The smartphone market has been growing rapidly over the past few years, with smartphone adoption spreading across the population. The youth market is also picking up this trend and the numbers who want or own a smartphone device are growing. So which smartphones are being adopted by future generations and why?

A smartphone for Christmas

The youth market for mobile devices is swiftly rising, and the age at which children acquire their first mobile phone is getting younger and younger. It is estimated that over 90% of 12-15 year olds already have a mobile phone and the number of smartphone acquisitions in this market is also growing [1]. Considering that a large amount of mobile phones acquired by the youth market are being gifted and are often from the medium to high-end price range, it is not surprising that the youth market are picking up the smartphone trend. Also, considering that most of the time it is the end-user that is influencing purchase of the gift, it is interesting to find out what are driving these decisions [1].

Near Field Communication (NFC) – the technology that supports close proximity mobile payment services – has been around for many years. However, up until recently, the NFC-enabled mobile devices and service support needed to make such payments a reality have been lacking.

In this video blog, Ryan Garner looks at the barriers to adoption, demonstrating that Trust and Familiarity of supplier brands will drive consumer preference and arguing the need for co-operation between brands from different sectors.

To read the full report, please click here.
To read the report article in the Free TechTalk Magazine, please click here.

With sales of printed newspapers in decline and widespread expectation of free news online, publishers need a radical change of strategy in the way they deliver content, to win back the public’s wallets. News site paywalls are currently testing the most straightforward route, offering users unique and diverse content in exchange for a subscription fee, in a bid to effectively monetise a loyal digital audience. The question is, will tablets – bringing with them a richer, and more engaging user experience – be the bridge that turns the trickle of paying digital news readers into a flood?

Despite a deluge of new device offerings, tablet PCs look unlikely to become mass market this year, meaning individual manufacturers will have to strongly differentiate their products to grab the limited share of the market available. Apple still dominates in consumer minds, but Samsung, Blackberry and other Android devices look set to offer a compelling challenge.

 

As expected, February’s Mobile World Congress in Barcelona and the CES show in January revealed a surge of new tablet offerings from the major hardware manufacturers, all vying to compete with the success of the ubiquitous Apple iPad.

But while the tablet market is clearly in ascendancy, at present it is still very much nascent and we are unlikely to see the same growth this year as we expect from other categories, such as Smartphones.[i]

2011 tablet market likely to remain niche

Gone are the days consumers choose mobile phones based solely on their features and functions. New research by GfK[1] shows that smartphone owners in key global markets buy into the ‘experiences’ created by the mobile ecosystem and the majority (56%) are ‘keeping their options open’, when deciding their next smartphone purchase.

Every quarter brings new reports of rapid growth in smartphones sales but a key question left unanswered is what is actually driving purchase in the high end smartphone category? Understanding drivers of purchase is naturally a complex subject due to the sheer number of factors that influence consumer decision making. Looking back as little as 3 years ago, the primary focus for many consumers was acquiring a well designed phone packed with the latest technology such as Wi-Fi, GPS, high resolution camera and so on. In recent years, however, development in mobile hardware has slowed and is arguably becoming less important. Of course, consumers still want good looking handsets with the latest technology, but with so much choice and less differentiation the mobile handset is potentially becoming a more commoditised purchase.

Within the last week, Nokia, Google Android and RIM have announced, alongside rumours of Apple’s iPhone 5, that 2011 will see the start of NFC-enabled phones, and the beginning of widespread commercial usage of this exciting piece of technology.

Near Field Communication (NFC) is a form of wireless communication technology that allows an exchange of data from two devices if they come within 10cm of each other. It’s been around for quite a while; in fact most Londoners use it every day for travelling with Oyster cards. NFC phones first appeared in 2007, when Nokia released the first phone of this type. With all the benefits of NFC, it’s surprising that we still haven’t seen widespread commercial usage. However, this may all change early next year with the release of the Apple iPhone 5, which is rumoured to be NFC-enabled. If the excitement and buzz around new iPhones continues, this could be the start of something truly revolutionary. In an announcement only last week, Nokia pledged to activate their NFC chips in 2011, with Google and RIM keen to follow the trend, both declaring that the next version of Android and future Blackberrys will come with NFC. Clearly, it’s something not to miss out on.

High levels of consideration for competitor tablets suggest Apple won’t have it all their own way in 2011 but they’ll be thankful for the competition in the long run.

A recent article in The Guardian [1] posited that one of the best things that could happen to Apple to ensure continued success of the iPad was for competitors to launch tablet computers, and for these products to enjoy moderate levels of success. As happened with the iPod many moons ago, the thinking here is that a batch of serious rival devices would help cement tablets as a ‘legitimate’ category in consumers’ minds, encouraging continued sales and crucially allowing Apple to progressively refine and release further iterations of their hardware. (Although the impressive sales of the iPad so far would suggest this won’t be an issue.)

In the PC market, Microsoft’s Windows OS is as common as the mobile phone in your pocket. However, Windows Mobile has struggled to capture the imagination of both consumers and businesses. In fact, with a rapidly declining 5% [1] of the global smartphone market it’s fair to say that relatively speaking Windows Mobile has been a horrible failure. But that’s all about to change.

Recent research by GfK NOP [2] shows that interest in Windows Phone 7 (the catchy name given to the successor of Windows Mobile 6.5) is strong. Almost one in five (18%) of UK mobile phone owners say they would consider a Windows Phone 7 (let’s go with WP7 from here on in) handset (available on HTC and Samsung devices among others) when they next come to renew, upgrade or buy their next mobile phone. Of course current smartphone owners display much higher levels of interest (32%). What’s more, Microsoft will be pleased to hear that of all smartphone owners, those using Google’s Android will be most interested (41%) in WP7. So what’s changed?