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Apple iPad Owner Study

Consumer Technology The NPD Group, Inc. September 2010 1
Copyright 2010. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.

About this NPD Report Excerpt

This presentation includes a few of the slides from NPDs first iPad Owners study published in September 2010. It provided a first look at the early adopters of Apples tablet. We have included the original table of contents so that you may see what the scope of the full report included. Since then NPD has published a second wave of the study looking at how behaviors may have changed in the months since consumers acquired the iPad and have recently completed a third wave prior to the introduction of the iPad 2. NPD is pleased to share this excerpt with attendees of CTIA Wireless 2011.
Source: The NPD Group / iPad Owner Study Proprietary and Confidential

Table of Contents
Study Objectives & Methodology p.3

An Industry Perspective by Stephen Baker

Executive Summary Study Results iPad Awareness/Purchase Interest: August 2010 vs. March 2010 iPad Owner Sample Insights iPad Purchase Insights iPad Cannibalization of Other Devices iPad Ownership Experience Impact of iPad Ownership on Computing Activities Apps Downloaded for iPad Accessories Owned for iPad Appendix A: Demographic Profiles Appendix B: About the NPD Group, Inc.

p.4
p.7

p. 19 p. 27 p. 33 p. 40 p. 46 p. 62 p. 72 p. 75 p.78 p.79

Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

Objectives and Methodology

Objective To determine how iPad Owners are using their iPads, As well as understand consumers opinions regarding the types of activities they perform on their iPad. An online survey was fielded August 6th August 13th, 2010 to a U.S. representative sample of adults (18+) to measure trends from NPD Groups Apple iPad: Consumers Perceptions and Attitudes Report *, released March 2010 and a pre-identified sample of Apple iPad owners from NPDs Proprietary Online Registered Panel. Panel members were asked to visit the NPD Online Research Survey Site in order to complete and submit the survey. As an incentive to complete this survey, respondents were offered points that can be redeemed for prizes.

Methodology

E nding S a m ple S ize s To tal US Rep respo ndents: 1 8-34 year o lds 35-44 year o lds 45-54 year o lds 55+ year o lds M ales Females To tal: 562 1 23 89 1 38 21 2 253 309

To tal iP ad Owners 1 8-34 year o lds 35-54 year o lds 55+ year o lds M ales Females
Source: The NPD Group / iPad Owner Study

557 1 02 257 1 98 267 290

* - The full report is available at a discount to those who ordered this report Proprietary and Confidential

In total, almost three-in-four respondents had heard of the iPad prior to the study, slightly more than the total reported in March of 2010.
Q.R1 Before today, had you heard of the Apple iPad?

iPad Awareness

73% 68%

75%

72%

72% 65%

To tal

M ale

Female

August 2010

March 2010

Base: US Rep Consumers Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

The leading reason driving interest in the iPad for both periods is its multi-touch screen, with desire for a mobile device for e-Books showing the largest gain from March

Q.R3 What are the top three reasons that you are interested in the Apple iPad?

Top 3 Reasons Driving Interest in iPad by Age

Multi-touch screen 37%
33%

48%
43%

Can use w ithout a desktop surface 31%

31 %

Slim design I w ould like a mobile device for reading ebooks Optional keyboard rather than using the smaller smartphone/iPhone keyboard I w ould like a mobile device for w atching movies/video content Long battery life I like the Apple brand 16%
1 2%

29%
1 8%

29%
27%

26%
30%

25%
34%

21%
24%

Optional 3G access

Price/value 11%

13%
22%

Total - August 2010 Total - March 2010

Easier to use than a Mac or PC

1 2%

Compatible w ith iPhone apps 3%

10%
1 2%

Other

Base: Interested in owning Apple iPad Source: The NPD Group / iPad Owner Study Proprietary and Confidential

Only about one-in-four (24%) said they were not interested in owning the iPad because they would prefer to use a notebook or netbook PC.
QR.5 Why Are You Not Interested In The Apple iPad?

Reasons for non-interest in iPad

Too expensive 49% 42% 46% 48% 24% 32% 18% 17% 7% 9% 6% 6% 5% 6% 5% 6% 5% 9% 3% 5% 2% 2% 13%

It doesn't fit my lifestyle I w ould rather use a notebook or netbook PC instead of an iPad Don't like being locked into Apple content or apps No physical keyboard

iPad doesn't support Adobe Flash

It doesn't run more than one app at a time Waiting for w hat competitive brands w ill offer No front-facing camera/inability for video conferencing I already have similar devices

Total August 2010 Total March 2010

Waiting for next generation iPad

Other

Base: not interested in iPad Source: The NPD Group / iPad Owner Study Proprietary and Confidential

Many 3G owners, 44%, claim no data plan which may indicate plans for the future and 37% signed up for the $29.99/month unlimited plan.

Q.25 What data plan do you use for your iPad?

Data Plan Used Among Those Owning 3G Models

37%

Unlimited/$29.99 per month

33% 40%

12%

250MB/$14.99 per month

11% 13%

Total
7%

Owned iPad About 2 months or less

10%

2GB/$25 per month

5%

Owned iPad About 3 months or more

44%

None - I don't currently subscribe to a data plan

42%

47%

Base: iPad 3G Model Owners Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

Apple iPad owners tend to be highly engaged in the Apple brand, with 80% of iPad owners also owning at least one other Apple device.
Q.1 Do you own any of these devices?

Other Devices Owned by iPad Owners

Printer

82%

Any Other Apple Device (NET)

80%

Any PC Computer (NET)

67%

Any Apple iPod (NET)

58%

Any iPhone or Smartphone (NET)

49%

Any Apple Computer (NET)

48%

Any Apple iPhone (NET)

38%

Any e-reader (NET)

15%

Other MP3 player

10%

Other Tablet PC

1%

Base: iPad Owners Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

Almost half of iPad owners decided to buy the iPad before it was released, or as soon as it was released with 18-34 above that average and 55+, slightly more cautious. below the average.
Q.5 When did you decide you were going to buy the iPad?

