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Copyright ©2013 eMarketer, Inc. All rights reserved. US Tablet Users 2 US Ereader Users 5 Conclusions 8 Related eMarketer Reports 8 January 2013 Executive Summary: Tablet uptake has exploded, with the number of tablet users in the US more than doubling between 2011 and 2012. eMarketer estimates that over the course of that year, the tally of US tablet users grew from 33.7 million to 79.1 million. eMarketer estimates that by 2016, the number of US tablet users will reach 154.5 million. 148851 New tablet releases from Apple, Google, Amazon and Microsoft will give consumers the ability to choose from a wider array of devices at an expanded range of prices, resulting in a more diverse set of tablet users. Women and young adults in particular will be attracted to tablets in larger numbers as the average price for tablets continues to drop. All told, eMarketer expects robust growth in the number of US tablet users during the next four years. And despite the larger pool of competing tablets available, Apple’s iPad will remain the dominant brand through 2016. The rapid increase in US tablet users forecast for the next few years will have a profound effect on the number of ereader users. Ereaders have attracted a significant audience over the last two years, with a user base growing from 12.7 million in 2010 to 48.6 million in 2012. However, eMarketer predicts that beginning in 2013, user gains will start to slow, impaired by ereaders’ inherently niche audience appeal and the expectation that potential new users will be increasingly drawn to tablets instead. This report highlights eMarketer’s forecast for tablet users and ereader users in the US through 2016. The projections include breakouts by race and ethnicity, age and gender. US Tablet Users and Penetration, 2011-2016 33.7 10.8% 14.5% 79.1 25.0% 33.1% 108.6 34.0% 44.3% 129.0 40.0% 51.3% 143.2 44.0% 55.7% 154.5 47.0% 59.0% Tablet users (millions) % of population % of internet users Note: individuals of any age who use a tablet at least once per month Source: eMarketer, Dec 2012 148851 www.eMarketer.com 2011 % change 158.6% 2012 134.6% 2013 37.3% 2014 18.8% 2015 11.1% 2016 7.8% Alison McCarthy [email protected] Contributors Monica Peart, Martín Utreras, Haixia Wang US Tablet User Forecast: A Double-Digit Growth Market Through 2016

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Copyright ©2013 eMarketer, Inc. All rights reserved.

US Tablet Users 2

US Ereader Users 5

Conclusions 8

Related eMarketer Reports 8

January 2013

Executive Summary: Tablet uptake has exploded, with the number of tablet users in the US more than doubling between 2011 and 2012. eMarketer estimates that over the course of that year, the tally of US tablet users grew from 33.7 million to 79.1 million. eMarketer estimates that by 2016, the number of US tablet users will reach 154.5 million. 148851

New tablet releases from Apple, Google, Amazon and Microsoft will give consumers the ability to choose from a wider array of devices at an expanded range of prices, resulting in a more diverse set of tablet users. Women and young adults in particular will be attracted to tablets in larger numbers as the average price for tablets continues to drop. All told, eMarketer expects robust growth in the number of US tablet users during the next four years. And despite the larger pool of competing tablets available, Apple’s iPad will remain the dominant brand through 2016.

The rapid increase in US tablet users forecast for the next few years will have a profound effect on the number of ereader users. Ereaders have attracted a significant audience over the last two years, with a user base growing from 12.7 million in 2010 to 48.6 million in 2012. However, eMarketer predicts that beginning in 2013, user gains will start to slow, impaired by ereaders’ inherently niche audience appeal and the expectation that potential new users will be increasingly drawn to tablets instead.

This report highlights eMarketer’s forecast for tablet users and ereader users in the US through 2016. The projections include breakouts by race and ethnicity, age and gender.

US Tablet Users and Penetration, 2011-2016

33.7

10.8%

14.5%

79.1

25.0%

33.1%

108.6

34.0%

44.3%

129.0

40.0%

51.3%

143.2

44.0%

55.7%

154.5

47.0%

59.0%

Tablet users (millions) % of population % of internet users

Note: individuals of any age who use a tablet at least once per monthSource: eMarketer, Dec 2012148851 www.eMarketer.com

2011

% change 158.6%

2012

134.6%

2013

37.3%

2014

18.8%

2015

11.1%

2016

7.8%

Alison McCarthy [email protected]

Contributors Monica Peart, Martín Utreras, Haixia Wang

US Tablet User Forecast: A Double-Digit Growth Market Through 2016

US Tablet User Forecast: A Double-Digit Growth Market Through 2016 Copyright ©2013 eMarketer, Inc. All rights reserved. 2

US Tablet Users

eMarketer calculates the number of US tablet users—defined as anyone who uses a tablet at least once a month—reached 79.1 million in 2012. This was more than twice the size of the tablet user population in 2011, as tablets moved far beyond the early adopter audience and into the hands of mainstream consumers.

