Deloitte Mobile Consumer Survey 2014 Report

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<ul><li><p>1Mobile Consumer Survey 2014 The Australian Cut Revolution and Evolution</p></li><li><p>2Our need to be connected always on has triggered a collective and growing dependency on mobile devices and services. </p><p>In this inaugural survey of approximately 2,000 Australian mobile consumers part of a global Deloitte four year longitudinal study of 37,000 consumers spanning 22 countries six emerging trends are discussed. Based on survey findings, Australia is the sixth most concentrated smartphone market in the world after Singapore, South Korea, Norway, Spain and Sweden.</p><p>In our report we review the six trends and explore how they are important for all businesses whether finance, retail, technology or telecommunications. </p><p> Wake up and connect Smartphone penetration is growing (ref: Table 1) and our dependence is continuing to intensify. For millions of us, the first thing we do when we wake is to reach for our phone and connect. Most generations interact with their phones constantly throughout the day and many of us unashamedly look at our phones last thing before falling asleep</p><p> Smartphonesa nation divided the smartphone market in Australia is dominated by two players: Apple and Samsung. The iPhone is the clear winner for those aged 45 or younger and lower cost Android based handsets the preference for baby boomers. Both Apple and Samsung consumers, are fiercely loyal, opting to stay with their brand and upgrade within the brand family on their next purchase</p><p>Foreword</p></li><li><p>3 The messaging wave is still to come Instant messaging has been one of the most talked about and anticipated services this year globally. In many countries text messaging via short messaging service (SMS) has declined in favour of mobile instant messaging (MIM). In Australia, SMS is the predominate form of messaging services and MIM services are still only used by a minority of phone users so the messaging wave is yet to come </p><p> WiFi or 4G can you tell the difference? WiFi is the way most of us connect to the internet on our smartphones. This preference is largely driven by us piggybacking on our home, work or school broadband connections. When we are away from this free WiFi connectivity we revert to our mobile network. </p><p>Australia is one of the leading countries in smartphone adoption, with penetration higher than the US and UK</p><p>89% 87%88% 85% 82%76% 76%</p><p>71% 70% 68%65% 65%</p><p>58%</p><p>44%</p><p>0%Singapore South</p><p>KoreaNorway Spain Sweden Australia Italy Netherlands United</p><p>KingdomGermany France Finland United</p><p>StatesJapan</p><p>20%</p><p>40%</p><p>60%</p><p>80%</p><p>100%</p><p>Smartphone penetration (developed countries)</p></li><li><p>4than mobile banking apps, but with recent entrants into the payments space and a clear appetite for use we expect many consumers to be waving their mobiles for payments in the year ahead</p><p> Like, share, tweetrepeat In an increasingly online social world our smartphones are becoming one of the most important ways we connect with each other and our smartphone usage is arguably both growing and enriching our social interactions. Social media is a critical part of the mobile experience for most Australian mobile consumers. Despite lagging some countries in the use of social media on smartphones, Australian consumers under 45 are ahead of the global trends. </p><p>Australian survey respondents use of 4G networks is more than the global average and most say that the 4G experience is either comparable to or better than WiFi. However, a large percentage of respondents dont see any difference in speed between 3G, 4G and WiFi and dont feel 4G is particularly important when selecting a mobile operator</p><p> Who do you trust with your money on mobile? Many Australians have a love-hate relationship with their banks. But as our desire for more accessible, secure and instant banking services increases, most of us only trust our banks with these transactions. Our use of mobile payment apps are at a considerably earlier stage in Australia </p><p>The information and insights in this report are important for technology, media and telecommunications businesses but not exclusively so. The challenges of anticipating and responding to mobile and digital consumers evolving behaviours and patterns impacts across all sectors. We hope you find this report interesting and useful as you determine your responses to these changes.