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UK Mobile Insights Report 
2013 Q4
An overview of recent research and data on smartphone and tablet
ownership in the UK, November 2013
Introduction
The	
  end	
  of	
  2012	
  marked	
  	
  a	
  
milestone	
  for	
  mobile	
  device	
  
ownership.	
  	
  For	
  	
  the	
  first	
  <me	
  ever,	
  
smartphone	
  penetra<on	
  in	
  all	
  
major	
  European	
  markets	
  surpassed	
  
50%.	
  Smartphone	
  and	
  tablet	
  
growth	
  has	
  con<nued	
  to	
  rise	
  at	
  a	
  
startling	
  pace	
  in	
  2013,	
  and	
  has	
  
remoulded	
  the	
  way	
  people	
  absorb	
  
news	
  and	
  engage	
  with	
  brands,	
  as	
  
well	
  as	
  causing	
  a	
  drama<c	
  shiG	
  in	
  
the	
  way	
  we	
  communicate	
  with	
  
each	
  other.	
  
	
  
Tablets	
  and	
  mobile	
  are	
  forever	
  
changing	
  the	
  consumer	
  landscape,	
  
and	
  with	
  Google	
  Glass	
  and	
  smart-­‐
watches	
  on	
  the	
  horizon,	
  shopping	
  
and	
  searching	
  on	
  the	
  move	
  is	
  now	
  
becoming	
  an	
  everyday	
  norm.	
  Add	
  

to	
  the	
  mix	
  the	
  steely	
  rise	
  in	
  tablet	
  
ownership	
  and	
  the	
  ubiquity	
  of	
  
mobile	
  broadband	
  connec<vity	
  and	
  
we	
  are	
  witnessing	
  the	
  consump<on	
  
of	
  digital	
  media	
  in	
  ever	
  greater	
  
amounts	
  across	
  an	
  increasingly	
  
diverse	
  range	
  of	
  devices.	
  	
  With	
  
mobile	
  central	
  to	
  people’s	
  daily	
  
lives,	
  its	
  place	
  as	
  an	
  indispensable	
  
part	
  of	
  the	
  marke<ng	
  mix	
  cannot	
  
be	
  stressed	
  enough.	
  
	
  	
  	
   	
  

Ian	
  Malone	
  	
  
Managing	
  Director	
  	
  
	
  
	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  

We	
  Are	
  Apps	
  have	
  collated	
  the	
  
most	
  up	
  to	
  date	
  research	
  and	
  
figures	
  to	
  get	
  an	
  overview	
  of	
  the	
  
current	
  state	
  of	
  the	
  UK	
  mobile	
  
market,	
  in	
  this,	
  our	
  Q4	
  2013	
  UK	
  
Mobile	
  Usage	
  round	
  up.	
  
	
  
	
  

2	
  
We Are Apps
We	
  Are	
  Apps	
  is	
  an	
  award-­‐winning,	
  
London-­‐based	
  full	
  service	
  mobile,	
  
tablet	
  and	
  app	
  media	
  agency.	
  We	
  
have	
  developed	
  apps	
  for	
  leading	
  
brands	
  such	
  as	
  WesWield,	
  Ford,	
  	
  
Cadbury,	
  Avon	
  Cosme<cs,	
  Great	
  
Bri<sh	
  Chefs	
  and	
  News	
  	
  	
  
Interna<onal.	
  
	
  
Our	
  apps	
  have	
  won	
  the	
  following	
  
accolades:	
  
• 
Best	
  of	
  the	
  App	
  Store	
  2012,	
  
Apple	
  
• 
Best	
  500	
  Apps	
  in	
  the	
  World,	
  
Sunday	
  Times	
  
• 
100	
  Greatest	
  Ever	
  Apps,	
  Apps	
  	
  
Magazine	
  
• 
Silver	
  Lovie	
  Award	
  2012	
  and	
  	
  
2013	
  –	
  Lifestyle	
  Tablets,	
  
Great	
  Bri7sh	
  Chefs	
  	
  
• 
Featured	
  in	
  Apple’s	
  TV	
  
adver<sing	
  for	
  the	
  iPad	
  

With	
  years	
  of	
  experience	
  in	
  digital	
  
marke<ng	
  and	
  adver<sing,	
  we	
  help	
  
brands	
  and	
  crea<ve	
  agencies	
  plan,	
  
produce	
  and	
  promote	
  the	
  most	
  
effec<ve	
  mobile	
  execu<on.	
  	
  	
  
	
  
We	
  specialise	
  in:	
  
	
  
• 
Mul<screen	
  development	
  
• 
Crea<ve,	
  award-­‐winning	
  
design	
  	
  
• 
App	
  marke<ng	
  and	
  
promo<on	
  	
  
We	
  are	
  always	
  looking	
  for	
  new	
  
opportuni<es	
  to	
  work	
  with	
  clients	
  
to	
  create	
  the	
  apps	
  they	
  want	
  so	
  if	
  
you	
  are	
  interested,	
  call	
  us	
  on	
  020	
  
7100	
  9318	
  or	
  email	
  us	
  at	
  
enquiries@weareapps.com.	
  
	
  
	
  

	
  
Contact:	
  
Tel:	
  
020	
  7100	
  9318	
  
Email:	
  
enquiries@weareapps.com	
  
	
  
Website:	
  
hep://www.weareapps.com	
  
	
  
Contact:	
  
Tel:	
  020	
  7100	
  9318	
  
Address:	
  
Email:	
  enquiries@weareapps.com	
  
2nd	
  Floor	
  
Website:	
  wHouse	
  
Magdalen	
   ww.weareapps.com	
  
	
  136	
  –	
  148	
  Tooley	
  Street	
  
Address:	
  
London	
  
2nd	
  F2TU	
  	
  
SE1	
   loor	
  
Magdalen	
  House	
  
136-­‐148	
  Tooley	
  Street	
  
London	
  
SE1	
  2TU	
  

3	
  
Table of contents
IntroducFon 	
  

	
  

	
  

	
  

	
  

	
  2	
  

We	
  Are	
  Apps 	
  

	
  

	
  

	
  

	
  

	
  3	
  

	
  

	
  

	
  

	
  

	
  14	
  

Where	
  are	
  they	
  using	
  them

	
  

How	
  are	
  tablets	
  being	
  used

	
  

	
  

	
  

	
  15	
  

	
  

	
  

	
  

	
  

	
  16	
  

	
  

	
  

	
  
Making	
  apps

	
  

The	
  UK	
  smartphone	
  market 	
  

	
  

	
  

	
  5	
  

Mobile	
  app	
  or	
  website 	
  

	
  

	
  17	
  

Who	
  uses	
  smartphones

	
  

	
  

	
  6	
  

	
  

	
  

	
  7	
  

How	
  businesses	
  are	
  making	
  the	
  most	
  of	
  their	
  	
  
apps	
  in	
  2014
	
  
	
  
	
  
	
  
	
  

	
  18	
  

Conclusion

	
  

Smartphone	
  devices	
  being	
  used	
  
	
  
The	
  UK	
  tablet	
  market	
  

	
  

	
  

	
  

	
  8	
  

Who	
  uses	
  tablets

	
  

	
  

	
  

	
  9	
  

Tablet	
  devices	
  being	
  used

	
  

	
  

	
  

	
  10	
  

The	
  decline	
  of	
  the	
  PC 	
  

	
  

	
  

	
  

	
  

	
  
	
  

	
  

	
  

	
  

	
  

	
  19	
  

	
  

	
  

	
  

	
  

	
  

	
  20	
  

	
  12	
  

How	
  are	
  smartphones	
  being	
  used 	
  

	
  

	
  11	
  

	
  

	
  

	
  13	
  

	
  

	
  
Sources 	
  

	
  
Device	
  purchase

	
  

	
  
	
  
	
  

4	
  
The UK smartphone market
The	
  UK	
  smartphone	
  audience	
  currently	
  stands	
  at	
  31.7	
  million	
  users	
  (60.4%).	
  This	
  number	
  is	
  expected	
  to	
  con<nue	
  to	
  rise	
  
whereby	
  2017,	
  smartphone	
  users	
  will	
  account	
  for	
  nearly	
  81%	
  of	
  all	
  mobile	
  users	
  and	
  two-­‐thirds	
  of	
  all	
  people	
  in	
  the	
  UK.	
  

