consumer smart phones - changewave...continues to rise. in another positive for phablets,...

ChangeWave Research: Consumer Smart Phone Trends

This information is from ChangeWave Research, a service of 451 Research, LLC, and contains confidential business information. It may not be copied or distributed without permission. © 2015 451 Research, LLC. All rights reserved.

Consumer Smart Phones: 90 Day Outlook iPhone Demand Still Strong Even as Samsung Regains Momentum

Jean Crumrine and Lusy Lisyanova Overview: ChangeWave’s December consumer smart phone survey shows overall buying plans settling back after the explosive surge caused by the iPhone 6 and 6 Plus launches in September. Our December 9-31 survey of 4,126 primarily North American consumers took a close up look at smart phone industry trends, and finds Apple demand remains strong even as Samsung regains some of its momentum after taking a hit last quarter. The survey also focused on phablets, OS preferences, and customer satisfaction, along with an update on Apple Pay and the mobile payment market. ChangeWave Research is a service of 451 Research.

Apple vs. Samsung: Next 90 Days North American Demand Apple continues to hold a big lead among respondents planning to buy a smart phone in the next 90 days, with better than one-in-two (56%) saying they’ll get an iPhone.

While that’s down from last quarter’s survey – conducted just as the iPhone 6 and 6 Plus were being released – it’s the highest level of Apple planned buying ever recorded in a ChangeWave survey three months after a major new release.

January 2015



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Note when we asked planned iPhone buyers which model they plan on buying, 60% say iPhone 6, and 27% the 6 Plus. Following declines the last two quarters, Samsung (18%) has regained some momentum – with a 5-pt uptick in planned buying.

Among those planning to buy a Samsung smart phone, the Galaxy S 5 (45%) remains the most popular model, but there’s also strong interest in Galaxy Note 4 (22%). Other Manufacturers. After hitting an all-time low in the previous survey, Motorola (4%) is seeing a 3-pt uptick in planned buying, while HTC (1%) remains unchanged at its all-time low. Planned buying for BlackBerry (3%) is registering a 1-pt uptick, but that’s off its second lowest level ever. LG (2%) is also experiencing a 1-pt increase, while Nokia (1%) is flat this quarter, remaining at its lowest level in nearly three years.



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Surging Demand for Big Screens Demand for large screen devices has surged to a new all-time high in a ChangeWave survey.

Three-in-five (60%) planned smart phone buyers over the next 90 days say they prefer a 5 inch screen or larger – a 7-pt jump in phablet demand since September, and double the level 15 months ago.

Samsung continues to lead in this space – with two-thirds (66%; down 2-pts) of planned Samsung buyers saying they’re most interested in purchasing a 5” screen or larger device.

But at the same time, non-Samsung buyer interest in purchasing a phablet (59%) has climbed 8-pts since September. Apple’s recent release of its first phablet device (iPhone 6 Plus) is certainly driving this momentum.

Thus even with strong demand for the iPhone 6 and its 4.7” screen, interest in larger screens continues to rise.

In another positive for phablets, satisfaction among owners is at its highest level ever in a ChangeWave survey – with 70% reporting they’re Very Satisfied with their device. Again, the 11-pt increase from three months ago in large part reflects a favorable rating for Apple’s iPhone 6 Plus.



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Overall Purchasing

Now that the holiday shopping season is over and momentum stirred up by the new iPhone launches is beginning to subside, overall smart phone buying plans are also settling back. But the 16.1% of respondents who say they plan on buying a smart phone in the next 90 days is higher than a year ago.

Customer Satisfaction. Apple continues to excel in terms of customer satisfaction, with 66% of all iPhone owners saying they’re Very Satisfied with their phone.



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Nokia (54%) edges out Samsung (51%) for second place in satisfaction. Motorola (41%) has inched ahead of LG (37%), while BlackBerry (34%) and HTC (32%) bring up the rear again.

Mobile Operating Systems

Apple’s iOS (55%; down 15-pts) remains the top preference among consumers planning to purchase a smart phone in the next 90 days, though it’s down as expected after the spike in September at the time of the new iPhone launches.

