Smartphones tablets and the mobile revolution

 The mobile market is largely penetrated globally, with approximately 6 billion mobile subscribers, or 87 percent of the world's population. There are 325 million mobile subscriptions in the United States, a 103% penetration rate.

Smartphones, tablets


Smartphone adoption continues to grow rapidly, currently in the U.S. Mobile handsets represent more than 50 per cent in the U.S., with further penetration gains anticipated. The smartphone is effectively a powerful mobile computer and its adoption and evolving use, along with tablets and e-readers, has resulted in new consumer behavior and expectations related to the consumption of information and the purchase of goods and services.


At the same time, the rapid emergence and consumer adoption of Facebook and other social networks is a social phenomenon unparalleled in human history.


At the beginning of October, the Facebook network had more than 1 billion active users, one-seventh of the world's population and nearly half of global Internet users.


Every day, Facebook processes 2.7 billion? Like,? 300 million photo uploads, 2.5 billion status updates and check-ins, among other countless bits of data.


There are about 600 million people using Facebook on mobile phones and as smartphones move forward, Facebook expects even more mobile usage and more engagement. ?It's just such a big opportunity,? Facebook founder/CEO Mark Zuckerberg said.


Several other consumer services, including Facebook, Pandora and YouTube, are rushing to monetize their very significant and rapidly growing mobile user base.


Mobile applications continue to proliferate and the mobile advertising market has finally taken off as advertisers, brands, marketers and publishers rush to deliver targeted messages relevant to mobile consumers, in part, across location and type of device.


Similarly, retailers are embracing shopping research and in-store mobile use on smartphones and tablets, while mobilizing their Web sites to optimize the mobile consumer and commerce experience.


As smartphones and tablets enter the global mainstream, an entire ecosystem of services and technologies is emerging to capitalize on this trend. We are in the early innings of the mobile revolution generated by increasingly faster, more affordable mobile Internet access on a global basis.


How the iPhone Changed the Mobile Game


? Did the mobile revolution really start with Apple in 2007? Introduction to iPhone. The iPhone fundamentally and irrevocably redefined mobile devices with relatively fast and simple web access, an innovative and intuitive touch screen, and the creation/promotion of mobile applications and the mobile app marketplace.


Previously, wireless devices largely functioned as wireless telephones or wireless email devices.


With the iPhone, the world's first consumer smartphone, mobile devices became mobile computers that also serve as voice and text communication devices.


iPhones, handsets and other smartphones powered by Google's Android mobile operating system have provided consumers around the world with the first affordable, personal computers, one of the biggest and fastest changes in consumer behavior ever.


Equally important, while perhaps less well understood, is how Apple caused a fundamental shift in the balance of power among the giants of the wireless industry, in much the same way that it did with the introduction of the iPod earlier in the decade. How to grow the industry


The iPhone enabled its users to surf the Internet directly through their mobile Safari browser instead of using the mobile carrier's own portal, providing device manufacturers with a direct customer and revenue linkage.


By allowing Internet access and portal competition, wireless carriers relinquished control of their own customers, giving rise to dumb pipe descriptors in the process.


The success of the iPhone has resulted in less control by wireless carriers, more innovation in mobile operating systems by device manufacturers and developers, and more affordable and increasingly more powerful mobile computing products for consumers.

The iPhone led directly to Apple's design and introduction of the iPad, its subsequent consumer electronics category maker and blockbuster, in April 2010.


Android success?


The iPhone ushered in a new mobile era, and rising unit sales continued to generate incredible financial returns for Apple. It also generated an immediate competitive backlash from Google.


In 2008, Google launched Android as an alternative mobile operating system through an open-source licensing model, at no charge, which gives device manufacturers and mobile carriers significant freedom and flexibility to design products. Whereas Android depends on the manufacturers to build and promote the device and carrier. and other retailers to sell them to consumers.


Google's no-fee licensing model has resulted in rapid adoption in the smartphone market, such that Android is now the leading mobile operating system globally.


