Smartphone and Tablets:Take-up and use in Australia

Supply and use of smartphones and tablets in Australia

Communications report series 2011–12

Changing communications landscape in Australia

Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12

82% 83%85%

85% 87% 88%90% 89% 87%

84%

82% 80%

6% 7% 9%12%

14% 16%

Own or use a mobile phone

Have a home fixed-line telephone

Have a mobile phone and no home fixed-line telephoneP

erce

nt o

f to

tal p

opul

atio

n ag

ed 1

4 ye

ars+

•22% increase in number of mobile internet subscribers to 22.1m in 2011–12

•49% of the adult population have a smartphone; up from 25% in June 2011

•9.2m went online via a mobile phone; 4.4m via a tablet (six months to May 2012)

•In 2011, Smartphone sales increased by 63%

•Tablet sales increased by 274% starting from a low base

•Estimated more than one billion smartphones worldwide

•Global mobile network data traffic more than 700 Petabytes per month (Q1 2012) – 10 times the level in Q1 2009

Smartphones and tablets as a global industry

•Samsung shipped 56.3m smartphones; 31.3% market share (up 8.6%)

In Q3 2012:

•Apple shipped 26.9m smartphones; 15.0% market share (up 1.2%)

•RIM, ZTE and HTC all shipped over 7m smartphones for about 4% market share each

•Other manufacturers shipped 74m smartphones; about 40% market share

Major smartphone manufacturers

US Australia EU Brazil Mexico0

10

20

30

40

50

60

70

80

58

67 67

54

3736

2317

5 52 1

6 4

30

03 3

28

20

Android iOS RIMWindows Symbian Other (inc Bada)

Pe

r ce

nt

Note: EU includes France, Germany, Great Britain, Italy and Spain.

Data: 12 weeks to 30 September. Mexico: 12 weeks to 12 September.

Global smartphone market share by operating system

•Over 180 Android smartphones released since September 2008

•Six Apple iOS iPhones released since 2007

Note: Chart does not include all android smartphones released during the period. Chart does not include tablets. Multiple device releases in a month may be indicated by a single marker.

Android’s operating system dominance

Sep-0

8

Nov-0

8

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep-0

9

Nov-0

9

Jan-

10

Mar

-10

May

-10

Jul-1

0

Sep-1

0

Nov-1

0

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep-1

1

Nov-1

1

Jan-

12

Mar

-12

May

-12

Jul-1

2

Sep-1

2

Nov-1

20

20

40

60

80

100

120

140

160

180

200

Android 1.0 Cupcake (1.5) Donut (1.6) Eclair (2.0-2.1) Froyo (2.2)

Gingerbread (2.3) Ice Cream Sandwich (4.0) Jelly Bean (4.1-4.2)

Num

ber

of A

ndro

id s

mar

tpho

nes

•24.7m tablets sold worldwide in Q3 2012

•Apple sold over 14m tablets for a 57% market share

Apple iOS Android Microsoft Others0

2

4

6

8

10

12

14

16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

11

5

<1 1

14

10

<1 <1

65%

29%

2% 4%

57%

41%

2% 0%

Global tablet shipments (millions of units) Q3 11 Global tablet shipments (millions of units) Q3 12

Global tablet operating system market share % Q3 11 Global tablet operating system market share % Q3 12

Shi

pmen

ts (

mill

ions

of

units

)

Mar

ket

shar

e

Global tablet market share and shipments

•Plans $60 - $100 p/month with 1GB to 3GB of data included (excess data charged at 10c/MB)

•Exclusive deal with Nokia for Nokia 920 Lumia 4G

•Plans $48 - $129 p/month with 200MB to 4GB of data included (excess data charged at 50c-25c/MB)

•4G launch event with Samsung (Galaxy S3 promotion)

•Plans $38 - $100 p/month with 200MB to 3GB of data included (excess data charged at 25c/MB)

•Some cheaper plans and extra data offers

Major providers of smartphones in Australia – Mobile network operators

•Microsoft Surface (Windows 8) – 10 inches•WiFi only•Outright cost from $679

•Samsung Galaxy Tab 2 (Android) – 8.9 inch screen•4G connectivity•Outright cost $840 – Plans from $48 per month

•Google Nexus (Android) – 7 inch screen•No 3G/4G connectivity – WiFi/Bluetooth/USB•Outright cost $249

•Apple iPad 3 (iOS) – 9.7 inch screen with 4G connectivity•Outright cost from $539 – Plans from $45 per month

•iPad mini (iOS) – 7.9 inch screen – WiFi only •Outright cost from $369

Overview of tablets available in Australia

Apple iPad; 77%

Samsung; 7%

Acer; 3%Motorola; 2%

Toshiba, 1%Sony, 1%

Other; 10%

Tablet ownership in Australia by manufacturer

•2.06m Australians used WiFi hot spots in June 2012•32 per cent increase in activity compared to June 2011•Persons aged between 18 and 44 account for 60 per cent of WiFi hot spot use