A total of 28% of planned buyers say they’d prefer the Android OS on their new phone – up 10-pts from previously. Windows Phone 8 (4%) and BlackBerry OS (3%) are each registering a slight 1-pt uptick.

We also took a look at OS customer satisfaction ratings based upon the operating system consumers have on their smart phones. Apple leads in this space as well, with 66% of iOS users saying they’re Very Satisfied.

For the third survey in a row, Windows Phone OS (51%) beats out Android (46%) for second, but both remain well ahead of Blackberry OS (34%).

Mobile Payment Services

ChangeWave’s September survey showed the introduction of Apple Pay having a major impact on the mobile payments market – even though it hadn’t yet launched. Now that the new Apple service has been available for several months, we again asked consumers about their planned use of mobile payment apps.

The results show interest remains strong, with one-in-four (24%) smart phone owners saying they’re likely to use mobile payment apps over the next 90 days (10% Very Likely, 14% Somewhat Likely) – down just 1-pt from September.

And as we found in the previous survey, iOS users (33%) are significantly more likely to use mobile payment apps than users of Android (15%), Windows Phone OS (14%) or BlackBerry OS (10%).



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Among those planning to use mobile payment apps over the next 90 days, Apple Pay (40%) is still the number one choice – unchanged from September.

PayPal (32%) remains in second and is also unchanged from previously, while Google Wallet (12%) and Amazon Wallet (5%) are both down 1-pt.

Looking at satisfaction among consumers who have already used mobile payment apps, Apple performs best, with 59% of those who have used Apple Pay saying they’re Very Satisfied with the new service.



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Square (48%) narrowly edges out PayPal (46%) for second place, followed by Google Wallet (35%). Perceptions of Security. Several of our findings show that security remains of critical importance when it comes to consumer acceptance of mobile payment technologies:

We asked likely mobile payment users which features are most important to them in a mobile payment app, and Secure Storage of Financial Account Information on Device (84%) is still the overwhelming top choice, followed by Widespread Acceptance Among Merchants (64%).

Security Issues (47%) ranks as the number one reason given by respondents who say they’re unlikely to use mobile payment apps.

Taking a closer look at this issue, we asked all respondents if they consider mobile payments to be more or less secure than traditional credit cards.

After a big leap in our September survey, the latest results show continuing improvements in consumer perceptions of mobile payment security. A total of 22% now believe mobile payments are more secure than traditional credit cards (6% Significantly More; 16% Somewhat More), while 28% think they’re less secure (16% Somewhat Less; 12% Significantly Less) – a net 5-pts better than previously.

Do you think mobile payments are currently more or less secure than traditional credit cards?

Current Survey Dec ‘14

Previous Survey Sep ‘14

Previous Survey Mar ‘14

Significantly More Secure Than Traditional Credit Cards

6% 5% 2%

Somewhat More Secure Than Traditional Credit Cards

16% 16% 12%

Somewhat Less Secure Than Traditional Credit Cards

16% 19% 26%

Significantly Less Secure Than Traditional Credit Cards

12% 13% 17%

Don't Know 51% 46% 43%

Bottom Line: Our latest consumer smart phone survey shows Apple demand remains strong three months after the iPhone 6 and 6 Plus releases, while Samsung is regaining some momentum after a big decline last quarter.

The survey also shows demand for phablets at an all-time ChangeWave high. And although Samsung remains best positioned in this space, demand among non-Samsung buyers is rapidly increasing, fueled in large part by the iPhone 6 Plus.

Interest in mobile payment apps remains strong, with perceptions of mobile payment security improving. Apple Pay and its enhanced security features are a contributing factor. After taking over the number one spot in our previous survey, Apple Pay remains the most preferred service among respondents planning to use mobile payment apps, while PayPal is second. Nonetheless, security remains the top concern among those who say they don’t plan on using mobile payment apps.



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Summary of Key Findings

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.

