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Tablets - US - November 2015

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Digital activities transitioned to smartphones, not tablets
Figure 1: Ownership of phones, tablets, and computers, August 2015
Two-thirds of owners acquired tablet in past two years
Figure 2: Year of most recent tablet acquisition, August 2015
Apple’s titanic role
Figure 3: Brand ownership, November 2012-June 2015
The opportunities
Bigger is better
Figure 4: Screen size of most recently acquired tablet, by year of acquisition, August 2015
Hybrids for high-income households
Figure 5: Ownership of phones, tablets, and computers, by household income, August 2015
The gift market
Figure 6: Demographics most likely to be planning a gift purchase, August 2015
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Sales see first decline in 2015
Phablet ownership cuts two ways
Larger sizes gaining
Streaming steaming
Gifts ahoy
MARKET SIZE
Tales of woe overblown in US
Figure 7: Total US sales of tablets, at current prices, 2010-15
MARKET BREAKDOWN
Large screens gaining share
Figure 8: Screen size of most recently acquired tablet, by year of acquisition, August 2015
MARKET PERSPECTIVE
Price points challenging to maintain
Figure 9: Amount spent on most recently acquired tablet, August 2015
Phablet popularity promotes interest in larger tablets
Figure 10: Ownership of phones, tablets, and computers, August 2015
Competing for gift dollars with other tech categories
Figure 11: Intent to gift a tablet, by gender and age, August 2015
One in eight owners received tablet as gift
Figure 12: Gifting and receiving tablets, by gender and age, August 2015
MARKET FACTORS
Households with children
Figure 13: Number of US households by children, 2003-13
Streaming entertainment
Figure 14: Use of tablets for entertainment, August 2015
Movie viewing shifts from physical to digital
Figure 15: Home video sales, by segment, 2013-15
Rising interest in streaming music
Figure 16: Hours spent listening to music, radio vs streaming services vs personal library, June 2015
Improved graphic rendering and gaming accessories potential boost for sales
KEY PLAYERS – WHAT YOU NEED TO KNOW
Apple regains losses
Amazon presses low-end
Leading brands go pro
Great products, limited impact
WHAT’S WORKING?
iOS ecosystem drives iPad
Amazon invites all aboard
Samsung retains halo, growth in ownership
Figure 17: Brand ownership, November 2012-June 2015
WHAT’S STRUGGLING?
Dell, Nook, Toshiba see share fall
NOOK taken out by Amazon
Branding more decisive than features
Figure 18: Brand ownership, November 2012-June 2015
WHAT’S NEXT?
Surface gaining steam
Shift to productivity
Figure 19: Use of tablets for productivity and purchase of external keyboards, August 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
Two-in-ones next frontier
Half of adults planning a purchase
Most buyers avoid high and low-end
Ads have impact
Time to take focus off of weight
OWNERSHIP OF TABLETS AND HYBRIDS
Role of upgrades among existing owners
Drawing return buyers and high-margin accessories
Figure 20: Ownership of tablets, phones, and computers, August 2015
Targeting previous buyers with two-in-ones
Figure 21: Ownership of tablets, hybrids, laptops, and smartphones, by ownership of tablets, hybrids, laptops, and smartphones, August 2015
Promoting first-time purchases
Culling low-income groups on-the-ground
Figure 22: Ownership of tablets and hybrids, by household income, August 2015
Pursuing first-time purchases among 18-24s and 45-54s
Figure 23: Ownership of tablets and hybrids, by age, August 2015
Hispanics rival Asians for leadership in ownership
Figure 24: Ownership of tablets and hybrids, by race and Hispanic origin, August 2015
Parents attracted to multiple tablet ownership
Figure 25: Attitudes to multiple tablet ownership – CHAID – Tree output, August 2015
Figure 26: Attitudes to multiple tablet ownership – CHAID – Table output, August 2015
INTENT TO PURCHASE
Half of online adults considering purchase
Figure 27: Intent to purchase tablets, August 2015
Young men well intentioned
Figure 28: Intent to purchase tablets, by gender and age, August 2015
Asians, Hispanics more likely to be planning purchase
Figure 29: Intent to purchase tablets, by race and Hispanic origin, August 2015
High-income parents top candidates for sales
Figure 30: Intent to purchase tablets – CHAID – Tree output, August 2015
Figure 31: Attitudes to multiple tablet ownership – CHAID – Table output, August 2015
PRICE PAID
Sub-$100 tablets not an historical temptation
Figure 32: Spend on most recently acquired tablet, August 2015
Apple, Microsoft priced out of low-and middle-income groups
Figure 33: Spend on most recently acquired tablet, by household income, August 2015
Black buyers spend less
Figure 34: Spend on most recently acquired tablet, by race and Hispanic origin, August 2015
Married buyers spend more
Figure 35: Spend on most recently acquired tablet, by parental status and by marital status, August 2015
TABLETS AS PRODUCTIVITY TOOLS
Nearly half use tablets for productivity
Figure 36: Use of tablets for productivity, by household income, August 2015
Usage for productivity spreading across income groups
Figure 37: Use of tablets for productivity, by household income, August 2015
Hispanics get down to business
Figure 38: Use of tablets for entertainment and productivity, by race and Hispanic origin, August 2015
Broad differences by gender
Figure 39: Use of tablets for productivity, by gender, August 2015
UPGRADING
Return buyers get back to basics
Figure 40: Reasons for upgrading to a new tablet, August 2015
Younger upgraders more demanding
Figure 41: Reasons for upgrading to a new tablet, by age, August 2015
Men want it all
Figure 42: Reasons for upgrading to a new tablet, by gender, August 2015
Blacks less concerned with screen size, Hispanics with storage
Figure 43: Reasons for upgrading to a new tablet, by race and Hispanic origin, August 2015
FEATURES CONSIDERED
Price most critical, weight least
Figure 44: Features considered in most recent tablet purchase, August 2015
High-income groups weigh manufacturer more heavily
Figure 45: Features considered in most recent tablet purchase, by household income, August 2015
Older ages focus on brand, screen size
Figure 46: Features considered in most recent tablet purchase, by age, August 2015
Hispanics keep an eye on graphics
Figure 47: Features considered in most recent tablet purchase, by race and Hispanic origin, August 2015
FACTORS IMPACTING PURCHASE DECISION
Ads impacted majority of buyers
Figure 48: Factors in tablet selection, August 2015
Younger adults more open to the unknown
Figure 49: Factors in tablet selection, by age, August 2015
Men more likely to be swayed by ads
Figure 50: Factors in tablet selection, by gender, August 2015
More Hispanics open to unfamiliar
Figure 51: Factors in tablet selection, by race and Hispanic origin, August 2015
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
CHAID analysis methodology
Abbreviations and terms
Abbreviations
Terms
APPENDIX – CONSUMER
Figure 52: Screen size of most recently acquired tablet, by household income, August 2015
Figure 53: Intent to gift a tablet, by household income, August 2015
Figure 54: Intent to gift a tablet, by race and Hispanic origin, August 2015
Figure 55: Attitudes to multiple tablet ownership – CHAID – Table output, August 2015

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