Smart Phones New User Paradigms and Behaviors
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The smartphone market is the fastest-growing segment in the mobile industry, projected to reach 1 billion sales by 2016, with a significant shift in user behavior from voice to data-driven applications. Android leads the operating system market share at 47%, while Apple commands the majority of mobile operating profits. Key trends include the rise of mobile commerce, increased social networking usage, and an expected $56.5 billion in mobile marketing spend by 2015.
Smart Phones New User Paradigms and Behaviors
- 1. Smart Phones New User Paradigms and Behaviors January 2012
- 2. Overview: The Smartphone market is currently the fastest-growing segment and it will continue to outpace the overall handset market for the foreseeable future. User friendly platform and evolving user behavior pattern are responsible for its exponential growth. In the past few years Smartphone sales have grown exponentially. In 2011, 472 million Smartphone were sold worldwide. This is expected to rise to 1 billion by 2016. Smartphones now account for 17% of all global mobile handset sales. Particularly in the USA, 43% end-users have Smartphone which is equivalent to France, Germany, Italy, Spain and the UK. Among the four major operating platforms Android leads the market with 47% market share beating Apple's who has 29%. How- ever 57% mobile operating profits are in Apple's basket. The user behavior pattern has also experienced a major shift from voice to data centric in last year and sleek design of handset. Usage and growth in social networking, mobile payments, and many expected other non-voice applications driven by LTE are expected. This research addresses: • Top Smartphones and innovations in 2011 • Smartphone user behavior pattern evolution • Top smartphone functions for end-users • Relationship between mobile growth and smartphone user behaviors • Leading demographics (by gender / race / nationality) for usage • New dynamics of smartphone user behavior • Impact of mobile marketing • Relationship of applications market to smartphone user behavior • Smartphone business models • Actions that stakeholders should take for optimal success in smartphone marketplace Key Findings: • We project 20% of smartphones will support NFC by 2014 • Mobile commerce will become $31 billion business by 2016 • We see 74% of mobile search leading to a purchase because of smartphone • Mobile marketing spend will reach $56.5 billion in 2015 • Statistical snapshots: • 50% smartphone users purchase via mobile • 45% of smartphone users check email constantly throughout the day • 32% of smartphone users check Facebook at least once per day • 78% of Japanese smartphone users browse online from their mobile • 90% of smartphone users search local information in US and Japan • 76% of smartphone users utilize location check-in services • 56% of smartphone usage is with applications • 60% of end-users connect to social networks via mobile Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 3. Audience: • Mobile network operators • Handset and mobile device manufacturers • Infrastructure providers (equipment, software, and services) • Content providers and intermediaries • Semiconductor manufacturers • Mobile commerce application and service providers • Mobile applications developers (general) • Brands, advertisers, portals, and media companies Table of Contents: 1.0 EXECUTIVE SUMMARY 18 5.1 UNDERSTANDING SMARTPHONE USER BEHAVIOR & 2.0 INTRODUCTION 21 KEY INSIGHTS 54 2.1 WHAT IS SMARTPHONE? 