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ChangeWave Research: Consumer Tablet and PC Demand Trends

Consumer Tablet and PC Demand TrendsTablets Surge for the Holidays – Big Win for AppleAndy Golub and Sayon Deb

Overview: ChangeWave surveys typically show consumer tablet demand surges during the holidays – but is this year seeing the same wave of buying? And what impact are new releases from Apple, Amazon and others having on consumer purchase intentions?

To find out, ChangeWave conducted a November survey of 2,480 primarily North American consumers to look at tablet demand for the all-important holiday season.

The survey also focused on customer satisfaction and key trends driving the tablet market, as well as the latest in PC and Operating System demand. ChangeWave Research is a service of 451 Research.

Holiday Spike in Consumer Tablet Demand

The holiday shopping season coupled with new tablet releases have caused a spike in consumer demand – with 13% of respondents saying they plan on buying a tablet in the next 90 days.

This is more than double the level of three months ago (Aug ’13), and similar to the past two holiday seasons.

But which tablet makers are gaining the most from this increased demand?

Leading Tablet Manufacturers – Apple Wins Big. Following the releases of its new iPad Air and iPad mini with Retina display, Apple continues to hold a tight grip on next 90-day tablet demand. Nearly three-quarters of planned tablet buyers (72%) say they’ll purchase an iPad – a 17-pt surge since the previous survey.

This information is from ChangeWave Research, a service of 451 Research, LLC, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

December 11, 2013

ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsThe iPad’s momentum is currently drawing attention away from most of the other manufacturers – a trend we normally see during new Apple releases. Samsung (9%; down 4-pts) and Google (9%; down 3-pts) are now tied for a distant second, both having declined since the previous survey.

Though still in fourth place Microsoft (8%) has ticked 1-pt higher in planned buying, a hopeful sign for its October Surface 2 tablet launch. At the same time, Amazon (5%) – which recently released its next gen Kindle Fire HDX tablets – has dipped 1-pt in next 90-day buying. Tablet Customer Satisfaction. As we've seen in previous ChangeWave surveys, Apple continues to lead the industry in tablet satisfaction. Better than three-in-four (76%) 4th gen iPad owners say they're Very Satisfied, with the iPad mini (70%) a close second. Overall, how satisfied are you with your tablet device? (Please rate only the tablets you currently own)

The other major manufacturers trail within a tight range, led by Samsung Galaxy devices (52%). Amazon Kindle Fire tablets (48%) have improved to third place, followed closely by Microsoft Surface (47%) and Google Nexus (46%).


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsOther Tablet Findings

Operating Systems. Better than half of planned buyers (55%; up 1-pt) say they’d most prefer their tablet to run on Apple’s iOS. Windows 8 (14%) is showing momentum with a 5-pt increase since August, but remains behind Android (15%), which has fallen 6-pts.

Tablet Screen Sizes. In terms of tablet size preferences among planned buyers, two-in-five (43%) say they'd like a 10 inch screen or larger. Another 24% want a 9.0–9.9” screen.

Wireless Providers. A total of 35% say they’ll purchase Wi-Fi only models, but that’s 5-pts less than previously and the first decline in the past year. Verizon Wireless (20%; up 1-pt) and AT&T (15%; up 1-pt) are the top choices among those using a wireless service.

Bottom Line. ChangeWave’s latest survey shows it’s another monster holiday season for tablets – with a spike in demand for Apple iPads driving consumer buying plans. While great news for Apple, the other major tablet manufacturers are trailing in terms of momentum for the next 90 days.

To shed light on what influences buying decisions, we asked respondents which factor is more important when choosing a new tablet – the Operating System or the Brand.

The results show a fairly even split among Apple tablet owners when it comes to whether the Brand (28%) or the Operating System (25%) is more important – not surprising as Apple has control over both the OS and hardware. Moreover, this is likely a key contributing factor for Apple’s industry leading satisfaction rating.

Which factor is more important to you when choosing a new tablet - the Operating System or the Brand of the tablet?

OwnTablet with

AppleiOS

OwnTablet with

AndroidOS

OwnTablet withWindows 8

OSOperating System is More Important 25% 39% 53%Brand is More Important 28% 13% 13%Equally Important 36% 35% 28%Don’t Know / NA 12% 12% 6%

It’s a different story among Android (13% Brand; 39% OS) and Windows (13% Brand; 53% OS) tablet owners. For Android, these results aren’t surprising considering the fragmentation that’s resulted from several manufacturers producing Android OS tablets. For Windows, the big story here is the huge percentage (53%) who cite the OS as the more important factor in their purchasing decision.