Timing of Decision to Purchase iPad

Total

34%

13%

31%

22%

18-34

33%

20%

27%

21%

35-54

37%

11%

29%

24%

55+

31%

13%

36%

21%

Before it w as released for sale

As soon as it w as released for sale

Sometime after it w as released for sale

N/A/someone else made the decision to purchase the iPad

Base: iPad Owners Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

10

Satisfaction with iPad is high across these demographics, especially 55+ and mid-income ranges.
Q.14 Overall, how satisfied are you with your iPad?

iPad Satisfaction

Total

73% 75% 71% 70% 70% 78% 72% 78% 71% 65% 78%
Very satisfied Somew hat satisfied Neither satisfied nor dissatisfied Somew hat dissatisfied

21% 20% 22% 23% 23% 18% 23% 17% 22% 28% 17%

5% 1% 4%2% 6% 1% 7% 1% 6% 1% 3%1% 1% 5% 4% 1% 5% 1% 1% 7% 1% 4%1% 1%

Male

Gender
Female

18-34

Age

35-54

55+

Under $45K

Income

$45K-$74.9K

$75K+

About 2 months or less

Length of iPad Ownership

About 3 months or more

Very dissatisfied

Base: iPad Owners Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

11

Although the ownership cycle is still in relative infancy, the iPad doesnt seem to be a flash in the pan for most owners. Only 12% say they are using the device less often now than when they first acquired it. Interestingly, older iPad owners appear to have become increasingly engaged users over time.
Q.21 Are you now using your iPad more, less or about the same as when you first acquired it?

Change in iPad Usage Over Time

Total

30%

58%

12%

18-34

18%

66%

17%

Age

35-54

30%

59%

11%

55+

37%

52%

11%

About 2 months or less

28%

56%

16%

Time Owned iPad

About 3 months or more

32% More
Base: iPad Owners Source: The NPD Group / iPad Owner Study

59% Same Less

9%

Proprietary and Confidential

12

Although computing activities are fairly split between the iPad and iPhone among those who own both devices, other smartphones dont fare as well among iPad owners. Besides the activities that are typically performed on Smartphones, i.e., texting, sharing photos, capturing video, etc., iPad owners were more likely to use their iPad to perform most tasks.
Q.3 Please indicate the tasks/activities you perform/participate in on each device you own.

iPad Activities vs. Smartphone*

1077 1074

More likely to perform on iPad

More likely to perform on Smartphone

688

554 478 373 333 323 318 246 216

These items not reported for Smartphones: Adult education; Printing Documents
206 188

175

153

152 116 116 86 72 21 20

so na lp ro du ct iv ity R ea d ePl B oo ay ks fe at ur e m ov ie s Ph Pl ot ay o in ed g/ i ti w ng at Pl ch ay in in R g g/ ea m w ov d at di ch ie gi s in ta g lm TV ag sh Ed az ow in uc s es at /n io ew na la sp ap ct iv er i ti s es fo rc hi ld re O n nl in e sh op pi ng Pr in Pl tin ay g ph vid ot eo os s l ik e Yo Pe uT rs ub on e al Pl fin ay an ga ce m tra es ck in g/ pl an ni Su ng Li rf st th en e in Li In g st te to en rn st in et re g am to m in us g m ic us I'v ic e do w nl oa de Em d ai lpe rs So on cia al ln et w or ki ng Sh ar e ph ot os Em ai lw or k Vi de o ca pt ur e

ffi ce /p er

*Low Base: n<100

Base: iPad Owners Who Also Own Smartphone Source: The NPD Group / iPad Owner Study

IM /T ex t

Proprietary and Confidential

13

Games appeared to be the most frequently downloaded app, and likewise, it was reported as being used the most often as well. E-Books were reported as being used slightly less often, as just under one-in-five indicated that they used them.
Q.24 What types of apps or content have you downloaded onto your iPad?/Q.24b Which one type of content/app on your iPad do you use most often?

Apps Used Most Often

Games e-Books News/weather/sports apps Maps/navigation apps Music/Songs Social networking/communication apps Newpapers and/or Magazines Movies Lifestyle/health apps (such as recipes, calorie counters, etc.) Shopping/product research apps TV Shows Podcasts Personal finance apps Educational apps for children Non-game entertainment apps (such as horoscope, daily joke, etc.) Adult education apps (such as learning a language) Other
4% 2% 2% 2% 2% 1% 2% 1% 1% 3% 6% 11% 15% 14% 19% 25% 22% 29% 6% 36% 33% 4% 4% 9% 45% 44% 10% 50% 48% 21% 18% 63% 61% 66%

Apps Downloaded Apps Used Most Often

Base: iPad Owners Source: The NPD Group / iPad Owner Study Proprietary and Confidential

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More than eight-in-ten people reported owning an accessory specifically for their iPad. Carry cases were the most popular accessories, as just under three-in-four people reported using one for their device.
Q.26 What accessories do you own specifically for your iPad? Please indicate if each accessory you own is an Apple brand or other brand accessory.

Accessories Owned
Any (NET)
84%

Carry case

72%

Charging dock

34%

Screen protector

28%

Keyboard

20%

Car charger

20%

Camera connection kit

18%

SD card reader

12%

Car headrest/backseat mount

7%

Other

3%

Base: iPad Owners Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

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About The NPD Group, Inc.

About The NPD Group, Inc. The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,700 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/ and http://www.npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.

Source: The NPD Group / iPad Owner Study

Proprietary and Confidential

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