Australians take to convertible ‘2-in-1’ tablet-computers as overall tablet sales continue to decline

March 4, 2016

TABLET SALES SOFTEN AS NEW RANGE OF CONVERTIBLE TOUCHSCREEN DEVICES APPEAL TO PROFESSIONAL BUYERS

SYDNEY, AUSTRALIA – Convertible “2-in-1” tablet-notebook devices are taking the personal computing market by storm with sales poised to triple from more than 500,000 this year to nearly 1.5 million in 2017, according to a new study from emerging technology analyst firm Telsyte.

Despite this burgeoning category of devices, Telsyte’s half yearly Australian Media Tablet Study 2015-2019 indicates the tablet market continued to slow and is down 16 per cent on the corresponding period in 2014 with only 1.5 million units sold in the first half of 2015.

Apple iOS devices retained leadership with 48 per cent market share; however, Android devices with 38 per cent (down 4%), lost ground to Windows-based devices which now make up 14 per cent (up 4%) of the market.

Across vendors, Telsyte believes Microsoft is now the third largest player after Apple and Samsung in the Australian tablet market.

Overall, the Australian tablet market has been characterised by a sharp decline in low end device sales and the emergence of premium 2-in-1 devices.

“The tablet market has been impacted by larger screen smartphones and buyers seeking greater functionality from their next tablet purchase,” Telsyte managing director, Foad Fadaghi, says.

Telsyte expects Windows-based tablets and 2-in-1s will grow to around a third of the market by 2017, where they should exceed Android tablet sales based on current trends.

“Windows-based tablets and 2-in-1s will benefit from an upgrade cycle that started with the arrival of Windows 10 and is expected to continue into 2017,” Fadaghi says.

Telsyte believes the stage is set for a battle between professional devices suitable for workplace applications such as the Surface Pro 4 and iPad Pro. The arrival of these devices is expected to help to boost sales in the second half of 2015 to 1.8 million units

Telsyte estimates that there were 13.7 million tablet users in Australia as of the end of June 2015. New user growth is expected to mainly come from those under 16 years of age and those above 65, given market saturation in most other age groups.

For further information on the report or media inquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 8297 4651
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

For sales and consulting enquiries please contact Foad Fadaghi on +612 8297 4651 (ffadaghi@telsyte.com.au).

About Telsyte’s Australian Media Tablet Market Study 2015-2019

Media Tablet definition: A computer device consisting of a 7 to 12 inch touch screen, including 2-in-1 devices with detachable or foldable keyboards that provide a tablet form factor experience.

Telsyte’s Australian Media Tablet Market Study 2015-2019 is a comprehensive report which provides subscribers with:

Market sizing, platform and vendor market shares and forecasts
End user trends across devices, services and mobile media
Purchase intentions and loyalty
Product reviews and insights
Tablet audience estimates and strategies for media companies

In preparing this study, Telsyte used:

Financial reports released by mobile carriers, manufacturers and service providers.
Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
An online survey of a representative sample of Australians 16+ years of age conducted with 1,077 respondents in July 2015.
An online survey of a representative sample of Australians 16+ years of age conducted with 1,009 respondents in February 2015.
On-going monitoring of local and global market and vendor trends.

About Telsyte
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

Australian and New Zealand CMOs ramp up technology spending despite integration concerns from IT leaders

September 22, 2015

SYDNEY, AUSTRALIA – Marketing leaders in Australia and New Zealand are increasingly making technology decisions for their organisations, according to a new study by emerging technology analyst firm Telsyte.

Telsyte’s Australian & New Zealand Digital Marketer Study 2015 surveyed 255 CMOs and marketing leaders in large organisations found that almost all (91%) are making purchasing decisions on technology products and services for their requirements, which has traditionally been the sole responsibility of the IT department. Furthermore, more than half of organisations surveyed indicated that the marketing department has a dedicated IT budget.

This rapid change in the role of the CMO has been driven by the digital transformation imperative in Australian and New Zealand organisations, the widespread availability and acceptance of cloud-based software and computing, and the elevation of the CMO as the custodian of big data and insights functions.

“Marketing’s transformation has moved on from just buying digital advertising to building scalable approaches that provide a single view of the customer, support meaningful measurement, and enable real-time decision-making,” Steven Noble, senior analyst, Telsyte says.

Web analytics or split testing software is the most common purchase, with 39 per cent of marketers reporting their departments buy this class of software. CRM purchases were also very common, at 38 per cent. Furthermore, 36 per cent are using big data analytics for customer transaction analysis.

“Marketing measurement and customer-centricity are the left and right legs of digital transformation,” Noble Says. “This is why Web analytics and CRM are the types of applications marketers are mostly likely to buy.”

