Technology cycles tend to last about ten years, from the personal computing era of the ‘80s, through the desktop computing era of the ‘90s to the mobile computing era of the early 21st century. Each has brought more computing power, better user experiences, lower prices and expanded services to more people. And with every new technology comes new opportunities for the research industry. None more so than the saturation of mobile phone ownership and the increasing power and capabilities of the modern smartphones.

GfK has been investigating various ways that mobile technology can be leveraged for research purposes, and this is a brief introduction to a few of our recent initiatives.

Taking mobile-based surveys mainstream: a Nokia case study

Nokia challenged GfK to monitor their whole portfolio of digital channels, including both standard and mobile websites or online shops. This posed a number of challenges in developing an online survey that would work on both the mobile phone as well as the PC, across all possible brands and models of mobile phone, on the various different mobile operating systems, as well as in all the languages for the countries in which Nokia operates.

We achieved this by linking from a banner on the Nokia mobile sites to a mobile-web survey hosted by GfK, which adapted the content and layout depending on the country, language and phone model – information which was pulled from the Nokia server. While this survey needed to be focussed on key metrics only to manage interview length, we were able to develop a solution in-house that solved all of these challenges and we’ve now achieved over 100,000 completed interviews in less than a year.

A picture’s worth a thousand words: a GfK case study

With the proliferation of channels communicating brand messages to consumers in today’s world, there is a growing need to help businesses understand which are the most effective and how they interact. ‘Mobile Moments of Truth’ is a research tool being developed by GfK that uses the mobile phone to capture and collect the full range of brand experiences. Rather than waiting to ask consumers to recall all brand exposures during a given time frame, panellists are able to take an image using their mobile phone every time they see or experience a brand and give a short report on where, why and how they felt.

This is all achieved through a simple online survey tool which not only gives time sensitive, granular feedback, but also consumer-created images that give a real-life context for each experience.

If phone’s can be smart, why not research: a GFK and Revelation case study

As well as using the mobile phone for online quantitative research, GfK has been investigating its potential for qualitative approaches. In a recent project in conjunction with Revelation (a GfK partner for online qualitative research) a sample of iPhone and Google Android users in the US and UK were invited to take part in a five day online qualitative session about their phone and how they use it in their daily lives; using both their PC and their smartphone to participate in the study.

While most respondents would usually default to their PC when convenient or available, they were more than happy to complete tasks using their smartphone, and when doing so the length and quality of their responses were comparable across the two methods. And when you include the added benefits of response frequency and image.

Ian Ralph (GfK) and Steve August (Revelation) at GfK Client Summit 2010

WANT TO READ MORE?

GfK Research Summit 2010: The Digital Connected Consumer

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Recent research conducted by GfK NOP shows that, among smartphone owners, mobile data allowance is more important than the network operator and the handset type.

From previous posts on TechTalk we’ve shown how the use of mobile apps shows no sign of abating and that the tight integration services on the iPhone drives Apple’s smartphone success. This thirst for apps and services is the reason why smartphone owners are placing greater importance on their mobile data allowance. Smartphone owners now rely on the services their phone provides and taking these away is not an option.

With many UK operators having recently capped their data allowances smartphone owners will think carefully about their next mobile tariff. GfK NOP estimates that 24 per cent of contract customers using smartphones would actually switch operators if they could get a better mobile data allowance elsewhere.

The decision to cap mobile data usage is a sensible one as the major UK network operators have millions of customers who depend on a reliable mobile network. However, in doing so, network operators need to consider the mindset of the consumer. The average mobile phone user including many smartphone users simply don’t know how much data they use. Those who require a data allowance will always prefer an ‘unlimited’ package for peace of mind. Now that ‘unlimited’ data is coming to an end, consumers will look for the safest option; in other words the operator offering the most generous package.