UK	
  smartphone	
  users	
  and	
  penetra<on,	
  2011-­‐2017	
  

*Individuals	
  who	
  own	
  at	
  least	
  one	
  smartphone	
  and	
  use	
  the	
  smartphone	
  at	
  least	
  once	
  per	
  month	
  
Source:	
  eMarketer,	
  April	
  2013	
  

5	
  
Who uses smartphones?
UK	
  smartphone	
  user	
  penetra<on,	
  by	
  age	
  2011-­‐2017	
  
2011

2012

2013

2014

2015

2016

2017

0-11

29%

37%

45%

54%

61%

67%

72%

12-17

61%

74%

81%

87%

91%

94%

96%

18-24

68%

78%

84%

89%

92%

95%

98%

25-34

66%

75%

81%

86%

90%

93%

95%

35-44

58%

67%

76%

83%

88%

91%

94%

45-54

41%

50%

62%

71%

78%

85%

89%

55-64

15%

24%

37%

45%

52%

60%

68%

65+

6%

9%

13%

19%

26%

33%

41%

Total

44%

53%

60%

67%

72%

77%

While	
  earlier	
  smartphone	
  adopters	
  tended	
  to	
  be	
  male,	
  
females	
  are	
  now	
  much	
  more	
  likely	
  to	
  own	
  a	
  smartphone.	
  
2013	
  saw	
  58%	
  of	
  smartphone	
  owners	
  being	
  female,	
  
compared	
  with	
  42%	
  of	
  males.	
  	
  
	
  

81%

*Individuals	
  who	
  own	
  at	
  least	
  one	
  smartphone	
  and	
  use	
  the	
  smartphone	
  at	
  least	
  once	
  
per	
  month	
  	
  	
  	
  

0-59%

60-79%

Smartphone	
  ownership	
  by	
  gender	
  

Source:	
  eDigitalResearch,	
  The	
  Explosion	
  of	
  Mobile	
  

80-100%
Source:	
  eMarketer,	
  April	
  2013	
  

Research	
  carried	
  out	
  by	
  eMarketer	
  shows	
  that	
  over	
  8	
  in	
  10	
  
(84%)	
  users	
  aged	
  18	
  –	
  24	
  have	
  smartphones.	
  	
  This	
  is	
  closely	
  
followed	
  by	
  	
  81%	
  of	
  25-­‐34	
  year	
  olds.	
  	
  By	
  2017	
  those	
  numbers	
  
are	
  expected	
  to	
  rise	
  to	
  98%	
  and	
  95%	
  respec<vely,	
  proving	
  
that	
  the	
  consumers	
  of	
  tomorrow	
  will	
  be	
  even	
  more	
  mobile.	
  	
  

6	
  
Smartphone devices being used
The	
  increase	
  in	
  smartphone	
  adop<on	
  
may	
  be	
  aeributed	
  to	
  the	
  influx	
  of	
  
varied	
  handsets	
  on	
  the	
  market	
  like	
  the	
  
Samsung	
  Galaxy	
  range	
  and	
  HTC’s	
  
award-­‐winning	
  One	
  series.	
  This	
  has	
  led	
  
manufacturers	
  to	
  reduce	
  the	
  price	
  of	
  
their	
  first	
  genera<on	
  smartphones,	
  
which	
  has	
  aeracted	
  first-­‐<me	
  users.	
  
	
  
Android	
  has	
  also	
  seen	
  a	
  steady	
  
increase	
  in	
  ownership	
  since	
  2010,	
  with	
  
a	
  30%	
  hold	
  on	
  the	
  UK	
  smartphone	
  
market.	
  iOS	
  con<nues	
  to	
  dominate	
  the	
  
smartphone	
  market	
  however,	
  hiong	
  
just	
  under	
  50%	
  of	
  the	
  smartphone	
  
market.	
  

Mobile	
  Opera<ng	
  System	
  Used	
  UK,	
  2009	
  –	
  2013	
  (%)	
  

Source:	
  clickymedia,	
  June	
  2013	
  

The	
  last	
  few	
  	
  years	
  have	
  been	
  tough	
  for	
  Blackberry,	
  	
  with	
  ownership	
  sharply	
  decreasing	
  since	
  2011.	
  	
  The	
  company	
  has	
  been	
  
struggling	
  to	
  stay	
  relevant	
  and	
  their	
  Q10	
  Smartphone	
  doesn’t	
  appear	
  to	
  be	
  selling	
  the	
  way	
  they	
  expected.	
  	
  AGer	
  a	
  reported	
  loss	
  of	
  
	
  
$965	
  million	
  (£600m)	
  in	
  the	
  second	
  quarter,	
  	
  the	
  future	
  for	
  Blackberry	
  is	
  looking	
  bleak.	
  	
  	
  

7	
  
The UK tablet market
Tablet	
  sales	
  are	
  the	
  fastest-­‐growing	
  part	
  of	
  the	
  mobile	
  device	
  market,	
  with	
  sales	
  climbing	
  106.1%	
  over	
  the	
  past	
  year.	
  	
  The	
  ini<al	
  
apprehension	
  when	
  Apple	
  first	
  released	
  the	
  iPad	
  in	
  2010	
  was	
  that	
  it	
  was	
  a	
  cross	
  between	
  an	
  oversized	
  iPhone	
  and	
  a	
  newsreader.	
  	
  
Since	
  then	
  however,	
  hundreds	
  of	
  millions	
  have	
  been	
  shipped	
  as	
  well	
  as	
  numerous	
  alterna<ves	
  from	
  rival	
  companies	
  lieering	
  the	
  
market.	
  	
  
	
  
One-­‐third	
  of	
  the	
  UK	
  popula<on	
  now	
  uses	
  tablets,	
  with	
  predic<ons	
  that	
  by	
  2017	
  the	
  tablet	
  will	
  become	
  a	
  mass-­‐market	
  device	
  with	
  
more	
  than	
  half	
  the	
  UK	
  popula<on	
  using	
  one	
  regularly.	
  	
  	
  
	
  
UK	
  tablet	
  users,	
  2011-­‐2017	
  millions	
  and	
  %	
  change	
  

Source::	
  eMarketer,	
  May	
  2013	
  

8	
  
Who uses tablets?
UK	
  tablet	
  user	
  penetra<on,	
  by	
  age	
  2011-­‐2017	
  

0-11
12-17
18-24
25-34
35-44
45-54
55-64
65+

2012
7%
7%
12%
22%
20%
20%
9%
4%

2013
9%
7%
12%
21%
20%
18%
9%
5%

2014
9%
7%
12%
20%
18%
17%
9%
6%

2015
10%
7%
12%
20%
17%
17%
10%
8%

2016
10%
7%
12%
20%
17%
16%
10%
9%

2017
10%
7%
11%
19%
16%
16%
10%
10%

The	
  adop<on	
  rate	
  between	
  genders	
  has	
  also	
  shiGed	
  from	
  
males	
  leading	
  the	
  uptake	
  at	
  57%	
  in	
  2012	
  to	
  52%	
  female	
  in	
  
2013.	
  This	
  reflects	
  similar	
  figures	
  of	
  the	
  gender	
  distribu<on	
  
of	
  UK	
  mobile	
  owners.	
  
	
  
Now	
  at	
  the	
  end	
  of	
  2013,	
  women	
  are	
  now	
  domina<ng	
  the	
  
mobile	
  market,	
  both	
  in	
  smartphone	
  and	
  tablet	
  adop<on.	
  

Tablet	
  ownership	
  by	
  gender	
  

*Individuals	
  who	
  use	
  a	
  tablet	
  at	
  least	
  once	
  per	
  month	
  

0-9%

10-19%

20-30%

Source:	
  eMarketer,	
  April	
  2013	
  

Adop<on	
  rates	
  are	
  highest	
  among	
  the	
  25-­‐34	
  category,	
  with	
  21.8%	
  
of	
  the	
  market	
  share	
  in	
  2012,	
  with	
  figures	
  slightly	
  dipping	
  in	
  2013	
  
with	
  21.1%.	
  The	
  35-­‐44	
  and	
  45-­‐54	
  groups	
  are	
  close	
  behind,	
  with	
  
numbers	
  dropping	
  from	
  19.5%	
  in	
  2012	
  to	
  17.5%	
  in	
  2013.	
  
Source:	
  YouGov,	
  July	
  2013	
  

9	
  
Tablet devices being used
Apple	
  dominates	
  the	
  tablet	
  market,	
  
with	
  the	
  iPad	
  and	
  iPad	
  mini	
  making	
  up	
  
	
  
63%	
  of	
  all	
  tablets	
  sold.	
  Their	
  numbers	
  
have	
  fallen	
  since	
  2012,	
  however,	
  as	
  
cheaper	
  alterna<ves	
  and	
  quality	
  
compe<tors	
  have	
  hit	
  the	
  market.	
  	
  	
  	
  
	
  
Like	
  the	
  smartphone	
  market,	
  Android	
  
has	
  slowly	
  worked	
  its	
  way	
  up	
  to	
  be	
  a	
  
worthy	
  compe<tor	
  in	
  the	
  tablet	
  
sector.	
  Amazon	
  Kindle	
  Fire	
  and	
  the	
  

Samsung	
  Galaxy	
  tab	
  series	
  have	
  had	
  a	
  
posi<ve	
  adop<on	
  uptake.	
  