14–17 years12%

18–24 years21%

25–34 years24%

35–44 years18%

45–54 years14%

55–64 years7%

65+3%

WiFi hot spot usage increasing with more smartphones and tablets

•Apple reported 25 billion app downloads in March 2012•Google reported 10 billion app downloads in December 2011 plus a billion more each month

Jun-

11

Jul-1

1

Aug-1

1

Sep-1

1

Oct

-11

Nov-1

1

Dec-1

1

Jan-

12

Feb-1

2

Mar

-12

Apr-1

2

May

-12

Jun-

120

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2,408

2,8103,087

2,712

3,1993,195

3,799 3,7313,606

3,510

3,9774,099

4,454

Number of smartphone users downloading mobile apps

Num

ber

of p

erso

ns a

ged

14 y

ears

and

ove

r ('0

00s)

Increasing use of applications for smartphones and tablets

•92% of Australian adults used a mobile phone at May 2012•49% of Australian adults (8.67 million) used a smartphone at May 2012•Smartphone usage: Lowest - 15 per cent for persons aged 65+ years

Highest - 74 per cent for persons aged 18–34 years.

ALL 18–24 25–34 35–44 45–54 55–64 65+

49

74 74

57

48

33

15

51

76 78

63

50

30

17

66

91 88

79

64

51

30

9299 98 97 94

88

77

25

33 30 33 30

18

8

Have a smartphone Use the internet via their mobile Have a 3G phone Use a mobile phone

Access the internet via a tablet computer (e.g. iPad)

Age range

% o

f pe

rson

s ag

ed 1

8 ye

ars

and

over

Take-up of smartphones and tablets

•85% of consumers with smartphones are on post-paid plans

•58% of consumers with non-smartphones 3G handsets on post-paid plans

•Smartphone consumers moving to plans with higher data allowances in 2012

•Providers looking to increase revenue through higher levels of data use

Don't know

Unlimited - any content

Unlimited - provider's

3GB or more but not unlimited

2GB to less than 3GB

1GB to less than 2GB

500MB to 999MB

Less than 500MB

13%

2%

1%

8%

12%

31%

10%

22%

13%

2%

1%

6%

9%

24%

13%

32%

Amount of data allowance on smartphone

Jun-11

Jun-12

Per cent of smartphone users aged 14 years and over

Smartphone service arrangements

Smartphone internet users compared to other mobile internet users are:

•4 x times more likely to have purchased goods online

•3 x times more likely to have streamed or downloaded audio or video content

•3 x times more likely to have paid bills online

•2 x times more likely to have accessed social networking sites

Purchased goods or services

Downloaded audio or video content

Paid bills

Streamed audio or video content

Used a social networking site

Get directions, recommendations, or other information related to your present location

Sent or received email

Accessed news, sport and weather updates

Browsing websites or search for information

8%

10%

11%

19%

31%

32%

31%

40%

46%

33%

33%

38%

55%

71%

76%

81%

84%

90%

Smartphone usersOther mobile phone users

% of persons 18 years and over using the internet via their mobile phone handset

Online activities undertaken by smartphones and non-smartphones

•No need to use phone for internet: 41% of smartphone users

61% of other mobile phone users

•Easier to use computer for internet:29% of smartphone users

37% of other mobile phones users

•Don’t know how to use internet on phone:

28% of phone users over 55

<17% of users under 55

Other reasons include:-Screen too small-Internet speed too slow-Poor mobile coverage-Internet use via mobile is too expensive

Barriers to mobile handset internet usage

Market challenges

•Declining average revenue per user levels (ARPU)

- Optus ARPU down $2 to $45 in 2011–12

- VHA down 1 million customers since 2010 to 6.35 million

• Over the top services (OTT)

- Number of SMSs sent in US declined for first quarter ever (Q3 2012)

-OTT services estimated to cost global telecommunications $479 billion in cumulative lost revenues by 2020

• VoIP (Services such as Skype)

- 616,000 Skype users in Australia (June 2012); up 133% since June 2011

- Skype to sell prepaid cards at 10,000 retail outlets by March 2013

• Non-SMS messaging (Facebook messenger and iMessages)

- Use data connection; bypass mobile network usage cost

- More than 50 million Facebook messenger Android app downloads

Future – Threats to industry

Smartphones and tablets as assistive technology

Infrastructure developments – LTE and 4G

Mobile payments/Wallets

Near-field communications

Mobile cloud computing

New services for 2013

Future – Opportunities: New services and emerging technology

Communications report series 2011–12