Marketing and IT leaders have conflicting perspectives on marketing technology

Marketing departments are investing in IT because they need flexibility, according to 57 per cent of all marketers, and 70 per cent of marketers who mostly use their own budget to source IT. Meanwhile, 45 per cent of marketers said they were investing in IT because they knew more than the IT department about their own needs.

Marketers that buy their own IT claim they are more likely to have the technology products they need. A high 84 per cent of those that mostly use marketing’s own budget agree or strongly agree with “our marketing function has the technology it needs to be effective”, compared with 71 per cent of those who mostly use IT’s budget to buy IT.

Despite the fact that marketers are highly satisfied with their technology purchases, IT leaders are concerned. In a separate Telsyte survey of 336 CIO and ICT leaders that have lines of business that purchase IT products and services, some 36 per cent say their organisations have experienced problems. The greatest problems were with integration requirements (cited by 36%), inconsistent technology selection (33%) and security (32%).

For further information on the report or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

For sales and consulting enquiries please contact Foad Fadaghi on +612 9235 5851 (ffadaghi@telsyte.com.au).

About the Telsyte Australian & New Zealand Digital Marketer Study 2015

The Telsyte Australian & New Zealand Digital Marketer Study 2015 is a comprehensive 70-page report available to subscribing organisations and includes:

Trends in marketing budgets and spending intentions across major digital marketing categories
Digital marketing drivers and barriers
ROI experiences with digital marketing
The role and status of online publishers and marketing software vendors

The study was created using an online survey of 255 CMOs, marketing directors and other marketing decision makers, conducted in August 2015. Of the respondents, 221 were in large and very large corporations in Australia (defined as having greater than 100 employees), while 34 were in large and very large corporations in New Zealand (defined as having greater than 50 employees). Telsyte estimates the sample is representative of the largest 12,000 Australian and 4800 largest New Zealand businesses.

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au

Android regains smartphone leadership as Apple dominates lacklustre Australian smartwatch market

September 8, 2015

SYDNEY, AUSTRALIA— Despite the promotional hype surrounding smartwatches, only 205,000 units were sold in Australia in the first half of 2015, according to a new study from emerging technology analyst firm Telsyte.

The Telsyte Australian Smartphone and Wearable Devices Market Study 2015-2019 found the initial buzz around smartwatches has softened and a lack of killer apps is holding back demand.

Telsyte also found that some 10 per cent of smartwatch users have stopped using their device altogether.

Telsyte research shows that Apple was the smartwatch market leader with 64 per cent share in the first half of 2015, beating out both Samsung and LG.

Apple’s H1 leadership was mainly due to the lack of new Android compatible smartwatches and Apple’s sales were impacted by its premium pricing.

“The Apple watch remains a luxury gadget, with its sales price typically more than twice the average of rival Android-compatible smartwatches,” Telsyte Managing Director Foad Fadaghi says.

“It is difficult to see mass market consumers paying as much as premium tablets or smartphones for wearable technology that does not have significant new or unique features,” Fadaghi says

Telsyte expects Apple to introduce a lower cost Watch option to help increase sales in coming months.

Despite the slow sales of smartwatches, smart wristbands such as those sold by Fitbit and Garmin continue to grow, up 30 per cent on H2 2014. Telsyte estimates that there are around 2 million smart wristband users in Australia.

Telsyte does not believe smartwatches have failed, rather they are destined to make up a smaller proportion of what can be seen as a larger smart wearables market dominated by lower cost “smart bands”.

“In some ways the smartwatch market can be classified as the premium part of the smart wrist wearable market,” Fadaghi says.

Smartphones still the preferred device

Telsyte research now shows that 17.2 million Australians (72%) own a smartphone and that it has clearly become the favoured device for communications and portable computing.

Telsyte estimates some 3.7 million smartphones were sold during the first half of 2015 (6% down from a year ago), with 450,000 new smartphone users added during the same period.

“The smartphone market is entering a stage of maturity with growth starting to be driven by demographic factors such as net migration and births,” Telsyte Senior Analyst Alvin Lee says.

According to the study, sales of Android-based smartphones pulled ahead of the iPhone in the first half of 2015, with 54 per cent share (iPhone 41%) , while Windows Phone-based devices (5%) showed relatively slow performance due to the lack of new handsets and Microsoft’s transition away from the Nokia brand.

Telsyte research showed Sony overtook HTC in the first half of 2015 to become the third largest smartphone vendor in Australia, behind Apple and Samsung.

Telsyte predicts 4.5 million smartphones will be sold in the second half of 2015. Pricing and brand are still the most important factors cited by consumers when it comes to choosing a smartphone; however, an increasing level of importance is being placed on ‘lifestyle’ factors such as durability and resistance to the elements.