	
  
The	
  Nexus	
  7	
  and	
  Tesco’s	
  Hudl	
  also	
  
look	
  to	
  offer	
  s<ff	
  compe<<on	
  as	
  they	
  
are	
  not	
  only	
  cheaper,	
  but	
  smaller	
  too.	
  
The	
  threat	
  of	
  these	
  devices	
  was	
  one	
  of	
  
the	
  factors	
  which	
  led	
  Apple	
  to	
  release	
  
their	
  own	
  smaller	
  version,	
  the	
  iPad	
  
mini,	
  which	
  has	
  seen	
  great	
  adop<on	
  
rates.	
  	
  

As	
  people	
  adjust	
  to	
  using	
  tablets	
  in	
  
their	
  everyday	
  life,	
  the	
  need	
  for	
  
portability	
  whilst	
  s<ll	
  being	
  func<onal	
  
and	
  on	
  trend	
  is	
  key.	
  
	
  
	
  
	
  

UK	
  tablet	
  ownership	
  market	
  

Source:	
  YouGov,	
  April	
  2013	
  

10	
  
The decline of the PC
In	
  contrast	
  to	
  rising	
  tablet	
  and	
  
smartphone	
  sales,	
  PC	
  sales	
  have	
  
slumped.	
  Laptop	
  sales	
  have	
  
dropped	
  13%	
  in	
  2013,	
  with	
  50.5	
  
million	
  sold.	
  	
  Users	
  are	
  turning	
  to	
  
tablets	
  instead	
  	
  of	
  geong	
  a	
  cheap	
  
laptop	
  or	
  netbook.	
  	
  
	
  
PC	
  sales	
  usually	
  see	
  a	
  boost	
  come	
  
September,	
  as	
  students	
  head	
  back	
  
to	
  school	
  and	
  new	
  starters	
  enter	
  
University.	
  The	
  younger	
  market	
  is	
  
crucial	
  for	
  digital	
  sales,	
  and	
  more	
  
and	
  more	
  are	
  turning	
  to	
  tablets	
  as	
  
a	
  more	
  aerac<ve	
  and	
  cheaper	
  
alterna<ve	
  to	
  laptops	
  and	
  desktop	
  
PCs.	
  PC	
  companies	
  will	
  need	
  to	
  
adjust	
  the	
  consumer	
  demand	
  for	
  
products	
  that	
  meet	
  consumer	
  
desires	
  for	
  mobility	
  and	
  touch.	
  
MicrosoG’s	
  Surface	
  2	
  is	
  aeemp<ng	
  
to	
  break	
  into	
  that	
  market,	
  aGer	
  the	
  
weak	
  performance	
  of	
  the	
  Surface	
  
1.	
  	
  
	
  
	
  
	
  

Tablets	
  are	
  set	
  to	
  surpass	
  PC	
  sales	
  
One	
  contribu<ng	
  factor	
  to	
  this	
  are	
  
by	
  the	
  end	
  of	
  2013,	
  with	
  an	
  
that	
  parents	
  find	
  tablets	
  a	
  more	
  
es<mated	
  84.1million	
  to	
  be	
  sold	
  in	
  
‘family-­‐friendly”	
  device.	
  Businesses	
  
the	
  Christmas	
  rush	
  against	
  83.1	
  
should	
  take	
  this	
  into	
  account	
  when	
  
million	
  PCs.	
  This	
  has	
  come	
  as	
  a	
  
marke<ng	
  apps	
  and	
  services	
  to	
  the	
  
huge	
  boost	
  for	
  manufacturers	
  such	
  
younger	
  market.	
  Tablets	
  have	
  
as	
  Samsung	
  and	
  Apple,	
  while	
  
developed	
  as	
  a	
  device	
  with	
  
crea<ng	
  trouble	
  for	
  PC	
  giants	
  
exceedingly	
  broad	
  appeal.	
  It	
  
MicrosoG	
  and	
  Dell.	
  
appeals	
  to	
  crea<ve	
  designers,	
  
business	
  moguls,	
  students,	
  parents	
  
	
  
and	
  kids.	
  It	
  will	
  by	
  no	
  means	
  leave	
  
Tablets	
  are	
  also	
  expected	
  to	
  see	
  a	
  
mobile	
  obsolete,	
  as	
  they	
  are	
  not	
  
78.9%	
  growth	
  from	
  2013	
  –	
  2017,	
  
only	
  a	
  communica<on	
  tool	
  but	
  
while	
  desktop	
  PCs	
  are	
  expected	
  to	
  
becomingly	
  increasingly	
  used	
  as	
  
see	
  a	
  8.4%	
  drop	
  in	
  growth	
  during	
  
gaming	
  devices	
  and	
  money	
  transfer	
  
the	
  same	
  period.	
  	
  
tools.	
  	
  
	
  
	
  
	
  
Smart	
  connected	
  device	
  market	
  %	
  growth	
  by	
  
	
  
	
  
product	
  category,	
  2013-­‐2017	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Source:	
  IDC,	
  September	
  2013	
  
	
  
11	
  
Device Purchase
With	
  the	
  ever-­‐expanding	
  market	
  of	
  touch-­‐screen	
  devices,	
  it’s	
  interes<ng	
  to	
  see	
  how	
  consumers	
  select	
  their	
  devices.	
  Consumers	
  
are	
  far	
  more	
  likely	
  to	
  buy	
  their	
  smartphone	
  in	
  store	
  or	
  in	
  person	
  than	
  by	
  any	
  other	
  method	
  at	
  68%.	
  While	
  in	
  person	
  is	
  also	
  the	
  
main	
  method	
  of	
  purchase	
  for	
  tablets,	
  the	
  varia<on	
  between	
  other	
  forms	
  of	
  purchase	
  are	
  much	
  narrower.	
  

Method	
  of	
  mobile	
  purchase	
  by	
  device	
  

Source:	
  :	
  IDC,	
  September	
  2013	
  

28%	
  of	
  tablet	
  purchases	
  are	
  done	
  via	
  their	
  mobile	
  device,	
  with	
  26%	
  purchasing	
  via	
  their	
  PC.	
  It’s	
  significant	
  to	
  note	
  that	
  more	
  users	
  
purchase	
  tablets	
  online	
  via	
  their	
  smartphone	
  rather	
  than	
  a	
  PC.	
  Although	
  the	
  difference	
  is	
  small,	
  it	
  highlights	
  users	
  becoming	
  more	
  
comfortable	
  with	
  using	
  their	
  mobiles	
  to	
  make	
  transac<ons	
  and	
  buy	
  products,	
  as	
  well	
  as	
  showing	
  that	
  mobile	
  and	
  tablet	
  are	
  
quickly	
  becoming	
  interlinked	
  for	
  some	
  users.	
  	
  
	
  	
  
	
  
12	
  
How are smartphones being used?
Brits	
  spend	
  on	
  average	
  2	
  hours	
  a	
  day	
  on	
  their	
  
smartphone;	
  what	
  exactly	
  are	
  they	
  doing	
  in	
  this	
  <me?	
  	
  
	
  
Taking	
  photos	
  and	
  videos,	
  playing	
  games,	
  using	
  apps	
  
and	
  social	
  networking	
  are	
  s<ll	
  some	
  of	
  the	
  most	
  popular	
  
ac<vi<es	
  carried	
  out	
  on	
  smartphones.	
  	
  75%	
  also	
  
carrying	
  out	
  general	
  searches,	
  looking	
  for	
  product	
  
informa<on	
  and	
  making	
  purchases.	
  	
  eDigital	
  Research	
  
and	
  IMRG	
  reported	
  more	
  than	
  half	
  of	
  UK	
  smartphone	
  
owners	
  shop	
  via	
  their	
  device,	
  and	
  more	
  than	
  a	
  third	
  
made	
  purchases	
  at	
  the	
  beginning	
  of	
  2013.	
  This	
  
emphasises	
  the	
  importance	
  of	
  having	
  a	
  mobile	
  presence	
  
for	
  businesses.	
  	
  
	
  
The	
  importance	
  of	
  op<mised	
  email	
  campaigns	
  are	
  also	
  
underlined	
  as	
  75%	
  of	
  smartphone	
  owners	
  use	
  their	
  
devices	
  to	
  send	
  and	
  receive	
  emails.	
  	
  According	
  to	
  clicky	
  
media,	
  25%	
  of	
  all	
  emails	
  are	
  being	
  read	
  on	
  a	
  
smartphone,	
  while	
  90%	
  of	
  smartphone	
  owners	
  access	
  
the	
  same	
  email	
  account	
  on	
  both	
  mobile	
  and	
  desktop.	
  

