Connected consumers in 2013 and beyond: how device take · PDF fileend-user buying behaviour...

MENA Summit 2013: Enabling innovation, driving profitability © Analysys Mason Limited 2013

Connected consumers in 2013 and beyond

MENA Summit 2013:

Enabling innovation, driving profitability

6 November 2013

EVENT PARTNERS:

Connected consumers in 2013

and beyond: how device take-up

and network evolution drive

service change

Ronan de Renesse and Karim Yaici


Connected consumers in 2013 and beyond 2

How we use primary research

Mobile Internet users’ priorities and purchasing habits

Multi-device ownership impact on content and services

Mobile data connectivity trends and monetisation

Key take-away points



First consumer MEA study to measure:

usage of telecoms and media services

device ownership (mobiles and tablets)

mobile connectivity options

purchase and usage of mobile devices

and SIMs.

Survey was conducted in Nov 2012–Jan

2013 in Egypt, Nigeria, Kenya, Saudi

Arabia, South Africa and the UAE in

association with On Device Research

46 questions to 4250 respondents.

Best for:

mobile Internet connectivity

end-user buying behaviour

OTT usage.

3

The Mobile Internet Consumer Survey in MEA 2013

Countries covered individually in the report

Great

Britain

France

Spain

Germany

South

Africa

Kenya

Nigeria

Egypt

Saudi

Arabia

UAE



About Analysys Mason’s worldwide survey of tablet users

June/July 2013 in 17 countries, in

association with On Device Research:

more than 43 000 tablet users

71 questions.

The survey was conducted on the tablets

themselves.

Themes addressed:

tablet growth areas by demographic

distribution channel/ownership trends

tablet purchase intentions

tablet connectivity and data pricing.

4


Geographical coverage

Middle East and North

Africa

Saudi Arabia and the UAE

Sub-Saharan Africa South Africa

North America USA

Western Europe France, Germany, Italy,

Spain, Sweden and the UK

Central and Eastern

Europe

Poland, Turkey

Developed Asia–Pacific Singapore

Emerging Asia–Pacific China and Malaysia

Latin America Brazil and Mexico Best for:

focusing on the specifics of tablets

getting reliable device information.



Multi-year study that tracks and measures:

changing telecoms and media habits

device ownership

connectivity options

future plans (such as churn)

October 2012 in France, Germany, Spain,

Poland, the UK and the USA.

137 questions

6610 respondents (more than 1000

per country).

Best for:

looking at the wider device ecosystem

collecting attitudinal data

getting a view on future plans.

5

The Connected Consumer Survey 2013


Great

Britain

France

Spain

Germany Poland

USA



Growing availability of low-end smartphones is likely to drive mobile Internet users to migrate towards Android

7

Respondents’ mobile handset adoption and OS splits by country

Figure source: Mobile Internet Survey in the Middle East and Africa 2013: mobile device and SIM purchase and usage

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Egypt Saudi Arabia UAE

Perc

enta

ge o

f re

spondents

Feature phone

Windows Phone

iOS

BlackBerry OS

Android

Symbian

>50% have a

Nokia handset



3/4 of mobile Internet users plan to opt for a smartphone the next time they purchase a mobile phone …

8

Type of phone respondents plan to obtain next, by country


0%

20%

40%

60%

80%

100%F

eatu

re p

hone

Sm

art

phone

Fe

atu

re p

hone

Sm

art

phone

Fe

atu

re p

hone

Sm

art

phone


Perc

enta

ge o

f re

spondents

Smartphone

Feature phone

Basic phone

Other



… and 43% of them plan to upgrade within the next 12 months

9

Length of time before survey respondents plan to

acquire a new phone, by country

Handset acquisition channel used by survey

respondents, by country


0%

20%

40%

60%

80%

100%

Egypt SaudiArabia

UAE

Perc

enta

ge o

f re

spondents

<6 months 6 months-1 year

More than 1 year Unsure

Not applicable

0%

20%

40%

60%

80%

100%

Egypt SaudiArabia

UAEPerc

enta

ge o

f re

spondents

Purchased from MNO Purchased elsewhere

Given by someone Other

Unsure



3G/4G support, affordability and handset features are the most important factors when selecting a new phone

10

Criteria survey respondents indicated were important when selecting their next handset, by country



Support 3G/4G

Affordability

Better/different features

Handset design

Use same or more apps

Service provider discounts

Most important

Least important Apps and discounts on

devices were not deemed

highly important



Smartphone share of handset connections in MENA will reach 32% in 2018

11

Smartphone connections forecasts, MENA, 2013–2018

Figure source: Middle East and North Africa telecoms market: trends and forecasts 2013–2018

0%

10%

20%

30%

40%

50%

60%

0

100

200

300

400

500

600

2013 2014 2015 2016 2017 2018

Gro

wth

/Penetr

ation (

%)

Connections (

mill

ion)