It is easy to see why smartphone owners react this way when you look at the level of importance they place on using services on their mobile phone. Table 1 (below), shows the level of importance consumers place on mobile services in their day-to-day routine:

Table 1: Importance of mobile service usage

There is clearly a stark contrast between the UK average mobile consumer and smartphone users. Given this huge difference in attitudes it is little wonder the extra emphasis smartphone users are placing on mobile data tariffs. The biggest challenge for network operators over the next few years is how they cope with the increasing demand for smartphones and the increase in data usage this will inevitably bring.

This research was conducted in association with Reuters who have published a thorough market analysis here

If you have any questions or comments regarding the research please click here to email us or leave your opinion in the comments section below

RESEARCH NOTES

  • Research was conducted by GfK NOP in association with Reuters between 16 – 19 July 2010
  • 978 interviews were conducted online among UK adults aged 16 and over. The sample is representative of UK adults with internet access.
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3D stereo anaglyph picture, use red blue glasses to view anaglyphic photo

3D stereo anaglyph picture, use red blue glasses to view anaglyphic photo

For the last year or so, 3D has been one of technology’s hottest topics, with the success of 3D movies paving the way for TV manufacturers, to the extent that two in five UK adults now express an interest in buying a 3D screen for their home. But what is the opportunity for mobile device manufacturers?

There has certainly been a lot of market activity (e.g. Sharp’s unveiling of a 3D mobile phone display) in anticipation of consumer demand, but will public enthusiasm migrate to mobile phone devices?

A recent GfK Technology survey, found that 12% of mobile phone users were interested in 3D photos and 8% were interested in 3D gaming. It is likely that the latter and any apps that embrace Augmented Reality or which offer the opportunity to enhance user generated content are going to drive most interest.

However, right now it’s a difficult call as to whether 3D on mobile will really drive the market. It’s up to the handset manufacturers to ensure the execution of the technology lives up to the hype.

To read a fuller article on this topic by Colin Strong, managing director of GfK Business & Technology, click here.

RESEARCH NOTES:

GfK NOP Technology conducted a survey among 996 UK adults in June 2010. The interviews were conducted online and are representative on UK adults who have access to the internet.

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Mobile phone users under the age of 16 are extremely sophisticated, with deep brand experiences and preferences. This raises significant questions for network operators, handset manufacturers and service providers regarding how best to engage an increasingly important market segment. 

You could be forgiven for a sense of déjà vu. After all, rising mobile phone use amongst children is not a new phenomenon. As long ago as 2004 the Guardian was reporting growth in ownership amongst under-10s, [1] and media coverage concerning potential health concerns can be traced back even further. However, our ever-increasing reliance on, and immersion in, mobile phones and the digital services we use them to access, justify revisiting the topic. 

Recent data from GfK reinforces just how prevalent mobile ownership amongst under-16s has become (2.5 million 12-15 year olds, almost 9 in 10, now have one). Furthermore, this is the age group cementing the shift in behaviour from passive entertainment, such as television, to more active digital and online activities. [2] As such, it should come as no surprise that the value placed on their mobiles increases accordingly. 

It would be easy to assume these younger consumers are neophytes, new to the category with few preconceptions. Not the case. While 12-15s may be the first to acknowledge the importance of the technology, many of them are the same children the Guardian was reporting on five or more years ago. Instead, as many as 85% of those acquiring a phone are already on (at least) their second handset, and already hold the assortment of brand perceptions that follow this prolonged involvement in the category.[3] 

As established users, with a penchant for advanced features and functions (camera, music, and games usage are all high, alongside social networking, IM, and email), it comes as no surprise that entry-level handsets have limited appeal. While the majority (70%) of phones in this age group are being gifted, three-quarters (74%) of users were involved in the selection process, with medium and high-end handsets flourishing and above average spending. [3] Unsurprisingly therefore, style and functionality will be key to handset manufacturers, for whom it will be necessary to attract the end-user as much as the purchaser. 