General	
  smartphone	
  ac<vi<es	
  UK	
  2013	
  (%)	
  

Source:	
  clickymedia,	
  June	
  2013	
  

13	
  
How are tablets being used?
In	
  contrast,	
  tablet	
  users	
  spend	
  50%	
  of	
  their	
  <me	
  for	
  
entertainment	
  uses,	
  such	
  as	
  watching	
  videos,	
  playing	
  
games	
  and	
  reading.	
  The	
  contras<ng	
  size	
  of	
  mobiles	
  and	
  
tablets	
  mean	
  that	
  ac<vi<es	
  such	
  as	
  taking	
  photographs	
  are	
  
more	
  beneficial	
  on	
  a	
  mobile	
  phone,	
  whereas	
  diges<ng	
  
visual	
  media	
  beeer	
  suits	
  a	
  larger	
  screen.	
  Produc<on	
  
ac<vi<es	
  and	
  communica<on	
  are	
  significantly	
  less	
  common	
  
on	
  tablets,	
  at	
  15%	
  and	
  26%	
  respec<vely.	
  	
  
	
  
Studies	
  suggest	
  that	
  tablets	
  are	
  predominantly	
  used	
  in	
  the	
  
evening	
  when	
  people	
  are	
  at	
  home.	
  This	
  is	
  having	
  a	
  huge	
  
impact	
  on	
  retailers	
  as	
  consumers	
  are	
  shopping	
  via	
  these	
  
devices	
  and	
  driving	
  sales	
  at	
  unusual	
  <mes	
  of	
  the	
  day.	
  	
  	
  
Early	
  mornings	
  and	
  Sunday	
  nights	
  have	
  become	
  important	
  
sales	
  periods	
  for	
  retailers,	
  so	
  much	
  so	
  that	
  many	
  are	
  
reviewing	
  their	
  sales	
  strategies	
  and	
  even	
  offering	
  online	
  
‘discounted	
  events’	
  during	
  these	
  high	
  traffic	
  <mes.	
  	
  
	
  
M&S	
  have	
  stated	
  that	
  some	
  of	
  the	
  most	
  popular	
  products	
  
on	
  its	
  mobile	
  site	
  are	
  for	
  school	
  uniforms,	
  with	
  one	
  of	
  its	
  
peak	
  sales	
  periods	
  being	
  3.30pm	
  as	
  mums	
  are	
  wai<ng	
  for	
  
their	
  kids	
  at	
  the	
  school	
  gate.	
  	
  

Tablets	
  are	
  used	
  mainly	
  for	
  entertainment	
  

%	
  of	
  device	
  <me	
  tablet	
  owners	
  spend	
  on	
  the	
  following	
  kinds	
  of	
  ac<vi<es	
  

Entertainment

50%

Games, e-books, videos & music

Communication

26%

Social media, email, messaging

Production activities

15%

Editing videos, writing blogs

Finding information

9%

Weather, news, product information

0%

10%

20%

30%

40%

50%

60%

*726	
  tablet	
  	
  owners	
  from	
  the	
  US,	
  UK	
  and	
  Australia	
  

Source:	
  Gartner	
  

14	
  
Where are they using them?
With	
  tablets	
  becoming	
  even	
  smaller	
  and	
  lighter,	
  there	
  are	
  no	
  limita<ons	
  as	
  to	
  where	
  they	
  can	
  be	
  used.	
  	
  According	
  to	
  the	
  Tech	
  
Tracker	
  report	
  Q2	
  2013,	
  	
  people	
  are	
  using	
  their	
  tablets	
  everywhere;	
  	
  during	
  their	
  morning	
  commute,	
  	
  whilst	
  at	
  work	
  during	
  the	
  
day,	
  even	
  when	
  they’re	
  at	
  home	
  watching	
  TV.	
  
	
  

Loca<on	
  usage	
  of	
  tablets	
  in	
  the	
  UK	
  
Source:	
  Tech	
  Tracker,	
  Q2	
  2013	
  

15	
  
Mobile Apps
With	
  this	
  dras<c	
  increase	
  in	
  mobile	
  devices	
  and	
  mobile	
  
innova<on,	
  it	
  is	
  no	
  surprise	
  that	
  mobile	
  app	
  downloads	
  are	
  also	
  
on	
  the	
  rise.	
  By	
  the	
  end	
  of	
  this	
  year,	
  	
  the	
  total	
  number	
  of	
  apps	
  
downloaded	
  worldwide	
  will	
  reach	
  102	
  billion,	
  more	
  than	
  
doubling	
  last	
  year’s	
  total	
  of	
  49	
  billion.	
  
	
  
Google	
  Play	
  and	
  Apple’s	
  App	
  Store	
  account	
  for	
  85%	
  of	
  all	
  app	
  
purchases.	
  The	
  majority	
  of	
  this	
  revenue	
  comes	
  from	
  game-­‐
related	
  apps,	
  such	
  as	
  Clash	
  of	
  Clans	
  and	
  Candy	
  Crush,	
  which	
  are	
  
consistently	
  at	
  the	
  top	
  of	
  the	
  most	
  downloaded	
  list.	
  	
  
	
  
17%	
  of	
  all	
  app	
  revenue	
  comes	
  from	
  in-­‐app	
  purchases	
  rather	
  than	
  
paid	
  downloads,	
  and	
  91%	
  of	
  downloads	
  will	
  be	
  free	
  this	
  year,	
  so	
  
the	
  free-­‐to-­‐download	
  and	
  in-­‐app	
  purchase	
  business	
  model	
  is	
  the	
  
most	
  preferred	
  among	
  developers.	
  By	
  2017,	
  annual	
  app	
  
downloads	
  are	
  expected	
  to	
  reach	
  268.7	
  billion,	
  by	
  which	
  point	
  
over	
  94%	
  of	
  apps	
  will	
  be	
  free	
  to	
  download,	
  and	
  in-­‐app	
  purchases	
  
will	
  generate	
  48%	
  of	
  revenue.	
  

Global	
  app	
  downloads	
  to	
  pass	
  100	
  billion	
  this	
  year	
  

*Es<mated	
  mobile	
  app	
  downloads	
  worldwide	
  (in	
  billions)	
  
Source:	
  Gartner	
  

	
  
	
  

UK Mobile App Revenue

Smartphone	
  users	
  are	
  predicted	
  to	
  spend	
  nearly	
  £10	
  billion	
  on	
  apps	
  by	
  the	
  end	
  of	
  2013.	
  	
  Smartphone	
  and	
  tablet	
  app	
  expenditure	
  
is	
  expected	
  to	
  reach	
  £9.7	
  billion,	
  which	
  is	
  more	
  than	
  the	
  figures	
  for	
  2010,	
  2011	
  and	
  2012	
  combined.	
  

16	
  
Mobile App or Website?
The	
  need	
  for	
  businesses	
  to	
  have	
  a	
  mobile	
  presence	
  is	
  evident,	
  	
  however	
  many	
  are	
  not	
  clear	
  on	
  the	
  best	
  route	
  for	
  them.	
  	
  Develop	
  an	
  app,	
  
create	
  a	
  mobile	
  op<mised	
  website	
  or	
  both?	
  	
  The	
  first	
  considera<on	
  should	
  be	
  to	
  fully	
  understand	
  the	
  experience	
  they	
  are	
  looking	
  to	
  
provide	
  for	
  their	
  customers,	
  and	
  secondly	
  to	
  recognise	
  the	
  best	
  way	
  to	
  achieve	
  that.	
  The	
  chart	
  below	
  shows	
  that	
  more	
  UK	
  consumers	
  
use	
  apps	
  to	
  navigate	
  specific	
  content	
  but	
  a	
  mobile	
  Internet	
  browser	
  is	
  s<ll	
  the	
  preferred	
  method	
  to	
  carry	
  out	
  a	
  search.	
  	
  

Mobile	
  device	
  usage	
  preference	
  

Source:	
  The	
  Deloiee	
  Consumer	
  Review	
  	
  
Beyond	
  the	
  hype:	
  The	
  true	
  poten<al	
  of	
  mobile	
  	
  

17	
  
How businesses are getting the
most from their apps in 2014
If	
  an	
  organisa<on	
  does	
  decide	
  to	
  go	
  down	
  the	
  route	
  of	
  developing	
  an	
  app,	
  	
  they	
  should	
  ensure	
  they	
  get	
  the	
  most	
  out	
  of	
  their	
  app,	
  
provide	
  the	
  best	
  customer	
  experience	
  and	
  generate	
  the	
  most	
  revenue	
  by	
  using	
  the	
  latest	
  smartphone	
  and	
  tablet	
  technology.	
  	
  

18	
  
Conclusion
The	
  facts	
  and	
  figures	
  shown	
  in	
  this	
  
report	
  emphasise	
  the	
  impact	
  of	
  	
  	
  
portable	
  devices	
  in	
  our	
  daily	
  lives.	
  	