Consumer PC Demand – Next 90 DaysThe ChangeWave survey also looked at PC demand trends, and while there is a slight seasonal uptick compared to August, it’s nowhere as significant as the tablet buying surge.

A total of 8% of respondents say they’ll buy a laptop in the next 90 days and 6% a desktop, each up 1-pt.


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand Trends

We asked respondents planning on buying a PC in the next 90 days which operating system they’d like installed on their computer. Nearly half (45%) say they’ll choose Windows 8.1 (including 25% Windows 8.1, 17% Windows 8.1 Pro, 3% Windows 8.1 RT) – an encouraging sign for Microsoft after three consecutive surveys of weaker adoption rates.

Another 29% say they still prefer Windows 7 and 24% chose Apple's Mac OS X Mavericks.

In further good news for Microsoft, more than two-thirds of respondents using the recently updated Windows 8.1 find it is an improvement over Windows 8 – 19% say it’s Significantly Better and 49% Somewhat Better.

For those who currently own a computer running the updated Windows 8.1 operating system, how does Windows 8.1 compare to Windows 8?

CurrentSurveyNov ‘13

Windows 8.1 is Significantly Better than Windows 8 19%Windows 8.1 is Somewhat Better than Windows 8 49%No Difference 30%Windows 8.1 is Somewhat Worse than Windows 8 1%Windows 8.1 is Significantly Worse than Windows 8 2%


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsRespondent HUS91040 finds "the start button and Internet Explorer 11 with Skydrive integration are definite improvements." GAB23192 adds that "bringing back some of the previous Windows 7 features (like Start button) makes the learning curve less steep."A Look at PC Manufacturers

Apple Demand – Next 90 Days. A total of 37% of respondents planning on buying a laptop in the next 90 days say they’ll purchase a Mac – up 1-pt and matching their all-time high. Apple still leads in desktop buying (29%), although it is down 4-pts.

The recently updated MacBook Pro line (39%; up 5-pts) tops the list of preferred models among planned Apple buyers. Their October refresh focused on the MacBook Pro with Retina display series, and included new Intel processors, longer battery life, and faster flash storage, among other things.

The MacBook Air (27%; down 2-pts) remains second.

In terms of desktops, the iMac continues to perform well with 20% of Apple planned buyers saying they will purchase one in the next 90 days.


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsDell. The results for Dell are mixed, with laptops (24%; up 3-pts) improving for the third consecutive survey even as desktop buying (27%) has dipped 1-pt.

Lenovo. In a positive finding for Lenovo, planned laptop (16%; up 2-pts) and desktop buying (11%; up 3-pts) are both showing momentum – matching their all-time ChangeWave highs.

Hewlett-Packard. After three surveys of improvement, demand for Hewlett-Packard is down in both desktops (22%; down 2-pts) and laptops (19%; down 3-pts).

Other PC Findings

Influence of Work OS on PC Buying Decision. The operating system respondents use at work has a significant influence on the OS they use at home. Better than a third of planned computer buyers (35%) say the OS they use at their office has a Significant Influence on the OS they want installed on their next personal computer.

Another 26% say it has a Modest Influence.

Interest in Dual Boot Laptops. Some manufacturers are expected to release new laptops capable of running both the Windows 8 and Android operating systems at the same time (i.e., dual-boot laptops). We asked respondents how interested they would be in having this dual functionality on their next laptop.

Among all respondents, 8% say they’re Very Interested and 27% Somewhat Interested in a dual-boot laptop. Interest is much higher among those already using Android Tablets (14% Very; 37% Somewhat).

Ultrabooks – Future Demand. After a pullback in the previous survey, planned Ultrabook buying has increased 1-pt, with 6% now saying they’ll buy one in the future.

Lenovo (27%; up 4-pts) remains the leader among planned Ultrabook buyers that know which manufacturer they'll choose. Dell (20%; up 7-pts) is now in second, followed by Samsung (16%; up 3-pts). Note that 42% of all Ultrabook buyers still don’t know which model they'll choose.


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Summary of Key Findings

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.