The scenario facing operators is less clear. Selection of network and tariff, nominally a decision of less outward importance to younger consumers, remain primarily the domain of the purchaser (in contrast to handset, just 49% and 45% of 12-15 year olds influenced the choice of network/tariff respectively). How then, do operators approach these consumers? Given their focus on handset, clearly an appropriate and desirable range is a prerequisite. Beyond this however, high levels of gifting and relatively low interest in network/tariff imply it’s the gifter, as much as the end-user, who needs to be won over. 

Mary Robinson at GfK Telecoms Research Panels highlights the importance of the under-16 market for network operators: 

“Recent GfK findings for contract phones show that 83% of adults replacing their mobile chose to remain on the same network as before. With such high levels of loyalty in the adult market, the product propositions and brand experiences of the under-16s become massively important. Ignore them at your peril.” 

Ultimately, when this generation hits adulthood and consumption becomes self-sustained, they will already be sophisticated mobile users consuming a range of services and content. Harnessing their demand will be a key revenue stream in the future mobile marketplace, and the brand preferences already developing will play a significant role.

For handset manufacturers, operators and service providers, the prize is a significant one.

 For more information on the under 16 telecoms market please click here

[1] http://www.guardian.co.uk/technology/2004/apr/28/mobilephones.uknews

[2] http://www.statistics.gov.uk/cci/nugget.asp?id=2199

[3] GfK Research Panels: Kids Mobile Phone Market Report Q110

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A recent GfK NOP Technology report shows consumers’ love affair with mobile phone applications has turned from a dalliance into a settled and dependable relationship. With a fifth of smartphone users downloading more apps than six months ago, mobile applications may soon replace browsers as the main gateway to the web for mobile phone users.

To read the full GfK NOP Technology report click here

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Growth returns to Western European consumer technology markets in Q1 2010. GfK TEMAX data shows that consumers are more willing to upgrade their home technology as well as experiment with new smartphone mobile technology.

GfK TEMAX data shows that, overall, the consumer technology market recorded 2.7% growth in Q1 this year compared to Q1 in 2009. Key technology sectors have recorded year on year growth, including Telecommunications (+4.9%), Information Technology (+3.6%) and Consumer Electronics (+0.7%) in Q1 2010. Smartphones, Windows 7 and LCD TVs are all driving factors of growth in their respective sectors.

Smartphones continue to drive growth in the Telecommunications market

While the telecommunications market declined by -3.2% in the fourth quarter 2009, the first quarter of 2010 returned to growth with a +4.9% increase year on year.

Growth in the telecommunications sector is being driven by the increasing demand for Smartphones as they make up 40% of the total sales value. In Western Europe one in five handsets sold runs a mobile operating system and uses a touchscreen or QWERTY keyboard as an input interface. Mobile Operating Systems include Symbian 60, Windows Mobile, Linux, Android, iPhone OS, RIM and Palm WebOS.

Internet access has become “ubiquitous” which is driving interest in mobile services to a much broader audience. Mobile email is becoming the alternative to the well perceived SMS services and navigation software often come pre-installed on the devices. Social networks have become the most popular apps on smartphones, adding more relevance and immediacy the PC at home. Furthermore, many of these mobile operating systems are also being used on netbooks and tablet PCs, which are being sold through network operators with 3G connectivity.

With a wide range of innovative, new smartphones showcased at the Mobile World Congress earlier this year and the recent interest in tablet PCs, growth in the telecommunications sector is likely to continue throughout 2010.

Windows 7 ignites upgrade cycle in the Information Technology market

The Information Technology market, the second biggest market behind Consumer Electronics in Western Europe, grew by +3.6% in Q1 2010 and is now worth EUR 11.5 billion.

Consumer demand is focusing on Mobile Computers, but also on accessories, peripherals, software and especially All-In-One-Desktop Computers too. The successful introduction of Windows 7 initiated a new replacement and upgrade cycle. Lots of consumers leapfrogged Vista, staying with existing installed hardware, software and even accessories and peripherals. Overlooking Vista led to many installed products being outdated upon the arrival of Windows 7, thus consumers were “ready” for an update. As consumers are becoming more aware, they are looking for a wide product range. As a consequence expectations for 2010 are positive following this trend in consumers’ attitude.