  
Smartphone	
  sales	
  show	
  no	
  signs	
  of	
  	
  	
  	
  	
  
slowing	
  and	
  	
  tablets	
  have	
  proven	
  to	
  	
  
be	
  a	
  hit	
  with	
  all	
  ages.	
  	
  	
  
	
  
Compe<<on	
  looks	
  to	
  be	
  fierce	
  over	
  
the	
  next	
  year	
  with	
  Android	
  set	
  to	
  
overtake	
  Apple	
  for	
  the	
  first	
  <me	
  in	
  
the	
  UK	
  smartphone	
  market.	
  Tablets	
  
look	
  to	
  be	
  no	
  different	
  with	
  the	
  
smaller,	
  cheaper	
  devices	
  expected	
  
to	
  dominate	
  this	
  Christmas.	
  	
  
	
  
The	
  younger	
  age	
  groups	
  con<nue	
  
to	
  	
  be	
  the	
  highest	
  adopters	
  of	
  
these	
  devices,	
  meaning	
  that	
  
tomorrow’s	
  consumers	
  will	
  be	
  
even	
  more	
  mobile.	
  	
  	
  
	
  
One	
  of	
  the	
  more	
  surprising	
  trends	
  
of	
  this	
  year	
  is	
  the	
  rise	
  of	
  female	
  
users,	
  as	
  they	
  overtake	
  men	
  for	
  the	
  

first	
  <me	
  in	
  both	
  tablet	
  and	
  
smartphone	
  ownership.	
  Will	
  this	
  
trend	
  con<nue	
  in	
  2014?	
  	
  
	
  
How	
  and	
  where	
  we	
  are	
  using	
  these	
  
devices	
  is	
  having	
  a	
  huge	
  impact	
  on	
  
not	
  only	
  the	
  way	
  we	
  interact	
  with	
  
each	
  other	
  but	
  also	
  how	
  we	
  engage	
  
with	
  brands.	
  Organisa<ons	
  will	
  
need	
  to	
  increasingly	
  consider	
  their	
  
mobile	
  strategy	
  in	
  order	
  to	
  stay	
  
ahead	
  of	
  their	
  compe<tors.	
  	
  
	
  
In	
  most	
  cases,	
  mobile	
  apps	
  are	
  s<ll	
  
the	
  best	
  way	
  to	
  engage	
  with	
  
customers.	
  The	
  benefits	
  are	
  
becoming	
  ever	
  more	
  apparent	
  as	
  
new	
  smartphone	
  and	
  tablet	
  	
  
technology	
  con<nues	
  to	
  be	
  
released.	
  	
  
	
  
As	
  we	
  begin	
  to	
  take	
  these	
  devices	
  
for	
  granted,	
  we	
  will	
  be	
  looking	
  for	
  
the	
  next	
  level	
  of	
  convenience.	
  	
  

With	
  wearable	
  technology	
  such	
  as	
  
smartwatches	
  and	
  Google	
  Glasses	
  
looking	
  to	
  enter	
  the	
  market	
  next	
  
year,	
  they	
  have	
  the	
  poten<al	
  to	
  
reshape	
  how	
  we	
  interact	
  and	
  use	
  
portable	
  technology.	
  It	
  will	
  be	
  
interes<ng	
  to	
  see	
  where	
  the	
  
market	
  is	
  at	
  the	
  end	
  of	
  2014.	
  	
  
	
  

19	
  
Sources
All	
  copyrights	
  for	
  sta<s<cs	
  and	
  their	
  graphic	
  representa<ons	
  are	
  acknowledged	
  to	
  be	
  
owned	
  by	
  the	
  following	
  organisa<ons:	
  
	
  
Source:	
  We	
  Are	
  Apps,	
  hep://www.weareapps.com/blog/	
  
	
  
Source:	
  Mobile	
  In	
  Focus	
  Report,	
  Mobile	
  Marke<ng	
  Associa<on	
  
	
  
Source:	
  hep://www.clicky.co.uk/2013/06/uk-­‐mobile-­‐sta<s<cs-­‐2013/	
  	
  
	
  
Source:	
  hep://www.emarketer.com/Ar<cle/Nearly-­‐Half-­‐of-­‐UK-­‐Consumers-­‐Will-­‐Use-­‐
Smartphones-­‐This-­‐Year/1009956	
  
	
  
Source:	
  hep://stakeholders.ofcom.org.uk/binaries/research/cmr/cmr13/UK_4.pdf	
  
	
  
Source:	
  Future	
  in	
  Focus,	
  Mobile	
  Landscape	
  
	
  
Source:	
  hep://www.kantarworldpanel.com/global/News/Samsung-­‐nears-­‐50-­‐share-­‐
across-­‐Europe-­‐as-­‐Apple-­‐powers-­‐back-­‐in-­‐the-­‐US	
  
	
  
Source:	
  hep://www.kantarworldpanel.com/global/News/Record-­‐share-­‐for-­‐Windows-­‐
phone	
  
	
  
Source:	
  hep://www.idc.com/getdoc.jsp?containerId=prUS24314413	
  
	
  
Source:	
  hep://www.telegraph.co.uk/finance/newsbysector/
mediatechnologyandtelecoms/electronics/10305093/Tablets-­‐forecast-­‐to-­‐overtake-­‐PC-­‐
sales-­‐at-­‐end-­‐of-­‐year.html	
  
	
  
Source:	
  hep://techcrunch.com/2013/09/30/with-­‐weak-­‐back-­‐to-­‐school-­‐sales-­‐the-­‐pc-­‐
market-­‐is-­‐now-­‐microsoGs-­‐to-­‐save/?ncid=tcdaily	
  
	
  
Source:	
  hep://www.ons.gov.uk/ons/rel/rdit2/internet-­‐access-­‐-­‐-­‐households-­‐and-­‐
individuals/2013/stb-­‐ia-­‐2013.html#tab-­‐Mobile-­‐Internet	
  
	
  

Source:	
  hep://crave.cnet.co.uk/mobiles/windows-­‐8-­‐sees-­‐pc-­‐sales-­‐plummet-­‐as-­‐tablets-­‐
replace-­‐laptops-­‐50010912/
	
  	
  
	
  
Source:	
  hep://yougov.co.uk/news/2012/09/11/tablets-­‐nearly-­‐double-­‐2013/	
  
	
  
Source:	
  hep://cdn.yougov.com/cumulus_uploads/document/5ro76zquus/TabletTrac
%20chart.pdf	
  
	
  
Source:	
  hep://research.yougov.co.uk/news/2013/07/18/most-­‐tablets-­‐uk-­‐owned-­‐
women/	
  	
  
Source:	
  hep://www.themarke<ngblog.co.uk/2013/10/emarketer-­‐one-­‐third-­‐of-­‐	
  uk-­‐
popula<on-­‐now-­‐use-­‐tablets/	
  
	
  
Source:	
  hep://yougov.co.uk/news/2013/04/18/quality-­‐android-­‐tablets/	
  
	
  
Source:	
  hep://www.trustedreviews.com/news/smartphones-­‐uses-­‐will-­‐spend-­‐nearly-­‐10-­‐
billion-­‐on-­‐apps-­‐this-­‐year	
  
	
  
Source:	
  hep://www.theguardian.com/business/2013/oct/20/christmas-­‐shopping-­‐by-­‐
mobile-­‐phone-­‐and-­‐tablet	
  
	
  
Source:	
  hep://www.computerweekly.com/news/2240113752/PC-­‐shipments-­‐drop-­‐as-­‐
consumers-­‐opt-­‐for-­‐tablets	
  
	
  
Source:	
  hep://venturebeat.com/2013/07/29/na<ve-­‐v-­‐web-­‐chart/	
  
	
  
Source:	
  hep://mashable.com/2013/01/16/mobile-­‐app-­‐revenue/	
  
	
  
Source:	
  JWTs	
  report:	
  10	
  trends	
  shaping	
  consumer	
  mindset	
  and	
  behaviour	
  in	
  2013	
  
	
  
Source:	
  hep://www.deloiee.com/assets/Dcom-­‐Ireland/Local%20Assets/Documents/
Consumer%20business/2013/ConsumerReview5thMobileReport.pdf	
  
	
  
Source:	
  hep://news.o2.co.uk/?press-­‐release=making-­‐calls-­‐has-­‐become-­‐fiGh-­‐most-­‐
frequent-­‐use-­‐for-­‐a-­‐smartphone-­‐for-­‐newly-­‐networked-­‐genera<on-­‐of-­‐users	
  
	
  