21 5.2 SMARTPHONE USERS MORE DIGITALLY ACTIVE 56 2.2 WHAT MAKES A SMARTPHONE SMART - KEY SMART- 5.3 GLOBAL COUNTRY FACTS: THE SMARTPHONE USER & PHONE FEATURES? 22 THE MOBILE MARKETER 57 2.3 HISTORY OF SMARTPHONE 23 5.4 USING GOOGLE ANALYTICS TO UNDERSTAND SMART- 2.3.1 EARLY YEARS & THE FIRST SMARTPHONE 23 PHONE USER BEHAVIOR 58 2.3.2 SYMBIAN 24 5.5 MOBILE EXPERIENCE AND MOBILE CONSUMER PREF- 2.3.3 PALM, WINDOWS, AND BLACKBERRY 25 ERENCE INDICATOR 60 2.3.4 IPHONE 27 5.6 SMARTPHONE CONSUMER BEHAVIOR: FEW INTEREST- 2.3.5 ANDROID 29 ING FACT 61 2.3.6 BADA 30 5.7 EVOLVING USER BEHAVIOR WILL PROPEL MOBILE 2.4 MOBILE PHONE GROWTH AND SMARTPHONE 31 SEARCH 62 3.0 TOP TEN SMARTPHONES 2011 32 5.7.1 MOBILE USABILITY AND MOBILE SEARCH BEHAV- 3.1 NUMBER 1: SAMSUNG GALAXY S II 32 IOR 63 3.2 NUMBER 2: MOTOROLA DROID BIONIC ON VERI- 5.7.2 BETTER SEARCH APPLICATIONS WILL LEAD SEARCH ZON 33 BEHAVIOR 64 3.3 NUMBER 3: T-MOBILE LG G2X 34 5.7.3 COMPARISON SHOPPING CAN TAKE A PEAK 64 3.4 NUMBER 4: APPLE IPHONE 4 34 5.7.4 PHONE REPLACE THE LAPTOP 64 3.5 NUMBER 5: HTC EVO 3D 35 5.7.5 NOT YET THE TIPPING POINT 65 3.6 NUMBER 6: HTC THUNDERBOLT 36 5.7.6 ENTER MOBILE SEARCH FIELD 66 3.7 NUMBER 7: SONY ERICSSON XPERIA PLAY 37 5.8 SMARTPHONE USER BEHAVIOR AND MOBILE EMAIL 3.8 NUMBER 8: GOOGLE NEXUS S AND 4G 37 STRATEGY SHIFT 66 3.9 NUMBER 9: HP PRE 3 38 6.0 SMARTPHONE MARKET SHARE 67 3.10 NUMBER 10: DELL VENUE PRO 39 6.1 SMARTPHONE MARKET SHARE 67 4.0 TOP 10 SMARTPHONE INNOVATIONS OF 2011 40 6.2 MARKET SHARE BY OPERATING PLATFORM 68 4.1 PROCESSORS 40 6.3 CUSTOMER LOYALTY BY OPERATING PLATFORM 70 4.2 4G 42 6.4 MARKET SHARE BY MANUFACTURER 71 4.3 ANDROID ICE CREAM SANDWICH, IOS5... AND WP7 6.5 US MANUFACTURER MARKET SHARE ANALYSIS 72 MANGO 42 6.6 CUSTOMER LOYALTY BY MANUFACTURER 74 4.4 SIRI 44 6.7 GLOBAL HANDSET MARKET SHARE ANALYSIS 74 4.5 HTML5 AND THE DEATH OF ADOBE FLASH FOR MO- 6.8 APPLE VS. ANDROID BATTLE CONTINUES... 76 BILE 45 6.9 SMARTPHONE MARKET SHARE, ANDROID & GLOBAL 4.6 NEAR FIELD COMMUNICATION (NFC) AND THE LAUNCH MARKET FOCUS 2012 77 OF GOOGLE WALLET 46 6.10 ANDROID: 2012 EXPECTATION 80 4.7 DLNA AND WIFI DIRECT IN SMARTPHONES 47 6.11 4G, LTE, & WIMAX SMARTPHONE, 3G EXPLOSION IN 4.8 MIRASOL SCREEN TECHNOLOGY 48 ASIA, AND 245 MILLION HANDSET SHIPMENTS IN 2016 81 4.9 NOKIA'S LONG-AWAITED COMEBACK AND AMAZON'S 7.0 FUTURE OF SMARTPHONE IN 5-10 YEARS 83 MOBILE DEBUT 49 7.1 NEXT GEN MOBILE: THE FUTURE IS PMC (PERSONAL 4.10 BEST OF THE REST 51 MOBILE COMPUTER) 83 5.0 SMARTPHONE USER BEHAVIOR AND FUTURE TREND 54 Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 4. Table of Contents (cont.) 7.2 FLEXIBLE SMARTPHONE DESIGNS 83 11.1.2 SMARTPHONE: A CONSUMER'S ALWAYS-ON COMPAN- 7.3 WRISTWATCH PHONES 84 ION - 93% USE AT HOME 118 7.4 NFC CHIPS IN SMARTPHONE HARDWARE 85 11.1.3 SMARTPHONE AS POCKET PCS: 81% BROWSE INTER- 7.5 AUGMENTED REALITY 86 NET 118 7.6 ARTIFICIAL INTELLIGENCE 86 11.1.4 72% USE WHILE CONSUMING OTHER MEDIA 119 7.7 POWERFUL CHIPSETS 87 11.1.5 SMARTPHONE USERS MULTI-TASK: 59% USE WHILE 7.8 GOING GREEN 87 WAITING IN LINE 119 7.9 SMARTPHONES: THE FUTURE OF SATELLITE RADIO, A 11.1.6 SMARTPHONE HELP US WITH OUR DAILY LIVES: 89% SIRIUS XM CASE 88 STAY CONNECTED 120 8.0 SMARTPHONE GROWTH AND TOP FUNCTIONS 90 11.1.7 WHAT WE'RE WILLING TO EXCHANGE FOR INTERNET 8.1 TOP 10 ESSENTIAL SMARTPHONE FUNCTIONS: TEX- USAGE ON SMARTPHONE: 53% WITH BEER 120 TING HAS CLEAR LEAD 90 11.2 ACTION ORIENTED SEARCHERS 120 8.2 DATA USAGE BY MOBILE OPERATING SYSTEM: 89% Y-- 11.2.1 SEARCH IS THE MOST VISITED WEBSITE: 77% ON O-Y 90 SEARCH ENGINE 120 8.3 43% YOY DATA COSTS DROP 91 11.2.2 SMARTPHONE SEARCHERS LOOK WIDE VARIETY OF 8.4 SMARTPHONES: 68% OF IMPRESSIONS 92 INFORMATION: 51% DINNING 121 8.5 NEXT