In 2013, tablet users are expected to surpass 100 million. At that point, one in three people in the US will use a tablet at least once a month. eMarketer estimates that by 2016, US tablet users will total more than 154.5 million, or just under half of the total US population.

Based on new data, new tablet models released in Q3 and Q4 of 2012, and a higher than expected sales forecast for 2012’s holiday season, eMarketer has revised its growth calculation for the number of tablet users in the US in 2012 upward by 28 percentage points. Following 2011’s massive growth rate of 158.6%, the number of tablet users in the US continued on a triple-digit growth trajectory in 2012, increasing 134.6%.

Though Apple’s iPad will continue to dominate the tablet market, recent tablet launches from Amazon, Google and Microsoft will spur consumers across the US to purchase tablets for the first time. These new entries to the market, which include Amazon’s Kindle Fire HD, Google’s Nexus 7 and the Samsung Galaxy Tab 2 10.1 and Microsoft’s Surface, among others, offer consumers a wide variety of price points, data storage choices and content available through online storefronts, including videos, games, books, magazines, newspapers and music.

Recent releases from Apple, including the new iPad and the iPad Mini, have attracted new users as well. In addition, the introduction of these newer iPads has given consumers the option to purchase older iPad models, such as the iPad 2, at discounted prices.

An increase in US smartphone users is also helping to boost tablet user growth. eMarketer forecasts that 115.8 million, or one in three people, in the US used a smartphone in 2012. By 2016, 58% of the US population will be smartphone users. Smartphone users tend to adopt tablets faster than those who use feature phones, as this group is more accustomed to fingertip browsability and consuming media content on smaller, more portable screens.

eMarketer does not expect the dramatic expansion of US tablet users to stop anytime soon. Though user growth will drop to 37.3% in 2013, this more modest increase will still translate to 30 million new users.

US Tablet Users and Penetration, 2011-2016

33.7

10.8%

14.5%

79.1

25.0%

33.1%

108.6

34.0%

44.3%

129.0

40.0%

51.3%

143.2

44.0%

55.7%

154.5

47.0%

59.0%

Tablet users (millions) % of population % of internet users

Note: individuals of any age who use a tablet at least once per monthSource: eMarketer, Dec 2012148851 www.eMarketer.com

2011

% change 158.6%

2012

134.6%

2013

37.3%

2014

18.8%

2015

11.1%

2016

7.8%

148851

US iPad Users

Apple’s iPad remains the go-to for tablet computing, even with all the new competition. Although the iPad debuted in early 2010, the dramatic jump in tablet usage didn’t take place until Apple released its iPad 2 in 2011, and new iPad and iPad mini in 2012.

The number of iPad users in the US saw triple-digit gains in 2011 as iPads transitioned from early adopter to mass market devices. eMarketer estimates that between 2011 and 2012, the number of US iPad users increased 83.6% to 51.3 million. But percentage gains will begin to taper off beginning in 2014, when iPad uptake starts to near maturity.

Despite Apple’s dominance in the tablet market, the iPad experienced a large drop in share of US tablet users between 2011 and 2012, falling from 83% to 64.9%.

Apple had an early jump on the tablet market with its first- and second-generation iPads. Though a considerable number of competing tablets were released during 2010 and 2011, it wasn’t until 2012 that Apple truly faced fierce competition in the tablet arena. Much of its decline in share that year can be contributed to consumers choosing lower-priced devices such as Amazon’s Kindle Fire, Google’s Nexus 7 tablet or the Samsung Galaxy Tab 2 10.1 over the iPad. Many new tablet users have turned to these models based on their competitive pricing and optimized online storefronts.

Though consumers are taking advantage of alternatives to the iPad, eMarketer expects iPad users to make up the majority of tablet users in the US through the end of the forecast period. In the final three years of the forecast (2014–2016), iPad users will represent a 56% average share of US tablet users.