20	
  

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UK Mobile Insights Report

  • 1. UK Mobile Insights Report 2013 Q4 An overview of recent research and data on smartphone and tablet ownership in the UK, November 2013
  • 2. Introduction The  end  of  2012  marked    a   milestone  for  mobile  device   ownership.    For    the  first  <me  ever,   smartphone  penetra<on  in  all   major  European  markets  surpassed   50%.  Smartphone  and  tablet   growth  has  con<nued  to  rise  at  a   startling  pace  in  2013,  and  has   remoulded  the  way  people  absorb   news  and  engage  with  brands,  as   well  as  causing  a  drama<c  shiG  in   the  way  we  communicate  with   each  other.     Tablets  and  mobile  are  forever   changing  the  consumer  landscape,   and  with  Google  Glass  and  smart-­‐ watches  on  the  horizon,  shopping   and  searching  on  the  move  is  now   becoming  an  everyday  norm.  Add   to  the  mix  the  steely  rise  in  tablet   ownership  and  the  ubiquity  of   mobile  broadband  connec<vity  and   we  are  witnessing  the  consump<on   of  digital  media  in  ever  greater   amounts  across  an  increasingly   diverse  range  of  devices.    With   mobile  central  to  people’s  daily   lives,  its  place  as  an  indispensable   part  of  the  marke<ng  mix  cannot   be  stressed  enough.           Ian  Malone     Managing  Director                               We  Are  Apps  have  collated  the   most  up  to  date  research  and   figures  to  get  an  overview  of  the   current  state  of  the  UK  mobile   market,  in  this,  our  Q4  2013  UK   Mobile  Usage  round  up.       2  
  • 3. We Are Apps We  Are  Apps  is  an  award-­‐winning,   London-­‐based  full  service  mobile,   tablet  and  app  media  agency.  We   have  developed  apps  for  leading   brands  such  as  WesWield,  Ford,     Cadbury,  Avon  Cosme<cs,  Great   Bri<sh  Chefs  and  News       Interna<onal.     Our  apps  have  won  the  following   accolades:   •  Best  of  the  App  Store  2012,   Apple   •  Best  500  Apps  in  the  World,   Sunday  Times   •  100  Greatest  Ever  Apps,  Apps     Magazine   •  Silver  Lovie  Award  2012  and     2013  –  Lifestyle  Tablets,   Great  Bri7sh  Chefs     •  Featured  in  Apple’s  TV   adver<sing  for  the  iPad   With  years  of  experience  in  digital   marke<ng  and  adver<sing,  we  help   brands  and  crea<ve  agencies  plan,   produce  and  promote  the  most   effec<ve  mobile  execu<on.         We  specialise  in:     •  Mul<screen  development   •  Crea<ve,  award-­‐winning   design     •  App  marke<ng  and   promo<on     We  are  always  looking  for  new   opportuni<es  to  work  with  clients   to  create  the  apps  they  want  so  if   you  are  interested,  call  us  on  020   7100  9318  or  email  us  at   enquiries@weareapps.com.         Contact:   Tel:   020  7100  9318   Email:   enquiries@weareapps.com     Website:   hep://www.weareapps.com     Contact:   Tel:  020  7100  9318   Address:   Email:  enquiries@weareapps.com   2nd  Floor   Website:  wHouse   Magdalen   ww.weareapps.com    136  –  148  Tooley  Street   Address:   London   2nd  F2TU     SE1   loor   Magdalen  House   136-­‐148  Tooley  Street   London   SE1  2TU   3  
  • 4. Table of contents IntroducFon            2   We  Are  Apps            3            14   Where  are  they  using  them   How  are  tablets  being  used        15            16         Making  apps   The  UK  smartphone  market        5   Mobile  app  or  website      17   Who  uses  smartphones      6        7   How  businesses  are  making  the  most  of  their     apps  in  2014            18   Conclusion   Smartphone  devices  being  used     The  UK  tablet  market          8   Who  uses  tablets        9   Tablet  devices  being  used        10   The  decline  of  the  PC                        19              20    12   How  are  smartphones  being  used      11        13       Sources     Device  purchase         4  
  • 5. The UK smartphone market The  UK  smartphone  audience  currently  stands  at  31.7  million  users  (60.4%).  This  number  is  expected  to  con<nue  to  rise   whereby  2017,  smartphone  users  will  account  for  nearly  81%  of  all  mobile  users  and  two-­‐thirds  of  all  people  in  the  UK.   UK  smartphone  users  and  penetra<on,  2011-­‐2017   *Individuals  who  own  at  least  one  smartphone  and  use  the  smartphone  at  least  once  per  month   Source:  eMarketer,  April  2013   5  
  • 6. Who uses smartphones? UK  smartphone  user  penetra<on,  by  age  2011-­‐2017   2011 2012 2013 2014 2015 2016 2017 0-11 29% 37% 45% 54% 61% 67% 72% 12-17 61% 74% 81% 87% 91% 94% 96% 18-24 68% 78% 84% 89% 92% 95% 98% 25-34 66% 75% 81% 86% 90% 93% 95% 35-44 58% 67% 76% 83% 88% 91% 94% 45-54 41% 50% 62% 71% 78% 85% 89% 55-64 15% 24% 37% 45% 52% 60% 68% 65+ 6% 9% 13% 19% 26% 33% 41% Total 44% 53% 60% 67% 72% 77% While  earlier  smartphone  adopters  tended  to  be  male,   females  are  now  much  more  likely  to  own  a  smartphone.   2013  saw  58%  of  smartphone  owners  being  female,   compared  with  42%  of  males.       81% *Individuals  who  own  at  least  one  smartphone  and  use  the  smartphone  at  least  once   per  month         0-59% 60-79% Smartphone  ownership  by  gender   Source:  eDigitalResearch,  The  Explosion  of  Mobile   80-100% Source:  eMarketer,  April  2013   Research  carried  out  by  eMarketer  shows  that  over  8  in  10   (84%)  users  aged  18  –  24  have  smartphones.    This  is  closely   followed  by    81%  of  25-­‐34  year  olds.    By  2017  those  numbers   are  expected  to  rise  to  98%  and  95%  respec<vely,  proving   that  the  consumers  of  tomorrow  will  be  even  more  mobile.     6  
  • 7. Smartphone devices being used The  increase  in  smartphone  adop<on   may  be  aeributed  to  the  influx  of   varied  handsets  on  the  market  like  the   Samsung  Galaxy  range  and  HTC’s   award-­‐winning  One  series.  This  has  led   manufacturers  to  reduce  the  price  of   their  first  genera<on  smartphones,   which  has  aeracted  first-­‐<me  users.     Android  has  also  seen  a  steady   increase  in  ownership  since  2010,  with   a  30%  hold  on  the  UK  smartphone   market.  iOS  con<nues  to  dominate  the   smartphone  market  however,  hiong   just  under  50%  of  the  smartphone   market.   Mobile  Opera<ng  System  Used  UK,  2009  –  2013  (%)   Source:  clickymedia,  June  2013   The  last  few    years  have  been  tough  for  Blackberry,    with  ownership  sharply  decreasing  since  2011.    The  company  has  been   struggling  to  stay  relevant  and  their  Q10  Smartphone  doesn’t  appear  to  be  selling  the  way  they  expected.    AGer  a  reported  loss  of     $965  million  (£600m)  in  the  second  quarter,    the  future  for  Blackberry  is  looking  bleak.       7  
  • 8. The UK tablet market Tablet  sales  are  the  fastest-­‐growing  part  of  the  mobile  device  market,  with  sales  climbing  106.1%  over  the  past  year.    The  ini<al   apprehension  when  Apple  first  released  the  iPad  in  2010  was  that  it  was  a  cross  between  an  oversized  iPhone  and  a  newsreader.     Since  then  however,  hundreds  of  millions  have  been  shipped  as  well  as  numerous  alterna<ves  from  rival  companies  lieering  the   market.       One-­‐third  of  the  UK  popula<on  now  uses  tablets,  with  predic<ons  that  by  2017  the  tablet  will  become  a  mass-­‐market  device  with   more  than  half  the  UK  popula<on  using  one  regularly.         UK  tablet  users,  2011-­‐2017  millions  and  %  change   Source::  eMarketer,  May  2013   8  