Smartphone Non-smartphone Penetration YoY growth



0% 10% 20% 30% 40% 50%

UAE

Saudi Arabia

Egypt

Smartphone owners Feature phone owners

40% of mobile Internet respondents in Saudi Arabia and the UAE have tablets

13

Ownership of a tablet PC by mobile Internet survey panellists, by country and type of handset

Figure source: Mobile Internet Survey in the Middle East and Africa 2013: Internet access trends and analysis



0% 20% 40% 60% 80% 100%

Social networking

Personal email

IM

Video

Tablet only Tablet > Mobile Tablet = Mobile

Mobile > Tablet Mobile only

Half of tablet users have shifted their usage of social networking, email, IM and video from mobiles to tablets

14

Usage balance of apps between tablets and mobile phones, Saudi Arabia, South Africa and the UAE

Figure source: MEA tablet survey 2013: devices, data plans and connectivity – current usage, future intentions

Similar trend for

PC/Tablet migration



57% of tablet users purchased apps, and one-third share them with their mobiles

15

App purchasing on mobiles and tablets, Saudi Arabia, South Africa and the UAE


Neither, 43%

Phoneonly, 8%

Tablet only, 18%

Equally

More phone

More tablet

Shared apps

Phone + tablet, 31%



Consumer/manufacturer relationships: Apple has created an ecosystem that no other manufacturer has yet matched

16

Illustration of Apple and Samsung device ownership (approximately drawn to scale)

Samsung

handset

users

Samsung

laptop

users

Galaxy Tab

users

iPhone

users

iPad

users

Apple

laptop

users 7% of Apple iPhone,

iPad or laptop users

use all three devices

from Apple.

1% Samsung handset,

laptop or tablet users

use all three devices

from Samsung.

Figure source: The Connected Consumer Survey 2013



Positive impact of multi-device: building app ecosystems stimulates content consumption

17

Monthly smartphone app spend, by type of device ownership

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Non-tabletowners

Tablet owners iPhone and iPadowners

Perc

enta

ge o

f re

spondents

Unsure

More than 15

10–15

5–10

2–5

Less than 2

Never

Figure source: The Connected Consumer Survey 2013: mobile content and applications

Local currency:



58% of surveyed tablet users have a 3G/4G connectable tablet, but only one-third connect them to the network

Respondents by type of tablet connectivity, by country or region


0%

20%

40%

60%

80%

100%

Saudi Arabia UAE South Africa

Pe

rce

nta

ge o

f re

sp

on

de

nts

Wi-Fi only 3G capable; only Wi-Fi used

3G capable; use 3G Unsure



Other/unsure

5%

Tethering or portable hotspot

10%

Data too expensive

22%

Wi-Fi sufficient

43%

Don't know how to use it

7%

Contract stopped

2%

No coverage

4%

Quality of connection

7%

Contract stopped

9%

Quality of connection

13%

Data too expensive

13%

Wi-Fi sufficient

41%

Don't know how to use it4%

Tethering or portable hotspot

10%

No coverage5%

Other/unsure4%

Wi-Fi availability and mobile data prices are two key reasons for tablet users not to use a mid-screen 3G/4G SIM

20


Reasons for not using cellular connectivity, Saudi

Arabia

Reasons for not using cellular connectivity, UAE

Saudi Arabia UAE



There is a clear relationship between customers using the tablet away from home and willingness to pay for data

Relationship between tablet 3G/4G connectivity and tablet user mobility

UK USA France

Spain

Sweden

Italy

Germany

Brazil

South Africa

Poland

Singapore

China

Mexico

Turkey

UAE

Malaysia

Saudi Arabia

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50% 60% 70% 80% 90%

Con

ne

ctivity

(Sh

are

of

respo

nd

en

ts u

sin

g

3G

/4G

ta

ble

t S

IM)

Mobility(Share of respondents using their tablet out of home)

Fixed

substitution?

Missed

opportunity?

Figure source: Tablet survey worldwide 2013: devices, data plans and connectivity



Connectivity costs are far too high in mature tablet markets

Kindle Fire HDX total cost of ownership (TCO) with LTE on AT&T

0

100

200

300

400

500

600

700

800

900

1000

Shared 250MB 3GB 5GB

12-m

onth

TC

O (

US

D)

Data allowance

LTE service

LTE device mark-up

Kindle Fire HDX 7"16GB (with offers)

×4

×3

×2.2 ×2

Figure source: Tablet survey worldwide 2013: devices, data plans and connectivity




43% of respondents plan to acquire a new phone within 12 months.

Feature phone and low-end smartphones are key to increase the number of

mobile Internet users.

3G/4G connectivity is the most important factor for mobile Internet users when

selecting a new phone.

Tablets drive service consumption (and spending) away from PCs and mobile

smartphones.

Pricing and Wi-Fi availability are key levers of mobile data take-up and usage.

24



Thank you for your attention.

Any questions?

25

Ronan de Renesse

Principal Analyst

[email protected]

Karim Yaici

Analyst

[email protected]

Connected consumers in 2013 and beyond: how device take · PDF fileend-user buying behaviour...

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