</p><p>Looking forward to connecting...</p><p>Jeremy DrummPartner Strategy ConsultingTechnology, Media and Telecommunication Deloitte </p><p>Stuart JohnstonLead Partner Technology, Media and Telecommunication Deloitte</p></li><li><p>5Wake up and connect</p><p>Smartphones a nation divided</p><p>WiFi or 4G? Can you tell the difference?</p><p>Home</p><p>Like, share, tweet... repeat</p><p>The messaging wave is still to come</p><p>Who do you trust with your money on mobile?</p><p>Click on an icon to explore more</p><p>5</p></li><li><p>6Section oneWake up and connect</p></li><li><p>OVERVIEW DATA INSIGHTS</p><p>Wake up and connect</p><p>7</p><p>It should not come as a surprise that smartphones for the majority of Australians, are an integral part of our lives. But the extent and intensity of the relationship that we have with our smartphones is worth noting many of us connect to our device within 5 minutes of waking and check or interact with our phones more than twice an hour on average, and some of us do so more than 200 times a day.</p></li><li><p>When you wake</p><p>What are you looking at</p><p>Cant put it down</p><p>OVERVIEW DATA INSIGHTS</p><p>Wake up and connect</p><p>8</p><p>ImmediatelyAll: 10%</p><p>1824: 22%</p><p>Within 5 minsAll: 29%</p><p>1824: 58%</p><p>Within 15 minsAll: 46%</p><p>1824: 75%</p><p>Within 30 minsAll: 61%</p><p>1824: 86%</p><p>Within 60 minsAll: 81%</p><p>1824: 93%</p><p>Reconnecting when we wake up is as important to our morning routine as our long black or flat white with nearly 50% of us checking our phones within 15 minutes of waking. For 22% of users under 25, checking their smartphone is the first thing they do each day.</p><p>Q. Typically how long is the interval between you waking up and looking at your smartphone for the first time (not including turning off your phones alarm clock)?</p></li><li><p>OVERVIEW DATA INSIGHTS</p><p>Wake up and connect</p><p>9</p><p>When you wake</p><p>What are you looking at</p><p>Cant put it down</p><p>SMS is the first thing we check on our smartphones every day but for users under 35s, its engaging their social network that takes the top spot.</p><p>Q. Typically, what is the first thing you access on your smartphone every day? (smartphone owners)</p><p>ALL AGES 1824 2534 3544 4554 5564 6575</p><p>#1SMS</p><p>29%</p><p>Social networks</p><p>37%</p><p>Social networks</p><p>24%</p><p>SMS</p><p>26%</p><p>SMS</p><p>35%</p><p>SMS</p><p>40%</p><p>SMS</p><p>42%</p><p>#2Email </p><p>18%</p><p>SMS</p><p>24%</p><p>Email </p><p>22%</p><p>Email </p><p>20%</p><p>Email </p><p>19%</p><p>Email</p><p>19%</p><p>Weather </p><p>11%</p><p>#3Social </p><p>networks</p><p>17%</p><p>Email </p><p>16%</p><p>SMS</p><p>16%</p><p>Social networks</p><p>17%</p><p>Social networks</p><p>9%</p><p>Weather </p><p>7%</p><p>Email </p><p>8%</p></li><li><p>OVERVIEW DATA INSIGHTS</p><p>Wake up and connect</p><p>10</p><p>When you wake</p><p>What are you looking at</p><p>Cant put it down</p><p>Be it essential to our daily routine, a habit that we cant shake, or the fear of missing out #FOMO we are addicted to our devices. On average we check our phone more than twice every hour with many of us, particularly those aged 1824, interacting more than 50 times a day.</p><p>Q. How many times would you estimate you look at your phone in a day?</p><p>3%9%</p><p>17%</p><p>30%</p><p>38%</p><p>3%0</p><p>5</p><p>10</p><p>15</p><p>20</p><p>25</p><p>30</p><p>35</p><p>40</p><p>200+ times 101200 times 51100 times 2650 times 1125 times Under 10 times</p><p>% of u</p><p>sers</p><p>9</p><p>63</p><p>3625</p><p>15 13</p><p>1824 2434 3544 4554 5564 65750</p><p>10</p><p>20</p><p>30</p><p>40</p><p>50</p><p>60</p><p>70</p><p>Num</p><p>ber of times</p></li><li><p>OVERVIEW DATA INSIGHTS</p><p>Wake up and connect</p><p>11</p><p>Smartphones: always checking inAbout a third of Australian adults that own a smartphone (~5 million people1) look at their phone within five minutes of waking and nearly half within 15 minutes. Checking SMS is the first thing we do on our smartphones, followed by email and then social networks.