SMARTPHONE, ANDROID OR IOS? 93 11.2.3 SEARCHERS SEEK QUICK AND CONVENIENT INFORMA- 8.6 ANDROID GETS HALF OF SALES 93 TION: 89% URGENCY 122 8.7 APPLE IOS HAS MORE SHARE OF ALL DEVICES 94 11.2.4 90% TAKE ACTION ON SMARTPHONE SEARCH 122 8.8 US NON-COMPUTER TRAFFIC 2011 95 11.2.5 59% SEARCHERS PURCHASE 123 8.9 MUSIC LISTENING UP 14%, SURFING UP 6% 96 11.3 LOCAL INFORMATION SEEKERS 123 8.10 MOBILE SOCIAL NETWORKING UP 10% 96 11.3.1 95% LOOK LOCAL INFORMATION 123 8.11 CONTENT USAGE: ALL GROWTH SOLID BETWEEN 5%- 11.3.2 LOCAL INFORMATION SEEKERS ARE READY TO BUY: 10% 97 44% PURCHASE 124 8.12 76% USE LOCATION CHECK-IN SERVICES 98 11.3.3 VARIETY OF ACTIONS TAKEN AFTER ACCESSING LO- 8.13 PHONE VIDEO VIEWING EQUAL WITH IN-CAR 98 CAL CONTENT 124 9.0 MOBILE INTERNET, SMARTPHONE AND USER BEHAV- 11.3.4 NEARLY ALL LOCAL INFORMATION SEEKERS TAKE AC- IOR 100 TION WITHIN A DAY 125 9.1 123% GROWTH IN MOBILE PURCHASING 2009 VS. 11.4 PURCHASE DRIVEN SHOPPERS 125 2010 100 11.4.1 MOBILE TRANSFORMING EVERYDAY SHOPPING BEHAV- 9.2 MOBILE BANKING, NAVIGATION TO GROW 2011 100 IOR 125 9.3 DEVICE "LOOK" AND BRAND ARE INFLUENTIAL 101 11.4.2 79% RELY ON SMARTPHONE TO HELP WITH SHOP- 9.4 TABLETS USERS ARE ONLINE SHOPPERS 102 PING 126 9.5 TABLET OWNERS MAKE MORE PURCHASES 103 11.4.3 70% USE WHILE SHOPPING IN-STORE 126 9.6 HALF MAKE PURCHASES WITH A SMARTPHONE 103 11.4.4 SMARTPHONE ARE AN INTEGRAL PART OF MULTI- 9.7 25% WOULD PAY FOR GROCERIES 104 CHANNEL PURCHASE PROCESS 127 9.8 SECURITY OF MOBILE-PAY A BIG CONCERN 105 11.4.5 MAJORITY OF SMARTPHONE SHOPPERS PURCHASE 9.9 MOBILE BROWSING IN-STORE GROWS 78% 105 127 10.0 MOBILE PEOPLE AND SMARTPHONE USER BEHAV- 11.4.6 27% PURCHASE BY VIA MOBILE WEBSITE 128 IOR 107 11.4.7 22% PURCHASE VIA APPS 128 10.1 MEN DOUBLE MOBILE PURCHASING Y-O-Y 107 11.4.8 SHOPPERS SPENT ROUGHLY $300 129 10.2 FEWER WOMEN PURCHASE, BROWSE 107 11.5 REACHING THE SMARTPHONE USERS 129 10.3 BOTH GENDERS CLICKING MORE ADS 108 11.5.1 CROSS MEDIA EXPOSURE INFLUENCE MOBILE 10.4 HISPANICS HAVE HIGHER MOBILE USE 109 SEARCH: 61% WORD OF MOUTH 129 10.5 HISPANICS SEARCH MORE VIA MOBILE 110 11.5.2 71% SEARCH BECAUSE OF AD 130 10.6 HISPANICS SEARCH MORE VIA MOBILE 110 11.5.3 A VAST MAJORITY NOTICE MOBILE AD: 82% ON SMART- 10.7 GROWING UP DIGITAL, KIDS IMPACT USAGE 111 PHONE 130 10.8 FAMILIES, YOUNG ADULTS EQUAL BOOMERS 112 11.5.4 HALF TAKE ACTION WHO SEE A MOBILE AD: 42% CLICK 10.9 MOBILE SHOPPERS ARE YOUNG, WEALTHY 113 ON AD 131 10.10 YOUNG REACT MORE FREQUENTLY TO ADS 113 12.0 SMARTPHONE PARADIGM SHIFT AND MOBILE MARKET- 10.11 61% OF M-RETAIL SHOPPERS ARE UNDER 35 114 ING PREDICTION 132 10.12 13.1 MILLION MOBILE CONSUMERS PERFORM MOBILE 12.1 MARKETING SPEND TO REACH $56.5 BILLION IN RETAIL 115 2015 132 10.13 YOUNGER SHOPPERS RECOMMEND VIA SMS 115 12.2 LOCAL MOBILE ADS: 51% SHARE BY 2015 132 11.0 SMARTPHONE USER BEHAVIOR PARADIGM SHIFT 117 12.3 1,342% GROWTH IN RETAIL, RESTAURANTS 133 11.1 GENERAL SMARTPHONE USAGE 117 11.1.1 89% EMBEDDED SMARTPHONE INTO DAILY LIFE 117 Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 5. Table of Contents (cont.) 12.4 92% OF AD SPEND AT NATIONAL LEVEL 134 13.5.5 MOBILE PAYMENT 161 12.5 $100M FOR LOCAL MOBILE PROMOTIONS 135 13.5.6 CONTEXT AWARE SERVICE 161 12.6 43% OF MARKETERS USING MOBILE CHANNEL 135 13.5.7 OBJECT RECOGNITION (OR) 162 12.7 128% GROWTH IN CAMPAIGNS OVER 2 YEARS 136 13.5.8 MOBILE INSTANT MESSAGING (MIM) 163 12.8 SMARTPHONE OWNERS SEE 5X MORE ADS 137 13.5.9 MOBILE E-MAIL 163 12.9 30% OF CAMPAIGNS FOCUSED ON LEADS 137 13.5.10 MOBILE VIDEO 164 12.10 APPLE IOS HAS DOUBLE CTR OF ANDROID 138 13.6 APPS DOMINATE ANDROID USER TIME 165 12.11 26% DRIVE TO APP DOWNLOADS 139 13.6.1 56% OF DAILY SMARTPHONE