THE NEXT BIG(GER) SCREEN A Shift Toward Phablets
A NIELSEN TELECOM PERSPECTIVE August 2015
Copyright ©2015 The Nielsen Company. Confidential and proprietary. Copyright ©2014 The Nielsen Company. Confidential and proprietary. • • • • • • Questions and inches market ? s t As e l b a h p t eagerly u o b a screen l a i c larger e p s Following o s s ’ t a h W broader smartdeviceindustry A PHABLET THE TREND UNDERSTANDING
look the
current
in
or
How What How What Are What trend share size embrace
size
larger
the at addressed
some
impact
do have
creep
can are is
over looks growth the emergence of phablets and their impact on the on impactemergence theirand the ofphablets debut
the . people
the some
manufacturers The markets
phablets
the
in impact has here
larger
of the
include of
paper past
interact
important
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more on
fared screen four Samsung stay, will :
regular
complemented with
effective years,
and analyze
since
factors this
size
phablets, phablets
carriers sized
analysis Galaxy and . entering blurring
driving to the
opportunities phones market
relative do driving defined
Note by
the
the will marketing to
a
effectively
the lines and
marketplace?
take
in trends rapid to
as
phablet
2011 smaller tablets?
between for smartphones a
ROI? rise
detailed behind future ,
market smartphones
in phones?
in
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phone Who marketing
market phablet
look new
others?
with is
and
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Copyright ©2014 The Nielsen Company. Confidential and proprietary. BIG SCREENS, BIGGER MARKET SHARE MARKET BIGGER Phabletshave more thandoubledin market share the in lastyear SCREENS, BIG be Moto the Bigger p e i r h a s g a l F Samsung, quickly Market success 2011 e h T *Android+ is is *Android+ BlackberryWindows, inclusive Android, of OSes. and NielsenSource:Device Share,2015. installed U.S.; userbase SmartphoneBase:
a Share of Android Market
Screen Size (Inches) size 100%
5.5 4.5 distinct
25% 50% 75% X, saw
e u q i n U 5 6 4 0%
is share r a e Y
grew
other of
led 1/1/2014 better
which the major E M I T R E V O H T W O R G T E L B A H P + D I O R D N A
4.7 offering
to
stood
5.4% to flagships’ 94.6%
introduction
more
if s e n o h P 4.7
of comprised 13
flagship the
. at
4.8 7 separate
e h t % than
increase a HTC One
screen just just 5/1/2014
lines
10
of almost
t e l b a h P
nascent
18
Phablet from e r a
the phablets
in size 4.7 grew
months
flagship
first
traditional 70 5.2
remained LGG
5 steadily % g n i w o r G - .
ever
6
from of 5 %
9/1/2014
later
devices
total 4.7 of
phablet,
Regularsmartphone
flagships a
GalaxyS total larger . unchanged
phablets variety Much
is Android+
. 5
any
, r e g r a L the However,
.
5.5
of of
in
Samsung
indication 1/1/2015
manufacturers from
5.1 Moto X2 this the
phones
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growth with
. t u B
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the From
in Phablets
5 January was
June
exception launch 5/1/2015 5.5
s t e l b a h P 2012
Note,
captured
5.1 2015
appear 2014
in to
5.7 and
86.3% . of 2014 2014
13.7%
and
the
by its to . ,
3
Copyright ©2014 The Nielsen Company. Confidential and proprietary. WHAT ’S DRIVING PHABLET SALES? PHABLET DRIVING ’S WHAT c e p S h g i H 20% 40% 60% phablet), 35,406 (total smartphone). Android, Blackberry,smartphone). Windows (totalonly.Android, and OS 35,406phablet), sizeSample 4,106= Nielsen2015.Source:Mobile Q2Insights system reason Phablet s ’ t I top focus, mid commanding High overwhelming Given 0% - - end tier - end
-
ScreenSize
that there All . . d n E
s t e l b a h P
Samsung owners phablets 24
24% 16% 10%
phablets most
%
may t u o b A
two
list factor Android+ Phablet Owners
s t e l b a h P
are
phablets’ -
be thirds
it have phablets
as buying
opportunities for are
their
e h t t ’ n e v a H
12% 11% 10% 23.6% of choosing considerably OS
1.3%
3.5% it dominating specs
. specifically
.