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iPad Leads the Industry in Customer SatisfactionTablet Satisfaction Ratings 4th Gen iPad with Retina

display (76% Very Satisfied) iPad mini (70%) Samsung 2nd/3rd Gen (52%) Amazon 2nd/3rd Gen (48%) Microsoft Surface (47%) Google Nexus (46%)

Other Tablet Findings Operating Systems : 55% of

planned tablet buyers prefer Apple’s iOS; Windows 8 (14%; up 5-pts) is showing momentum but still behind Android (15%; down 6-pts)

Size : Most prefer 10” or larger (43%) and 9-9.9” (24%)

Wireless Service : 35% say they’ll purchase a WiFi only model, but that’s down 5-pts

Spike in Consumer Tablet Demand for the Holidays 13% say they plan on buying

a tablet in next 90 days This is more than double the

level of three months ago (Aug ’13), and similar to the past two holiday surges

Apple iPad Dominating Next 90-Day Planned Buying Apple maintains a big lead,

with 72% of planned tablet buyers saying they’ll purchase an iPad (up 17-pts)

Samsung (9%; down 4-pts) Google (9%; down 3-pts) Microsoft (8%) up 1-pt after

release of Surface 2 tablets Amazon Kindle Fire (5%;

down 1-pt)

PC Demand Outlook – Next 90 Days 8% plan on buying a laptop in

next 90 days – up 1-pt Desktop demand (6%) also up

1-pt

Positive Findings for Microsoft Windows 8.1 45% of planned PC buyers

want Windows 8, up 6-pts 19% of Windows 8.1 users

say it is Significantly Better than Windows 8, 49% Somewhat Better

Other OS Preferences Windows 7 (29%) Mac OS X Mavericks (24%)

Ultrabooks: Consumer Planned Purchasing• 6% say they plan on buying an

Ultrabook in future – up 1-pt


Table of Contents

Summary of Key Findings.............................................................................................7

The Findings.................................................................................................................10

Holiday Spike in Consumer Tablet Demand................................................................9

Consumer PC Demand – Next 90 Days....................................................................18

Consumer Ultrabooks: Future Demand.....................................................................27

ChangeWave Research Methodology........................................................................29

About ChangeWave Research....................................................................................29

About 451 Research.....................................................................................................29


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I. The FindingsIntroduction: ChangeWave surveys typically show consumer tablet demand surges during the holidays – but is this year seeing the same wave of buying? And what impact are new releases from Apple, Amazon and others having on consumer purchase intentions?

To find out, ChangeWave conducted a November survey of 2,480 primarily North American consumers to look at tablet demand for the all-important holiday season.

The survey also focused on customer satisfaction and key trends driving the tablet market, as well as the latest in PC and Operating System demand. ChangeWave Research is a service of 451 Research.

(A) Holiday Spike in Consumer Tablet Demand

The holiday shopping season coupled with new tablet releases have caused a spike in consumer demand – with 13% of respondents saying they plan on buying a tablet in the next 90 days.

This is more than double the level of three months ago (Aug ’13), and similar to the past two holiday seasons.

But which tablet makers are gaining the most from this increased demand?This information is from ChangeWave Research, a service of 451 Research, LLC, and contains confidential business information.

It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.9

ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsLeading Tablet Manufacturers – Apple Wins Big. Following the releases of its new iPad Air and iPad mini with Retina display, Apple continues to hold a tight grip on next 90-day tablet demand. Nearly three-quarters of planned tablet buyers (72%) say they’ll purchase an iPad – a 17-pt surge since the previous survey.

(FOR THOSE BUYING A TABLET DEVICE IN THE NEXT 90 DAYS) Who is the manufacturer and what tablet device are you planning on buying?


Previous Survey Aug ‘13

Previous Survey May ‘13

Previous Survey Feb ‘13

Previous Survey Nov ‘12

Apple (e.g., iPad with Retina display, iPad mini, iPad 2)

72% 55% 54% 61% 67%

Samsung (e.g., Galaxy Tab 3, Tab 2, Galaxy Note III, Note 10.1)

9% 12% 15% 8% 6%

Google (e.g., Nexus 10, Nexus 7 Second Generation)

9% 13% 10% 8% 7%

Microsoft (e.g., Surface) 8% 7% 9% 9% 8%Amazon (e.g., Kindle Fire HD, Kindle Fire) 5% 6% 4% 7% 11%Asus (e.g., Transformer Pad, Vivo Tab) 2% 3% 2% 1% 1%Dell (e.g., XPS 10, Latitude 10) 1% 1% 0% 0% 0%Acer (e.g., Iconia) 0% 1% 1% 1% 0%Barnes & Noble (e.g., Nook HD+, Nook HD) 0% 1% 1% 1% 1%Lenovo (e.g., IdeaTab, ThinkPad) 0% 0% 1% 2% 0%BlackBerry (e.g., Playbook) 0% 0% 1% 1% 0%H-P (e.g., ElitePad, TouchPad) 0% 0% 1% 0% 0%

The iPad’s momentum is currently drawing attention away from most of the other manufacturers – a trend we normally see during new Apple releases. Samsung (9%; down 4-pts) and Google (9%; down 3-pts) are now tied for a distant second, both having declined since the previous survey.


