If We Build it, Will They Come?

TM
Findings from TAUT
(Tablet Adoption and Usage Tracking)

October 6, 2010

Dr. Phil Hendrix, immr/GigaOm Pro

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

 Acknowledgements
Paradigm Sample
v Innovative global sample company

v Specializing in mobile, hard-to-

reach audiences

v Offer MobilePulseTM (real-time data

collection capability)

v Sima Vasa, CEO/Steve Dodge, VP

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

 Agenda
v What Drives Adoption of New Mobile Devices?

v immr’s TAUTTM Research Program

(Tablet Adoption and Usage Tracking)

v Selected Findings – TAUT Research Oct. 2010

v Implications for OEMs, Operators, Developers

v Forthcoming TAUT Research – Q4

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

 TAUT Research Program
v Monthly Survey – Online (15 minutes)
v Stratified Random Sample of Mobile Users (n=400)
v Smart Phone and Feature Phone Users
TAUT Measures
Ø Device Profile Ø Device Usage Ø User Profile

Tablets
Ø Awareness Ø Exposure Ø Benefit Appeal
Ø Expected Uses Ø Purchase Intent Ø Time Frame
Ø Feature Preference Ø Brand Preference Ø Price Elasticity

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

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n Most Consumers Unfamiliar with Tablets
Awareness of Tablets
Never heard of Tablets 6%

Heard of, but know little about 36% 75%

Somewhat familiar 33%

Very familiar 19%

Actually own a tablet 5%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Q: How familiar are you with Tablets? immr TAUT Survey | Oct. 2010

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

n Over Half Interested in Purchasing a Tablet
Interest in Purchasing a Tablet
Purchase Tablet for yourself 26% 22% } 48%

Purchase Tablet for spouse 18% 14% } 32%

}
Very Interested
Purchase Tablet for child 10% 10% 20% Somewhat Interested

0% 10% 20% 30% 40% 50% 60%

Q: Overall, how interested are you in purchasing a Tablet for yourself? For your Spouse? For your child(ren)? immr TAUT Survey | Oct. 2010

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

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n Tablet Benefits Have Wide Appeal
Appeal of Tablet Benefits
Durability - scratch-resistant screen 55 24

Screen size >> viewing websites, books 44 31

Instant-On - no "booting up" 46 27

Battery life - 6-10 hrs continuous usage 45 26

Fits into backpack, briefcase or purse 41 28

Can be held without getting tired 35 29

Can be placed in tight spaces 32 30

One-hand operation 25 26 Very Appealing

Access to Apps in App Stores 25 21 Somewhat

0 10 20 30 40 50 60 70 80 90

Q: Compared to mobile phones and laptop PCs, Tablets offer a number of potential benefits. Rate the appeal to you immr TAUT Survey |
personally of each benefit using a 1-5 scale ("Not Very Appealing" to "Very Appealing") Oct. 2010

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

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n Top Anticipated Uses of Tablets
Percentage Rating Activity as “1 of top 5” Tablet Uses
Access social networking sites 70%
E-mail (check, read and send) 63%
Look up information (movie times, weather, etc.) 56%
Search on Search Engine 52%
Look up directions or a map 48%
Visit other websites on the Internet 47%
Read news stories 46%
Read e-books 42%
Check bank, credit card, other financial account 42%
Play games 38%
Play music 29%

Note: Slide updated 10/7/2010 0% 10% 20% 30% 40% 50% 60% 70% 80%
Q: Think about the places, times and situations in which you might use a Tablet. From the list below, immr TAUT Survey |
select and rank order the top 5 activities for which you would be most likely to use the Tablet. Oct. 2010

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

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n Price Thresholds for Tablets
Prices Consumers Expect, Willing to Pay for Tablets
$100 $200 $300 $400 $500 $600 $700 $800 $900
So Inexpensive Would $131
Question Quality
p

Such a Good Value Would $200

Definitely Buy
p

Starting to Get Expensive, $344

but Would Still Consider
p

So Expensive Would Not

$498
Even Consider
p
$100 $200 $300 $400 $500 $600 $700 $800 $900
Q: At what price would you consider a Tablet ... a) to be so inexpensive that you would question its quality and
immr TAUT Survey
believability? b) to be such a good value that you would definitely buy it? c) start getting expensive, but would
Oct. 2010
still be worth considering? d) so expensive that you would NOT even consider buying it?.