Apple Demand Still Going Strong Apple Planned Purchases

56% of respondents planning to buy a smart phone in next 90 days say they’ll get an iPhone

Three months after new iPhone launches, Apple continues to dominate North American market

iPhone 6 (60%) is top model among planned Apple buyers

Samsung Regains Some Momentum Samsung Planned Purchases Among planned buyers,

Samsung (18%) is seeing a 5-pt uptick since September

Galaxy S 5 (45%) is the model of choice among this group

Other Manufacturers: Planned Purchases Next 90 Days

Motorola (4%; up 3-pts)

BlackBerry (3%; up 1-pt)

LG (2%; up 1-pt)

Nokia (1%; unchanged)

HTC (1%; unchanged)

Demand for Big Screen Phones Surges to New High 60% of planned buyers say

they’re most interested in a 5 inch or larger screen – up 7-pts to an all-time high

Interest in Using Mobile Payments Stays Strong 24% of smart phone owners

say they’re likely to use mobile payment apps over next 90 days

iOS users are more likely to use mobile payment apps than users of other operating systems

Mobile Payment App Preferences Next 90 Days

Apple Pay (40%; unchanged) remains number one choice after leaping ahead of PayPal (32%; unchanged) in previous survey

Google Wallet (11%; down 1-pt)

Amazon Wallet (5%; down 1-pt)

Square (4%; down 3-pts)

Smart Phone Satisfaction Ratings Apple (66% Very Satisfied)

Nokia (54%)

Samsung (51%)

Motorola (41%)

LG (37%)

BlackBerry (34%)

HTC (32%)

Mobile OS Market

Preferences – Next 90 Days

Apple iOS (55%)

Android OS (28%)

Windows Phone OS (4%)

BlackBerry OS (3%)

Mobile OS ‘Very Satisfied’ Ratings

Apple iOS (66%)

Windows Phone OS (51%)

Android OS (46%)

BlackBerry OS (34%)

Overall Smart Phone Buying Settles Back 16.1% plan on buying a smart

phone in next 90 days – down from the high in September, but better than a year ago



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Table of Contents

Summary of Key Findings ............................................................................................ 8 The Findings ................................................................................................................ 10 Next 90 Days: Smart Phone Manufacturer Demand ................................................. 10 Surging Demand for Big Screens ............................................................................. 14 Overall Smart Phone Purchasing ............................................................................. 17 Smart Phone Customer Satisfaction ......................................................................... 17 Mobile Operating Systems ....................................................................................... 18 Mobile Payment Services ........................................................................................ 19 How are Consumers Using Smart Phones .............................................................. 24 ChangeWave Research Methodology ........................................................................ 27 About ChangeWave Research .................................................................................... 27 About 451 Research .................................................................................................... 27



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The Findings

Introduction: ChangeWave’s December consumer smart phone survey shows overall buying plans settling back after the explosive surge caused by the iPhone 6 and 6 Plus launches in September.

Our December 9-31 survey of 4,126 primarily North American consumers took a close up look at smart phone industry trends, and finds Apple demand remains strong even as Samsung regains some of its momentum after taking a hit last quarter.

The survey also focused on phablets, OS preferences, and customer satisfaction, along with an update on Apple Pay and the mobile payment market. ChangeWave Research is a service of 451 Research.

(A) Next 90 Days: Smart Phone Manufacturer Demand

Future Manufacturer Share. Apple continues to hold a big lead among respondents planning to buy a smart phone in the next 90 days, with better than one-in-two (56%) saying they’ll get an iPhone.

While that’s down from last quarter’s survey – conducted just as the iPhone 6 and 6 Plus were being released – it’s the highest level of Apple planned buying ever recorded in a ChangeWave survey three months after a major new release.



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Note when we asked planned iPhone buyers which model they plan on buying, 60% say iPhone 6, and 27% the 6 Plus.

Planned Apple Buyers:

Next 90 Days


Apple iPhone 6 60%

Apple iPhone 6 Plus 27%

Apple iPhone 5S / 5C 9%

Don't Know / Other 4%

Samsung. Following declines the last two quarters, Samsung (18%) has regained some momentum – with a 5-pt uptick in planned buying.