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsThough still in fourth place Microsoft (8%) has ticked 1-pt higher in planned buying, a hopeful sign for its October Surface 2 tablet launch. At the same time, Amazon (5%) – which recently released its next gen Kindle Fire HDX tablets – has dipped 1-pt in next 90-day buying.

Among planned Apple buyers, more than half (55%) say they will purchase the iPad Air and 16% the iPad mini with Retina display.

Current Survey Nov ‘13

Apple iPad Air 55%Apple iPad mini with Retina Display 16%Apple iPad mini 5%Apple iPad 2 7%Other 1%Don't Know/NA 17%

What’s driving planned buyers towards Apple iPads? Size and Portability (19%) tops the list. As respondent HOO13671 puts it “Convenient size with powerful features” and JHE18413 adds "Lighter, faster, may consider giving up laptop and have just desktop and iPad." Another 16% want to Upgrade an Older Device and 15% cite Brand Loyalty towards Apple.

PlannediPad Buyers


Size and Portability 19%Upgrade an Older Device 16%Brand Loyalty 15%Easy to Use 11%Speed 9%Screen Size/Display Resolution 8%Other 21%

Sample of Open Ended Responses for Planned iPad Buyers

(a) Size and Portability (19%)

WOO97666 writes, "It's a good intermediate size for better portability. With my current tablet (Microsoft Surface Pro), I still need to use a computer bag to carry it and its accessories around."

HOO13671 writes, "Convenient size with powerful features" CSH33064 writes, "Size, performance and iOS" GWH19773 writes, "Smaller size and less weight" IMP93218 writes, "Very convenient size and weight" WAS95719 writes, "Convenience when traveling to replace laptop" BUD92489 writes, "Lighter weight and faster"


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(b) Upgrade Older Device (16%)

TTR1210 writes, "Currently own iPad 2 - time to upgrade" LEA19257 writes, "Happy with previous iPads and want to have the new features." JP11276 writes, "My other iPad is the original and is getting beat up and can't install

new OS upgrades" RME39578 writes, "Plan to upgrade one of my tablets and I prefer Apple. I like the

bigger size and the lighter weight would be nice." THA30406 writes, "Replace current tablet, like the iPad." PAO31196 writes, "Updated speed and graphics" KLA08176 writes, "Want the state-of-the-art large table to replacing my ancient first-

gen iPad." WPW6938 writes, "want to upgrade from fairly old model to latest model for increased

speed and ability to keep OS updated"

(c) Brand Loyalty (15%)

RDA19008 writes, "Apple products are the best quality" GOR94294 writes, "It's simply the latest edition of one of the coolest, most useful,

thoughtfully-designed, and well-executed devices I've ever purchased." KKA26028 writes, "Apple is the leader" MCM94036 writes, "Apple quality, innovation, and infrastructure" JDA89702 writes, "Brand name / previous experience with Apple products" COR58088 writes, "Years of positive experience with Apple products." GBE19762 writes, "Apple family synergy. We use iPhone." MEN13056 writes, "The most advanced in the market "

(d) Easy to Use (11%)

PBI97508 writes, "Ease of use, ethics of company" ROK02364 writes, "Friendly user, quality" ROB88178 writes, "Compatibility, apps, processor speed, resolution" PLA95024 writes, "Compatible with iPhone

(e) Speed (9%)

BWA10062 writes, "New A7 processor" MDC29934 writes, "Faster performance, better screen." WJE93156 writes, "Speed, security, memory" STE60234 writes, "Faster processor, more memory, same plug as phone”


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand Trends(f) Screen Size/Display Resolution (8%)

PAT92461 writes, "Good graphics and small size" DAR20124 writes, "Resolution, size/weight, apple ecosystem" KKF25404 writes, "Retina display upgrade of my iPad original."

Here’s a sample of responses from consumers who plan to buy a Samsung, Google, Microsoft or Amazon tablet:

Sample of Open Ended Responses for Planned Samsung Galaxy Buyers

AMI9554 writes, "7 inch screen is easy to carry. Reputable make. I have lots of Samsung gear."