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

n Preferred Brands for Tablets
Rate Brands for Tablets
Apple 69 13
Dell 43 28
Microsoft 39 30
HP 37 34
Sony 29 41
Samsung 20 40
LG 20 43
HTC 19 19
RIM Blackberry 16 34
Acer 16 20
Toshiba 15 32
Motorola 14 35
ASUS 12 18
Ideal
Lenovo 11 18
Nokia 8 27 Close to Ideal
Sony Ericcson 6 30

0 10 20 30 40 50 60 70 80 90

Q: Suppose you were shopping for a Tablet. Of the brands listed below, identify your ideal brand(s) for a Tablet - immr TAUT Survey |
the one(s) you most prefer; other brands that are close to your ideal, but not quite as preferred. Oct. 2010

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

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 Other Findings
v Consumers’ Preferences for Tablet Form Factors,
Features and Connectivity (3G vs. Wi-Fi)
v Propensity to Purchase with/without MNO Contract
v Operating System (OS) Preferences
v Where Consumers Are Apt to Buy
v Time Frame for Purchasing
v Market Opportunities Û Features x Price x Brand
iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

n Features Examined in TAUT Choice Modeling
Feature Feature Levels
1 Keyboard On-screen keyboard Physical keyboard
2 Screen Size 5" 7" 10"
3 Screen Type Capacitive Resistive
4 Screen Resolution 800 x 480 1024 x 768 1280 x 720
5 CPU (speed) 600MHz 1Ghz 1.66Ghz
6 RAM (MB) 256MB 512MB 1GB
7 Storage Type Hard Disk Drive Flash
8 Storage Size 2GB 4GB 16GB 32GB
9 MicroSD Slot - Capacity None 4GB 16GB 32GB
10 USB Slots None One
10 Connectivity Wi-fi 3G + Wi-fi
11 Webcam (megapixel) None 1.3Mp
12 Camera (for photos) None 3.2Mp 5.0Mp 8.0Mp
13 GPS Not included Included Yes
14 Adobe Flash Support Not included Included
15 Battery Life (hrs. - video playback) 4 hrs. 6 hrs. 8 hrs. 10 hrs.
16 Can be used as a Phone Not available Phone ready
© immr TAUT Survey | Oct. 2010
17 USB Slots None One

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

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n Illustrative Tablet Offers Examined
Tablet Study - Illustrative Choice Set – M of M
Features Model
Tablet Study - Illustrative Choice Set - 1 of M 1Connectivity Wi-fi
Features Model2Brand/Operatingn System HP/ webOS
1Connectivity 3G + Wi-fi
3Keyboard Physical
2Brand/Operatingn System Samsung/Android
4CPU (speed) 1Ghz
3Keyboard Virtual On-screen
5RAM (MB) 512MB
4CPU (speed) 1.66Ghz 6Storage Type HDD
5RAM 1GB 7Storage Size 4GB
6Storage Type Flash 8MicroSD Slot - Capacity 4GB
7Storage Size 4GB 9Screen Size 10"
8MicroSD Slot - Capacity 2GB10Screen Type Capacitive
9Screen Size 7" 11Screen Resolution 1024 x 768
10Screen Type Capacitive
12Webcam None
11Screen Resolution 1280 x 13Camera
720 (for photos) Likelihood ofNone
Purchasing:
12Webcam Yes14GPS YesNot
1Definitely Would ¡
13Camera (for photos) None15Adobe Flash Support 2Highly Unlikely No ¡
14GPS No 16Battery Life 6 hrs.
3Probably Would Not ¡
15Adobe Flash Support No 17Can Be Used as a Phone 450/50 No ¡
16Battery Life 6 hrs.18USB Slots 5Probably Would One ¡
17Can Be Used as a Phone No 19Price (without contract) 6Highly Likely $475 ¡
18USB Slots One20Price (with contract) $150
7Definitly Would ¡
19Price (without contract) $475
20Price (with contract) $150 © immr TAUT Survey | Oct. 2010

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

Dr. Phil Hendrix

 Thank You!

For More Information

Dr. Phil Hendrix

phil.hendrix@immr.org
www.immr.org
Twitter: phil_hendrix
Slideshare: pehendrix
+1 (770) 612-1488

iPad and Tablets Conference – If We Build it, Will They Come? – Oct. 6, 2010

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About immr
Sweet Spot New-to-Market (NTM) Œ We help companies understand and capitalize on the crucial, vexing question –
Products, Services and “how can we identify, anticipate, and predict what customers will value and buy?”
Business Models even when they have yet to experience it.

Focus ICT (Information, • We work primarily with companies leveraging new technologies and business
Communications, and models and can (usually) translate products described in arcane, technical terms
Technology); Healthcare and jargon into realistic concepts.
and Insurance

Markets Consumer and B2B Ž We conduct research in consumer as well as B2B markets.

Experience Our Clients • We work with both market leaders and emerging companies, typically on an on-
going basis. This allows us to understand their business and contribute more fully.
Issues We Address • While our focus is on innovation and marketing, we often address closely related
issues (e.g., segmentation, positioning/branding, customer retention, etc.)
Project Scope ‘ Our projects vary in scope from small, exploratory research to large, multiple-phase
projects that combine qualitative, quantitative, and market trials.