Among those planning to buy a Samsung smart phone, the Galaxy S 5 (45%) remains the most popular model, but there’s also strong interest in Galaxy Note 4 (22%).

Planned Samsung Buyers:

Next 90 Days


Samsung Galaxy S 5 45%

Samsung Galaxy Note 4 22%

Samsung Galaxy S 4 12%

Other Samsung 22%

Other Manufacturers. After hitting an all-time low in the previous survey, Motorola (4%) is seeing a 3-pt uptick in planned buying, while HTC (1%) remains unchanged at its all-time low.



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Planned buying for BlackBerry (3%) is registering a 1-pt uptick, but that’s off its second lowest level ever.

LG (2%) is also experiencing a 1-pt increase, while Nokia (1%) is flat this quarter, remaining at its lowest level in nearly three years.



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Who is the manufacturer of the Smart Phone you plan on buying?



Previous Survey Jun ‘14


Previous Survey Dec ‘13


Apple (e.g., iPhone) 56% 71% 50% 42% 48% 63%

Samsung (e.g., Galaxy S 5, Note 4) 18% 13% 24% 28% 19% 14%

Motorola (e.g., Moto X, Google Nexus 6) 4% 1% 2% 3% 4% 4%

BlackBerry (e.g., Passport, Classic) 3% 2% 2% 2% 2% 2%

LG (e.g., G3, Google Nexus 5) 2% 1% 2% 2% 3% 2%

Nokia (e.g., Lumia Icon, Lumia 635) 1% 1% 2% 2% 4% 3%

HTC (e.g., One (M8), Desire EYE) 1% 1% 1% 2% 2% 1%

Amazon (e.g., Fire Phone) 0% 1% 1% NA NA NA

Don't Know/Other 14% 8% 18% 19% 16% 11%



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(B) Surging Demand for Big Screens Demand for large screen devices has surged to a new all-time high in a ChangeWave survey.

Three-in-five (60%) planned smart phone buyers over the next 90 days say they prefer a 5 inch screen or larger – a 7-pt jump in phablet demand since September, and double the level 15 months ago. What screen size are you most interested in buying?






Previous Survey Sep ’13



Less Than 3 Inch Screen 1% 0% 2% 1% 1% 0% 2% 1%

3.0-3.9 Inch Screen 4% 2% 10% 10% 14% 12% 12% 14%

4.0-4.9 Inch Screen 35% 45% 40% 43% 46% 55% 51% 52%

5 Inch Screen or Larger 60% 53% 48% 47% 40% 32% 36% 33%

Samsung continues to lead in this space – with two-thirds (66%; down 2-pts) of planned Samsung buyers saying they’re most interested in purchasing a 5” screen or larger device.



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But at the same time, non-Samsung buyer interest in purchasing a phablet (59%) has climbed 8-pts since September. Apple’s recent release of its first phablet device (iPhone 6 Plus) is certainly driving this momentum.

Thus even with strong demand for the iPhone 6 and its 4.7” screen, interest in larger screens continues to rise. Cannibalization of Tablets Phablets continue to pose a threat to other products – with tablets showing particular vulnerability. We asked respondents who already own a phablet to tell us how they’re using the device. For those of you who currently own a “Phablet” (i.e., smart phone with a 5” screen or larger), which of the following best describes how you primarily use the device?






Use Primarily as a Smart Phone 69% 72% 71% 67% 74%

Use Primarily as a Tablet 4% 4% 5% 8% 6%

Equally as Both 26% 24% 24% 25% 20%

A majority (69%) still say they use their device mainly as a smart phone, but that’s down 3-pts from previously. On the other hand, a combined 30% now say they use their phablet equally as both a smart phone and tablet (26%), or primarily as a tablet (4%) – a 2-pt increase. We also asked respondents who own both a phablet and tablet device to tell us how the use of their tablet has changed since purchasing the larger-screen phone.