TIME WITH APPS 165 12.12 MOBILE-SOCIAL ACTION MIX UP 39% M-O-M 139 13.6.2 MESSAGING BEATS PHONE CALLS 165 12.13 SOCNET CONVERGENCE HIGHER FROM TWITTER 140 13.6.3 ORGANIC DISCOVERY LESS LIKELY FOR BRAND 12.14 TARGETED ADS UP; LOCAL AT 56% 141 APPS 165 12.15 IMPRESSIONS: ANDROID- 53%, IOS- 28% 141 13.6.4 OTHER FINDINGS 166 12.16 BY BRANDED CARRIER, VERIZON HAS 19% 142 13.6.5 APPS DRIVE DATA GROWTH 167 12.17 BY MANUFACTURER, APPLE HAS 33% 143 13.7 MOBILE APP USE RISES AT NIGHT 167 13.0 MOBILE APPS USAGE: THE NEXT PARADIGM 144 13.8 VOICE DROPS QUICKER THAN MESSAGING 168 13.1 10 APPS TO WATCH 144 13.9 LIVING AFTER MIDNIGHT: 25% APPS SHARE AT 3 13.1.1 THE DAILY 144 AM 168 13.1.2 GE.TT 144 14.0 SMARTPHONE USER NEWS BEHAVIOR OF NEXT GEN- ERATION 169 13.1.3 GETGLUE 145 14.1 BRAND OF SMARTPHONE USE 169 13.1.4 BIZZY 146 14.2 NON-VOICE CALL USES OF PHONES 169 13.1.5 FLIPBOARD 147 14.3 PERCENTAGE OF A NEWS ARTICLE 170 13.1.6 KIK 147 14.4 FREQUENCY OF USE EXCLUDING VOICE CALLS 170 13.1.7 SHOPKICK 148 14.5 MULTITASKING: EXCLUDING VOICE CALLS 170 13.1.8 PATH 149 14.6 CONSUMING DIFFERENT TYPES OF INFORMATION 170 13.1.9 INSTAGRAM 150 14.7 CONSUME NEWS 170 13.1.10 GROUPME 151 14.8 PREFERENCES FOR CONSUMING NEWS 170 13.2 TOP 10 DOWNLOADED MOBILE APPS 2011 152 14.9 TYPES OF NEWS 171 13.3 TOP 10 ANDROID APPS 2011 152 15.0 SMARTPHONE: CHANGING PARADIGM OF DIGITAL ME- 13.3.1 NETFLIX 153 DIA 172 13.3.2 SNAPTAX 153 15.1 MOBILE GAMING VS. CONSOLE 172 13.3.3 THUMB KEYBOARD 153 15.2 PHOTOGRAPHY 173 13.3.4 GOOGLE CURRENTS 153 15.3 DIGITAL DISTRIBUTION AND APPSTORE 174 13.3.5 GOOGLE WALLET 153 15.4 GLOBAL HEALTH: SMARTPHONE TO MICRO- 13.3.6 GOOGLE+ APP 154 SCOPES 175 13.3.7 AMAZON MP3 154 15.5 SOCIAL NETWORKING ON MOBILE 176 13.3.8 WORLD OF GOO 154 15.6 ENTERTAINMENT 177 13.3.9 JUST IN CASE 154 16.0 SOCIAL MEDIA: AN EVOLVING PARADIGM OF SMART- 13.3.10 GOOGLE MUSIC 154 PHONE 178 13.4 TOP 10 IOS APPS 2011 155 16.1 FACEBOOK 178 13.4.1 TWEETBOT 155 16.1.1 A FACEBOOK SMARTPHONE? WHY? 178 13.4.2 HBO GO 155 16.1.2 FACEBOOK, HTC WORK ON SMARTPHONE 179 13.4.3 W.E.L.D.E.R. 155 16.1.3 THE FACEBOOK SMARTPHONE APP CRAZE 180 13.4.4 SUPER 8 156 16.1.4 THE HTC'S STATUS: DEDICATED FACEBOOK BUT- 13.4.5 GRAND THEFT AUTO 3 156 TON 181 13.4.6 SONGZA 156 16.1.5 MOBILE APPS VS. MOBILE WEB: 33% POSTING IS MO- 13.4.7 INFINITY BLADE II 156 BILE 183 13.4.8 INSTACAST 156 16.2 GOOGLE +: BEST SMARTPHONE INTEGRATION OF ANY 13.4.9 MIXEL 157 SOCIAL NETWORK 184 13.4.10 AIRPORT UTILITY 157 16.2.1 GOOGLE PLUS SMARTPHONE: NEXT GEN PHONE 185 13.5 10 MOBILE APPLICATION TRENDS FOR 2012 157 16.3 TWITTER 186 13.5.1 LOCATION BASED SERVICES (LBS): 1.4 BILLION USERS 16.3.1 SMARTPHONE ADOPTION: RIM LEADS IN CASE OF IN 2014 158 TWITTER. 187 13.5.2 MOBILE SOCIAL NETWORKING 159 16.3.2 TWITTER IS A FORM OF ENTERTAINMENT 188 13.5.3 MOBILE SEARCH 159 13.5.4 MOBILE COMMERCE 160 Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 6. Table of Contents (cont.) 16.3.3 GLOBAL AUDIENCE TO TWITTER.COM DOUBLES IN 19.4 COMMISSIONS 218 2011, AS LATIN AMERICAN AUDIENCE GROWS FOUR- 19.5 COMMISSION ON THE SALES OF DEVICES 218 FOLD 189 19.6 MOBILE PAYMENTS 218 19.7 M2M 219 16.3.4 INDONESIA, BRAZIL AND VENEZUELA BOAST HIGHEST 19.8 THE CLOUD 219 TWITTER PENETRATION IN THE WORLD 190 20.0 CONCLUSIONS AND RECOMMENDATIONS 221 16.3.5 SMARTPHONES DRIVE MOBILE TWITTER ADOPTION IN 20.1 RECOMMENDATION FOR MANUFACTURER 222 U.S. AND EUROPE 190 20.1.1 FOCUS FUNCTIONAL CREATIVITY 222 16.4 GROUPON 191 20.1.2 EMBRACE BUSINESS MODEL SHIFT 224 16.5 SKYPE 192 20.1.3 FOCUS SECURITY ISSUE 224 16.6 FOURSQUARE AND GOWALLA 192 20.1.4 BRING BETTER SEARCH FUNCTIONALITY 225 16.7 LINKEDIN 193 20.1.5 DEVICE PROVISIONING 