Methodologies Qualitative ’ Although qualitative research is by nature subjective, clients find our approach,
style, and results highly effective. While we do traditional focus grous (typcially
mini-groups), in most of our projects we conduct highly revealing, in-depth,
individual (IDI) interviews.
Quantitative “ We employ a combination of rigorous quantitative research tools developed for and
uniquely well-suited to new-to-market and new-to-customer products, services, and
business models
Delivery Collaborative, ” We work closely with clients to (i) leverage their capabilities, (ii) adapt as new
client-focused learning, issues, and imperatives emerge; and (iii) help them succeed.

Value-add Perspectives, Insights, • As researchers with a “consultant’s perspective,” we believe that understanding and
and Recommendations anticipating prospective buyers’ behavior are key to successful innovation. In
addition to the research findings, we add significant value by contributing insights,
ideas, and recommendations and facilitating dialogue with client teams.

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 Dr. Phil Hendrix – Bio
Dr. Phil Hendrix is the founder and director of immr, a research and consulting firm focused on “very
new” product and market opportunities, and an analyst with GigaOm Pro. He specializes in helping
organizations identify, verify, and capitalize on opportunities for products that are new-to-customers
and very often new-to-market. Dr. Hendrix has developed perspectives and research-based tools to
uncover customers’ unmet needs, reveal hurdles slowing adoption, trigger interest and accelerate
purchase, and determine features and pricing to maximize market penetration. He has extensive
experience adapting and applying research approaches, both qualitative and quantitative, to amplify
Dr. Phil Hendrix weak market signals and help clients innovate successfully.
Director, immr Phil has led significant engagements with numerous startups (such as Company.com) and multiple
www.immr.org business units of Fortune 100 clients in telecommunications (AT&T, Verizon, Sprint, Sony Ericsson,
+1 (770) 612-1488 and others), financial services (American Express), transportation (UPS), insurance (Allstate, United
phil.hendrix@immr.org Healthcare), healthcare (Meridian Health, US Oncology), and others. He has worked closely with
senior management and client project teams on issues ranging from “traditional marketing”
(segmentation, positioning, branding) to innovation, user experience, and customer retention. Over the
course of his career, Phil has helped clients conceive and successfully launch dozens of new
products, businesses, and brands. He has extensive experience in B2C and B2B (SMB) markets. He
is also a frequent speaker at industry and academic conferences.

Phil brings a unique combination of academic rigor, strategic perspective, and hands-on experience to
his work. Before founding immr, Phil was a partner with DiamondCluster (strategy and technology
consultancy), founder and head of IMS (Integrated Measurement Systems), and a principal with
Mercer Management Consulting. He has held faculty and research positions at Emory University and
the University of Michigan, where he taught courses in research design and analysis, buyer behavior,
and marketing strategy, and the Survey Research Center at U. of Michigan. After receiving his PhD
in marketing from the University of Michigan, Dr. Hendrix completed post-doctoral studies in applied
statistics and mathematical psychology.

Overview and excerpts from Phil’s recent publications are available at Slideshare
(www.slideshare/pehendrix), with additional information available at www.immr.org and GigaOm Pro.

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 Experience
General
§ Market Segmentation
§ Market sizing
§ Competitive Positioning
§ Branding
§ Product configuration
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Selected Clients with Whom We’ve Worked
Products, Services and Issues Examined
Network/Operators Devices/OEMs Services/Apps
§ Bundling § Smart phones § Innovation and new
§ Plans and pricing § MIDs (Mobile Internet product development
§ Wi-fi/Hot spots Devices) § Mobile Apps (wide range)
§ Customer Service/ § Channel strategy § MVoIP (Mobile VoIP)
Self-Service § Promotional strategy § Location-based Services
§ Customer Retention § Unified Messaging
§ Web Interface § Speech Recognition
(functionality/usability)
 Recent Publications
Excerpts available at www.slideshare.net/pehendrix Copies available at http://pro.gigaom.com/

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Participation in Recent and Upcoming Conferences
Workshop – Monetization Apps vs. Web: The Fight For
Models for Location, The Futurea
Augmented Reality and Sept. 30, 2010 – San Francisco
Context Servicesa
April 28, 2010 – San Francisco

Dealing With The Data If we build it, will they

Tsunami: The Big Data Panela come? Consumer Demand
June 23–24, 2010 – San Francisco and Preferences for Tablets in
the iPad Erac
Oct. 5, 2010 – San Francisco

The Futures of Location-based WCA Presents: What’s Hot

Servicesa about LBS?a
The Future of Geo-loco Oct. 8, 2010 – San Francisco
Investmenta
July 21, 2010 – San Francisco

Build Sustainable LBS Local at the Bleeding Edge +

Business Models for 2011 and Making Money with Location-
Beyonda Based Servicesa,b
Sept. 14 – 15, 2010 – San Jose Nov. 3, 2010 – New York

Trends and Numbers - Where Wireless Technology Forum –

is It All Goingb Visions for 2011b
Sept. 29-30, 2010 – New York Nov. 18, 2010 - Atlanta

a b c
Moderated session/panel Participating on Panel Presenting

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