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Home » Smartphones

iPhone users shifting away from laptops says Rubicon

Posted by Jay Donovan on December 10, 2008 – 9:18 pm
closeThis post was published 10 months 28 days ago which may make its actuality or expire date not be valid anymore. This site is not responsible for any misunderstanding.

From Communities Dominate Brands

So, Rubicon Consulting has surveyed iPhone users, and found that half of iPhone users are shifting away from using a laptop computer. 28% said they “strongly agree” with that statement.

This is no surprise to us and our regular readers. We’ve reported in our book already that even the Blackberry was causing a similar shift among email users, where many busy execs who primarily needed a laptop for email, were shifting away from that when the Blackberry allowed the connectivity in a pocket-able and always-connected device.

And we’ve reported on the shift from a PC based Internet experience to a mobile phone based Internet in many countries already. But now, especially for those with a strong North American view to the cellphone and its chances as a new mass media (ie 7th mass media) – the iPhone helps convince those. By the way, the overall total access to browser-based content shifted this year, and for the first time there are more people accessing browser based content on a phone than via a personal computer. Yes, this includes WAP access but with that definition, there are more “Internet users” on phones than PCs this year. I’m going to do a major review of the industry numbers shortly and its one of the findings. Another – this year for the first time, there are more people who use MMS picture messaging than use email.. Big shifts happening in the media and communication world.

devices-thumbUm, I am not sure 28% is half, but it is still interesting to me that this trend seems to be on the rise, just as more and more of the  information we consume and manage regularly becomes part of the “cloud” model. Coincidence? Unlikely, but we’ll come back to that.

The question lingers in my mind–why are people shifting away from laptops in preference of iPhones and other mobile devices (presumably only for personal information and communication and not for work related tasks that require the computational strength and software that currently can run only on a desktop or laptop) . Additionally, for the purposes of this post I am generalizing the trend toward all Smartphones and not only iPhones, as that’s where I see it heading.

I have some ideas about this and they revolve around a few concepts:

1. Prices are falling. When the perception that an iPhone or other Smartphone can be had for $199, (all of us who have purchased one  know there’s more to it than that) it becomes an attractive and plausible purchase for demographic segments with less money. To be frank, there are a lot more “have-nots” out there than “haves”. When you couple this with findings like ComScore’s report that the strongest growth of iPhone users occurs among those earning less than the “median household income”–that is, between $25,000 and $50,000–at an increase of 48 percent you can see that it makes sense for members of this segment to spend $199 plus a data plan to have complete Internet access versus a big up-front payment for a laptop or desktop and also monthly broadband service. Plus they get all the benefits of mobility.

2. Cloud computing. As the promise of the “thin client” rears its head again, it makes so much sense that we should see spikes in casual and regular Internet access via mobile device. So many popular services are based in “the cloud” and do not require system resources or storage or any of that. You REALLY CAN do many of the same tasks on either platform and I think people are choosing the platform they can take with them anywhere.

3. Convenience of micro-consumption. It’s Internet usage “on demand” rather than waiting to do all of your online tasks at once, while you happen to be sitting in front of a  desktop machine or in a stationary location with a laptop. Check an email here, send an SMS there, post a tweet here, buy (yes buy) an item there. In the unfortunate reality of modern-day multi-tasking, mobile access to information is a real convenience. An eventuality.

So what? People are buying more iPhones and and Smartphones and using them for Internet access. Big deal, right?

Well, it is kind of a big deal for marketers. It’s a real recipe for being able to take authentic brand messages to people at the very best time to reach them… in those small moments of time in which they actually don’t mind being reached. I’m talking about toilet-time, laundry-time, coffee-time, standing-in-line-at-the-grocery-store-time, bus-time. If micro-blogging can reach a critical mass of usage, surely micro-consumption has the same promise for becoming a standard consumer approach  for info and also an acceptable method of  receiving opt-in brand marketing. I mean, it’s already happening quite a bit. For the people who want to be reached in this way, the chances of marketers getting through are high. Don’t take my word for it, just ask your average 14 – 24 year-old or anyone on Obama’s SMS list and they will give you the scoop.

Marketers can’t just use “mobile” as a gimmick or quick fix though. A brand or service still has to have a real value or purpose. That is a whole different conversation. But if you think supporting a brand message with mobile strategy and advertising goals is science fiction or fringe behavior, then you  probably aren’t the right segment for being reached in that way–and there are less and less of you every day. Moreover, if you think there is less value in mobile marketing tactics because you don’t fully understand the possible impact, think again. Heck, I don’t understand physics, but that doesn’t mean that it doesn’t exist. 