  • 9. Who uses tablets? UK  tablet  user  penetra<on,  by  age  2011-­‐2017   0-11 12-17 18-24 25-34 35-44 45-54 55-64 65+ 2012 7% 7% 12% 22% 20% 20% 9% 4% 2013 9% 7% 12% 21% 20% 18% 9% 5% 2014 9% 7% 12% 20% 18% 17% 9% 6% 2015 10% 7% 12% 20% 17% 17% 10% 8% 2016 10% 7% 12% 20% 17% 16% 10% 9% 2017 10% 7% 11% 19% 16% 16% 10% 10% The  adop<on  rate  between  genders  has  also  shiGed  from   males  leading  the  uptake  at  57%  in  2012  to  52%  female  in   2013.  This  reflects  similar  figures  of  the  gender  distribu<on   of  UK  mobile  owners.     Now  at  the  end  of  2013,  women  are  now  domina<ng  the   mobile  market,  both  in  smartphone  and  tablet  adop<on.   Tablet  ownership  by  gender   *Individuals  who  use  a  tablet  at  least  once  per  month   0-9% 10-19% 20-30% Source:  eMarketer,  April  2013   Adop<on  rates  are  highest  among  the  25-­‐34  category,  with  21.8%   of  the  market  share  in  2012,  with  figures  slightly  dipping  in  2013   with  21.1%.  The  35-­‐44  and  45-­‐54  groups  are  close  behind,  with   numbers  dropping  from  19.5%  in  2012  to  17.5%  in  2013.   Source:  YouGov,  July  2013   9  
  • 10. Tablet devices being used Apple  dominates  the  tablet  market,   with  the  iPad  and  iPad  mini  making  up     63%  of  all  tablets  sold.  Their  numbers   have  fallen  since  2012,  however,  as   cheaper  alterna<ves  and  quality   compe<tors  have  hit  the  market.           Like  the  smartphone  market,  Android   has  slowly  worked  its  way  up  to  be  a   worthy  compe<tor  in  the  tablet   sector.  Amazon  Kindle  Fire  and  the   Samsung  Galaxy  tab  series  have  had  a   posi<ve  adop<on  uptake.     The  Nexus  7  and  Tesco’s  Hudl  also   look  to  offer  s<ff  compe<<on  as  they   are  not  only  cheaper,  but  smaller  too.   The  threat  of  these  devices  was  one  of   the  factors  which  led  Apple  to  release   their  own  smaller  version,  the  iPad   mini,  which  has  seen  great  adop<on   rates.     As  people  adjust  to  using  tablets  in   their  everyday  life,  the  need  for   portability  whilst  s<ll  being  func<onal   and  on  trend  is  key.         UK  tablet  ownership  market   Source:  YouGov,  April  2013   10  
  • 11. The decline of the PC In  contrast  to  rising  tablet  and   smartphone  sales,  PC  sales  have   slumped.  Laptop  sales  have   dropped  13%  in  2013,  with  50.5   million  sold.    Users  are  turning  to   tablets  instead    of  geong  a  cheap   laptop  or  netbook.       PC  sales  usually  see  a  boost  come   September,  as  students  head  back   to  school  and  new  starters  enter   University.  The  younger  market  is   crucial  for  digital  sales,  and  more   and  more  are  turning  to  tablets  as   a  more  aerac<ve  and  cheaper   alterna<ve  to  laptops  and  desktop   PCs.  PC  companies  will  need  to   adjust  the  consumer  demand  for   products  that  meet  consumer   desires  for  mobility  and  touch.   MicrosoG’s  Surface  2  is  aeemp<ng   to  break  into  that  market,  aGer  the   weak  performance  of  the  Surface   1.           Tablets  are  set  to  surpass  PC  sales   One  contribu<ng  factor  to  this  are   by  the  end  of  2013,  with  an   that  parents  find  tablets  a  more   es<mated  84.1million  to  be  sold  in   ‘family-­‐friendly”  device.  Businesses   the  Christmas  rush  against  83.1   should  take  this  into  account  when   million  PCs.  This  has  come  as  a   marke<ng  apps  and  services  to  the   huge  boost  for  manufacturers  such   younger  market.  Tablets  have   as  Samsung  and  Apple,  while   developed  as  a  device  with   crea<ng  trouble  for  PC  giants   exceedingly  broad  appeal.  It   MicrosoG  and  Dell.   appeals  to  crea<ve  designers,   business  moguls,  students,  parents     and  kids.  It  will  by  no  means  leave   Tablets  are  also  expected  to  see  a   mobile  obsolete,  as  they  are  not   78.9%  growth  from  2013  –  2017,   only  a  communica<on  tool  but   while  desktop  PCs  are  expected  to   becomingly  increasingly  used  as   see  a  8.4%  drop  in  growth  during   gaming  devices  and  money  transfer   the  same  period.     tools.           Smart  connected  device  market  %  growth  by       product  category,  2013-­‐2017                 Source:  IDC,  September  2013     11  
  • 12. Device Purchase With  the  ever-­‐expanding  market  of  touch-­‐screen  devices,  it’s  interes<ng  to  see  how  consumers  select  their  devices.  Consumers   are  far  more  likely  to  buy  their  smartphone  in  store  or  in  person  than  by  any  other  method  at  68%.  While  in  person  is  also  the   main  method  of  purchase  for  tablets,  the  varia<on  between  other  forms  of  purchase  are  much  narrower.   Method  of  mobile  purchase  by  device   Source:  :  IDC,  September  2013   28%  of  tablet  purchases  are  done  via  their  mobile  device,  with  26%  purchasing  via  their  PC.  It’s  significant  to  note  that  more  users   purchase  tablets  online  via  their  smartphone  rather  than  a  PC.  Although  the  difference  is  small,  it  highlights  users  becoming  more   comfortable  with  using  their  mobiles  to  make  transac<ons  and  buy  products,  as  well  as  showing  that  mobile  and  tablet  are   quickly  becoming  interlinked  for  some  users.           12  
  • 13. How are smartphones being used? Brits  spend  on  average  2  hours  a  day  on  their   smartphone;  what  exactly  are  they  doing  in  this  <me?       Taking  photos  and  videos,  playing  games,  using  apps   and  social  networking  are  s<ll  some  of  the  most  popular   ac<vi<es  carried  out  on  smartphones.    75%  also   carrying  out  general  searches,  looking  for  product   informa<on  and  making  purchases.    eDigital  Research   and  IMRG  reported  more  than  half  of  UK  smartphone   owners  shop  via  their  device,  and  more  than  a  third   made  purchases  at  the  beginning  of  2013.  This   emphasises  the  importance  of  having  a  mobile  presence   for  businesses.       The  importance  of  op<mised  email  campaigns  are  also   underlined  as  75%  of  smartphone  owners  use  their   devices  to  send  and  receive  emails.    According  to  clicky   media,  25%  of  all  emails  are  being  read  on  a   smartphone,  while  90%  of  smartphone  owners  access   the  same  email  account  on  both  mobile  and  desktop.   General  smartphone  ac<vi<es  UK  2013  (%)   Source:  clickymedia,  June  2013   13  
  • 14. How are tablets being used? In  contrast,  tablet  users  spend  50%  of  their  <me  for   entertainment  uses,  such  as  watching  videos,  playing   games  and  reading.  The  contras<ng  size  of  mobiles  and   tablets  mean  that  ac<vi<es  such  as  taking  photographs  are   more  beneficial  on  a  mobile  phone,  whereas  diges<ng   visual  media  beeer  suits  a  larger  screen.  Produc<on   ac<vi<es  and  communica<on  are  significantly  less  common   on  tablets,  at  15%  and  26%  respec<vely.       Studies  suggest  that  tablets  are  predominantly  used  in  the   evening  when  people  are  at  home.  This  is  having  a  huge   impact  on  retailers  as  consumers  are  shopping  via  these   devices  and  driving  sales  at  unusual  <mes  of  the  day.       Early  mornings  and  Sunday  nights  have  become  important   sales  periods  for  retailers,  so  much  so  that  many  are   reviewing  their  sales  strategies  and  even  offering  online   ‘discounted  events’  during  these  high  traffic  <mes.       M&S  have  stated  that  some  of  the  most  popular  products   on  its  mobile  site  are  for  school  uniforms,  with  one  of  its   peak  sales  periods  being  3.30pm  as  mums  are  wai<ng  for   their  kids  at  the  school  gate.     Tablets  are  used  mainly  for  entertainment   %  of  device  <me  tablet  owners  spend  on  the  following  kinds  of  ac<vi<es   Entertainment 50% Games, e-books, videos & music Communication 26% Social media, email, messaging Production activities 15% Editing videos, writing blogs Finding information 9% Weather, news, product information 0% 10% 20% 30% 40% 50% 60% *726  tablet    owners  from  the  US,  UK  and  Australia   Source:  Gartner   14  
