More than 30 percent of American adults use their tablet devices daily to read news.
Over 15 percent read a book on their tablets every day, according to Pew’s Demographics Of Mobile News report. The Pew study excluded e-readers, which are sometimes lumped together with tablets in a single market.
Interestingly, despite being trumped as a much ballyhooed savior for magazines, it seems few Americans regularly use a tablet to browse their favorite magazines (10 percent or less across age groups).
Nonetheless, the findings point to a mobile future for reading.
As we discussed last week, books and magazines are the fastest growing mobile content category by audience growth. News is the fourth largest content category by audience size and continues to show significant audience growth.
Whether mobile growth in news and books will be able to make up for lost offline or desktop-based revenue is another question. E-books typically cost much less than their print counterparts, for example. However, for ad-supported content, the huge growth in tablets sales should be welcome news because tablets are a much more promising ad platform than smartphones.
Games are the most frequently used apps on both smartphones and tablets.
According to mobile analytics company Flurry, games account for 39 percent of time spent in apps on smartphones, and 67 percent of app time on tablets. Games’ ability to engage users is one reason they are the biggest moneymakers in Apple’s App Store.
Flurry also found that smartphone owners use more apps per week, but tablet owners’ app sessions are twice as long. This is why many in mobile believe that tablets are a more promising advertising platform than smartphones, as we discussed in our mobile advertising report.
Tablets and smartphones will not completely displace PCs. But they will quickly overwhelm them in terms of unit sales. When, where, how and to what degree this occurs will have tremendous implications across many businesses and industries.
Here are some of the growth drivers:
- The average sales price of tablets are falling: Through the first six months of the year, tablet prices have seen a pretty steep drop off, despite the iPad’s continued dominance. The ASP of the iPad is down more than 11% from its 2011 price. The introduction of mini tablets, beginning with the Kindle Fire, disrupted the pricing dynamics of the market and will drive the huge drop in ASP over the next few years.
- Increased penetration in existing markets: Penetration will increase in markets where tablets already have a foothold. Increased adoption will be driven by falling prices and the tablet market’s subsumption of the e-reader market, which sold more than 20 million devices in 2011. The replacement rate of tablets is also somewhere between smartphones and PCs, indicating that sales can scale and grow rapidly.
- Tablets are disruptive: Tablets are poor substitute for PCs if you are trying to run data intensive spreadsheets, but they vastly improve upon the media consumption experience. Tablet owners consume a huge amount of content, from news to magazines to movies to TV shows. And again, they are cheaper and getting even cheaper every day.
- Multiple emerging markets are ripe for tablet disruption: As we discuss in! our mob ile enterprise report, tablets have only started making their way into the enterprise — a hardware market that will top $420 billion this year. Education is another opportunity; U.S. K-12 schools spend about $5.5 billion on textbooks in 2010, and college students spend hundreds of dollars per semester on textbooks they’ll only use once.
In full, the report:
- Explains why the average selling price of tablets has fallen, and will continue to fall
- Analyzes why tablets will benefit from increased penetration in existing markets
- Details why tablets are indeed a disruptive technology
- Explores the growth opportunities that exist in enterprise, education, and emerging markets
Chang tells the Wall Street Journal, “At the beginning, it was, for instance, 500K units a month, then maybe 600, 700K. This latest month, it was close to 1 million.”
It is also Google’s best effort at creating a true tablet computing experience with Android. While Android is the leading smartphone operating system, Apple’s iOS is leading in tablets.
Apple sold 14 million iPads last quarter, which is roughly 1 million per week. So, Google is still far behind. But this increasing growth is encouraging, and perhaps one of the reasons Apple decided to release a cheaper iPad mini.
Not exactly a huge surprise here, but a new study out from NPD DisplaySearch today has confirmed that the trend towards larger screens in continuing at a steady pace in all but a few key areas. The big exception is “mobile PCs,” which NPD defines as laptops and tablets for its purposes. That area dropped from a 13.6-inch average in 2010 to 12.1-inch in 2012 (with an ever so slight increase to 12.2-inches projected for 2013), a drop that represents a ten percent decrease overall and is largely attributed to the growth of tablets . All other areas have seen small to significant growth in recent years, with LCD TVs growing 9 percent, mobile phones increasing 38 percent, and portable media players jumping 29 percent. The biggest growth, by far, comes in OLED TVs, which have gone from a mere 15-inch average in 2010 to an average of 55-inches today — a growth of 267 percent.
NPD study finds average display sizes continuing to rise in all areas but laptops and tablets originally appeare! d on Engadget on Tue, 16 Oct 2012 15:47:00 EDT. Please see our terms for use of feeds.
Amazon makes a pretty good case for its Kindle Fire HD and Paperwhite with prices as low as $199 and $119 respectively, but it turns out there’s more at work than just special offers to keep them affordable. In an interview with the BBC, the company’s head honcho Jeff Bezos revealed that they can keep the price tags reasonable since they don’t turn a profit on the devices. “Basically, we sell the hardware at our cost, so it is break even on the hardware,” Bezos said. “We’re not trying to make money on the hardware.” Instead, Amazon banks on making a buck when owners of the slates and e-readers purchase books, movies, games and other content through their digital storefront. This doesn’t exactly come as a surprise, but we’re glad that Jeff’s confirmed our suspicions.
Bezos: Amazon breaks even on Kindle devices, not trying to make money on hardware originally appeared on Engadget on Fri, 12 Oct 2012 03:57:00 EDT. Please see our terms for use of feeds.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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