A total of 47% say they're using the tablet Less Frequently since buying their phablet, compared with 7% More Frequently.



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In another positive for phablets, satisfaction among owners is at its highest level ever in a ChangeWave survey – with 70% reporting they’re Very Satisfied with their device. Again, the 11-pt increase from three months ago in large part reflects a favorable rating for Apple’s iPhone 6 Plus.

‘Phablet’ Owner Satisfaction Ratings








Very Satisfied 70% 59% 60% 58% 62% 61% 60%

Somewhat Satisfied 26% 35% 35% 36% 31% 31% 32%

Somewhat Unsatisfied 2% 4% 5% 3% 6% 5% 5%

Very Unsatisfied 1% 1% 0% 2% 1% 3% 1%

Don't Know 1% 0% 0% 0% 0% 0% 2%



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(C) Overall Smart Phone Purchasing

Now that the holiday shopping season is over and momentum stirred up by the new iPhone launches is beginning to subside, overall smart phone buying plans are also settling back. But the 16.1% of respondents who say they plan on buying a smart phone in the next 90 days is higher than a year ago.

(D) Smart Phone Customer Satisfaction

Apple continues to excel in terms of customer satisfaction, with 66% of all iPhone owners saying they’re Very Satisfied with their phone.

Percentage of Respondents Very Satisfied with their Smart Phone – By Manufacturer

Nokia (54%) edges out Samsung (51%) for second place in satisfaction. Motorola (41%) has inched ahead of LG (37%), while BlackBerry (34%) and HTC (32%) bring up the rear again.



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(E) Mobile Operating Systems

Apple’s iOS (55%; down 15-pts) remains the top preference among consumers planning to purchase a smart phone in the next 90 days, though it’s down as expected after the spike in September at the time of the new iPhone launches.

A total of 28% of planned buyers say they’d prefer the Android OS on their new phone – up 10-pts from previously.

Windows Phone 8 (4%) and BlackBerry OS (3%) are each registering a slight 1-pt uptick. OS Customer Satisfaction

We also took a look at OS customer satisfaction ratings based upon the operating system consumers have on their smart phones. Apple leads in this space as well, with 66% of iOS users saying they’re Very Satisfied.

For the third survey in a row, Windows Phone OS (51%) beats out Android (46%) for second, but both remain well ahead of Blackberry OS (34%).



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(F) Mobile Payment Services

ChangeWave’s September survey showed the introduction of Apple Pay having a major impact on the mobile payments market – even though it hadn’t yet launched. Now that the new Apple service has been available for several months, we again asked consumers about their planned use of mobile payment apps.

The results show interest remains strong, with one-in-four (24%) smart phone owners saying they’re likely to use mobile payment apps over the next 90 days (10% Very Likely, 14% Somewhat Likely) – down just 1-pt from September.

Mobile payment apps (e.g., Google Wallet, PayPal, Apple Pay) allow users to pay for goods and services with their smart phones, instead of traditional methods such as cash or credit cards. How likely are you to use mobile payment apps to make purchases over the next 90 days?





Very Likely 10% 9% 6% 7%

Somewhat Likely 14% 16% 13% 15%

Not Very Likely 29% 27% 35% 37%

Not At All Likely 40% 39% 39% 34%

Don't Know 6% 9% 6% 6%

And as we found in the previous survey, iOS users (33%) are significantly more likely to use mobile payment apps than users of Android (15%), Windows Phone OS (14%) or BlackBerry OS (10%).

Likelihood of Using Mobile Payment Apps by Current OS:

iOS

Android OS

Windows Phone OS

BlackBerry OS

Very Likely 15% 5% 4% 6%

Somewhat Likely 18% 10% 10% 4%

Not Very Likely 29% 31% 29% 22%

Not At All Likely 31% 48% 51% 64%

Don't Know 6% 6% 6% 3%



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Among those planning to use mobile payment apps over the next 90 days, Apple Pay (40%) is still the number one choice – unchanged from September.