</p><p>These behaviours continue throughout the day, as we dont seem to be able to leave our smartphones alone. About 15% of Australian adults interact with their phone more than 50 times a day. Not surprisingly, there is a gap in usage between age groups, with 18-24 year olds checking their device on average 63 times a day and 6575 year olds checking their device only nine times a day. </p><p>Such high dependence on being connected has implications across advertising, entertainment, communications and many other sectors. Constant connectivity requires increasing bandwidth and quality of service from telecommunications providers. Buying habits and patterns are increasingly affected </p><p>Good morning!</p></li><li><p>OVERVIEW DATA INSIGHTS</p><p>Wake up and connect</p><p>12</p><p>by our social network and we are using mobile technologies to take control of our entertainment experience.</p><p>Our increasing use of and dependence on our smartphones to remain connected and facilitate a growing number of mobile services will test network operators capacity plans and investments. Consumers are gaining confidence in how everyday services can be delivered through smartphones creating even greater opportunity for device manufacturers, app developers and the consumer marketplace at large.</p><p>Bottom line</p><p>The smartphone has rapidly become the device of choice for the connected experience that most Australians cannot live without. Younger users are increasingly using social media to connect and do so significantly more than older respondents. This frequency of interaction provides greater marketing opportunity but also greater opportunity for dissatisfaction with quality of service.</p></li><li><p>13</p><p>Section twoSmartphones... a nation divided</p><p>13</p></li><li><p>OVERVIEW DATA INSIGHTS</p><p>Smartphonesa nation divided</p><p>14</p><p>Be it Holden versus Ford or Sydney versus Melbourne Aussies love a rivalry. In the Australian smartphone market Apple versus Samsung is as fierce and dominant as they come. Both companies are competing through innovation to maintain their brand-loyal smartphone customer base. Investment in features (e.g. camera pixilation, battery life) and extended ecosystems (e.g. tablets, wearables, app platforms) are an attempt to prevent customers from jumping ship. </p><p>In reality most of us have seen the advantages of choosing one or the other, and changing is the last thing we want to do.</p></li><li><p>A nation divided</p><p>Brand new, new brand?</p><p>Its all about the cycles</p><p>In charge</p><p>Smartphonesa nation divided</p><p>OVERVIEW DATA INSIGHTS</p><p>15</p><p>Apple and Samsung dominate the Australian smartphone market. Apple has an admirable position among younger consumers, but cannot remain static given the dominant position that Googles Android operating system has in Australia.3</p><p>Q. What is the brand and model of your current smartphone?</p><p>60%</p><p>50%</p><p>40%</p><p>30%</p><p>20%</p><p>10%</p><p>0%1824</p><p>49%</p><p>42% 41%</p><p>36%</p><p>25%</p><p>25%</p><p>2534 3544 4554 65755564</p><p>iPhone Samsung Other</p><p>Apple dominates the younger consumer market</p><p>26%</p><p>35%</p><p>30%</p><p>32%</p><p>38%</p><p>23%</p><p>28%</p><p>20%</p><p>27%34%</p><p>40%</p><p>49%</p><p>12 34 5+</p><p>None Dont know</p><p>Never downloaded an app</p><p>18%</p><p>7%</p><p>8%</p><p>42%</p><p>16%</p><p>8%</p><p>App downloads</p><p>38%Apple</p><p>32%Samsung</p><p>7%HTC</p><p>7%Nokia</p><p>16%All other</p></li><li><p>Smartphonesa nation divided</p><p>OVERVIEW DATA INSIGHTS</p><p>16</p><p>A nation divided</p><p>Brand new, new brand?</p><p>Its all about the cycles</p><p>In charge</p><p>Both Apple and Samsung users are brand sticky, ~80% of Apple and ~60% of Samsung users remain loyal to their previous handset. The other 3 main device providers appear to be finding it harder to hang on to customers through device proposition alone.</p><p>Q. What are the brands of your current and previous handsets?