JIM08093 writes, "Familiar with Samsung. Own a Galaxy 4S like it very much." HAR20730 writes, "Good experience with Samsung devices" BEA01170 writes, "Good features at reasonable price. Reputation for quality" CHA7554 writes, "Larger screen and others like Samsung" SCW30452 writes, "Pleased with old Samsung product, seems to do what I want." CUS40402 writes, "Samsung is the best technology company in the world that actually

creates new knowledge." FWB0582 writes, "Screen Size & editing pen" SHA17546 writes, "Price, Quality, Brand" Car88762 writes, "Processing power"

Sample of Open Ended Responses for Planned Google Nexus Buyers

MRA19098 writes, "All the integration with Google services" PGR7922 writes, "Frequent Android updates” BIS32010 writes, "Google Apps" VAS85894 writes, "Great functionality and quality for affordable price" WIL09942 writes, "HDMI port" TOM27284 writes, "Nexus experience" DIS96294 writes, "Perceived value in an Android tablet." fsg90716 writes, "Quickest updates to Android come to Google devices." OAL19450 writes, "Reliable & cheaper" MBL19875 writes, "Security of Android OS"

Sample of Open Ended Responses for Planned Microsoft Surface Buyers

JAG05676 writes, "Best of all worlds, small form factor, directly compact with all software used, very little app use and can use BlueStacks if I need one from other platforms"

DON6842 writes, "Can handle word, Excel & Power Point files" CMI63252 writes, "I like the Pro operating system and capabilities." JWA7396 writes, "MS Office is included" GAM99066 writes, "Optimization of compatibility with MS Office applications on work

computers" TOM00915 writes, "PC compatibility" MTW45380 writes, "Preference for Microsoft Office" CJE01314 writes, "Seems most flexible and integrates with present PCs"


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand Trends TSH41660 writes, "USB port, pre-installed Office suite." KSO3194 writes, "Working under Window OS."

Sample of Open Ended Responses for Planned Amazon Kindle Buyers

BEE14476 writes, "Already own earlier version and is cost effective" DAR20294 writes, "Backlit-reader" RAP24181 writes, "Like to keep up with innovation" BAR23466 writes, "Larger screen" T_R1976 writes, "Price has come down, good enough for children to run apps or view

shows on, HD, large screen." CEL95741 writes, "Proven reliability" TGR14028 writes, "Reading computer light weight" SLI20110 writes, "To give as a gift and to upgrade my current model." NAS98162 writes, "Use a lot of their content" GRE1314 writes, "Very inexpensive. Great screen resolution. Typically only use a

tablet for surfing the web, email and taking pictures for which this tablet will work just fine."

Tablet Customer Satisfaction. As we've seen in previous ChangeWave surveys, Apple continues to lead the industry in tablet satisfaction. Better than three-in-four (76%) 4th gen iPad owners say they're Very Satisfied, with the iPad mini (70%) a close second.

Overall, how satisfied are you with your tablet device? (Please rate only the tablets you currently own)


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsThe other major manufacturers trail within a tight range, led by Samsung Galaxy devices (52%). Amazon Kindle Fire tablets (48%) have improved to third place, followed closely by Microsoft Surface (47%) and Google Nexus (46%).

Very Satisfied

Somewhat Satisfied

Somewhat Unsatisfied

Very Unsatisfied

Apple 4th Generation iPad with Retina display 76% 21% 1% 2%Apple iPad mini 70% 27% 3% 1%Samsung 2nd/3rd Generation Tablets 52% 38% 7% 3%Amazon 2nd/3rd Generation Tablets 48% 43% 6% 3%Microsoft Surface 47% 33% 10% 10%Google Nexus 46% 41% 8% 5%

Here’s a look at satisfaction ratings with a handful of specific tablet and operating system features:

And how satisfied are you with each of the following aspects of your current tablet?

Very Satisfied Ratings by Manufacturer (Nov 2013)Apple Samsung Amazon Microsoft Google

Battery Life 46% 27% 28% 39% 52%Screen Size 59% 54% 42% 45% 46%Screen Resolution 58% 53% 49% 58% 62%Processor Speed 38% 26% 27% 37% 30%Speaker Quality 21% 17% 13% 16% 18%

Very Satisfied Ratings by Operating System (Nov 2013)

iOS (Apple)

Android(Google)

Windows8 / 8.1

(Microsoft)# of Apps Available 73% 50% 35%Compatibility with Other Devices 31% 24% 33%Frequency of OS Updates 40% 25% 27%Security Features 44% 27% 40%Capability to Perform Work Tasks 26% 18% 38%

Top Tablet Uses Among Owners. The survey also asked tablet owners how they use their devices, and found Surfing the Web (87%) tops the list, followed by Email (80%) and Getting News/Weather (70%).