In fact, Android OS accounted for 72 percent of all smartphone shipments in the third quarter of 2012. Samsung is the leading Android smartphone maker by a wide margin, accounting for 34 percent of global smartphone shipments in the third quarter of 2012.


While Android is now the dominant smartphone OS, entering the tablet market has proved more difficult.


In the third quarter of 2012, Apple iPad holds 50 percent market share, followed by Samsung at 18 percent and Amazon at 9 percent (Samsung and Amazon both use the Android OS).


The recent introduction to the holiday selling season of the iPad mini and several new Android-based tablets will lead to interesting market share comparisons in January.


Apple is a manufacturer and retailer and generates revenue and solid margins on each Mac, iPod, iPhone, iMac and iPad sold.


Google does not generate any direct revenue through adoption by the makers of the Android OS.


On the other hand, all of these tools are optimized for Google applications to generate a huge amount of consumer usage data that Google monetizes through advertising sales.


Google also generates revenue through third parties and direct sales of Nexus smartphones and tablets, although these Google devices are contracts produced by third-parties.


Mobile customer statistics?


As mentioned earlier, there were approximately 6 billion mobile subscribers on a global basis at the end of 2011. This represents a penetration rate of about 87 percent based on the current global population of 7 billion.


Developed countries represent 25 percent of these subscriptions with 122 percent penetration, while developing countries represent 75 percent subscriptions and 78 percent penetration.


According to Portio Research, global customers are projected to grow by 5.4 percent from 2012-2016.


Smartphone and tablet subscriptions are growing rapidly


? According to Ericsson's June 2012 report, there will be approximately 1 billion smartphone customers and 250 million mobile PC and tablet customers globally at the end of 2012.


These segments are projected to grow at a CAGR of 30 per cent and 25 per cent, respectively, by 2017, with smartphone and mobile PC/tablet subscriptions (data-heavy devices) totaling 3.8 billion in 2017, 43 per cent of mobile subscriptions.


The segment identified as HT smartphones refers to high-traffic devices, which typically generate 5-10 times more traffic than low-traffic devices. It is estimated that HT's share of total smartphones reached 50 percent at the end of 2011, and will represent the vast majority in 2017.


The Ericsson report also tracks and forecasts mobile broadband subscriptions, including those devices using Wi-Fi networks and the declining number of feature phones with mobile web browsers. This subscriber base is also projected to grow at a CAGR of 30 per cent to 5.1 billion by 2017, accounting for a 57 per cent penetration rate of total mobile subscriptions.


US There are currently about 115 million smartphone and 74 million tablet users in the U.S.


Smartphones now in the US covers more than 50 percent of mobile handsets in the U.S., while tablets are available in the U.S. aged 8 to 64. The Internet has reached about 31 percent of the population and about 25 percent of the U.S. population. are found in homes.


Both smartphone and tablet unit sales continue to grow substantially for the US market, although projected growth is even higher outside the US, particularly in the Asia-Pacific region.


Mobile subscriptions will continue to grow moderately over the next five years, while smartphone, HT smartphone and mobile broadband subscriber penetration is expected to grow rapidly and substantially. Consider that by 2017 more than half of the world's population will have access to the Internet on their mobile device.

Mobile data beats voice?


As smartphones entered the consumer market, global traffic on mobile networks has changed dramatically since 2007.


In line with changes in use of Internet access and information/entertainment consumption, there has been a modest increase in voice traffic, while data traffic has exploded with rapid growth in the second half of 2008. Mobile data traffic is now four times more than mobile voice traffic. .


Mobile traffic refers to personal use, which is derived partly from the screen size of the mobile device.


Generally, the bigger the screen, the more time is spent watching videos, making it one of the most traffic consuming activities.


As of the end of 2011, an average mobile PC/tablet generated about four times the mobile data traffic produced by an HT smartphone, which, in turn, generated twice the traffic of an average smartphone.


Mobile data traffic is expected to grow rapidly, growing at a CAGR of 60 percent from 2011 to 2017, while voice traffic remains stagnant.


Data traffic forecasted in 2017 will be 15 times higher than in 2011 overall, reflecting both subscription and usage growth, particularly mobile video, a significant bandwidth hog.