'OVER THE AIR' 226 16.8 FLICKR 194 20.2 RECOMMENDATION FOR TELECOM 226 16.9 MOBILE SOCIAL NETWORKING 196 20.2.1 DEVELOP MUTUALLY BENEFICIAL BUSINESS 16.9.1 MOBILE SOCIAL NETWORKING BOOMS 196 MODEL 226 16.9.2 MOBILE DATA USAGE SKYROCKETS: 10-FOLD IN- 20.2.2 MONETIZE LOCAL TRAFFIC 226 CREASE IN 2015 197 20.2.3 INCORPORATE LOCAL AD MARKETING PLATFORM 226 16.9.3 7 IN 10 MOBILE SOCIAL NETWORKERS POST STATUS 20.3 RECOMMENDATION FOR BRAND 227 UPDATES 198 20.3.1 HAVE MOBILE OPTIMIZED SITE 227 16.9.4 MOBILE FACEBOOK AUDIENCE NEARS 60M: 50% A 20.3.2 BUILD MOBILE SOCIAL STRATEGY 227 CLEAR LEAD 199 20.3.3 MAKE THINGS EASY TO SHARE THE LOVE 227 16.9.5 3 IN 5 US SMARTPHONE USERS ACCESS 20.3.4 MOBILIZE EVERYTHING 228 SOCNETS 200 20.4 RECOMMENDATION FOR END USER 228 16.9.6 EUROPEAN SMARTPHONE USERS FOLLOW SIMILAR 20.4.1 PROTECT THE SMARTPHONE ITSELF 228 SOCNET TREND 201 20.4.2 BACKUP YOUR COOL DATA 229 16.9.7 7 IN 10 US CONSUMERS PREFER PERSONALIZED OF- 20.4.3 BE CAREFUL WHEN YOU WI-FI 229 FERS 201 20.4.4 BROWSE WISELY 229 16.9.8 WOMEN RULE SOCIAL MEDIA 202 20.4.5 CLEAR YOUR CACHE 229 17.0 SMARTPHONE: LATEST INDUSTRY TREND 203 20.4.6 FIND YOUR LOST SMARTPHONE 230 17.1 INTEL MOVING INTO SMARTPHONE 203 20.4.7 THINK ABOUT YOUR APPS 230 17.2 MOTION CONTROLLED GADGET: SWIVL IN SMART- 20.4.8 BE AWARE OF YOUR SURROUNDINGS 230 PHONE 203 20.4.9 CHECK YOUR INVOICE 230 17.3 SONY'S NEW SMARTPHONE, THE XPERIA S 205 20.4.10 DON'T THROW AWAY YOUR SMARTPHONE 231 17.4 UBUNTU LINUX MOBILE - AN ALTERNATIVE TO GOOGLE ANDROID 205 17.5 LG OPTIMUS 3D AND NOKIA X7 BATTLE 206 17.6 RIM TAKEOVER BUZZ: MICROSOFT, NOKIA AND AMA- ZON ARE INTERESTED 207 17.7 KASPERSKY LAB AND TAG HEUER PARTNERSHIP FOR TAG HEUER MOBILE SECURITY IN THE LUXURY SEG- MENT 208 17.8 HTC EDGE - THE FIRST SMARTPHONE WITH QUAD- CORE PROCESSOR 209 17.9 NEW 4G DEVICE OF SAMSUNG AND SMARTMBS 209 17.10 AMAZON PREPARES A SMARTPHONE WITH FOX- CONN 210 17.11 NOKIA SELLS LUXURY DIVISION VERTU 211 17.12 IPHONE 4S COULD BE BANNED IN EUROPE 212 18.0 SMARTPHONE MANUFACTURER BUSINESS MODEL 214 18.1 VERTICALLY INTEGRATED MODEL 214 18.2 ADVERTISING & APPS WITH OPEN PLATFORM 214 18.3 LICENSE FEES 215 19.0 SMARTPHONE: BUSINESS MODEL FOR TELECOMS 216 19.1 PRICE DIFFERENTIATION 216 19.2 A TWO-SIDED MARKET 216 19.3 NETWORK NEUTRALITY 217 Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 7. List of Figures Figure 1: Group of smartphones 21 Figure 45: Layar provides augmented reality today 86 Figure 2: Key Smartphone features 22 Figure 46: Top 10 essential smartphone functions 90 Figure 3: The first smartphone 24 Figure 47: Data Usage in MB by Mobile Operating System: Average Figure 4: The Nokia 9210 Communicator-Symbian 2000 model MB per user 91 smartphone 25 Figure 48: Smartphone Data: Effective Cost per MB 92 Figure 5: Nokia Lumia 800 - Windows Phone 7.5 Smart- Figure 49: Connected Devices, Category Mix, % Share: April 2011 92 phone 27 Figure 50: Desired OS of Next Smartphone: % of consumers who Figure 6: The original iPhone - June 2007 29 plan to purchase new smartphone 93 Figure 7: Galaxy Nexus, the latest "Google phone in Android Figure 51: U.S. Smartphone Market Share, % of US mobile phone 4.0" 30 subscribers in March 2011 94 Figure 8: Samsung Galaxy S II leads the pack 33 Figure 52: Apple iOS v. Android OS across All Mobile Devices, Total Figure 9: Motorola Droid Bionic 33 base (000) / % of subscribers 95 Figure 10: T-Mobile LG G2X 34 Figure 53: U.S. Non-Computer Device Traffic % share, May 2011 95 Figure 11: Apple iPhone 4 35 Figure 54: Mobile Content Usage 96 Figure 12: HTC EVO 3D smartphone 36 Figure 55: Mobile Content Usage 97 Figure 13: HTC ThunderBolt 36 Figure 56: Mobile