In which of the following ways do you use your tablet? (Check All That Apply)Current Survey Nov ‘13

PreviousSurveyMay ‘13


Surfing the Web 87% 87% 85%Sending/Receiving Email 80% 78% 76%Getting News/Weather 70% 70% 66%Shopping Online 56% 57% 51%Using Apps 56% 57% 52%


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsReading eBooks 55% 58% 54%Playing Games 51% 51% 49%Social Networking (e.g., Facebook, Twitter) 39% 37% 35%Listening to Music 35% 37% 30%Watching TV Shows/Movies 33% 35% 31%Calendar/Scheduling Features 32% 32% 26%Working Away From the Office 27% 26% 25%GPS Navigation/Directions 24% 23% 19%Taking/Editing Pictures 23% 23% 19%Sharing Pictures/Video with Others 23% 24% 22%Video Conferencing 14% 15% 9%Storing/Managing Files in the Cloud 14% 15% 11%Laptop Replacement 14% 14% 15%Editing Documents/Spreadsheets 12% 12% 10%Digital Assistant/Voice Commands (e.g., Siri, Google Voice)

7% 7% 4%

Other 2% 2% 3%

Here's a look at the top uses among Android, iOS and Windows 8 users:All

Tablet Owners Android iOS

Windows 8/8.1

Surfing the Web 87% 84% 92% 96%Sending/Receiving Email 80% 71% 88% 92%Getting News/Weather 70% 63% 78% 77%Shopping Online 56% 44% 66% 58%Using Apps 56% 51% 64% 69%Reading eBooks 55% 58% 56% 54%Playing Games 51% 50% 55% 44%Social Networking (e.g., Facebook, Twitter) 39% 33% 47% 46%Listening to Music 35% 32% 41% 44%Watching TV Shows/Movies 33% 30% 38% 33%Calendar/Scheduling Features 32% 25% 37% 65%Working Away From the Office 27% 17% 32% 54%GPS Navigation/Directions 24% 22% 28% 27%Taking/Editing Pictures 23% 18% 28% 29%Sharing Pictures/Video with Others 23% 20% 29% 33%Video Conferencing 14% 12% 17% 33%Storing/Managing Files in the Cloud 14% 9% 17% 42%Laptop Replacement 14% 11% 15% 33%Editing Documents/Spreadsheets 12% 12% 13% 56%Digital Assistant/Voice Commands (e.g., Siri, Google Voice)

7% 8% 9% 10%

Other 2% 1% 1% 2%


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsOther Tablet Findings

Operating Systems. Better than half of planned buyers (55%; up 1-pt) say they’d most prefer their tablet to run on Apple’s iOS. Windows 8 (14%) is showing momentum with a 5-pt increase since August, but remains behind Android (15%), which has fallen 6-pts.

Which mobile OS (operating system) would you most prefer to have on the Tablet you plan on buying?

*Don't Know/Other = 15%


PreviousSurveyAug ‘13

Previous SurveyMay ‘13


iOS (Apple) 55% 54% 47% 51%Android (Google) 15% 21% 19% 18%Windows 8 Pro (Microsoft) 11% 8% 12% 9%Windows 8 RT (Microsoft) 3% 1% 1% 1%Don't Know 15% 14% 18% 16%Other 2% 2% 3% 4%

Tablet Screen Sizes. In terms of tablet size preferences among planned buyers, two-in-five (43%) say they'd like a 10 inch screen or larger. Another 24% want a 9.0–9.9” screen.

What screen size tablet are you most interested in buying?





Less than 7 Inch Screen 3% 3% 5% 5%7.0-7.9 Inch Screen 18% 27% 22% 25%8.0-8.9 Inch Screen 12% 12% 14% 9%9.0-9.9 Inch Screen 24% 17% 15% 16%10.0-10.9 Inch Screen 31% 30% 35% 35%11.0-11.9 Inch Screen 6% 5% 4% 4%12 Inch Screen or Larger 6% 6% 6% 6%


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Wireless Providers. A total of 35% say they’ll purchase Wi-Fi only models, but that’s 5-pts less than previously and the first decline in the past year. Verizon Wireless (20%; up 1-pt) and AT&T (15%; up 1-pt) are the top choices among those using a wireless service.