For further information on the study or media inquiries contact:

Alvin Lee
Senior Analyst
Tel: +612 9235 5890
Email: alee@telsyte.com.au

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Email: ffadaghi@telsyte.com.au

About the Australian Smartphone and Wearable Devices Market Study 2015-2019

Telsyte’s Australian Smartphone & Wearable Devices Market Study 2015-2019 is a comprehensive report which provides subscribers with:

Smartphone market sizing, platform and vendor market shares and forecasts
Smartwatch market sizing, platform and vendor market shares and forecasts
Smart wristband/fitness band market sizing, platform and vendor market shares and forecasts
End user trends across devices, services and usage
Purchase intentions & acquisition channels

In preparing this study, Telsyte used:

An online survey of a representative sample of Australians 16+ years of age conducted with 1,251 respondents in November 2014.
An online survey of a representative sample of Australians 16+ years of age conducted with 1,009 respondents in February 2015.
An online survey of a representative sample of Australians 16+ years of age conducted with 1,077 respondents in July 2015.
Financial reports released by manufacturers, retailers, mobile carriers and service providers.
Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
On-going monitoring of local and global market and vendor trends.

About Telsyte

Australian IoT @ Home market to reach $3.2 billion by 2019 embedding smart technology into everyday life

August 10, 2015

SYDNEY, AUSTRALIA – The Internet of Things at home (IoT @ Home) market is set to skyrocket as it climbs a technology adoption s-curve much like the Internet and smartphones did before it, according to a new study by emerging technology analyst firm Telsyte.

The Telsyte Australian IoT @ Home Market Study forecasts spending on IoT home products and services in Australia to grow almost eleven-fold in the next four years from $289 million in 2015 to $3.2 billion in 2019.

Telsyte believes a number of factors will drive market growth including the arrival of new products and services, but importantly the market is set to naturally evolve as Internet connectivity is baked into many existing products and services.

Telsyte estimates that by 2019, the average household will have 24 Internet-connected devices, up from nine in 2015.

Telsyte research indicates the IoT boom @ Home will be evolutionary at first as vendors will quickly move to integrate connectivity into existing products and services including whitegoods, gardening, security and energy management.

“While long mooted, the Internet-enabled ‘whitegood’ will finally become the norm, as most manufacturers — aided by the lower cost of micro-processing — build wireless Internet connectivity into most of their products,” Telsyte senior analyst Steven Noble says.

“Consumers will find themselves buying IoT-enabled devices by default,” Noble says.

Telsyte measures the IoT @ home market as five key segments:

Expected market size in 2019
Smart lifestyle (appliances, gardening)$1.2B
Smart home services (installation, management, cloud services)$812M
Smart security (security alarms, cameras, sensors, smart locks)$416M
Smart energy (sensors, outlets, light bulbs)$658M
Smart hubs (dedicated hubs)$64M
Total$3.2B

Staking their claim on this emerging market will be vendors from every point in the value chain, including:

Manufacturers: Samsung, for example, has committed to connecting 90 per cent of its new products to the Internet by 2017 and all of them by 2020. Furthermore, companies not traditionally in the technology market ranging from Ikea to Breville are starting to unveil their IoT plans.
Retailers: Telstra is just one of the brands that has already added a Connected Home section its local e-commerce Web sites, while Target in the US is experimenting with IoT demonstration homes in its stores. Retailers will be critical to the rise of the IoT @ home as they will expose consumers to new product experiences.
ISPs: For ISPs, smart home automation is an opportunity to create high-value bundles. Telsyte research shows that Australians that bundle VoIP with their broadband plans anticipate budgeting seven times as much for a smart home system, compared to broadband non-bundlers. However over the longer term, ISPs will face increasing competition from Over The Top (OTT) cloud service providers such as Google and Apple and will seek to partner with multinational service providers.
Cloud software providers: Services like Google’s new US$10 per month Nest camera monitoring solution will disrupt traditional smart home service providers — increasing adoption of smart home services while lowering unit prices.
Utilities: Utilities are expanding their product mix to include energy-saving devices and services that are controllable via the Internet.
Electricians and security consultants: Currently, 34 per cent of Australians prefer to have a specialist consultant install their system. While plug-and-play IoT devices and wireless smart home systems will be the norm, specialists will still play an important role in the installation of high-end equipment such as smart locks for keyless entry.

For further information on the report or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

For sales and consulting enquiries please contact Foad Fadaghi on +612 9235 5851 (ffadaghi@telsyte.com.au).