On average, a mobile PC generates about four times more traffic than a HT smartphone.


As of the end of 2011, an average mobile PC generated about 2 GB per month, compared to 500 MB per month produced by HT smartphones.


An average smartphone generates about half the volume of an HT smartphone. By the end of 2017, it is estimated that a mobile PC/tablet will generate 8Gb of traffic per month, and a smartphone above 1Gb, such that a mobile PC/tablet generates a little over half of the mobile data traffic. 2017.


In 2017, about one-third of the installed base of mobile PCs is estimated to have a broadband subscription, with the remainder believed to use Wi-Fi or Ethernet to connect or not to connect.


Also, about half of the tablets are expected to have a built-in broadband modem, although not all will have an active subscription. It is estimated that only 13 percent of tablet users worldwide currently have a data subscription, choosing to connect via Wi-Fi instead of a cellular mobile network.


Entertainment and mobile video rules?


There are many ways to express consumer behavior on mobile devices. One way is to analyze the type of traffic generated by mobile devices.


From this perspective and measuring traffic during peak periods, real-time entertainment is the dominant traffic category on mobile networks, accounting for 49.9 percent of all bytes sent and received, followed by web browsing at 16 percent and social networking at 10.5 percent. .


Social networking apps generally generate far less traffic than real-time entertainment apps that stream audio and video, further underlining their popularity and usage.


YouTube has become the dominant app on mobile networks (Netflix dominates fixed networks) with 28 percent total traffic share, Facebook is fourth with 8 percent share and Pandora is now sixth in upstream-downstream traffic usage. Facebook accounts for 15.4 percent of the upstream traffic on the mobile network, its single largest share.


From a traffic perspective, Cisco estimates that mobile video will grow at a CAGR of 90 percent between 2011 and 2016, the highest growth rate of any mobile app category projected, which will generate more than 70 percent of mobile data traffic by 2016 . The mobile web is estimated to generate 20 percent of mobile data traffic in 2017, the second largest category after mobile video.


Globally, cloud apps will account for 71 percent of total mobile data traffic in 2016, compared to 45 percent at the end of 2011. Mobile cloud traffic is projected to grow 28 times from 2011 to 2016, a compound annual growth rate of 95 percent.


How do we spend our time?


Mobile traffic is a means of identifying a consumer's mobile behavior, but since different apps generate more/lesser amounts of traffic, it's also important to understand how much time we spend on each app.


According to eMarketer, time spent on mobile devices has increased from 22 minutes per day in 2009 to an estimated 82 minutes per day in 2012, nearly four times more.


In October 2011, McKinsey & Company published minute-by-minute mobile device usage based on the findings of their iConsumer survey.


US Of the total 119 minutes of daily use reported in the U.S., 32 percent of the time was spent on entertainment, nearly a third of the time playing games, while another 32 percent of the time was spent talking or sending instant messages.


In addition, we spend 10 percent of our time on social networks and about 8.4 percent on the Internet, browsing/searching or shopping/researching and searching locally.

In most retail categories, mobile accounts for about a third of online consumer research and 44 percent of this research is done inside physical stores. To check out the competition, to compare prices, or to use a mobile-specific tool like a bar code scanner.


Usage varies marginally from country to country and varies greatly by demographic.


Does Demographics Matter?


The digital lives of American youth aged 13-34 differ from those of older American consumers.


According to another McKinsey report, using the same iConsumer survey data, this age group prefers smartphones or tablets and skips PCs and multiple laptops. Landline telephones are considered almost a curiosity as are CDs and most hard-copy media such as newspapers, magazines and books.


Compared to consumers in the 35-64 age group, those in the younger age group are 1.5 times to two times more likely to own a smartphone, tablet, Internet-enabled gaming console or Internet video box.


Similarly, 13-34 age groups are 1.5 times more likely to go online to communicate through social networks and VoIP/video chat or to access entertainment online or on-demand.


In addition, compared to the 35–64 age group, this group used their mobile devices 3 times longer each day and, as a ratio of total time spent, engaging with applications on mobile versus PC. Takes twice as long.


