Table of Contents
Executive Summary
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- The issues
- Digital activities transitioned to smartphones, not tablets
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- Figure 1: Ownership of phones, tablets, and computers, August 2015
- Two-thirds of owners acquired tablet in past two years
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- Figure 2: Year of most recent tablet acquisition, August 2015
- Apple’s titanic role
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- Figure 3: Brand ownership, November 2012-June 2015
- The opportunities
- Bigger is better
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- Figure 4: Screen size of most recently acquired tablet, by year of acquisition, August 2015
- Hybrids for high-income households
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- Figure 5: Ownership of phones, tablets, and computers, by household income, August 2015
- The gift market
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- Figure 6: Demographics most likely to be planning a gift purchase, August 2015
- What it means
The Market – What You Need to Know
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- Sales see first decline in 2015
- Phablet ownership cuts two ways
- Larger sizes gaining
- Streaming steaming
- Gifts ahoy
Market Size
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- Tales of woe overblown in US
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- Figure 7: Total US sales of tablets, at current prices, 2010-15
Market Breakdown
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- Large screens gaining share
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- Figure 8: Screen size of most recently acquired tablet, by year of acquisition, August 2015
Market Perspective
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- Price points challenging to maintain
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- Figure 9: Amount spent on most recently acquired tablet, August 2015
- Phablet popularity promotes interest in larger tablets
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- Figure 10: Ownership of phones, tablets, and computers, August 2015
- Competing for gift dollars with other tech categories
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- Figure 11: Intent to gift a tablet, by gender and age, August 2015
- One in eight owners received tablet as gift
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- Figure 12: Gifting and receiving tablets, by gender and age, August 2015
Market Factors
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- Households with children
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- Figure 13: Number of US households by children, 2003-13
- Streaming entertainment
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- Figure 14: Use of tablets for entertainment, August 2015
- Movie viewing shifts from physical to digital
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- Figure 15: Home video sales, by segment, 2013-15
- Rising interest in streaming music
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- 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
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- Apple regains losses
- Amazon presses low-end
- Leading brands go pro
- Great products, limited impact
What’s Working?
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- iOS ecosystem drives iPad
- Amazon invites all aboard
- Samsung retains halo, growth in ownership
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- Figure 17: Brand ownership, November 2012-June 2015
What’s Struggling?
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- Dell, Nook, Toshiba see share fall
- NOOK taken out by Amazon
- Branding more decisive than features
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- Figure 18: Brand ownership, November 2012-June 2015
What’s Next?
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- Surface gaining steam
- Shift to productivity
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- Figure 19: Use of tablets for productivity and purchase of external keyboards, August 2015
The Consumer – What You Need to Know
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- 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
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- Role of upgrades among existing owners
- Drawing return buyers and high-margin accessories
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- Figure 20: Ownership of tablets, phones, and computers, August 2015
- Targeting previous buyers with two-in-ones
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- 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
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- Figure 22: Ownership of tablets and hybrids, by household income, August 2015
- Pursuing first-time purchases among 18-24s and 45-54s
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- Figure 23: Ownership of tablets and hybrids, by age, August 2015
- Hispanics rival Asians for leadership in ownership
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- Figure 24: Ownership of tablets and hybrids, by race and Hispanic origin, August 2015
- Parents attracted to multiple tablet ownership
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- 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
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- Half of online adults considering purchase
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- Figure 27: Intent to purchase tablets, August 2015
- Young men well intentioned
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- Figure 28: Intent to purchase tablets, by gender and age, August 2015
- Asians, Hispanics more likely to be planning purchase
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- Figure 29: Intent to purchase tablets, by race and Hispanic origin, August 2015
- High-income parents top candidates for sales
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- 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
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- Sub-$100 tablets not an historical temptation
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- Figure 32: Spend on most recently acquired tablet, August 2015
- Apple, Microsoft priced out of low-and middle-income groups
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- Figure 33: Spend on most recently acquired tablet, by household income, August 2015
- Black buyers spend less
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- Figure 34: Spend on most recently acquired tablet, by race and Hispanic origin, August 2015
- Married buyers spend more
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- Figure 35: Spend on most recently acquired tablet, by parental status and by marital status, August 2015
Tablets as Productivity Tools
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- Nearly half use tablets for productivity
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- Figure 36: Use of tablets for productivity, by household income, August 2015
- Usage for productivity spreading across income groups
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- Figure 37: Use of tablets for productivity, by household income, August 2015
- Hispanics get down to business
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- Figure 38: Use of tablets for entertainment and productivity, by race and Hispanic origin, August 2015
- Broad differences by gender
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- Figure 39: Use of tablets for productivity, by gender, August 2015
Upgrading
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- Return buyers get back to basics
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- Figure 40: Reasons for upgrading to a new tablet, August 2015
- Younger upgraders more demanding
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- Figure 41: Reasons for upgrading to a new tablet, by age, August 2015
- Men want it all
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- Figure 42: Reasons for upgrading to a new tablet, by gender, August 2015
- Blacks less concerned with screen size, Hispanics with storage
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- Figure 43: Reasons for upgrading to a new tablet, by race and Hispanic origin, August 2015
Features Considered
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- Price most critical, weight least
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- Figure 44: Features considered in most recent tablet purchase, August 2015
- High-income groups weigh manufacturer more heavily
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- Figure 45: Features considered in most recent tablet purchase, by household income, August 2015
- Older ages focus on brand, screen size
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- Figure 46: Features considered in most recent tablet purchase, by age, August 2015
- Hispanics keep an eye on graphics
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- Figure 47: Features considered in most recent tablet purchase, by race and Hispanic origin, August 2015
Factors Impacting Purchase Decision
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- Ads impacted majority of buyers
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- Figure 48: Factors in tablet selection, August 2015
- Younger adults more open to the unknown
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- Figure 49: Factors in tablet selection, by age, August 2015
- Men more likely to be swayed by ads
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- Figure 50: Factors in tablet selection, by gender, August 2015
- More Hispanics open to unfamiliar
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- Figure 51: Factors in tablet selection, by race and Hispanic origin, August 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- CHAID analysis methodology
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Consumer
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- Figure 52: Screen size of most recently acquired tablet, by household income, August 2015
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- Figure 53: Intent to gift a tablet, by household income, August 2015
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- Figure 54: Intent to gift a tablet, by race and Hispanic origin, August 2015
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- Figure 55: Attitudes to multiple tablet ownership – CHAID – Table output, August 2015
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