US Tablet User Forecast: A Double-Digit Growth Market Through 2016 Copyright ©2013 eMarketer, Inc. All rights reserved. 3

US iPad Users and Penetration, 2011-20162013

iPad users (millions) 65.7—% change 28.0%

—% of population 20.6%

—% of internet users 26.8%

—% of tablet users

2011

28.0143.9%

8.9%

12.1%

83.0%

2012

51.383.6%

16.2%

21.5%

64.9% 60.5%

2014

74.513.4%

23.1%

29.7%

57.8%

2015

80.68.2%

24.8%

31.4%

56.3%

2016

85.05.4%

25.9%

32.4%

55.0%

Note: individuals of any age who use an iPad at least once per monthSource: eMarketer, Dec 2012148875 www.eMarketer.com

148875

US Tablet Users by Race and Ethnicity

Asians, often high up on the technology early-adoption ladder, are more likely than any other group in the US to be tablet users. eMarketer estimates that nearly 30% of all Asians in the US were tablet users in 2012, compared to 25.8% of Hispanics and 25% of blacks. Whites had a slightly lower penetration level of tablet users in 2012 than the other ethnicities included in the forecast at 24.6%. It won’t be until 2014 that whites in the US reach the same tablet user penetration level as US Asians.

Asians, who comprise 5.6% of the US population, tend to be more educated than the US average and have higher annual incomes than other minorities, making them more apt to try new technologies like tablets. Hispanics are among the younger ethnic groups in the US, which helps drive tablet adoption among that group. Hispanics and Asians also have the highest penetration levels among smartphone users and account for very high engagement rates when it comes to consuming mobile content, two factors that help push tablet adoption ahead.

Whites accounted for the largest portion of total tablet users in the US in 2012, representing 62.8%, equal to 49.6 million people. This trend will continue throughout the forecast period. Whites will experience the fastest growth in tablet users as well. According to eMarketer calculations, the number of white tablet users increased 143% in 2012, compared to 111% increases for both US Hispanic and Asian tablet users.

millionsUS Tablet Users, by Race/Ethnicity, 2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—White 20.4 49.6 70.3 85.3 95.2 102.8

—Black 4.0 9.6 13.1 15.5 17.0 18.2

—Asian 2.1 4.4 5.6 6.6 7.3 7.9

—Other* 0.7 1.7 2.3 2.7 3.0 3.2

Hispanic** 6.4 13.6 17.2 19.0 20.7 22.3Total 33.7 79.1 108.6 129.0 143.2 154.5Note: individuals of any age who use a tablet at least once per month;numbers may not add up to total due to rounding; *includes NativeAmericans, Alaska Natives, Hawaiian and Pacific Islanders, and bi- andmultiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148877 www.eMarketer.com

148877

% of totalUS Tablet User Share, by Race/Ethnicity, 2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—White 60.6% 62.8% 64.7% 66.1% 66.4% 66.5%

—Black 12.0% 12.2% 12.1% 12.0% 11.9% 11.8%

—Asian 6.2% 5.6% 5.2% 5.1% 5.1% 5.1%

—Other* 2.1% 2.2% 2.1% 2.1% 2.1% 2.1%

Hispanic** 19.1% 17.2% 15.9% 14.7% 14.5% 14.5%Note: individuals of any age who use a tablet at least once per month;*includes Native Americans, Alaska Natives, Hawaiian and Pacific Islanders,and bi- and multiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148876 www.eMarketer.com

148876

% changeUS Tablet User Growth, by Race/Ethnicity, 2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—White 159.0% 143.1% 41.6% 21.3% 11.6% 8.0%

—Black 156.5% 138.6% 36.2% 17.8% 10.1% 6.9%

—Asian 162.8% 111.9% 27.5% 16.5% 11.1% 7.8%

—Other* 158.6% 146.6% 30.8% 18.8% 11.1% 7.8%

Hispanic** 157.3% 111.4% 26.7% 9.9% 9.2% 7.8%Total 158.6% 134.6% 37.3% 18.8% 11.1% 7.8%Note: individuals of any age who use a tablet at least once per month;*includes Native Americans, Alaska Natives, Hawaiian and Pacific Islanders,and bi- and multiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148878 www.eMarketer.com

148878

% of population in each group

US Tablet User Penetration, by Race/Ethnicity,2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—Asian 14.4% 29.7% 36.9% 41.8% 45.3% 47.6%

—Black 10.5% 24.9% 33.6% 39.2% 42.7% 45.2%

—White 10.1% 24.6% 34.7% 42.0% 46.8% 50.5%

—Other* 9.1% 21.9% 28.0% 32.4% 35.2% 37.0%

Hispanic** 12.6% 25.8% 31.7% 33.8% 35.9% 37.6%Total 10.8% 25.0% 34.0% 40.0% 44.0% 47.0%Note: individuals of any age who use a tablet at least once per month;*includes Native Americans, Alaska Natives, Hawaiian and Pacific Islanders,and bi- and multiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148879 www.eMarketer.com