Content Usage 97 Figure 14: Sony Ericsson Xperia Play 37 Figure 57: Devices Used to Watch Video Content in 1Q 2011: % of Figure 15: Google Nexus S 38 U.S. mobile phone subscribers 98 Figure 16: HP Pre3 39 Figure 58: Devices Used to Watch Video Content in 2011, % of U.S. Figure 17: Windows Phone 7 on the Dell Venue Pro 39 households 99 Figure 18: Nvidia's Tegra 2 41 Figure 59: Consumer Trend in Mobile Purchases, % of consumers Figure 19: 3G vs. 4G visual speed comarison 42 making 1 or more m-purchase 100 Figure 20: iCloude set up screen in Smartphone 43 Figure 60: Consumer Mobile Platform Activities 2010 v. 2011, % of Figure 21: Face recognition features on Samsung Galaxy respondents 101 Nexus 44 Figure 61: Mobile Purchase Influencers in Mature Markets May 2011, Figure 22: Siri speech recognition user front 45 % of respondents 102 Figure 23: P2P mash up architecture through WiFi 48 Figure 62: Online Shopping via Mobile Device May 2011, % of re- Figure 24: Mirasol display on The Kyobo e-Reader 49 spondents 102 Figure 25: Demography of sleek design of Lumia 800 50 Figure 63: Online Purchases via Mobile Device May 2011, % of re- Figure 26: Amazon's move in mobile appstore 51 spondents making a purchase in past six months 103 Figure 27: Lytro light-field camera experience 51 Figure 64: Consumer Smartphone Usage May 2011, % of respon- Figure 28: Biometrics face unlock on Smartphone 52 dents 104 Figure 29: Google infographic on smartphone usage in United Figure 65: Smartphone as Payment System Q1 2011, % of respon- States 55 dents 104 Figure 30: Google infographics on smarphone user purchase behav- Figure 66: Smartphone as Payment System Q1 2011, % of respon- ior 55 dents 105 Figure 31: Digital communication Smartphone vs. Non-smartphone Figure 67: In-store Mobile Product Browsing 2009-2010, % of US user 56 consumers 106 Figure 32: Using the Advanced Segments feature of Google Ana- Figure 68: Mobile Purchases by Men 2009-2010, % of men making 1 lytics 59 or more m-purchase 107 Figure 33: Check the option for Mobile Traffic and click Apply 59 Figure 69: Mobile Browsing by Men 107 Figure 34: Review the Bounce Rate for all Visits and Mobile Traffic. Figure 70: Mobile Purchases by Women 2009-2010, % of women There is a 7 point difference in this example 60 making 1 or more m-purchase 108 Figure 35: 2011 Operating Profit Share of Mobile Industry 68 Figure 71: Mobile Browsing by Women 108 Figure 36: 2011 worldwide Smartphone Market Share by Operating Figure 72: Mobile Ad CTR, by Gender, Income April-May 2011, % of System 69 total users 109 Figure 37: Smartphone Quantity Market Share by Operating System Figure 73: Mobile Ad CTR, by Gender, Income April-May 2011, % of 2009- 2011 70 total users 109 Figure 38: Quantity market shares by Manufacturer 71 Figure 74: Mobile Device Use by Hispanics April 2011, % of respon- Figure 39: US Market Share by Manufacturer 73 dents, n=24,754 110 Figure 40: Smartphone Customer Satisfaction Index in 1000 score 74 Figure 75: Mobile Device Use for Internet Search April 2011, % of Figure 41: Smartphone platform market share prediction 2012 78 respondents, n=24,754 111 Figure 42: Smartphone Manufacturer Market Share prediction Figure 76: Internet Use by Household Income April 2011, % of 2012 78 households 112 Figure 43: Flexible displays: could help balance the demand for Figure 77: Current Family Marketplace April 2011, % of households screen real estate with pocketable device size 84 112 Figure 44: Nokia's Morph 85 Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 8. List of Figures (cont.) Figure 78: Mobile Retail Users, by Income 2010 Study, % of audi- billions 133 ence 113 Figure 