PayPal (32%) remains in second and is also unchanged from previously, while Google Wallet (12%) and Amazon Wallet (5%) are both down 1-pt. Square (4%; down 3-pts) has dropped to fifth. Which mobile payment apps - if any - do you plan to use to make purchases with over the next 90 days? (Check All That Apply)




Apple Pay (to be used with Apple Passbook)

40% 40% 19%

PayPal 32% 32% 54%

Google Wallet 11% 12% 13%

Amazon Wallet 5% 6% NA

Square 4% 7% 9%

Softcard (formerly Isis) (e.g., AT&T, Verizon, T-Mobile)

2% 1% 5%

Venmo 1% 1% 1%

Chirpify 0% 0% 0%

CurrentC 0% 0% NA

Dwolla 0% 0% 0%

Lemon Wallet 0% 0% 0%

LevelUp 0% 1% 0%

Zipmark 0% 0% 0%

Other 3% 5% 6%

We asked planned users about the types of transactions they’re likely to make with mobile payments, and In-store Purchases (76%) tops the list, followed by Online Purchases (58%) and Dining Out (39%).



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For what types of transactions are you most likely to use mobile payment apps? (Check All That Apply)


In-store purchases 76%

Online purchases 58%

Dining out 39%

In-app purchases 24%

Recurring payments (e.g., gym membership, streaming video service, etc.)

10%

Other 1%

Looking at satisfaction among consumers who have already used mobile payment apps, Apple performs best, with 59% of those who have used Apple Pay saying they’re Very Satisfied with the new service.

Square (48%) narrowly edges out PayPal (46%) for second place, followed by Google Wallet (35%). For those who have used mobile payment apps over the past 6 months, please rate your satisfaction with each of the following? (Please rate only the Mobile Payment Apps you've used).

Very Satisfied

Somewhat Satisfied

Somewhat Unsatisfied

Very Unsatisfied

Apple Pay 59% 29% 6% 6%

Square 48% 40% 7% 4%

PayPal 46% 44% 7% 2%

Google Wallet 35% 42% 17% 6%



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Perceptions of Security. Several of our findings show that security remains of critical importance when it comes to consumer acceptance of mobile payment technologies: We asked likely mobile payment users which features are most important to them in a mobile payment app, and Secure Storage of Financial Account Information on Device (84%) is still the overwhelming top choice, followed by Widespread Acceptance Among Merchants (64%). Which of the following factors are most important to you in a mobile payment app? (Choose No More Than Three)



Secure storage of financial account information on device 84% 85%

Widespread acceptance among merchants 64% 69%

Overall ease of use 35% 22%

Provides convenient ways to checkout at stores 31% 33%

Integrates with other apps 13% 12%

Stores transaction history/ receipts 13% 15%

Stores coupons/ loyalty cards/ deals 10% 16%

Ability to send money to friends and family 5% 6%

Location-based offers 1% 1%

Other 0% 1%

Don't Know 2% 2%

While Overall Ease of Use (35%) ranks a distant third, it has jumped 13-pts since September. What's the most important reason why you're unlikely to use mobile payment apps?


Security issues 47%

No need/ satisfied with other forms of payment 24%

Do not own a smartphone/cell phone 6%

Technology is too new 4%

Not compatible with current phone 4%

Not widely accepted by merchants 3%

Unfamiliar with technology 3%

Too complex 1%

Do not make many purchases 1%

Other 8%

Security Issues (47%) ranks as the number one reason given by respondents who say they’re unlikely to use mobile payment apps. Another 24% say No Need/Satisfied with Other Forms of Payment. Taking a closer look at this issue, we asked all respondents if they consider mobile payments to be more or less secure than traditional credit cards.



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Do you think mobile payments are currently more or less secure than traditional credit cards?