148879

US Tablet Users

US Tablet User Forecast: A Double-Digit Growth Market Through 2016 Copyright ©2013 eMarketer, Inc. All rights reserved. 4

% of internet users in each group

US Tablet User Penetration, by Race/Ethnicity,2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—Asian 19.0% 37.9% 45.8% 51.3% 55.2% 57.7%

—Black 14.8% 34.8% 46.6% 54.4% 59.2% 62.5%

—White 13.0% 31.0% 43.2% 51.8% 57.0% 61.0%

—Other* 16.3% 37.4% 45.1% 49.5% 50.2% 51.4%

Hispanic** 20.0% 39.0% 46.6% 47.6% 49.1% 50.5%Total 14.5% 33.1% 44.3% 51.3% 55.7% 59.0%Note: individuals of any age who use a tablet at least once per month;*includes Native Americans, Alaska Natives, Hawaiian and Pacific Islanders,and bi- and multiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148880 www.eMarketer.com

148880

US Tablet Users by Age

Adults between the ages of 25 and 54 make up the core US tablet audience and accounted for 60% of all users in the US in 2012.

Based on new data that shows older adults make up a larger segment of tablet users than previously projected, eMarketer has decreased the estimated shares for users under 35 while increasing the share for 35- to 54-year-olds. Growth rates for tablet users of all ages have been revised upward based on higher than expected growth for total US tablet users.

Those in the 35 to 54 age range adopted tablets earlier than other age groups, as older adults with disposable income were more likely to be able to afford these devices in 2010 and 2011, when fewer pricing options existed. However, due to falling prices since then, consumers between the ages of 18 and 34 have been adopting tablets at a rapid pace. As prices come down, those who want to use a tablet will more likely be able to do so.

While the Android platform, as well as toy companies such as LeapFrog and VTech, do offer touchscreen, internet-connected tablets specifically designed for children, eMarketer believes that many tablet users under the age of 11 do not actually own their devices. Instead, most of these younger consumers use the tablets belonging to their parents. Despite this, the number of US children who are regular tablet users will more than double between 2012 and 2016.

millionsUS Tablet Users, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 1.9 4.6 6.9 8.6 9.9 10.9

12-17 2.5 6.0 8.8 11.0 12.5 13.7

18-24 4.0 9.6 13.9 17.2 19.5 21.2

25-34 6.6 14.3 20.3 24.4 27.3 29.4

35-44 7.4 17.2 22.4 25.9 28.2 30.3

45-54 6.4 15.3 20.3 23.3 25.4 26.9

55-64 3.4 8.2 10.4 11.6 12.6 13.3

65+ 1.5 3.8 5.6 7.0 8.0 8.8

Total 33.7 79.1 108.6 129.0 143.2 154.5Note: individuals who use a tablet at least once per month; numbers maynot add up to total due to roundingSource: eMarketer, Dec 2012148883 www.eMarketer.com

148883

% of totalUS Tablet User Share, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 5.6% 5.9% 6.3% 6.7% 6.9% 7.0%

12-17 7.4% 7.6% 8.1% 8.5% 8.7% 8.9%

18-24 12.0% 12.2% 12.8% 13.3% 13.6% 13.8%

25-34 19.5% 18.1% 18.7% 19.0% 19.0% 19.0%

35-44 22.0% 21.8% 20.6% 20.1% 19.7% 19.6%

45-54 19.0% 19.4% 18.7% 18.0% 17.7% 17.4%

55-64 10.0% 10.4% 9.6% 9.0% 8.8% 8.6%

65+ 4.5% 4.7% 5.1% 5.4% 5.6% 5.7%

Note: individuals who use a tablet at least once per monthSource: eMarketer, Dec 2012148882 www.eMarketer.com

148882

% changeUS Tablet User Growth, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 173.2% 145.8% 48.2% 25.8% 14.1% 10.0%