So, my point is this: mobile info consumption is like snacking all through the day versus sitting down for three square meals at your laptop or workstation. The convenience this schema offers is the reason that  Smartphone ownership  keeps growing. And the rising numbers are important to marketers because it strengthens the power of this growing advertising channel. But that’s just what I think. Speaking of thinking… let me know what you think?

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  • Pony99CA
    @Tomi:
    I wanted to comment on that 28% is not quite half - good point. I was probably not clear enough. Rubicon said more than half said they were shifting usage from laptop to iPhone. 28% said “strongly agree” and - I forget the exact number - something like 17% said “somewhat agree” - which Rubicon added together to find more than half had said they are moving their activies from laptop to iPhone.

    Its not that I can’t count ha-ha..

    I assumed that there was some "agree" rating that wasn't shown.

    However, if you think 28% + 17% (which is 45%) is more than half, then you really can't count. :D You'd need 22% to get to half.

    Steve
  • Tomi,

    Thanks for explaining the percentages from your post at CDB and thanks for the great additional commentary. I couldn't agree more, especially with regard to your insight on the developing world. Just take one look at any stats from the Opera Mobile/Mini press release page and you can see how it is starting to play out in locations outside of "The West", in terms of access. It's funny, I was just having an email conversation with some colleagues about mobile in the developing world, touching on some of the points you made. Thanks again for taking the time to respond to this post.
  • Alison Astraware
    I would certainly agree with the part about keeping the phone at arms reach. Last thing at night I use my iPhone to play a game or read an ebook before I go to sleep and I check Twitter or Facebook or email first thing in the morning whilst I'm have a cup of tea. The phone is with me through the day - for email and for calendar, plus calls and texts, and at weekends and evenings I regularly browse the web when I'm away from a PC. I think I've had more use, and therefore greater value, from this phone than any I've used previously and that's mainly down to the excellent web browser and great apps!
  • Tomi Ahonen
    Hi Jay and readers of Mobility Site

    Thanks for mentioning my blog at Communities Dominate.

    I wanted to comment on that 28% is not quite half - good point. I was probably not clear enough. Rubicon said more than half said they were shifting usage from laptop to iPhone. 28% said "strongly agree" and - I forget the exact number - something like 17% said "somewhat agree" - which Rubicon added together to find more than half had said they are moving their activies from laptop to iPhone.

    Its not that I can't count ha-ha..

    While I'm here, good points in your blog commentary. A couple of quick observations to spur your readership onto more thinking.

    First, everything you write about is true but with a strong slant to the industrialized world. Today the majority of all mobile phone subscriptions are in the developing world. In the industrialized world, there is a valid choice - desktop and broadband at home; laptop and WiFi at Starbucks, and the iPhone and 3G on the road. But in the developing world, there is only a modest amount of personal computers (and skills for the support of them) and far less, any reliable internet connectivity. In Africa there is so bad connectivity that often they use satellite connections - ouch, that is nastily expensive. But when the locals will literally steal the cable from the ground - for the junk metal value of the copper (not to even mention fibre optics) - you really don't have a good infrastructure to even consider a PC based and broadband (or WiFi) based internet experience, except the few wealthy cities.

    In the developing world, the ratio of mobile phone based internet access to PC based internet access ranges from 6:1 in India to as much as 10:1 in Kenya.

    Seconly on the micro-consumption. Great point. A bit more to ponder. Morgan Stanley reported that now 91% of the planet keep the mobile phone within arm's reach 24/7. Literally we take it to the bathroom with us and we literally sleep with the phone. As its our alarm clock, it is literally the last thing we look at before we go to sleep and again the first thing we see when we wake up. Whatever other media we consume - watching TV or reading the newspaper or surfing the web - for 91% of the people, the phone is within our visible range.

    That means that any brand that currently uses another one-directional media (like TV, radio, newspapers, cinema, billboards etc) can now make that experience bi-directional, by making the phone the interactive channel (in fact, with 3 billion people, 76% of all mobile phone subsribers active users of SMS text messaging on the planet, that is 2.5x bigger reach than with email.. makes you think if you're an advertiser, doesn't it?)

    And on the internet - even better - mobile phones can become the money element in interactivity, and collect payments even from those who are too young for credit cards - as many internet service providers are learning from Habbo Hotel out of Finland to Cyworld in South Korea to EA Electronic Arts in America..

    There is much more on these and other topics there at my blog at www.communities-dominate.blogs.com and just yesterday I wrote a major blog piece about the overall size of the mobile opportunity. Some of your readers might enjoy that.

    Tomi Ahonen :-)
    www.tomiahonen.com
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