About the Telsyte Australian IoT @ Home Market Study 2015

The Telsyte Australian IoT @ Home Market Study is an annual publication reporting on smart home automation industry and consumer trends. The 2015 report continues the year-on-year analysis with key market data, including market sizing and forecasts as well as vendor strategy and direction.

The Telsyte Australian IoT @ Home Market 2015 is a comprehensive 72-page report available to subscribing organisations and includes:

Market sizing and forecasts.
Consumer attitudes and technology adoption trends.
Analysis of industry structure transformation.
Vendor insights.

About Telsyte

Australians flock to SVOD with 2 million subscriptions to online streaming video services taken up this year

July 8, 2015

SYDNEY, AUSTRALIA – Uptake of subscription video on demand (SVOD) services delivered over the Internet has skyrocketed in Australia with two million active subscriptions recorded at the end of June 2015, according to new research by emerging technology analyst firm Telsyte.

Up from 315,000 subscriptions at the end of December 2014, the massive growth has been driven by the arrival of new services such as Netflix and Stan, free trial periods, and promotions offered by the leading ISPs, mobile carriers and TV manufacturers.

Telsyte’s Australian SVOD/OTT Video Market Study 2015 shows that around 1.5 million of these subscriptions have been converted to fee paying (no longer on a trial) and generated more than $17 million in revenues in the month of June.

The paid subscriber market leaders, in order, are: Netflix, Stan, Presto and Quickflix*. Together the top 4 represent around 90 per cent of all paid subscriptions; however, there is a long tail of providers covering sports and special interest niches like AFL, NBA basketball, NRL and UFC matches.

SVOD services are delivered over broadband Internet connections rather than traditional broadcast television signals. Most service providers support set-top boxes (e.g. Apple TV), computers and post-PC devices (smartphones and tablets) for viewing; however, two-thirds of people use their TV as their main screen to watch SVOD services.

“The SVOD market is highly competitive, seasonal, and unlikely to be a winner-takes-all marketplace,” Telsyte Managing Director, Foad Fadaghi, says.

A complicated web of streaming content rights as well as the widespread availability of free trials has resulted in SVOD subscribers having an average of 1.6 services.

Despite the increasing competition for eyeballs in the Australian online video market, Telsyte research indicates streaming Catch-up TV, SVOD and traditional Pay TV will co-exist.

At the end of June, almost 40 per cent of Australian households that had SVOD services also had traditional Pay TV.

“The early success of SVOD providers will encourage more film studios and content rights holders, including sporting codes, to consider direct streaming to consumers,” Fadaghi says.

Despite the rise of SVOD, public broadcaster and advertising-supported streaming services remain the most popular online video services in Australia. Telsyte estimates seven million Australians 16 years and over, regularly (at least once a month) view Catch-up TV services such as the ABC’s iView and Channel Nine’s 9Jumpin.

The lowering of prices by Foxtel in reaction to SVOD competition has seen an uplift in Pay TV subscriptions during the same period of rapid SVOD adoption. Pay TV subscriptions, including Foxtel, Fetch TV and others, was estimated to be 3.1 million at the end June.

SVOD and Catch-up TV to drive nbn adoption

SVOD and Catch-up TV services are expected to drive demand for high-speed broadband upgrades, particularly with the arrival of 4K (Ultra High Definition) content over the Internet.

Telsyte research shows that 1 in 5 broadband users (22%) intend to upgrade their fixed broadband due to streaming video.

Furthermore, more than half (53%) believe their current fixed broadband might not be fast enough for streaming video services.

Telsyte believes mobile carrier partnerships will be increasingly important to SVOD service providers as they help drive subscriptions that are also used over fixed-line broadband Internet connections.

For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Email: ffadaghi@telsyte.com.au

*Editors please note, Telsyte will not be supply individual SVOD provider subscriber estimates to media.

Telsyte’s Australian SVOD/OTT Video Market Study 2015 is a comprehensive study which provides subscribers with:
• Uptake of SVOD services, Pay TV and Catch-up TV services
• SVOD provider market share
• SVOD forecasts
• Analysis of current offerings in the market
• Services consumption preference through devices and screens
• Insights into the future of SVOD, Pay TV and Catch-up in Australia

In preparing this study, Telsyte used:
• Interviews conducted with executives from SVOD providers, mobile operators, media companies and channel partners
• An online survey of a representative sample of Australians 16+ years of age conducted with 1,025 respondents in May 2015
• An online survey of a representative sample of Australians 16+ years of age conducted with 1,251 respondents in November 2014
• Financial reports released by service providers
• On-going monitoring of local and global market and vendor trends

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial/non commercial purpose, except for news reporting, comment, criticism, teaching or scholarship