113: Verticals Growth in Mobile Campaigns Q1 2010 v. Q1 Figure 79: Reaction to Mobile Advertising, by Age Q1 2011, % of 2011, % growth 134 audience 114 Figure 114: U.S. Mobile Marketing: Advertising 2010 Totals, US$ Figure 80: Mobile Retail Users, by Age 2010 Study, % of audience millions 134 114 Figure 115: U.S. Mobile Marketing: Promotions 2010 Totals, US$ Figure 81: Mobile Retail Users, by Access Method 2010 Study, Audi- millions 135 ence in millions 115 Figure 116: Mobile Marketing Adoption May 2011, % of respon- Figure 82: Method of Product Recommendation 2011 Study, % of dents 136 respondents 116 Figure 117: Category Share in Mobile Display Ads 3-month average Figure 83: 89% Embedded Smartphone into Daily Life 117 share ending March 2011, US mobile subscribers 136 Figure 84: Smartphone: A Consumer's Always-on Companion - 93% Figure 118: Smartphone, Feature Phone Service Penetration 3- Use at Home 118 month average share ending March 2011, US mobile subscrib- Figure 85: Smartphone as Pocket PCs: 81% Browse Inter- ers 137 net 118 Figure 119: Mobile Advertiser Campaign Goals April 2011, % of cam- Figure 86: 72% Use While Consuming Other Media 119 paigns 138 Figure 87: Smartphone Users Multi-task: 59% Use While Waiting in Figure 120: Click-Through Rates by Mobile OS May 2011, % of users Line 119 138 Figure 88: Smartphone Help Us with Our Daily Lives: 89% Stay Con- Figure 121: Mobile Advertiser Campaign Destination Goals April nected 120 2011, % of campaigns 139 Figure 89: What We're Willing to Exchange for Internet Usage on Figure 122: Post-Click Action Campaign Mix April 2011, % of cam- Smartphone: 53% with BEER 120 paigns 140 Figure 90: Search is The Most Visited Website: 77% On Search En- Figure 123: Social Media Usage by Location June 2011, % of respon- gine 121 dents 140 Figure 91: Smartphone Searchers Look Wide Variety of Information : Figure 124: Mobile Campaign Targeting Mix April 2011, % of cam- 51% Dinning 121 paigns 141 Figure 92: Searchers Seek Quick and Convenient Information: 89% Figure 125: Device OS Mix April 2011, % of campaigns 142 Urgency 122 Figure 126: Device Carrier Mix April 2011, % of cam- Figure 93: 90% Take Action on Smartphone Search 122 paigns 142 Figure 94: 59% Searchers Purchase 123 Figure 127: Top Manufacturers of Mobile Devices April 2011, % of Figure 95: 95% Look Local Information 123 campaigns 143 Figure 96: Local Information Seekers Are Ready to Buy: 44% Pur- Figure 128: The Daily Apps Display on iPad 144 chased 124 Figure 129: User Interface of Ge.tt Apps 145 Figure 97: Variety of Actions Taken after Accessing Local Content Figure 130: GetGlue Apps 146 124 Figure 131: Bizzy Apps Front 146 Figure 98: Nearly All Local Information Seekers Take Action within a Figure 132: Flipboard News Apps 147 Day 125 Figure 133: Kik Social Apps 148 Figure 99: Mobile Transforming Everyday Shopping Behav- Figure 134: ShopKick Apps 149 ior 125 Figure 135: Path Networking Apps 150 Figure 100: 79% Rely on Smartphone to Help with Shop- Figure 136: Instagram Apps 151 ping 126 Figure 137: GroupMe Apps 151 Figure 101: 70% Use While Shopping in-store 126 Figure 138: LBS Dynamics 158 Figure 102: Smartphone Are an Integral Part of Multi-channel Pur- Figure 139: Mobile social networking 159 chase Process 127 Figure 140: Mobile Search Demo 160 Figure 103: Majority of Smartphone Shoppers Purchase 127 Figure 141: Mobile Commerce 160 Figure 104: 27% Purchase by Via Mobile Website 128 Figure 142: Mobile Payment 161 Figure 105: 22% Purchase Via Apps 128 Figure 143: Context Aware Service 162 Figure 106: Shoppers Spent roughly $300 129 Figure 144: Object Recognition (OR) 162 Figure 107: Cross Media