This tech-savvy conglomerate is entering its prime spending years and the cultural and consumption behavior of this younger generation has significant implications, especially for emerging and established information, lifestyle and technology brands.


Aren't tablets mobile like smartphones?


According to the Online Publishers Association, tablet owners are slightly older, more female and wealthier than smartphone owners.


The average age of tablet owner is 34, compared to 30 for smartphones, while smartphone owners skew more men at 56 percent of male ownership compared to 51 percent of male ownership of tablets. Tablets are more of a shared device and less? Individual? The larger screen enables greater multimedia consumption while compared to smartphones.


According to Nielsen data 70 percent of consumers? Time spent with pills is at home. The tablets are used an average of 13.9 hours per week and are used more often at night, especially during 7 pm. Prime-time television viewing time till 10 pm.


Forrester Research recently reported that 85 percent of American tablet owners use their devices in front of a television, while 57 percent of smartphone and tablet owners check email, 44 percent visit social networks and 19 percent Discovered product information while watching TV.


The behavior of tablet use goes beyond interaction with the TV. Research indicates that 30 percent of tablet users actually spend more time reading news than they did before buying a tablet.


While free streaming makes up the majority of content consumed across all platforms, TV has the highest share of paid content (35 percent), followed by tablets (29 percent), smartphones (19 percent) and PCs (17 percent). .


Consumers spend more time using tablets for more immersive activities, with games, social networking and entertainment categories accounting for 86 percent of consumption.


Smartphones also boast a high proportion of communication and task-oriented activities, with social networking (24 percent), utilities (17 percent), health and fitness (3 percent) and lifestyle (3 percent), accounting for nearly half of usage on smartphones. give orders.


Social networking is changing the way users communicate. Games are the most popular category on both form factors, with 67 percent of the time spent using games on tablets and 39 percent of time using games on smartphones.


Broadly speaking, social networking is changing the way users communicate.


According to McKinsey, since 2008 social networking has almost doubled its share of consumer communication time from 15 percent to 29 percent, mostly at the expense of phones.


This change in behavior becomes more pronounced when consumers under the age of 25 spend nearly 40 percent of their communication time on social networks, which is twice the rate of those over the age of 45.


Wrap up and looking forward?


The rapid proliferation of smartphones and tablets is profoundly changing the way we behave, consume content and do commerce.


The ubiquity of wireless connectivity combined with the increasing functionality and speed of connected devices and mobile networks will drive consumer demand for media, content and advertising, while monetization models are evolving.


Smartphones and tablets are going mainstream. We have seen a dramatic increase in mobile usage and usage since the introduction of the iPhone in 2007, the Android OS in 2008, and the iPad in 2010.

Research from Cisco, Ericsson, Sandvine and others provides reasonable visibility into the continued growth and adoption of smartphones and tablets, their populations, and the growth in household access and data consumption five years from now. We know that time spent on these devices has increased significantly and mobile consumption of video and social networks will continue to expand.


McKinsey's study on digital consumption behavior in the 13-34 age group provides insight into future consumer behavior.


We know that consumer behavior on a smartphone is different from a tablet. We know that tablets are becoming increasingly available in a variety of sizes, potentially representing additional specific consumer use cases.


It is also clear that mobile users are becoming active mobile buyers. As smartphones and tablets go mainstream and consumers spend more time on their devices, publishers continue to explore different monetization models, while advertisers, brands and marketers rely on increasing advertising budgets and feedback and brands on both the mobile medium. to spend.


Media, entertainment and information companies are investing in their Web sites and new services and technologies to capitalize on the resulting fundamental changes in consumer behavior.


Established and emerging mobile advertising technology companies are also developing and providing solutions to help marketers and advertisers reach this vast mobile audience on a targeted basis in a cost-effective manner.


The mobile market is complex, fragmented and is growing and evolving rapidly. We are in the early innings of the mobile revolution generated by more affordable mobile computing and Internet access on a global basis.


Colin Knudson is the Managing Director at Cody Diemer Partners, a New York-based investment banking firm. arrive at it.

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