#
Given
1 n e e r c S
reason, 1.3% e t a n i m o D
are
a for
Top 1 Top
that phablet,
Price
11% d e n i a G comparable mid 7% 8% under
for
4.6%
the screen compared
-
tier the
-
65.8% not performed market, Top 2 Top
players size,
size,
hardware (phablet),
e h t d n u o r G to
to with
not smaller
Regular Android+ Smartphone just to with 12% 16% 12%
. OS Top 3 Top
50 31,301 (non 31,301 specs, With gain t e k r a M
or 11
% Galaxy
- processing
flagships, of
12 back
some
drives owners % Owners -
Price for market
14% ; 9% 8% Other Nexus6 HTC One Max G LG Series MegaSamsung NoteSamsung increased
Note
phablet brand
d i M
screen citing
power
share series
-
or it
purchases,
Low .
size
Brand as marketing operating
12% 10% from 8%
a
alone is top
-
r e i T the the
3
4
Copyright ©2014 The Nielsen Company. Confidential and proprietary. HOW ARE CONSUMERS USING USING PHABLETS? CONSUMERS ARE HOW 100% phablet), 35,406 (total smartphone). Android, Blackberry,smartphone). Windows (totalonly.Android, and OS 35,406phablet), sizeSample 4,106= Nielsen2015.Source:Mobile Q2Insights Upgrading more comparable P shopping phablet gaming, As t e l b a h P 50% 100 150 200 hablet 0% 50
many 0
likely
Communication
Android+ Phablet
owners owners’ and Near-Field . tablet
12% 27% 59%
154 customers
to to
s r e n w O
that
report owners
Smartphone are Android+ self
Regular messaging Live video Live of 19% 31% 47% 140
regular - to high more surfing reported
have
phablets
e m u s n o C
Mobile banking Mobile
data
likely
smartphone found 135 experience
use
use, could
to out,
Low Video/mobile
of Android+ likely use Phablet
likely 133 27% 38% 35% e r o M a TV voice .
owners’ bigger
their Compared Medium
due lead (phablet),
Smartphone
and Android+
shopping
a i d e M Regular Mobile screen
132 device . to 28% 39% 33% to
However,
an
their text
31,301 (non 31,301
High
with increased
lends
Online game Online for
higher on
playing
128
other
media phablet
their -
itself
media spend smartphone
Streaming
to Android+ phones Phablet 128
consumption owners 13% 33% 53%
a
better consumption on
Mobile internet Mobile data Smartphone
is are Android+
Regular 108
viewing, owners, 15% 35% 48% largely .
much
and ..
5
Copyright ©2014 The Nielsen Company. Confidential and proprietary. WHICH CONSUMERS ARE ARE BUYING? CONSUMERS WHICH older more Unsurprisingly, t e l b a h P 120 160 behavior, Using is “Wireless Source: NielsenSource:Device 2015 Share June installed U.S.; userbase SmartphoneBase: 40 80
0 lowest
Low Tech than likely Early-Adopting
ConneXions, 96 105 Elite
the
among
to White” it
Android+ Phablets
s r e n w O
is average be
Wireless White-
given apparent
Collars 105 Med Tech
high
Young Collars,
100
that
- a Android+ tech
Suburban Nielsen Spenders
Startups
104 that e r A phablets
are adopters
High TechHigh certain adopting
smartphone
r e g n u o Y segmentation Wireless Young & Young
104 104 and
are .
consumer
older, Phablet
phablets a Emerging
Techies 102 relatively
owner low
-
owning and
system - groups,
tech Frugal Folks Frugal at .
99
a new
segments preferentially
Younger h g i H
consumers based
like 101 Mature Mature Mid- trend, Techs 98
the Android+ Phablet
- on
h c e T like
phablet “Early Offline Seniors
demographics are
higher Elderly 96 Family 102
- also
Adopting
owners Traditionalists
rate
Traditionalists Elderly less 95 .
Ownership
likely are
Older Elite” Young StartupsYoung and 97
94
slightly
tech
to and
. be
6
Copyright ©2014 The Nielsen Company. Confidential and proprietary. WHERE ARE PHABLETS SUCCEEDING? PHABLETS ARE WHERE those in Markets n o i t p o d A – Nielsen2014Source:Device Share Jan installed U.S.; userbase SmartphoneBase: Chicago, like to respond Marketers Not
June 2015 June
several date,
Total Smartphones in Market Austin,
(Millions) in
the l l A vary
0 1 2 3 4 5 6 7 8 9 saw
similarly
Los
Texas
should
Northeast
and
widely
Salt Lake City much Angeles,
g n i t e k r a M $22.49 Total Smartphones in Market (March 2014) (March Market in Smartphones Total
Atlanta s e i r a V . markets,
be
For higher in
and phablet careful
and instance,
at
Great return with
Philadelphia, under
y l i v a e H where penetration –
high June 2015, Nielsen Ad Insights January2014Insights NielsenAd 2015,June
Lakes
Samsung’s on
s r a l l o D $ 10
marketing adoption they
region, per
cost .