Which wireless service provider - if any - will you use for your new tablet device?






None (Wi-Fi Only) 35% 40% 37% 31% 31%Verizon Wireless 20% 19% 21% 25% 22%AT&T 15% 14% 16% 17% 18%Sprint 2% 2% 2% 2% 5%T-Mobile 2% 1% 1% 2% 2%Don’t Know 18% 16% 14% 14% 14%Other 6% 5% 7% 6% 7%

What Will Planned Buyers Do With Their Current Tablet? We asked planned buyers what they intend to do with their current tablet after making their purchase, and Giving It To a Family Member/Friend (60%) was by far the top choice, followed by Keeping It as a Backup (24%).When you purchase your new tablet, what will you do with your current tablet?


Give It To a Family Member/Friend 60%Keep It as a Backup 24%Use a Retailer’s Trade-in Program (e.g., Best Buy, Apple, Walmart) 4%Sell It Myself 3%Use Wireless Provider’s Trade-in Program 2%Donate It 2%Sell it to an Online Trade-in/Buyback Service (e.g., Gazelle, uSell) 1%Recycle It 1%


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsOther 4%

Impact of “Phablet” Devices on Tablets. In ChangeWave’s latest Smart Phone report, we found phablets (i.e., smart phones with a 5” screen or larger) posing a threat to other products – with Tablets showing vulnerability.

To follow up, in the current survey we asked Tablet owners who also have a Phablet how their behavior has changed since buying their phablet. By better than a six-to-one margin, those who own both devices say they’re using their tablet Less Frequently (27% Less Frequently vs. 4% More Frequently) since buying their phablet.

For Tablet owners who also own a “Phablet” (i.e., smart phone with a 5” screen or larger), which of the following best describes how the use of your Tablet has changed since purchasing your “Phablet”?


Use My Tablet Less Frequently 27%Use My Tablet More Frequently 4%No Change 69%

Impact of T-Mobile’s Free Data Offer. In the current survey we asked about the impact of T-Mobile’s latest announcement, offering up to 200 MB of free LTE data each month to consumers using tablets on its network. A total of 13% say they are More Likely to use T-Mobile in the future compared to just 1% Less.

T-Mobile recently announced they will provide customers using tablets on its network up to 200 MB of free LTE data each month.

Does this announcement make you more likely to use T-Mobile in the future, less likely, or does it have no effect?


More Likely to Use T-Mobile in the Future 13%Less Likely to Use T-Mobile in the Future 1%No Effect 68%Don’t Know 14%No Answer 4%

While generally positive, the reaction is not as strong as ChangeWave’s May Wireless survey, where we looked at the impact of T-Mobile’s decision to eliminate service contracts and phone subsidies. The results showed a strong 25% saying they were more likely to use T-Mobile in the future due to these new subscription options.


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Consumer PC Demand – Next 90 DaysThe ChangeWave survey also looked at PC demand trends, and while there is a slight seasonal uptick compared to August, it’s nowhere as significant as the tablet buying surge.

A total of 8% of respondents say they’ll buy a laptop in the next 90 days and 6% a desktop, each up 1-pt.

Will you be buying a computer in the next 90 days?

We asked respondents planning on buying a PC in the next 90 days which operating system they’d like installed on their computer. Nearly half (45%) say they’ll choose Windows 8.1 (including 25% Windows 8.1, 17% Windows 8.1 Pro, 3% Windows 8.1 RT) – an encouraging sign for Microsoft after three consecutive surveys of weaker adoption rates.

Another 29% say they still prefer Windows 7 and 24% chose Apple's Mac OS X Mavericks.


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Which operating system would you like to have preinstalled on the computer(s) you plan on buying in the next 90 days? (Check All That Apply)








Windows 8.1 17% 23% 25% 25% 29% NA NAWindows 8.1 Pro 25% 15% 17% 20% 18% 18% 8%Windows 8.1 RT 3% 1% 1% 1% 2% NA NA

Windows 7 29% 28% 32% 28% 22% 54% 57%Other Windows 2% 1% 2% 2% 1% NA NA

Mac OS X Mavericks

24% 18% NA NA NA NA NA

Mac OS X Mountain Lion

NA 14% 29% 28% 28% 20% NA

Mac OS X Lion NA NA NA NA NA 5% 34%

Chrome OS 5% 4% 3% 4% 4% NA NA

Linux 5% 3% 4% 4% 1% 3% 3%

Don't Know 10% 9% 7% 6% 10% 7% 6%Other 1% 1% 2% 1% 1% 1% 1%


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsIn further good news for Microsoft, more than two-thirds of respondents using the recently updated Windows 8.1 find it is an improvement over Windows 8 – 19% say it’s Significantly Better and 49% Somewhat Better.

