Desktop, Laptop and Tablet Computers - UK - July 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Home computing market worth over £3 billion
All-in-ones unlikely to turn around the declining desktop market
Ultra-portability may slow laptop sales decline
Lack of innovation restricts the tablet market
Figure 1: Forecast for the value of the UK desktop, laptop and tablet market, 2013-23
Figure 2: Forecast for the volume of the UK desktop, laptop and tablet market, 2013-23
Tablet market plateau puts emphasis on upgrades
Always-connected PCs trying to make laptops portable again
Companies and brands
Apple leads volume share with continued tablet dominance
HP the leading laptop supplier
Interest building for the Galaxy Tab S4
macOS update brings privacy and productivity enhancements
The consumer
Laptop ownership remains relatively stable
Smartphone ubiquity a challenge for home computing
Figure 3: Household ownership of computing devices, May 2018
Clamshell laptops maintain dominant presence in the home
Figure 4: Laptop form factors owned or have in the household, May 2018
Desktops continue shift away from tower units
Figure 5: Desktop form factors owned or have in the household, May 2017 and May 2018
Reassuring purchasing consideration from current owners
Figure 6: Device purchase consideration, by device ownership, May 2018
Consumers don’t like change, but might make an exception for two-in-ones
Figure 7: Specific form factor considered amongst those considering a laptop purchase, May 2018
Figure 8: Specific form factor considered amongst those considering a tablet purchase, May 2018
Interest in tower units remains high despite growth of the all-in-one
Figure 9: Specific form factor considered amongst those considering a desktop purchase, May 2018
Security concerns may influence device upgrades
Figure 10: Activities performed on devices in the home, May 2018
Laptops remain the popular choice for online shopping
Advanced computing unnecessary for a third of device owners
Figure 11: Consumer attitudes towards home computing, May 2018
A quarter interested in desktop computing through a portable device
Despite a slow upgrade cycle, most will still replace their laptops when they break
Figure 12: Consumer behaviour towards home computing, May 2018
What we think
ISSUES AND INSIGHTS
Ultra-portability meets productive computing
The facts
The implications
The mature market needs people to upgrade, but there is little incentive to do so
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Home computing market worth over £3 billion
All-in-ones unlikely to turn around the declining desktop market
Laptop segment reliant on upgrades
Lack of innovation restricts the tablet market
Convertible keyboards bridge the gap between markets
Always-connected PCs trying to make laptops portable again
The crypto craze inflating graphics card prices
Meltdown and Spectre vulnerabilities dent confidence
MARKET SIZE AND FORECAST
Home computing market worth over £3 billion
Figure 13: Forecast for the value of the UK desktop, laptop and tablet market, 2013-23
Figure 14: Forecast for the value of the UK desktop, laptop and tablet market, 2013-23
Figure 15: Forecast for the volume of the UK desktop, laptop and tablet market, 2013-23
Forecast methodology
MARKET SEGMENTATION
All-in-ones unlikely to turn around the declining desktop market
Desktops an attractive option for their upgradability
Figure 16: Forecast for the value of the UK desktop market, 2013-23
Figure 17: Forecast for the volume of the UK desktop market, 2013-23
Laptop segment reliant on upgrades
Chromebooks and two-in-one technology matures
Figure 18: Forecast for the value of the UK laptop market, 2013-23
Figure 19: Forecast for the volume of the UK laptop market, 2013-23
Lack of innovation restricts the tablet market
Figure 20: Forecast for the value of the UK tablet market, 2013-23
Figure 21: Forecast for the volume of the UK tablet market, 2013-23
MARKET DRIVERS
Tablet market plateau puts emphasis on upgrades
Figure 22: Household ownership of computers, January 2012-April 2018
Convertible keyboards bridge the gap between markets
Cloud-based processing brings AAA games to any computer
Always-connected PCs trying to make laptops portable again
The crypto craze inflating graphics card prices
Figure 23: GeForce GTX 1080 price history, January 2017-June 2018
Figure 24: RAM (DDR3-1333) price history, January 2017-June 2018
Meltdown and Spectre vulnerabilities dent confidence
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Apple leads volume share with continued tablet dominance
HP largest in the laptop and desktop segments
Intel and Sprint work towards 5G releases
macOS update brings privacy and productivity enhancements
Microsoft launches budget Surface Go model
Microsoft marketing is redefining laptops
MARKET SHARE
Apple leads volume share with continued tablet dominance
Microsoft Surface a sizeable part of ‘Others’
Figure 25: Estimated share of the desktop, laptop and tablet market, by volume, 2018
LAUNCH ACTIVITY AND INNOVATION
Intel and Sprint work towards 5G releases
Interest building for the Galaxy Tab S4
macOS update brings privacy and productivity enhancements
Project Precog from Asus
Microsoft launches budget Surface Go model
ADVERTISING AND MARKETING ACTIVITY
Microsoft marketing is redefining laptops
Retailers promoting high street sales
Figure 26: Total above-the-line, online display and direct mail advertising expenditure on desktop, laptop and tablet computers, and their peripherals, May 2017-April 2018
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 27: Attitudes towards and usage of selected brands, May 2018