12-17 190.0% 142.4% 46.1% 24.5% 13.6% 10.0%

18-24 201.3% 137.9% 44.9% 23.3% 13.5% 8.9%

25-34 162.6% 117.2% 42.1% 20.5% 11.6% 7.6%

35-44 123.1% 132.4% 29.9% 15.7% 8.7% 7.7%

45-54 142.0% 139.1% 32.6% 14.6% 9.0% 6.0%

55-64 193.9% 143.6% 26.8% 11.4% 8.6% 5.6%

65+ 190.9% 147.3% 48.1% 25.3% 14.9% 10.2%

Total 158.6% 134.6% 37.3% 18.8% 11.1% 7.8%Note: individuals who use a tablet at least once per monthSource: eMarketer, Dec 2012148884 www.eMarketer.com

148884

US Tablet Users

US Tablet User Forecast: A Double-Digit Growth Market Through 2016 Copyright ©2013 eMarketer, Inc. All rights reserved. 5

% of population in each groupUS Tablet User Penetration, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 3.7% 9.1% 13.3% 16.6% 18.8% 20.5%

12-17 10.0% 24.2% 35.1% 43.3% 48.7% 52.9%

18-24 13.1% 30.9% 44.7% 55.2% 63.1% 69.4%

25-34 15.5% 33.2% 46.6% 55.5% 61.3% 65.4%

35-44 18.1% 42.0% 54.5% 62.8% 68.2% 73.0%

45-54 14.4% 34.6% 46.3% 53.4% 58.5% 62.2%

55-64 9.0% 21.5% 26.7% 29.2% 31.0% 32.2%

65+ 3.7% 8.8% 12.6% 15.3% 17.1% 18.2%

Total 10.8% 25.0% 34.0% 40.0% 44.0% 47.0%Note: individuals who use a tablet at least once per monthSource: eMarketer, Dec 2012148885 www.eMarketer.com

148885

US Tablet Users by Gender

Fifty-four percent of US tablet users were male in 2012 and 46% were female. eMarketer previously forecast that males would lose share to females beginning in 2012. However, based on new data that indicates the difference in share between males and females for 2012 was larger than anticipated, we now believe the ratio of male to female tablet users has remained relatively static from 2011. The continued disparity can be attributed to the still somewhat high price of tablets, which slows down adoption for all new users at equivalent rates.

Mirroring smartphone adoption trends, more women will use tablets as the device type becomes more widely accepted by women as a necessity. eMarketer expects that the tablet user gender gap will start to shrink in 2013. By 2015, males and females will each represent 50% of all US tablet users, eMarketer predicts.

US Tablet Users, by Gender, 2011-2016

Male (millions)—% change

—% of tablet users

—% of male population

Female (millions)—% change

—% of tablet users

—% of female population

2011

18.5168.4%

55.0%

12.0%

15.2147.6%

45.0%

9.5%

2012

42.7130.4%

54.0%

27.4%

36.4139.9%

46.0%

22.7%

2013

56.532.2%

52.0%

35.9%

52.143.3%

48.0%

32.2%

2014

65.816.5%

51.0%

41.4%

63.221.3%

49.0%

38.6%

2015

71.68.9%

50.0%

44.6%

71.613.3%

50.0%

43.4%

2016

76.36.6%

49.4%

47.1%

78.29.1%

50.6%

46.9%

Note: individuals of any age who use a tablet at least once per monthSource: eMarketer, Dec 2012148881 www.eMarketer.com

148881

US Ereader Users

eMarketer estimates there were 48.6 million ereader users in the US in 2012, representing one in five adults. Ereaders had seen a large increase in users over the past two years, but uptake is expected to slow considerably beginning in 2013. By 2016, the number of US ereader users will climb only slightly, to 63 million.

Ereader growth peaked in the US at 162% in 2011. Consumers were offered an array of new ereader choices that year, including the Amazon Kindle Touch, Barnes & Noble NOOK Simple Touch, Kobo WiFi, Kobo Touch and Sony Reader. As a result, prices for ereader models were lowered considerably, making cost less of a purchase consideration.

Ereaders continued to attract new users in 2012. The US ereader user base grew 44.2% last year, totaling 15 million new ereader users. The gain was 7 percentage points higher than eMarketer’s earlier forecast for 2012 growth. However, eMarketer predicts that in 2013 adult ereader user growth in the US will fall to 10.1%. Growth will taper off further between 2014 and 2016.

US Ereader Users and Penetration, 2011-2016

33.7

10.8%

14.5%

48.6

15.4%

20.3%

53.5

16.8%

21.8%

57.1

17.7%

22.7%

60.1

18.5%

23.4%

63.0

19.2%

24.0%

Ereader users (millions) % of population % of internet users

Note: individuals of any age who use an ereader device at least once permonthSource: eMarketer, Dec 2012148890 www.eMarketer.com

2011

% change 162.0%

2012

44.2%

2013

10.1%

2014

6.7%

2015

5.3%

2016

4.8%

148890

The slowing growth in the number of US ereader users that is expected to take place in the next few years will be primarily driven by the disruption caused by tablets, as well as by the fact that most of those who are interested in purchasing an ereader will have already done so by the end of 2013.