Strong demand for LCD-TV’s returns growth back to the Consumer Electronics market

Consumer Electronics, the largest technology sector in Western Europe, recorded year on year growth of +0.7% in Q1 2010. The impact of the recession on the Consumer Electronics markets no longer exists as demand for LCD TVs strengthens for three key reasons.

Firstly, most countries in Europe have a huge consumer demand for replacing the old CRT-TV with a new flat LCD-TV. Of course, the World Cup in South Africa is supporting this trend and quickening the desire to replace old TV sets. With the stabilisation of prices over the past months, the revenue situation also saw an improvement.

Secondly, the digital switch over is another contributing factor to the growth in this market. With analogue TV being phased out, new set top boxes or even a new TV set are required to receive digital TV channels. This development is most strongly observed in Spain (+16%), Italy (+6.9%) and Portugal (+4.4%). Home entertainment in general gained importance with better HiFi products or “TV ecosystems” becoming increasingly popular. Positive and substantial impulses were seen from Blu-ray, Home Theatre Sets, Loudspeaker Sets and of course High Definition set top boxes.

Finally, consumers’ willingness to invest in flat screens, HD and better sound systems for the home, is a clear sign of the “homing-trend”. This willingness-to-invest combined with the anticipated impact of the World Cup  gives reason to expect an even better second quarter 2010.

2010 consumer technology outlook is positive

In addition, GfK TEMAX covers other consumer technology sectors in Western Europe and all but one experienced growth. Other technology sectors that grew in Q1 were Photography (+2.7%), Major Domestic Appliances (+ 4.1%) and Small Domestic Appliances (+6.5%), but Office Equipment and Consumables sector contracted -1.2% compared to the same period in 2009.

These positive growth figures in Q1 are likely to continue throughout the year and Michael Sauter, head of GfK TEMAX, comments that:

“The first signs for April are looking positive. Our data show the Technical Consumer Goods market continuing on the road to recovery, indicating more growth to come in Q2-2010.”

Check back in July for the latest data and analysis from GfK TEMAX

ABOUT GfK TEMAX

GfK TEMAX® is an index developed by GfK Retail and Technology to track the consumer durables markets. GfK TEMAX® is published internationally. The findings are based on surveys carried out by the retail panel of GfK Retail and Technology. The retail panel comprises data from over 340,000 retail outlets worldwide. Click here for all reports and press releases

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Apple is a leading force in the smartphone market because they simplify services and enable people to fit their world in their pocket.

Yesterday, Steve Jobs announced the latest iPhone 4 at WWDC but what struck me was the way he structured his presentation. Jobs focused early on about the success of the App Store for both consumers and developers. There is now 225,000 apps available, 5 billion downloads and Apple has paid out $1 billion dollars to developers. Apple has created a vibrant market place for mobile apps and services with more big brands to launch later this year. That is success unrivalled by anyone.

To cover all this first was smart because Jobs was focusing on the services and the benefits of owning (or developing content for) an iPhone. After all the device features are becoming less important over time whereas services and content is increasingly driving consumer demand in the smartphone (as opposed to the feature phone) market.

Apple have understood this for years because nothing about the iPhone 4 is particularly new, multitasking, video calling, high resolution screens and cameras have been around for a while. Whilst other smartphone makers have focused on handset features Apple have focused on what the consumer can do with their phone. These are very different strategies and Apple has clearly chosen the right path.

