Phablets Surge in Holiday Activations

Phablets were the technology gadget of choice for many holiday gift-givers. Flurry, a firm that provides mobile advertising solutions for marketers and monetization solutions for app publishers, reported that the large-screen smartphones made up 27% of all device activations during the week leading in to Christmas, up from a 4% share of the market in 2013.

Nearly 50% of all device activations during Christmas week were of Apple products, with its phablet—the iPhone 6s Plus—accounting for 12% of the total. Samsung’s share of device activations was 19.8%, while Nokia finished with a 2% share.

The Apple activation share was actually down 2.2% from 2014. Flurry added that more than half of all Android activations were completed on phablets, such as the Samsung Galaxy Note or those devices popular in Asian markets. Samsung’s activation share rose 2.1% in 2015.

“This year, the larger trend Flurry uncovered was what it dubbed the ‘death of small phones,’” wrote Sarah Perez for TechCrunch. “That is, for the first time in 2015, consumers appear to be opting for phablets over smaller-screened phones. And phones with a screen smaller than 3.5 inches (e.g. most Blackberry devices) are practically extinct.”

Wearable Tech Ready to Take Off

International Data Corp. (IDC) predicted that wearable technology will grow and the Apple Watch will play a key role. The firm said that 45.7 million wearable devices will ship this year, with that number climbing to 126.1 million in 2019, according to a report in VentureBeat.

Just over four million smart wearables—defined by IDC as wearable devices that run apps—were sold in 2014. The IDC forecast called for that number to reach 25.7 million this year, while “dumb wearables”—devices like fitness trackers than don’t run apps—will grow from sales of 15.4 million units in 2014 to 20 million this year.

“The Apple Watch raises the profile of wearables in general, and there are many vendors and devices that are eager to share the spotlight,” said Ramon Llamas of IDC. “Basic wearables, meanwhile, will not disappear. In fact, we anticipate continued growth here as many segments of the market seek out simple, single-use wearable devices.”

Tablets May Not Be Killing Off Laptops

The Case of the Dwindling Laptop Sales is still an open mystery. It turns out tablets may not be the culprit after all, at least according to a new survey of tablet owners by market research firm IDC.

Many technology-watchers, noting that tablet sales were rising at about the same pace as laptop sales were falling, assumed there was a direct correlation between the two. The IDC study, conducted last April, contradicts that. Just 8.7% of survey respondents said they bought a new tablet as a laptop replacement while 58.5% specifically purchased the tablet to use in combination with their laptop.

The survey sample wasn’t all that large—only 299 adults—but it shows that consumers buy different devices for different reasons, and don’t want to ditch any of them yet. “A huge percentage of people still see a lot of value in a laptop for one kind of app or service they use on it. Would they want to do their taxes on a tablet? They haven’t quite made the leap to being comfortable with a mobile device like a tablet,” IDC analyst Tom Mainelli told Computerworld.

College students probably fit into that category. A tablet is easier to tote around campus for checking course updates in the learning management system in between classes, for example. A laptop is better for working on papers and projects.

That still leaves the mystery of why laptop sales are down. It’s possible tablets do share some of the blame. After buying the latest tablet, purchasers may not feel the need to upgrade their laptops to a new model. Also, those who use their tablets on the go, such as students, may find their laptops last longer parked at home where there’s reduced risk of theft or breakage.

PC Market Continues Its Decline

Market research firm Gartner recently reported that PC shipments in the first three months of 2013 declined 11.2% over the same period in 2012. International Data Corp. (IDC) found the tumble to be closer to 14%, but both firms suggest Windows 8 deserves some of the blame.

The problem is that PC makers are producing higher-priced devices to take advantage of the touch-centric start screen used by the Microsoft operating system, according to an article in PC World. For instance, the Samsung Series 9 ultrabook has state-of-the-art features and a price tag of $1,400, making it less attractive to many consumers.

“At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market,” Bob O’Donnell, IDC program vice president, clients and displays, said in an article in SlashGear.

Budget machines that offer touchscreens, along with low-cost hybrid PCs and notebooks with longer battery life, could offer relief, according to PC World. However, Stephen Baker of the consumer market research firm The NDP Group said higher-priced devices may be the right way to proceed.

“Right now, we are seeing a shift in sales volume away from under-$500 PCs towards tablets in that same price point,” Baker wrote to PC World. “We don’t see the same level of shift between the two in products above $500.”

Price Comparison- Be in it to win it!

Recently Amazon announced the release of an iPhone App, Amazon Student. The app is essentially a price comparison tool aimed at college students. Other features of the app allow the user to buy and sell books as well.

Here is another reason why college stores need to be cognizant of the value of offering price comparison, with tools like Verba. As mobile apps for price comparison becomes a common tool for customers, stores need to be aware that if they are not part of the price comparison the fail to become an option for the consumer. Price comparison is as much about consumer trust and relationships as it is about transparency.  If your store is not listed in the comparison you simply do not exist for the consumer. It’s simple, you got to be in the game to at least have a chance to win it.  Providing price comparison information is an easy way to help retain market share.

Disclosure:  NACS Media Solutions does have a partnership arrangement with Verba.  We believe strongly that this type of technology should be widely adopted by the college store community.  The move of Amazon into this space further demonstrates that this technology makes sense -- and college stores were there first!  Amazon followed our industry's example almost 18 months later! 

CAMEX questions answered: market share versus margin

As promised, over the next few weeks, I will answer questions CAMEX attendees wrote on index cards during my session. I have a few dozen cards, and some of the questions are redundant.

Looking across the questions submitted, they appear to fall into a few categories: rental, DRM, NACS/NMS initiatives, market share versus margin, facilitating change on campus and/or integrating with campus better, inventory questions, and then a few others. There are a number of good questions, and more than a couple without simple answers.

I will aim to answer 1-3 of the questions here each Friday until I have completed them all, so check back weekly to see if I have answered your question(s). This week I will answer one of the "market share versus margin" questions. If you have additional questions you would like to pose, please post a comment or drop me an email.

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Q1. Can you elaborate on the importance of focusing on market share rather than margin?
Yes. This is one of my favorite questions -- and lucky for you, I already have an answer prepared. Please see the August issue of InCITE which provides a detailed discussion, with examples and rationale as to why market share is important. This issue of InCITE went out to all NACS store members, and received a fair amount of positive feedback. Normally, the InCITE discussion is about 1-2 pages in length, but this one is a bit longer, giving detailed elaboration on this important topic. I believe it will help answer your question, and give you a resource you can share with your administration or other store employees to help them understand why certain actions or changes in business practice are necessary.