Ereaders attract a more specialized audience than tablet users. Those who use ereaders tend to be heavy readers or have concerns about eyestrain or glare, or are consumers more inclined to buy a device with limited functionality in

US Tablet Users

US Tablet User Forecast: A Double-Digit Growth Market Through 2016 Copyright ©2013 eMarketer, Inc. All rights reserved. 6

exchange for a price point far below that of a tablet. But the majority of consumers looking to purchase a larger-screened mobile device are more likely to be attracted to the greater functionality that tablets offer compared to a single-use ereader. And as prices fall, fewer potential users will be likely to purchase a device that offers limited options other than reading ebooks and periodicals—especially when tablets present the option to read the same content, and often the opportunity to do so through free apps. In addition to this, many ereader brands have entered the tablet market and are aggressively pushing more versatile devices towards buyers. Tablets such as Amazon’s Kindle Fire and Kindle Fire HD and Barnes & Noble’s NOOK Color and NookHD are likely to attract potential ereader customers who are looking for a wider array of online activities and a lower price compared to iPads.

Despite the effect that tablets will have on the growth of US ereader users, eMarketer does not expect that the rapid rise of tablets will lead to the end of ereaders. As ereader prices continue to fall and technological advances result in increased functionality and upgraded features at a lower cost of entry, single-use ereaders will settle into a specific audience niche.

US Ereader Users by Race and Ethnicity

White ereader users strongly lead all other ethnicities included in the forecast with 31.7 million users and a 65.3% share of the total ereader user base in 2012. Ereader users skew dramatically older. Because of this, whites, who tend to be older as a population in the US, have a higher penetration level for ereader use than the level seen for minorities.

Blacks experienced a much faster growth rate for ereader users in 2012 than other groups included in the forecast. Household income within this group tends to be lower, so the dramatic fall in ereader cost over the last two years has boosted adoption. Starting in 2013, Asians will have the highest rate of increase, though this is primarily because of the population’s small user base. Because ereader users tend to be older, Hispanics are the least likely to be ereader users throughout the forecast period, as the group’s population is younger than other US ethnicities.

millionsUS Ereader Users, by Race/Ethnicity, 2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—White 22.7 31.7 35.0 37.5 39.5 41.6

—Black 3.2 5.7 6.4 6.8 7.3 7.6

—Asian 1.4 2.2 2.5 2.7 2.9 3.1

—Other* 0.6 0.9 1.0 1.0 1.1 1.1

Hispanic** 5.7 8.0 8.6 9.0 9.3 9.5Total 33.7 48.6 53.5 57.1 60.1 63.0Note: individuals of any age who use an ereader device at least once permonth; numbers may not add up to total due to rounding; *includes NativeAmericans, Alaska Natives, Hawaiian and Pacific Islanders, and bi- andmultiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148913 www.eMarketer.com

148913

% of totalUS Ereader User Share, by Race/Ethnicity, 2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—White 67.5% 65.3% 65.5% 65.7% 65.8% 66.1%

—Black 9.4% 11.8% 11.9% 12.0% 12.1% 12.1%

—Asian 4.3% 4.6% 4.7% 4.8% 4.9% 4.9%

—Other* 1.8% 1.8% 1.8% 1.8% 1.8% 1.8%

Hispanic** 17.0% 16.5% 16.1% 15.7% 15.4% 15.1%Note: individuals of any age who use an ereader device at least once permonth; *includes Native Americans, Alaska Natives, Hawaiian and PacificIslanders, and bi- and multiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148901 www.eMarketer.com

148901

% changeUS Ereader User Growth, by Race/Ethnicity, 2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—Black 164.9% 81.0% 11.1% 7.6% 6.2% 4.8%

—Asian 145.0% 54.3% 12.5% 9.0% 7.5% 4.8%

—White 160.9% 39.5% 10.5% 7.0% 5.4% 5.3%

—Other* 177.5% 44.2% 10.1% 6.7% 5.3% 4.8%

Hispanic** 168.4% 40.0% 7.5% 4.0% 3.3% 2.8%Total 162.0% 44.2% 10.1% 6.7% 5.3% 4.8%Note: individuals of any age who use an ereader device at least once permonth; *includes Native Americans, Alaska Natives, Hawaiian and PacificIslanders, and bi- and multiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148914 www.eMarketer.com