The really clever thing that Apple does is the way they take old features, like multitasking, simplify them and re-package them as if they have just been invented for the first time. By making features like these easy to use, those who aren’t particularly tech savvy believe that Apple invented them. Apple did exactly this with Apps, they made them easily accessible, streamlined the purchase and installation process and most importantly made the content exciting and relevant. A recent tweet from Steve Jobs exemplifies this perfectly:

“No one used computers until Macintosh. No one listened to MP3 players until iPod. No one made video calls until iPhone 4″

However, unlike a few years ago, there are now many strong competitors to the iPhone. There are many Android based alternatives that offer tightly integrated services, varied apps and some argue better features. Nokia will be launching their revamped version of Symbian OS on the N8 and Microsoft will also be introducing Windows Phone 7 towards the end of 2010. Most importantly, however, the services are improving quickly and whilst they haven’t achieved the success of Apple’s App Store they are quickly gaining ground.

Despite all the buzz around the iPhone 4 not everyone can afford one. With many compelling alternatives at cheaper price points, Apple faces much stiffer competition than they have faced upon the launch of previous iPhones.

What do you think of the new iPhone 4? Will you be buying one?

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Expect to see a vibrant and competitive tablet PC market over the next 12 months as Apple sell 2 million iPads globally in less than 60 days.

Apple certainly knows how to get the media and public excited about their latest creation, the iPad. Everyone is talking about the iPad and tablet PCs and this is not just tech press but also mainstream news bulletins. Apple is extremely proficient at sparking people’s imagination around all the creative ways their products, iPhone and iPad, can be used. Apple’s famous strapline for the iPhone was “there’s an app for that” which creates a powerful perception that anything is possible, and the same applies on the iPad.

Whilst Apple have created an enormous buzz around tablet PCs and educated the market as to all the potential uses, competitors will be launching rival products to compete with Apple’s iPad. In the next 12 months we’ll see a plethora of tablet PCs launched from a number of different manufacturers, running a number of different operating systems, from Microsoft Windows to various open source based platforms such as Android and MeeGo (Intel and Nokia joint venture).

The tablet PC market will be a place where laptop manufacturers and smartphone providers really start to compete head to head. At the smartphone end of the market expect to see Nokia, Blackberry and HP (running newly acquired Palm OS) launch alternatives to the iPad. At the PC end of the market the first entrant will be the Dell Streak which will quickly follow the iPad launch in mid June. Asus and Lenovo also have tablet PCs in the pipeline, which will most likely be based on Windows 7. Google won’t be left behind and will launch either an Android or even a Chrome OS based tablet during the course of the year.

With all the different tablet PCs, consumers will be spoilt for choice. Looking at the main three operating systems, Apple mobile OS, Windows 7 and Android/Chrome OS, each company will take a slightly different approach which will add great variety for consumers. For example, Google will be pushing for more of a cloud-based solution, Apple will be heavily app and services based while Microsoft will be evolving their traditional Windows based platform that everyone is familiar with.

As tablet PCs become more popular the netbook market will take a further nosedive. In July 2009 the netbook market grew an astonishing 641% but in April 2010 it grew only 5%, a remarkable fall from grace.

So if netbooks fall victim to tablet PCs, who will benefit?

Well, the iPad was launched in the UK last Friday and today Apple announced that they have sold more than 2 million units globally. According to GfK NOP Technology research Apple are expected to sell up to 2 million 1st generation iPads in the UK if they can meet high levels of early demand. The pricing of the iPad varies and is available as Wi-Fi only models as well as 3G devices from the major UK operators. Apple will almost certainly occupy the more premium end of the market, with competitor tablets likely to be more cost effective. However, price is not the only determining factor for success. The provider who can package up content and services that make tablets easy to use and relevant to the consumer will be the ones who come out on top.

Apple has proven credentials when it comes to delivering multi-media services and apps to their users. They’re not standing still either as Apple launched the iBookstore on the iPad which has already sold 1.5 million ebooks in the US. But even in the services market, competition is strong. Expect to see compelling service offerings from Google, Nokia, RIM (Blackberry) and HP Palm, all of which produce excellent hardware and are quickly improving their services and access to vibrant market places for 3rd party apps.