Key brand metrics
Figure 28: Key metrics for selected brands, May 2018
Brand attitudes: Samsung trustworthy and associated with high quality
Figure 29: Attitudes, by brand, May 2018
Brand personality: Apple’s exclusivity breeds demand
Figure 30: Brand personality – macro image, May 2018
HP’s reliability and affordability make it accessible to many
Figure 31: Brand personality – micro image, May 2018
Brand analysis
Samsung seen as an innovative option whilst remaining affordable
Figure 32: User profile of Samsung, May 2018
Apple Mac an exclusive and prestigious choice
Figure 33: User profile of Apple Mac, May 2018
Amazon Fire benefits from the growing Alexa ecosystem
Figure 34: User profile of Amazon Fire, May 2018
The Microsoft Surface seen as a premium purchase
Figure 35: User profile of Microsoft Surface, May 2018
Hewlett-Packard a well-known brand with broad appeal
Figure 36: User profile of Hewlett-Packard, May 2018
Lenovo seen by older users as a cheap and user-friendly brand
Figure 37: User profile of Lenovo, May 2018
Dell a well-known brand but lacking innovation
Figure 38: User profile of Dell, May 2018
Acer a suitable brand for students on a budget
Figure 39: User profile of Acer, May 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Laptop ownership remains relatively stable
Smartphone ubiquity a challenge for home computing
Chromebook adoption remains relatively low
Desktops continue shift away from tower units
Detachable keyboards gaining popularity
Reassuring purchasing consideration from current owners
Tablets still an enticing item for non-owners
Consumers don’t like change, but might make an exception for two-in-ones
Low-intensity computing creates a market for scaled-back devices
Laptops remain the popular choice for online shopping
Advanced computing unnecessary for a third of device owners
More prefer cloud storage than local
Laptops currently a device for the home
DESKTOP, LAPTOP AND TABLET COMPUTER OWNERSHIP
Laptop ownership remains relatively stable
Smartphone ubiquity a challenge for home computing
Figure 40: Household ownership of computing devices, May 2018
Clamshell laptops maintain dominant presence in the home
Chromebook adoption remains relatively low
Figure 41: Laptop form factors owned or have in the household, May 2018
Windows keeps broad appeal
Figure 42: Laptop operating systems, May 2018
Desktops continue shift away from tower units
Older people prefer desktops in general, but also the newer all-in-ones
Figure 43: Desktop form factors owned or have in the household, May 2017 and May 2018
Windows the choice for gamers
Figure 44: Operating system on desktops, by type of desktop, May 2018
Detachable keyboards gaining popularity
Figure 45: Proportion of tablet owners with a tablet that has a detachable keyboard, May 2018
Android and iOS dominant on mobile
Figure 46: Tablet operating systems, May 2018
PURCHASE CONSIDERATION
Reassuring purchasing consideration from current owners
Tablets still an enticing item for non-owners
Figure 47: Device purchase consideration, by device ownership, May 2018
Consumers don’t like change, but might make an exception for two-in-ones
Figure 48: Specific form factor considered amongst those considering a laptop purchase, May 2018
Figure 49: Specific form factor considered amongst those considering a tablet purchase, May 2018
Interest in tower units remains high despite growth of the all-in-one
Figure 50: Specific form factor considered amongst those considering a desktop purchase, May 2018
Figure 51: Specific form factor considered amongst those considering a desktop purchase, by whether they use any device for gaming, May 2018
HOME COMPUTING ACTIVITIES
Low-intensity computing creates a market for scaled-back devices
Video streaming services’ potential for growth
Figure 52: Activities performed on any device, May 2018
Security concerns may influence device upgrades
Figure 53: Activities performed on devices in the home, May 2018
Laptops remain the popular choice for online shopping…
…and are far more likely to be used for productive work
Laptops closing the gap with desktops for gaming
CORRESPONDENCE ANALYSIS 
Methodology
Laptops remain the choice for productivity and security
Figure 54: Correspondence analysis of words and devices, May 2018
Figure 55: Words associated with types of devices, May 2018
HOME COMPUTING ATTITUDES AND BEHAVIOUR
Advanced computing unnecessary for a third of device owners
More prefer cloud storage than local
Figure 56: Consumer attitudes towards home computing, May 2018
Laptops currently a device for the home…
…but innovation may encourage this mobile activity
A quarter interested in desktop computing through a portable device
Despite a slow upgrade cycle, most will still replace their laptops when they break
Figure 57: Consumer behaviour towards home computing, May 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Total market forecast
Figure 58: Forecast for the value of the UK desktop, laptop and tablet computer market, 2018-23
Figure 59: Forecast for the volume of the UK desktop, laptop and tablet computer market, 2018-23
Desktop segment forecast
Figure 60: Forecast for the value of the UK desktop computer market, 2018-23
Figure 61: Forecast for the volume of the UK desktop computer market, 2018-23
Laptop segment forecast
Figure 62: Forecast for the value of the UK laptop computer market, 2018-23
Figure 63: Forecast for the volume of the UK laptop computer market, 2018-23
Tablet segment forecast
Figure 64: Forecast for the value of the UK tablet computer market, 2018-23
Figure 65: Forecast for the volume of the UK tablet computer market, 2018-23
Forecast methodology