148914

US Ereader Users

US Tablet User Forecast: A Double-Digit Growth Market Through 2016 Copyright ©2013 eMarketer, Inc. All rights reserved. 7

% of population in each group

US Ereader User Penetration, by Race/Ethnicity,2011-2016

2011 2012 2013 2014 2015 2016

Non-Hispanic—White 11.3% 15.7% 17.3% 18.5% 19.5% 20.4%

—Asian 10.0% 15.0% 16.4% 17.4% 18.2% 18.6%

—Black 8.3% 14.8% 16.3% 17.3% 18.2% 18.9%

—Other* 7.8% 11.0% 11.8% 12.3% 12.6% 12.9%

Hispanic** 11.2% 15.2% 15.8% 16.0% 16.0% 16.0%Total 10.8% 15.4% 16.8% 17.7% 18.5% 19.2%Note: individuals of any age who use an ereader device at least once permonth; *includes Native Americans, Alaska Natives, Hawaiian and PacificIslanders, and bi- and multiracial individuals; **can be of any raceSource: eMarketer, Dec 2012148915 www.eMarketer.com

148915

US Ereader Users by Age

Ereaders will be dramatically more popular among older adults between the ages of 35 and 64 throughout the forecast period. Combined, this group totaled more than 60% of all US ereader users in 2012. With 12.4 million users, adults age 45 to 54—the heart of the early adopter community for ereaders—had the largest portion of ereader users. eMarketer expects that one in four people who used an ereader in 2012 fell within this age group.

As tablets become more affordable within the next year and consumers desire multimedia functionalities beyond just reading ebooks, growth in the number of ereader users is projected to fall from double to single digits for all users under the age of 45 in 2013. Adults ages 45 and up will experience a drop in growth as well, though tablets are not predicted to replace ereaders quite as quickly with these consumers. It is likely that ereaders will continue to strongly appeal to adults ages 55 and older, as this demographic tend to put less priority on new technologies than their younger counterparts.

eMarketer expects the number of ereader users between the ages of 12 and 17 will climb the slowest of any age demographic. Teens have been sluggish to adopt the devices, as ereaders often lack the social and sharing functions they are accustomed to. Teens are much more likely to prefer a tablet.

millionsUS Ereader Users, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 0.0 0.1 0.1 0.1 0.1 0.1

12-17 0.4 0.5 0.6 0.6 0.6 0.6

18-24 3.4 4.8 5.2 5.5 5.8 6.0

25-34 4.8 7.4 7.8 8.2 8.6 8.9

35-44 5.1 8.0 8.5 8.9 9.2 9.5

45-54 9.1 12.4 14.0 14.8 15.4 16.0

55-64 6.4 9.2 10.2 11.2 12.0 12.8

65+ 4.4 6.1 7.0 7.7 8.4 9.0

Total 33.7 48.6 53.5 57.1 60.1 63.0Note: individuals who use an ereader device at least once per month;numbers may not add up to total due to roundingSource: eMarketer, Dec 2012148892 www.eMarketer.com

148892

% of totalUS Ereader User Share, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

12-17 1.1% 1.1% 1.1% 1.0% 10% 1.0%

18-24 10.2% 9.9% 9.8% 9.7% 9.6% 9.5%

25-34 14.2% 15.2% 14.7% 14.4% 14.3% 14.2%

35-44 15.2% 16.5% 15.8% 15.5% 15.3% 15.1%

45-54 26.9% 25.6% 26.2% 26.0% 25.7% 25.4%

55-64 19.0% 19.0% 19.1% 19.7% 20.0% 20.4%

65+ 13.2% 12.6% 13.2% 13.5% 14.0% 14.3%

Note: individuals who use an ereader device at least once per monthSource: eMarketer, Dec 2012148891 www.eMarketer.com

148891

% changeUS Ereader User Growth, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 170.5% 41.4% 15.1% 5.8% 5.6% 4.9%