If competitor tablets can get their service offerings right we can expect to see a very competitive and exciting tablet market in the next 12 months.

FURTHER READING

Apple struggling to cope with demand

http://technology.timesonline.co.uk/tol/news/tech_and_web/personal_tech/article7134564.ece

Operator tariff prices

http://www.guardian.co.uk/technology/2010/may/10/o2-reveals-ipad-data-plans

2 million iPads sold globally

http://techcrunch.com/2010/05/31/apple-sold-2-million-ipads-in-59-days/

RESEARCH NOTES

GfK NOP Technology conducted a survey among 1279 UK adults between 16th and 21st April 2010. The interviews were conducted online and are representative on UK adults who have access to the internet.

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Smartphone technology paves the way for the market to adopt greener approaches. Encouraging greater use of mobile services helps to limit the need for multiple devices, extend the product lifecycle and offer consumers more ways of being green.

“Technology companies can never be green”. A casual comment dropped into conversation when discussing the idea of ‘green technology’. Of course, ‘green technology’ already exists in the form of multi-million pound, global scale projects that help reclaim water, produce renewable energy and generally help meet global climate change targets. Green technology, as it stands, does not mean the ‘greening’ of technology.

Making technology a little greener would mean creating a shift in the way that technology products – consumer ones that is – are used and consumed. My argument is  that the first steps to any greening of the consumer technology space would be lengthening the product lifecycle. Today, the very nature of the market tells a tale of rapid uptake and obsoleteness; parts break or newer, quicker, more innovative versions come along leaving many devices left for good old Mr. Landfill. Looking at the wider consumer landscape, which is successfully adopting greener behaviour, it seems like the right time for technology to adapt.


Recent data from a GfK NOP Technology survey amongst a representative sample of UK adults* which asked about attitudes towards everyday technology products like MP3s, PCs and mobile phones revealed that obsoleteness is not a desirable feature. When it comes to mobile phones specifically, more than half (56%) say that they are more interested in keeping their device for longer. This offers an opportunity for the rapidly growing mobile services industry. More on this later.

The finding is reflective of wider concerns about the environment and suggests a growing demand for a greener technology market. In particular, 41% of consumers want to know more about what their mobile phone brand or network is doing to be more green in order to help make decisions about future purchases. Consumers now have more choices than ever before to help ‘being green’ more easy, but whether technology products can add to the offering remains to be seen.

Enter the smartphone, which according to Gartner, Inc saw sales growth of 48.7% across the global market in the first quarter of 2010. Smartphones bring mobile services to the lives of consumers which Mobile Marketer estimate will be worth $1 trillion by 2013. Services available through smartphone technology are already a valuable commodity for global technology companies including Apple, Microsoft, Google and Nokia who, despite raging patent war,s are rolling apps, music, messaging, maps and other everyday ‘services’ the mass market might desire over 3G and wireless networks.

The benefits of mobile services extend beyond helping consumers rely more on their mobile phones. In particular, our research reveals that 40% of consumers are more interested in updating the services they use on their mobile phone than the device itself. This figure is not only music to the ears of software developers, network providers and mobile manufacturers who are diversifying into this services market, but also to consumers looking for more ways of being green. Services can extend the product lifecycle through satisfying a wide variety of consumer needs when it comes to technology. They can be updated and replaced regularly and help transform mobile devices into a highly personalised experience. Not only this, but due to the way that they bring a variety of functions together, e.g. camera, music player, clock, etc, they reduce the need for multiple technology devices. All of which contributes a ’greener’ technology market.

However, mobile services can not only help limit environmental impact of products, they also encourage and enable greener consumer behaviour and offer more choices for a greener lifestyle. Nokia, the world’s leading mobile manufacturer, is helping demonstrate how. Kirsi Sormunen, Vice President of Nokia Environmental Affairs, says that the company is continuously looking at “new ways in which mobile technology can contribute to sustainable development,” as well as “ inviting consumers to the journey towards sustainability.” To support this they have created a series of videos demonstrating and hinting at ways that using a mobile phone with internet access is yet another way of ‘being green’.

