribers will surpass all other types of Internet access subscribers by 2013. If telecom operators aren't able to provide competitive mobile services, they will be at a significant disadvantage.

Now that residential voice and Internet services are no longer tied to a physical household, operators can (and should) customize services for individual members of a household and compete on a nationwide basis versus a specific fixed territory,” advises Diane Myers, directing analyst.

The residential services market in North America, which comprises voice, video, and Internet access services, held steady during the economic downturn, maintaining $240 billion in 2009.

Service provider revenue from voice services (including VoIP and mobile voice) decreased five percent in 2009, while broadband access revenue increased five percent and video service revenue increased six percent.

Infonetics Research forecasts the North American residential voice, video and Internet access services market to grow to $271 billion by 2014.

Broadband access is the true growth engine for residential services, with annual revenue for North American service providers expected to grow at a 13 percent compound annual growth rate from 2009 to 2014, driven by both fixed and mobile broadband solutions.

In 2009, 70 percent of all North American voice subscribers were mobile; by 2014, that number will grow as an increasing number of consumers go mobile-only.

Samsung "Epic" Debuts

Michael Mandel Suggests a Moratorium on New FCC Broadband Regulations

Michael Mandel,founder of Visible Economy LLC, a New York-based news and education company, and a contributor for the Progressive Policy Institute, argues for a two-year moratorium on any new federal regulations on the broadband industry,including new regulation of ISPs.

"Whether or not you think that such a move is a good idea, such regulations are unlikely to boost investment or employment in the telecom industry, at a time when we need all the capital spending and jobs that we can get," he says. "For that reason, I suggest a two-year pause in new broadband regulation, keeping the current balance among the different players, which seems to be generating growth."

Nobody Knows Which Carrier Will Get iPHone Next in U.S. Market

Nobody yet knows which U.S. carrier will get the right to sell Apple's iPhone next, in 2011. There is logic for, and against, it being Verizon. At the moment some reports suggest Apple and Verizon are talking, but are not yet agreed on terms and conditions.

That makes sense. Verizon has been doing quite well with HTC devices lots of people do believe is the family of devices most similar to the iPhone. For that reason, Verizon might not feel it has to give quite so much to Apple to acquire rights to sell the iPhone.

Apple, on the other hand, has to weigh the advantages of a much-bigger base of customers Verizon would bring, compared to either Sprint or T-Mobile USA. Also, given component shortages at the moment, Verizon and Apple have to be weighing possible impact on device profit margins as well as ability to meet demand.

Verizon might not be willing to give Apple the margins it wants. And Verizon has to estimate a possible shift in demand from HTC devices to iPhones that result in no net gain in subscribers.

It is a fair guess iPhones will be available on some network other than AT&T's, in 2011. It will an important decision no matter which network it proves to be.

Why Social Media Fails

At such an early state of development, one would have to expect more failures than successes. But it is helpful to know what doesn't seem to work, and why.

Cloud Computing Keeps Growing, With or Without AI

source: Synergy Research Group .  With or without added artificial intelligence demand, c loud computing   will continue to grow, Omdia anal...