12-17 156.5% 34.2% 9.3% 3.5% 3.3% 2.3%

18-24 161.8% 41.0% 8.6% 5.8% 4.2% 4.0%

25-34 161.8% 54.0% 6.3% 5.1% 4.3% 3.9%

35-44 161.8% 55.9% 5.8% 4.6% 4.0% 3.5%

45-54 162.9% 36.9% 13.0% 5.6% 4.2% 3.6%

55-64 161.8% 44.3% 10.9% 9.8% 6.8% 7.0%

65+ 161.8% 38.1% 14.6% 9.6% 8.7% 7.2%

Total 162.0% 44.2% 10.1% 6.7% 5.3% 4.8%Note: individuals who use an ereader device at least once per monthSource: eMarketer, Dec 2012148893 www.eMarketer.com

148893

US Ereader Users

US Tablet User Forecast: A Double-Digit Growth Market Through 2016 Copyright ©2013 eMarketer, Inc. All rights reserved. 8

% of population in each groupUS Ereader User Penetration, by Age, 2011-2016

2011 2012 2013 2014 2015 2016

0-11 0.1% 0.1% 0.1% 0.1% 0.2% 0.2%

12-17 1.5% 2.1% 2.2% 2.3% 2.3% 2.4%

18-24 11.1% 15.5% 16.8% 17.8% 18.7% 19.6%

25-34 11.3% 17.1% 18.0% 18.7% 19.3% 19.9%

35-44 12.5% 19.5% 20.6% 21.5% 22.3% 23.0%

45-54 20.4% 28.1% 32.0% 34.0% 35.6% 37.0%

55-64 17.1% 24.2% 26.3% 28.3% 29.6% 31.1%

65+ 10.8% 14.4% 16.0% 17.0% 17.9% 18.6%

Total 10.8% 15.4% 16.8% 17.7% 18.5% 19.2%Note: individuals who use an ereader device at least once per monthSource: eMarketer, Dec 2012148896 www.eMarketer.com

148896

US Ereader Users by Gender

Females will make up the majority of ereader users through 2016. Both men and women are more likely to use a tablet than an ereader, but the disparity is greater among men. In addition, with cost no longer a prohibitive factor to purchasing an ereader, female adoption is on the upswing. Females are also more likely to be avid readers of books than men, which helps spur interest in dedicated mobile reading devices.

eMarketer believes that there were 25.7 million female ereader users in 2012, compared to 22.8 million male ereader users, equating to a 53% to 47% gender split. Female ereader users represented 16% of the total female population in the US in 2012.

Starting in 2012 and lasting throughout the remainder of the forecast period, growth of male ereader users will be faster than that of female ereader users. As a result, eMarketer expects that the gap between male and female ereader users will decline throughout the forecast period, though females will continue to have a slight lead.

US Ereader Users, by Gender, 2011-2016

Female (millions)—% change

—% of ereader users

—% of female population

Male (millions)—% change

—% of ereader users

—% of male population

2011

18.2167.0%

54.0%

10.0%

15.5156.5%

46.0%

10.0%

2012

25.741.5%

53.0%

14.7%

22.847.3%

47.0%

14.7%

2013

27.88.0%

52.0%

16.3%

25.712.5%

48.0%

16.3%

2014

29.76.7%

52.0%

17.2%

27.46.7%

48.0%

17.2%

2015

30.94.3%

51.5%

18.2%

29.16.4%

48.5%

18.2%

2016

32.13.8%

51.0%

19.1%

30.95.9%

49.0%

19.1%

Note: individuals of any age who use an ereader device at least once permonthSource: eMarketer, Dec 2012148916 www.eMarketer.com

148916

Conclusions

Tablets are on their way to becoming ubiquitous. By 2016, 47% of people in the US, or more than half of US internet users, will use a tablet.

Tablets have moved past the early adopter group and been embraced by mainstream consumers. Apple’s iPad continues to attract users, while low-end tablets from Google, Amazon and Microsoft have expanded the tablet user base even wider.

The iPad will continue to dominate in tablet usage. However, tablet users’ most common go-to device brand will lose share through 2016 as customers flock to comparable, less expensive tablets from Amazon, Google and Microsoft.

As tablet prices continue to fall, tablet users will become more diverse. Women and young adults, who have adopted tablets more slowly than other groups, will be more apt to purchase tablets when offered at lower prices.

The rise of tablet users is expected to hinder the growth of US ereader users. As tablet prices fall, tablets’ multifunctionality is expected to greatly appeal to potential ereader users.

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Editorial and Production Contributors

Nicole Perrin Associate Editorial DirectorCliff Annicelli Senior Copy EditorEmily Adler Copy EditorDana Hill Director of ProductionJoanne DiCamillo Senior Production ArtistStephanie Gehrsitz Production ArtistAllie Smith Director of Charts

US Ereader Users

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