The videos show mobile phones helping us to help the environment through reducing travel, browsing the internet and carrying an all-in-one device. Nokia is not new to the move to making technology more green. The company came top in Greenpeace’s guide to consumer electronics earlier in the year. Their progression from making the manufacture of handsets more green to making the relationship between consumers and their devices more green, is an encouraging move for the technology market.

With the rapid uptake of smartphones, according to Gartner Inc figures, 54.3 million units globally are already helping people use their mobile phones to access the internet and services, limiting the need for multiple and separate devices. A green revolution in consumer technology has already begun, particularly where consumers want to keep their mobile devices for longer. Despite the global giants of Google and Apple being the pioneers of smartphone technology, it is companies like Nokia who have already realised the environmental benefits of mobile services who are paving the way for the greening of technology.

FURTHER READING

http://www.nokia.com/corporate-responsibility/environment/case-studies/green-products

http://www.greenpeace.org/international/campaigns/toxics/electronics/how-the-companies-line-up/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+CrikeyDaily+(Crikey+Daily)

More from GfK on green issues from Roper Consulting:

http://www.gfkroperpulse.co.uk/

RESEARCH NOTES

GfK NOP Technology conducted a survey among 862 UK adults in March 2010. The interviews were conducted online and are representative on UK adults who have access to the internet.

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The mainstream consumer generally opts for a device that integrates lots of functionality. If the ‘third device’ with greater functionality does take off, eBook readers will, more than likely, become a niche product.


I love the idea of an eBook reader especially one with an ‘always on’ 3G connection. The battery life is superb, lasting in many cases well over a week and the e-ink screens are almost essential for prolonged spells of reading. I like the idea of receiving my favourite newspaper and other magazine subscriptions directly to a device all ready for my morning commute.

However, my desire to own an eBook reader is not driven by a personal urge to carry around a library of novels.  It is actually for business purposes. I could make better use of my commute by catching up on the news and reviewing work documents. Indeed, having access to meeting documents or presentations on an eBook reader whilst travelling to a meeting would be highly convenient.

It’s encouraging for eBook readers that sales of them in the USA are supposedly strong. Barnes and Noble’s Nook quickly sold out and Amazon’s Kindle is their “number one best-selling” product on Amazon.com. However, no one is sure how many eBook readers have been sold due to the secrecy of the sales figures, particularly from Amazon. Now with the arrival of tablet PCs, especially Apple’s iPad, eBook readers face stiff competition.

As a result, I fear that interest in eBook readers will be limited to two types of users; business people and extreme reading enthusiasts. If there is a big uptake in consumer demand for a ‘third device’ (i.e. something that sits inbetween a smartphone and a laptop) then I believe that the large majority of people will opt for a device that has multiple uses.

We have already seen that those who have experienced the benefits of an iPhone (and its  seemingly unlimited uses) are highly interested in tablet PCs. Now that the dust has settled on the announcement of Apple’s iPad, many commentators believe its success will rely on the consumer being able to tailor the device to their own specific needs. Further to this, others are already excited at the new applications the iPad will enable.  One of my favourites is to use it as a board game.

The specialist nature of eBook readers seem to be reflected in interest levels among UK consumers. Prior to Apple’s announcement of their iPad, GfK Technology research showed that interest levels in eBook readers (23%) was half that of tablet PCs (45%). Perhaps not surprisingly, interest levels for eBook readers are higher among those who had recently bought either a physical newspaper or a book.

It is my view that the success of a product is highly dependent on the problem it solves or the demand it satisfies. History has shown that those devices that satisfy numerous need states naturally succeed, limiting specialist devices to a niche audience.

NOTES

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Research Info

*1000 online interviews were conducted by GfK NOP among a UK representative sample of internet users. The fieldwork was conducted between 15th – 19th January 2010

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