Exposure Influence Mobile Search: 61% Figure 145: Mobile Instant Messaging (MIM) 163 Word of Mouth 129 Figure 146: Mobile e-mail 164 Figure 108: 71% Search Because of Ad 130 Figure 147: Mobile Video 164 Figure 109: A Vast Majority Notice Mobile Ad: 82% on Smart- Figure 148: 56% of Daily Smartphone Time with Apps 165 phone 130 Figure 149: Organic Discovery Less Likely for Brand Apps 166 Figure 110: Half Take Action Who See a Mobile Ad: 42% Click on Figure 150: Use of Smartphone vs. Time of Day - Relative 167 Ad 131 Figure 151: Use of Smartphone vs. Time of Day - Absolute 168 Figure 111: U.S. Mobile Marketing Spend 2010 v. 2015, US$ millions Figure 152: Types of Smartphone students use 169 132 Figure 112: Local vs. National Ad Spend in Mobile 2010-2015, US$ Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 9. List of Figures (cont.) Figure 153: Smartphone camera usage is way up in casual applica- Figure 171: Which Type of Offer Would You Prefer? 202 tions. 174 Figure 172: Medfield Enabled Phone of Intel 203 Figure 154: Smartphone to Microscopes 176 Figure 173: Swivl in Smartphone 204 Figure 155: Facebook on a BlackBerry 178 Figure 174: Swivl in hand 204 Figure 156: HTC Status has a Facebook button below the key- Figure 175: Sony Xperia S 205 board 182 Figure 176: ubuntu Logo 206 Figure 157: Mobile Facebook Posting Clients 183 Figure 177: LG Optimus 3D and Nokia X7 207 Figure 158: Mobile Posting to Facebook 183 Figure 178: Amazon kindle phone concept 211 Figure 159: Hangouts on Mobile Phone 185 Figure 179: NOKIA Vertu Image 212 Figure 160: Sample Google Plus Phone Infographics 186 Figure 161: Mobile phone feature priorities of iPhone users compared to all mobile phone users, % of US users ranking a feature in their top four. 188 Figure 162: Twitter awareness and usage among US PC users 189 Figure 163: LinkedIn worldwide members 2011 194 Figure 164: The UI of Flickr Android Apps 195 Figure 165: Most Popular Cameras in the Flickr Commu- nity 196 Figure 166: Mobile Social Networking Audience and Access 2011 197 Figure 167: Average Monthly Data Usage for US Smartphone Us- ers 198 Figure 168: % reach of Facebook and Twitter Among Smartphone Audiences 2011 200 Figure 169: US Smartphone Users (000) that Accessed Social Net- working/Blog 200 Figure 170: Europe Smartphone Users (000) that Accessed Social Networking/Blog 201 List of Tables Table 1: Top US Mobile OEM's % of Subscriber Share 76 Table 2: Top Smartphone Platform's % of subscriber share 77 Table 3: Smartphone shipment & growth 2011-2016 79 Table 4: Top 10 Downloaded Mobile Apps 2011 152 Table 5: Twitter Penetration Among Mobile Smartphone Users 191 Table 6: Smartphone activities: % of adult smartphone owners who use their phones to do different social activi- ties 193 Table 7: Worldwide Distribution by industry 2011 194 Table 8: Mobile Social Networking Activities 2011 199 Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com
- 10. Order Form Report Title Smartphones: New User Paradigms and Behaviors License Type Single User License ………….....$ 1,995 USD Company-wide License……$ 4,995 USD Team License (2-5 people) …… $ 2,865 USD Other Licensing options available: Contact Mind Commerce Family/Surname First Name Position Company Address Country Post Code FAX Telephone Email Order Type Order by FAX at 1 877 646 3266 Card Number Expiration Date (MM/YY) CV Code Cardholder’s name Signature Billing Address Postcode Country Signature Date Online Ordering Customers can order online by visiting report web page: www.mindcommerce.com/Publications/Smartphone_UserParadigmBehavior.php Tel/FAX: 1-877-MINDCOM (646-3266) Email: info@mindcommerce.com www.mindcommerce.com