</p><p>% of retained customers Apple Samsung Nokia HTC Sony Other</p><p>Apple</p><p>78%</p><p>14%</p><p>1%2%2%</p><p>3%</p><p>Samsung</p><p>62%16%</p><p>9%</p><p>6%</p><p>4% 3%</p><p>HTC</p><p>28%</p><p>33%</p><p>19%</p><p>12%</p><p>4% 4%</p><p>Nokia</p><p>27%</p><p>27%</p><p>24%</p><p>13%</p><p>5%4%</p><p>Sony</p><p>25%</p><p>26%23%</p><p>10%</p><p>8%</p><p>8%</p><p>Current handset Previous handset</p><p>78% of current Apple smartphone users had an Apple as their previous handset</p></li><li><p>Smartphonesa nation divided</p><p>OVERVIEW DATA INSIGHTS</p><p>17</p><p>A nation divided</p><p>Brand new, new brand?</p><p>Its all about the cycles</p><p>In charge</p><p>In a marketplace with 58% of smartphone owners changing their device at least twice over the last five years and 26% of us making the switch three or more times, there is an opportunity for device manufacturers to lure new consumers.</p><p>11%</p><p>31%</p><p>32%</p><p>19%</p><p>7% 13%14%</p><p>Never</p><p>Once</p><p>Twice</p><p>Three Times More frequently</p><p>Less frequently</p><p>The same amount</p><p>Four or More</p><p>5%</p><p>~58% of smartphone owners have changed their phone twice or more in the past five years this is consistent with the average contract cycle of which ~66% of smartphone users are on</p><p>~86% of us are likely to change our phones either more frequently or with the same frequency as we have been in the past.</p><p>73%</p><p>Q. In the last five years, how many times have you have you changed your smartphone?</p><p>Q. In the next 5 years, do you intend to change your smartphone more frequently, less frequently or about the same?</p></li><li><p>Smartphonesa nation divided</p><p>OVERVIEW DATA INSIGHTS</p><p>18</p><p>A nation divided</p><p>Brand new, new brand?</p><p>Its all about the cycles</p><p>In charge</p><p>Given our demanding and always-on usage profile, it is not surprising that battery life is the most important factor that we look for in our next smartphone purchase.</p><p>Q. When choosing your next smartphone, which, if any, of the following will be the most important for you?</p><p>Battery life Price of device Monthly payment/contract costInternet access Camera quality Design and build quality</p><p>Brand</p><p>31%27%</p><p>22% 21%</p><p>16% 14% 13%</p><p>Device manufacturers challenges with the limited battery life of smartphones is a significant focus for consumers</p><p>Click here to see Samsungs ad targeting battery life</p></li><li><p>Smartphonesa nation divided</p><p>OVERVIEW DATA INSIGHTS</p><p>19</p><p>A two party race tied to ecosystems and operator contract cycles According to Australian survey respondents, Apple is leading smartphone penetration in Australia at 38%2 and Samsung at 32% (note: this survey was fielded just before the launch of the iPhone 6). Apples device share is driven largely by its dominance with younger users. Apples Australian penetration is slightly below the US and UK markets where Apples device share is between 4045%; in other markets such as France and Germany Apple holds less than a 25% share.2 </p><p>However, Googles Android is the most widely adopted operating system globally3 which we will watch keenly to see if this plays out in the Australian market and is enough to convert otherwise Apple-loyal customers to a new device running on Android.</p></li><li><p>Smartphonesa nation divided</p><p>OVERVIEW DATA INSIGHTS</p><p>20</p><p>Our survey found that amongst users purchasing a new device, Apple retains 78% compared to Samsungs 62%.Nokia, HTC and Sony are all struggling to keep up, retaining just a quarter of their users. </p><p>Battery life has topped the list (at 31%) as the most important factor that will influence our next smartphone purchase, price is a close second (27%). This is not a surprise given our demanding usage and interaction behaviours.</p><p>The consumer will be the ultimate winner from the rivalry between Apple and Samsung. Continued innovation in devices, more impressive operating systems and greater connectivity with extended ecosystems are all to be expected. </p><p>Bottom line</p><p>The smartphone has now become almost ubiquitous, with most users on their second or third device. Most of us are locked in as brand loyalists to an operating ecosystem and rarely switch between the two main players. In Australia, our refresh cycle for smartphones is largely based on operator contract cycles. Operators are beginnin...</p></li></ul>