Significantly More Secure Than Traditional Credit Cards

6% 5% 2%

Somewhat More Secure Than Traditional Credit Cards

16% 16% 12%

Somewhat Less Secure Than Traditional Credit Cards

16% 19% 26%

Significantly Less Secure Than Traditional Credit Cards

12% 13% 17%

Don't Know 51% 46% 43%

After a big leap in our September survey, the latest results show continuing improvements in consumer perceptions of mobile payment security. A total of 22% now believe mobile payments are more secure than traditional credit cards (6% Significantly More; 16% Somewhat More), while 28% think they’re less secure (16% Somewhat Less; 12% Significantly Less) – a net 5-pts better than previously.



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(G) How are Consumers Using Smart Phones

We also asked smart phone owners how they use their devices, and found Making/ Receiving Phone Calls (99%), Sending/Receiving Text Messages (92%) and Sending/ Receiving Email (83%) continue to top the list. Other popular uses include Surfing the Web (76%), and Getting News/Weather (74%). In which of the following ways do you currently use your smart phone? (Check All That Apply)






Making/Receiving Phone Calls 99% 99% 98% 97% 99%

Sending/Receiving Text Messages 92% 92% 92% 89% 88%

Sending/Receiving Email 83% 83% 84% 84% 88%

Surfing the Web 76% 76% 77% 76% 79%

Getting News/Weather 74% 75% 74% 73% 74%

Taking/Editing Pictures 66% 70% 66% 65% 65%

GPS Navigation/Directions 66% 67% 63% 62% 62%

Using Apps 61% 62% 61% 64% 64%

Calendar/Scheduling Features 55% 56% 56% 56% 58%

Sharing Pictures/Video with Others 46% 47% 44% 43% 42%

Listening to Music 43% 45% 42% 43% 43%

Recording Video 34% 35% 32% 30% 32%

Social Networking (e.g., Facebook, Twitter) 32% 33% 30% 30% 31%

Playing Games 28% 30% 32% 32% 33%

Price Comparison Shopping While Inside a Store 28% 30% 29% 28% 28%

Online Shopping 28% 26% 26% 24% 25%

Digital Assistant/Voice Commands (e.g., Siri, Google Now, Cortana)

27% 27% 24% 23% 22%

Working Away From the Office 25% 27% 27% 29% 31%

Mobile Banking 25% NA NA NA NA

Stock Trading 21% NA NA NA NA

Mobile Hot Spot 17% NA NA NA NA

Reading eBooks 15% 16% 16% 16% 16%

Making Mobile Payments (i.e., use like a credit card)

13% 13% 12% 11% 10%

Using Business Applications 12% 15% 14% 15% 15%

Storing/Managing Files in the Cloud 12% 12% 11% 12% 13%

Watching TV Shows/Movies 10% 9% 9% 9% 8%

Video Conferencing 8% 7% 7% 7% 6%

Editing Documents/ Spreadsheets 6% 7% 6% 6% 6%

Remote Desktop Connections 5% 6% 4% 6% 6%

Other 1% 2% 2% 3% 2%



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Here is a look at the top uses among iOS, Android and Windows Phone 8 smart phone users:

All Smart Phone

Owners

iOS Smart Phone

Owners

Android Smart Phone

Owners

Windows Smart Phone

Owners

Making/Receiving Phone Calls 99% 99% 98% 99%

Sending/Receiving Text Messages 92% 95% 91% 89%

Sending/Receiving Email 83% 87% 81% 75%

Surfing the Web 76% 80% 74% 75%

Getting News/Weather 74% 79% 71% 69%

Taking/Editing Pictures 66% 70% 65% 60%

GPS Navigation/Directions 66% 70% 64% 61%

Using Apps 61% 69% 56% 51%

Calendar/Scheduling Features 55% 60% 51% 56%

Sharing Pictures/Video with Others 46% 51% 42% 40%

Listening to Music 43% 52% 35% 40%

Recording Video 34% 39% 30% 34%

Social Networking (e.g., Facebook, Twitter) 32% 36% 29% 30%

Playing Games 28% 31% 25% 28%

Price Comparison Shopping While Inside a Store 28% 31% 25% 20%

Online Shopping 28% 34% 23% 20%


27% 34% 19% 31%

Working Away From the Office 25% 28% 20% 27%

Mobile Banking 25% 29% 22% 16%

Stock Trading 21% 25% 19% 14%

Mobile Hot Spot 17% 18% 17% 18%

Reading eBooks 15% 16% 15% 16%

Making Mobile Payments (i.e., use like a credit card) 13% 18% 7% 7%

Using Business Applications 12% 13% 11% 20%

Storing/Managing Files in the Cloud 12% 14% 10% 20%

Watching TV Shows/Movies 10% 12% 10% 7%

Video Conferencing 8% 10% 5% 11%

Editing Documents/Spreadsheets 6% 6% 6% 14%

Remote Desktop Connections 5% 5% 5% 3%

Other 1% 1% 1% 1%



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A Closer Look at Usage Among ‘Phablet' Owners. One big attraction of phablet devices is that they provide an easier and more enjoyable visual experience for web browsing and multimedia viewing. As we’ve seen in previous surveys, phablet owners are significantly more likely than non-owners to use their devices for certain screen intensive activities, including Watching TV Shows/Movies, Reading eBooks, Using Business Applications, Online Shopping, and Surfing the Web, among other things.

All Smart Phone

Owners

Phablet Owners

Making/Receiving Phone Calls 99% 99%

Sending/Receiving Text Messages 92% 93%

Sending/Receiving Email 83% 89%

Surfing the Web 76% 86%

Getting News/Weather 74% 81%

Taking/Editing Pictures 66% 71%

GPS Navigation/Directions 66% 74%

Using Apps 61% 72%

Calendar/Scheduling Features 55% 63%

Sharing Pictures/Video with Others 46% 51%

Listening to Music 43% 51%

Recording Video 34% 42%

Social Networking (e.g., Facebook, Twitter) 32% 41%

Playing Games 28% 38%

Price Comparison Shopping While Inside a Store 28% 33%

Online Shopping 28% 39%


27% 26%

Working Away From the Office 25% 33%

Mobile Banking 25% 34%

Stock Trading 21% 29%

Mobile Hot Spot 17% 28%

Reading eBooks 15% 25%

Making Mobile Payments (i.e., use like a credit card) 13% 23%

Using Business Applications 12% 22%

Storing/Managing Files in the Cloud 12% 21%

Watching TV Shows/Movies 10% 21%

Editing Documents/ Spreadsheets 8% 14%

Video Conferencing 6% 13%

Remote Desktop Connections 5% 10%

Other 1% 1%



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ChangeWave Research Methodology

This report presents the findings of a ChangeWave Research survey on consumer demand trends within the Smart Phone market. The survey was conducted December 9 - 31, 2014 and a total of 4,126 consumers participated.

ChangeWave's proprietary research and business intelligence gathering system is based upon the systematic gathering of valuable business and investment information directly over the Internet from accredited members of its research network. The business and investment intelligence provided by ChangeWave provides a real-time view of companies, technologies, and consumer and business trends in key market sectors, along with an in-depth perspective of the macro economy – well in advance of other available sources.

About ChangeWave Research ChangeWave Research, a service of 451 Research, is a survey research firm that identifies and quantifies change in corporate buying & business trends, telecom trends, and consumer spending & electronics trends. The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals – as well as early adopter consumers – who work in leading companies of select industries. ChangeWave surveys its Network members weekly on a range of business and consumer topics, and converts the information into a series of proprietary quantitative and qualitative reports. ChangeWave delivers its products and services on the Web at www.ChangeWaveResearch.com. 451 Research, LLC, including its ChangeWave Research service, does not make any warranties, express or implied, as to results to be obtained from using the information in this report. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report.

About 451 Research 451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of 451 Research – at end-user, service-provider, vendor, and investor organizations – rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making. For additional information on 451 Research, go to: 451research.com.

For More Information:

ChangeWave Research Telephone: 301-250-2363 7101 Wisconsin Ave. Fax: 240-200-3988 Suite 1301 www.ChangeWaveResearch.com Bethesda, MD 20814 [email protected]

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http://www.changewaveresearch.com/

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