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

Dr. Phil Hendrix

If We Build it, Will They Come?Findings from TAUTTM

(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 Samplev 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 Programv Monthly Survey – Online (15 minutes)v Stratified Random Sample of Mobile Users (n=400)v Smart Phone and Feature Phone Users

TAUT MeasuresØ Device Profile Ø Device Usage Ø User Profile

TabletsØ 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

Dr. Phil Hendrix

n Most Consumers Unfamiliar with TabletsAwareness of Tablets

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

5%

19%

33%

36%

6%

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

Actually own a tablet

Very familiar

Somewhat familiar

Heard of, but know little about

Never heard of Tablets

75%

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

Dr. Phil Hendrix

n Over Half Interested in Purchasing a TabletInterest in Purchasing a Tablet

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

10%

18%

26%

10%

14%

22%

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

Purchase Tablet for child

Purchase Tablet for spouse

Purchase Tablet for yourself

Very Interested

Somewhat Interested

48%}

32%}

20%}

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

Dr. Phil Hendrix

n Tablet Benefits Have Wide AppealAppeal of Tablet Benefits

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

immr TAUT Survey | Oct. 2010

25

25

32

35

41

45

46

44

55

21

26

30

29

28

26

27

31

24

0 10 20 30 40 50 60 70 80 90

Access to Apps in App Stores

One-hand operation

Can be placed in tight spaces

Can be held without getting tired

Fits into backpack, briefcase or purse

Battery life - 6-10 hrs continuous usage

Instant-On - no "booting up"

Screen size >> viewing websites, books

Durability - scratch-resistant screen

Very Appealing

Somewhat

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

Dr. Phil Hendrix

n Top Anticipated Uses of TabletsPercentage Rating Activity as “1 of top 5” Tablet Uses

Q: Think about the places, times and situations in which you might use a Tablet. From the list below, select and rank order the top 5 activities for which you would be most likely to use the Tablet.

immr TAUT Survey | Oct. 2010

29%

38%

42%

42%

46%

47%

48%

52%

56%

63%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Play music

Play games

Check bank, credit card, other financial account

Read e-books

Read news stories

Visit other websites on the Internet

Look up directions or a map

Search on Search Engine

Look up information (movie times, weather, etc.)

E-mail (check, read and send)

Access social networking sites

Note: Slide updated 10/7/2010

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

Dr. Phil Hendrix

n Price Thresholds for TabletsPrices Consumers Expect, Willing to Pay for Tablets

Q: At what price would you consider a Tablet ... a) to be so inexpensive that you would question its quality and believability? b) to be such a good value that you would definitely buy it? c) start getting expensive, but would still be worth considering? d) so expensive that you would NOT even consider buying it?.

immr TAUT Survey Oct. 2010

p

p

p

p$100 $200 $300 $400 $500 $600 $700 $800 $900

$100 $200 $300 $400 $500 $600 $700 $800 $900

So Inexpensive Would Question Quality

Such a Good Value Would Definitely Buy

Starting to Get Expensive, but Would Still Consider

So Expensive Would Not Even Consider

$131

$200

$344

$498

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

Dr. Phil Hendrix

n Preferred Brands for TabletsRate Brands for Tablets

68111214151616

192020

293739

4369

3027

1818

3532

2034

1943

4041

3430

2813

0 10 20 30 40 50 60 70 80 90

Sony EriccsonNokia

LenovoASUS

MotorolaToshiba

AcerRIM Blackberry

HTCLG

SamsungSony

HPMicrosoft

DellApple

Ideal

Close to Ideal

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

immr TAUT Survey | Oct. 2010

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

Dr. Phil Hendrix

Other Findingsv 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 Levels1Keyboard On-screen keyboard Physical keyboard

2Screen Size 5" 7" 10"

3Screen Type Capacitive Resistive

4Screen Resolution 800 x 480 1024 x 768 1280 x 720

5CPU (speed) 600MHz 1Ghz 1.66Ghz

6RAM (MB) 256MB 512MB 1GB

7Storage Type Hard Disk Drive Flash

8Storage Size 2GB 4GB 16GB 32GB

9MicroSD Slot - Capacity None 4GB 16GB 32GB

10USB Slots None One

10Connectivity Wi-fi 3G + Wi-fi

11Webcam (megapixel) None 1.3Mp

12Camera (for photos) None 3.2Mp 5.0Mp 8.0Mp

13GPS Not included Included Yes

14Adobe Flash Support Not included Included

15Battery Life (hrs. - video playback) 4 hrs. 6 hrs. 8 hrs. 10 hrs.