  • 15. Where are they using them? With  tablets  becoming  even  smaller  and  lighter,  there  are  no  limita<ons  as  to  where  they  can  be  used.    According  to  the  Tech   Tracker  report  Q2  2013,    people  are  using  their  tablets  everywhere;    during  their  morning  commute,    whilst  at  work  during  the   day,  even  when  they’re  at  home  watching  TV.     Loca<on  usage  of  tablets  in  the  UK   Source:  Tech  Tracker,  Q2  2013   15  
  • 16. Mobile Apps With  this  dras<c  increase  in  mobile  devices  and  mobile   innova<on,  it  is  no  surprise  that  mobile  app  downloads  are  also   on  the  rise.  By  the  end  of  this  year,    the  total  number  of  apps   downloaded  worldwide  will  reach  102  billion,  more  than   doubling  last  year’s  total  of  49  billion.     Google  Play  and  Apple’s  App  Store  account  for  85%  of  all  app   purchases.  The  majority  of  this  revenue  comes  from  game-­‐ related  apps,  such  as  Clash  of  Clans  and  Candy  Crush,  which  are   consistently  at  the  top  of  the  most  downloaded  list.       17%  of  all  app  revenue  comes  from  in-­‐app  purchases  rather  than   paid  downloads,  and  91%  of  downloads  will  be  free  this  year,  so   the  free-­‐to-­‐download  and  in-­‐app  purchase  business  model  is  the   most  preferred  among  developers.  By  2017,  annual  app   downloads  are  expected  to  reach  268.7  billion,  by  which  point   over  94%  of  apps  will  be  free  to  download,  and  in-­‐app  purchases   will  generate  48%  of  revenue.   Global  app  downloads  to  pass  100  billion  this  year   *Es<mated  mobile  app  downloads  worldwide  (in  billions)   Source:  Gartner       UK Mobile App Revenue Smartphone  users  are  predicted  to  spend  nearly  £10  billion  on  apps  by  the  end  of  2013.    Smartphone  and  tablet  app  expenditure   is  expected  to  reach  £9.7  billion,  which  is  more  than  the  figures  for  2010,  2011  and  2012  combined.   16  
  • 17. Mobile App or Website? The  need  for  businesses  to  have  a  mobile  presence  is  evident,    however  many  are  not  clear  on  the  best  route  for  them.    Develop  an  app,   create  a  mobile  op<mised  website  or  both?    The  first  considera<on  should  be  to  fully  understand  the  experience  they  are  looking  to   provide  for  their  customers,  and  secondly  to  recognise  the  best  way  to  achieve  that.  The  chart  below  shows  that  more  UK  consumers   use  apps  to  navigate  specific  content  but  a  mobile  Internet  browser  is  s<ll  the  preferred  method  to  carry  out  a  search.     Mobile  device  usage  preference   Source:  The  Deloiee  Consumer  Review     Beyond  the  hype:  The  true  poten<al  of  mobile     17  
  • 18. How businesses are getting the most from their apps in 2014 If  an  organisa<on  does  decide  to  go  down  the  route  of  developing  an  app,    they  should  ensure  they  get  the  most  out  of  their  app,   provide  the  best  customer  experience  and  generate  the  most  revenue  by  using  the  latest  smartphone  and  tablet  technology.     18  
  • 19. Conclusion The  facts  and  figures  shown  in  this   report  emphasise  the  impact  of       portable  devices  in  our  daily  lives.     Smartphone  sales  show  no  signs  of           slowing  and    tablets  have  proven  to     be  a  hit  with  all  ages.         Compe<<on  looks  to  be  fierce  over   the  next  year  with  Android  set  to   overtake  Apple  for  the  first  <me  in   the  UK  smartphone  market.  Tablets   look  to  be  no  different  with  the   smaller,  cheaper  devices  expected   to  dominate  this  Christmas.       The  younger  age  groups  con<nue   to    be  the  highest  adopters  of   these  devices,  meaning  that   tomorrow’s  consumers  will  be   even  more  mobile.         One  of  the  more  surprising  trends   of  this  year  is  the  rise  of  female   users,  as  they  overtake  men  for  the   first  <me  in  both  tablet  and   smartphone  ownership.  Will  this   trend  con<nue  in  2014?       How  and  where  we  are  using  these   devices  is  having  a  huge  impact  on   not  only  the  way  we  interact  with   each  other  but  also  how  we  engage   with  brands.  Organisa<ons  will   need  to  increasingly  consider  their   mobile  strategy  in  order  to  stay   ahead  of  their  compe<tors.       In  most  cases,  mobile  apps  are  s<ll   the  best  way  to  engage  with   customers.  The  benefits  are   becoming  ever  more  apparent  as   new  smartphone  and  tablet     technology  con<nues  to  be   released.       As  we  begin  to  take  these  devices   for  granted,  we  will  be  looking  for   the  next  level  of  convenience.     With  wearable  technology  such  as   smartwatches  and  Google  Glasses   looking  to  enter  the  market  next   year,  they  have  the  poten<al  to   reshape  how  we  interact  and  use   portable  technology.  It  will  be   interes<ng  to  see  where  the   market  is  at  the  end  of  2014.       19  
  • 20. Sources All  copyrights  for  sta<s<cs  and  their  graphic  representa<ons  are  acknowledged  to  be   owned  by  the  following  organisa<ons:     Source:  We  Are  Apps,  hep://www.weareapps.com/blog/     Source:  Mobile  In  Focus  Report,  Mobile  Marke<ng  Associa<on     Source:  hep://www.clicky.co.uk/2013/06/uk-­‐mobile-­‐sta<s<cs-­‐2013/       Source:  hep://www.emarketer.com/Ar<cle/Nearly-­‐Half-­‐of-­‐UK-­‐Consumers-­‐Will-­‐Use-­‐ Smartphones-­‐This-­‐Year/1009956     Source:  hep://stakeholders.ofcom.org.uk/binaries/research/cmr/cmr13/UK_4.pdf     Source:  Future  in  Focus,  Mobile  Landscape     Source:  hep://www.kantarworldpanel.com/global/News/Samsung-­‐nears-­‐50-­‐share-­‐ across-­‐Europe-­‐as-­‐Apple-­‐powers-­‐back-­‐in-­‐the-­‐US     Source:  hep://www.kantarworldpanel.com/global/News/Record-­‐share-­‐for-­‐Windows-­‐ phone     Source:  hep://www.idc.com/getdoc.jsp?containerId=prUS24314413     Source:  hep://www.telegraph.co.uk/finance/newsbysector/ mediatechnologyandtelecoms/electronics/10305093/Tablets-­‐forecast-­‐to-­‐overtake-­‐PC-­‐ sales-­‐at-­‐end-­‐of-­‐year.html     Source:  hep://techcrunch.com/2013/09/30/with-­‐weak-­‐back-­‐to-­‐school-­‐sales-­‐the-­‐pc-­‐ market-­‐is-­‐now-­‐microsoGs-­‐to-­‐save/?ncid=tcdaily     Source:  hep://www.ons.gov.uk/ons/rel/rdit2/internet-­‐access-­‐-­‐-­‐households-­‐and-­‐ individuals/2013/stb-­‐ia-­‐2013.html#tab-­‐Mobile-­‐Internet     Source:  hep://crave.cnet.co.uk/mobiles/windows-­‐8-­‐sees-­‐pc-­‐sales-­‐plummet-­‐as-­‐tablets-­‐ replace-­‐laptops-­‐50010912/       Source:  hep://yougov.co.uk/news/2012/09/11/tablets-­‐nearly-­‐double-­‐2013/     Source:  hep://cdn.yougov.com/cumulus_uploads/document/5ro76zquus/TabletTrac %20chart.pdf     Source:  hep://research.yougov.co.uk/news/2013/07/18/most-­‐tablets-­‐uk-­‐owned-­‐ women/     Source:  hep://www.themarke<ngblog.co.uk/2013/10/emarketer-­‐one-­‐third-­‐of-­‐  uk-­‐ popula<on-­‐now-­‐use-­‐tablets/     Source:  hep://yougov.co.uk/news/2013/04/18/quality-­‐android-­‐tablets/     Source:  hep://www.trustedreviews.com/news/smartphones-­‐uses-­‐will-­‐spend-­‐nearly-­‐10-­‐ billion-­‐on-­‐apps-­‐this-­‐year     Source:  hep://www.theguardian.com/business/2013/oct/20/christmas-­‐shopping-­‐by-­‐ mobile-­‐phone-­‐and-­‐tablet     Source:  hep://www.computerweekly.com/news/2240113752/PC-­‐shipments-­‐drop-­‐as-­‐ consumers-­‐opt-­‐for-­‐tablets     Source:  hep://venturebeat.com/2013/07/29/na<ve-­‐v-­‐web-­‐chart/     Source:  hep://mashable.com/2013/01/16/mobile-­‐app-­‐revenue/     Source:  JWTs  report:  10  trends  shaping  consumer  mindset  and  behaviour  in  2013     Source:  hep://www.deloiee.com/assets/Dcom-­‐Ireland/Local%20Assets/Documents/ Consumer%20business/2013/ConsumerReview5thMobileReport.pdf     Source:  hep://news.o2.co.uk/?press-­‐release=making-­‐calls-­‐has-­‐become-­‐fiGh-­‐most-­‐ frequent-­‐use-­‐for-­‐a-­‐smartphone-­‐for-­‐newly-­‐networked-­‐genera<on-­‐of-­‐users     20