invest
Phablets device d e s a B
Galaxy
up
rates
have
six e r a
to precious .
months twice .
been
However, have Note
However,
l a u q E on
more
difficult
enjoyed
4 ad post ,
the
Spend per Galaxy Note 4 Note Galaxy per Spend n o i g e R
. spend,
some -
launch
some
most
to
considerable
crack
major
as successful
cities, in
.
not
Southern
markets, Share Share of Android
$8.93 Smartphones particularly all
Las Vegas success
markets phablet
$0 $5 $10 $15 $20 $25
cities
like
Ad Spend per Device
7
Copyright ©2014 The Nielsen Company. Confidential and proprietary. FROM HERE? FROM FINALLY…WHERE owners On with marketers Texas, Texas the By g n i t t u P Blackberry,smartphone). Windows (totalAndroid, and OS only. (non = 31,301size(phablet),Sample 4,106 2015. NielsenSource:Device Share June installed U.S.; userbase SmartphoneBase: marketers to and With
2 3 1
evaluating top
the heat high
rumors 142
the versus Houston
which and are screen size,consumers may find that a do phabletjust willas well smartphones are 23% more likelyto owna phablet. With similar specs and Small tablet (>8.5in) owners: other
more High new consumers and 2013 phablet owners looking to upgrade. have alreadydemonstrated an affinity for 2013 phablet penetration
124
up recent to
unlikely should bottom
.
continue
s i s y l a n A
of 156 High Tech
in already -
To hand, the likely tech
more
Pennsylvania
release
most different
focus
markets to
to adopters Pittsburgh
of
from to has be
128 be both owners
effectively
target
on of Dallas high
high at
105 other . markets
flagship
o t n I three
2015. 2015. Small TabletOwnership
2013 The the .
tech
. 147 :
phablet
: : Texan and
manufacturers, forefront
As
greatest
groups
Nielsen
phablets
Markets that jumped on the phablet
adopters
capitalize n o i t c A phablets on
Philadelphia previously
- markets
phablet), 35,406 phablet), this
penetration, Mobile Q2Insights
Android+ tablet ownerswith Android+ most
of contrast
CAN PHABLETS PHABLETS CAN and criteria,
or
tech Samsung
on
: likely
own
have
small
competition s a x e T
shown,
the adoption
is
will
phablets
phablets, ensuring an easy to sell we to will
exceptionally
clearly tablets
trend,
be Galaxy
see be 2013 Phablet Ownership continue
Pittsburgh
existing in 67
vs .
tough
significant
.
the visible or
for with 67
.
Note small
market the
a i n a v l y s n n e P
to 65
to limited high phablet in
phablet be 5
crack, tablets
comparing
and
differences
for tech a trend trend
prime Philadelphia
marketing a Galaxy
90
.
. owners as adoption market
phablet
in 2013
93
its location
markets
S between Android 99
6 : is GROW GROW
are
budget, rates,
Edge+,
poised
for
in
8
Copyright ©2014 The Nielsen Company. Confidential and proprietary. COMPETITIVE MARKET PLACE A MARKET IN PHABLETS COMPETITIVE MARKETING campaigns need access Marketing 1 2 3
to
to
take
most Android
used
a
marketing
targeted for
devices
standard matters the and these Phablet E T A V I T C A return within markets Success Y F I T N E D I the on Measure E Z I M I T E P R O U S A E M
the crucial
precise
usage
approach
dollars
. customers is
those fly
. the
owners
flagship hard
with the . Understand
launch
Continuously
patterns most . message
Marketers
impact in markets
phablets
for
R U O Y the are
. phones E H T and
period marketing
R U O Y
current
a that of
potential niche for
not
where your seeking will . T H G I R
.
apply refine S T E K R A M
them,
marketplace, only
be
but
targeted phablets,
your
customers
unevenly
specifically success growing and E C N A M R O F R E P markets, and
S R E M U S N O C
dollars execute
deliver marketing
as
where in
group
distributed
are
opposed the but to
will
it . to
this . niche
few Isolate
even
to Understand
make plan deliver
them group, top
to
phablet within
the
and
behaviors players broad the
when
the
create zipcodes
optimize
most
various
who market D N A
reach
most
have it
of
9
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