16Can be used as a Phone Not available Phone ready

17USB Slots None One © immr TAUT Survey | Oct. 2010

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

Dr. Phil Hendrix

n Illustrative Tablet Offers ExaminedTablet Study - Illustrative Choice Set – M of M

Features Model1Connectivity Wi-fi2Brand/Operatingn System HP/ webOS3Keyboard Physical4CPU (speed) 1Ghz5RAM (MB) 512MB6Storage Type HDD7Storage Size 4GB8MicroSD Slot - Capacity 4GB9Screen Size 10"

10Screen Type Capacitive11Screen Resolution 1024 x 76812Webcam None13Camera (for photos) None14GPS Yes15Adobe Flash Support No16Battery Life 6 hrs.17Can Be Used as a Phone No18USB Slots One19Price (without contract) $47520Price (with contract) $150

Tablet Study - Illustrative Choice Set - 1 of MFeatures Model

1Connectivity 3G + Wi-fi2Brand/Operatingn System Samsung/Android3Keyboard Virtual On-screen4CPU (speed) 1.66Ghz5RAM 1GB6Storage Type Flash7Storage Size 4GB8MicroSD Slot - Capacity 2GB9Screen Size 7"

10Screen Type Capacitive11Screen Resolution 1280 x 72012Webcam Yes13Camera (for photos) None14GPS No15Adobe Flash Support No16Battery Life 6 hrs.17Can Be Used as a Phone No18USB Slots One19Price (without contract) $47520Price (with contract) $150

Likelihood of Purchasing:1Definitely Would Not ¡2Highly Unlikely ¡3Probably Would Not ¡450/50 ¡5Probably Would ¡6Highly Likely ¡7Definitly Would ¡

© 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 Hendrixphil.hendrix@immr.orgwww.immr.orgTwitter: phil_hendrixSlideshare: pehendrix+1 (770) 612-1488

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About immrSweet Spot New-to-Market (NTM)

Products, Services and Business Models

� We help companies understand and capitalize on the crucial, vexing question –“how can we identify, anticipate, and predict what customers will value and buy?” even when they have yet to experience it.

Focus ICT (Information, Communications, and Technology); Healthcare and Insurance

� We work primarily with companies leveraging new technologies and business models and can (usually) translate products described in arcane, technical terms and jargon into realistic concepts.

Markets Consumer and B2B � 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 (typciallymini-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, client-focused

� We work closely with clients to (i) leverage their capabilities, (ii) adapt as new learning, issues, and imperatives emerge; and (iii) help them succeed.

Value-add Perspectives, Insights, and Recommendations

� As researchers with a “consultant’s perspective,” we believe that understanding and 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 HendrixDirector, immrwww.immr.org+1 (770) 612-1488phil.hendrix@immr.org

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 weak market signals and help clients innovate successfully.

Phil has led significant engagements with numerous startups (such as Company.com) and multiple business units of Fortune 100 clients in telecommunications (AT&T, Verizon, Sprint, Sony Ericsson, and others), financial services (American Express), transportation (UPS), insurance (Allstate, United 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

Selected Clients with Whom We’ve Worked

Products, Services and Issues Examined

General Network/Operators Devices/OEMs Services/Apps

§ Market Segmentation§ Market sizing§ Competitive Positioning§ Branding§ Product configuration

§ Bundling§ Plans and pricing§ Wi-fi/Hot spots§ Customer Service/

Self-Service§ Customer Retention§ Web Interface

(functionality/usability)

§ Smart phones§ MIDs (Mobile Internet

Devices)§ Channel strategy§ Promotional strategy

§ Innovation and new product development

§ Mobile Apps (wide range)§ MVoIP (Mobile VoIP)§ Location-based Services§ Unified Messaging§ Speech Recognition

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Recent PublicationsExcerpts available at www.slideshare.net/pehendrix Copies available at http://pro.gigaom.com/

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Participation in Recent and Upcoming ConferencesWorkshop – Monetization Models for Location, Augmented Reality and Context Servicesa

April 28, 2010 – San Francisco

Apps vs. Web: The Fight For The Futurea

Sept. 30, 2010 – San Francisco

Dealing With The Data Tsunami: The Big Data PanelaJune 23–24, 2010 – San Francisco

If we build it, will they come? Consumer Demand and Preferences for Tablets in the iPad Erac

Oct. 5, 2010 – San Francisco

The Futures of Location-based Servicesa

The Future of Geo-loco Investmenta

July 21, 2010 – San Francisco

WCA Presents: What’s Hot about LBS?a

Oct. 8, 2010 – San Francisco

Build Sustainable LBS Business Models for 2011 and Beyonda

Sept. 14 – 15, 2010 – San Jose

Local at the Bleeding Edge + Making Money with Location-Based Servicesa,b

Nov. 3, 2010 – New York

Trends and Numbers - Where is It All Goingb

Sept. 29-30, 2010 – New York

Wireless Technology Forum –Visions for 2011b

Nov. 18, 2010 - Atlanta

aModerated session/panel bParticipating on Panel cPresenting