Microsoft recently released their updated Windows 8.1 operating system, which brings back the Start Menu button and includes resizable Metro Snap panes, Internet Explorer 11, and better SkyDrive integration, among other things.

For those who currently own a computer running the updated Windows 8.1 operating system, how does Windows 8.1 compare to Windows 8?


Windows 8.1 is Significantly Better than Windows 8 19%Windows 8.1 is Somewhat Better than Windows 8 49%No Difference 30%Windows 8.1 is Somewhat Worse than Windows 8 1%Windows 8.1 is Significantly Worse than Windows 8 2%

Respondent HUS91040 finds "the start button and Internet Explorer 11 with Skydrive integration are definite improvements." GAB23192 adds that "bringing back some of the previous Windows 7 features (like Start button) makes the learning curve less steep."

Please explain why you think Windows 8.1 is better or worse than Windows 8.


Start Menu 25%Easier to Use 23%Runs Smoother 14%Faster 9%Improved Features 7%More Control 5%Other 18%

Sample of Open-Ended Responses

(a) Start Menu (25%)

HAG09326 writes, "Start menu familiarity" ESP3714 writes, "Glad they brought back the "Start" menu" ste88860 writes, "The Start navigation capability” JKA02428 writes, "Start button. Seems to be faster" SCO03570 writes, "Love the start menu button"

Hus91040 writes, "The start button and Internet 11 with the Sky drive integration are definitely improvements."

DWG6310 writes “The quicker access to the start is nice and boot directly to desktop is what I use."


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand Trends GAB23192 writes, "Bringing back some of the previous Windows 7 features (like Start

button) makes the learning curve less steep for this new OS."

(b) Easier to Use (23%)

KKA26028 writes, "Easier to find folders - printer, control panel" CUL32358 writes, "Navigation on the Windows Surface RT device has become easier” FWB0582 writes, "8.1 Makes transitioning from Win 7 slightly easier" dah89656 writes, "It addresses fundamental human performance engineering design

philosophies that designers ignored in v8.” DKL09922 writes, "Much more traditional interface between computer and user. The

Win 8 interface was too drastic of a change for one software generation for an aging user base.”

DBF32430 writes, "Allows better usage for laptop - touchscreen and tiles are worthless for laptop productivity purposes"

MUK94314 writes, "More user friendly" MKU08115 writes, "8.1 is easier to navigate with a mouse."

(c) Runs Smoother (14%)

MIK13036 writes, "Seems more responsive" RFR13048 writes, "It's more stable and reliable" TLO22650 writes, "Window 8.1 repaired some 8.0 bugs" MAN04000 writes, "Less bugs, easier to understand, less annoying things" HAN31382 writes, "Smoother integration"

(d) Faster (9%)

ALL16437 writes, "Faster startup, better app organization, start button, opens at desktop"

STA95164 writes, "A bit faster than 8; and I like the ability to tile windows” ALL10659 writes, "faster loading, start button although I do use a 3rd party start

button, better app organization"

(e) Improved Features (7%)

JJS56170 writes, "More features for printing web pages, better mail” JME6276 writes, "Mail client is vastly improved. Response time also. Also like the way

you can get to all apps” NOD07508 writes, "It wasn't a big change but some of the new features in the OS are

nice. I like more touch friendly changes."

(f) More Control (5%)

TNE10754 writes, "A little more control over system and appearance than 8.0" LDG06410 writes, "Refinements of controls, upgrade to 64-bit Internet Explorer 11 and

more integration of SkyDrive" BOB19708 writes, "More flexible and cleaner interface."


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsA Look at PC Manufacturers

Apple Demand – Next 90 Days. A total of 37% of respondents planning on buying a laptop in the next 90 days say they’ll purchase a Mac – up 1-pt and matching their all-time high. Apple still leads in desktop buying (29%), although it is down 4-pts.

The recently updated MacBook Pro line (39%; up 5-pts) tops the list of preferred models among planned Apple buyers. Their October refresh focused on the MacBook Pro with Retina display series, and included new Intel processors, longer battery life, and faster flash storage, among other things.

The MacBook Air (27%; down 2-pts) remains second.

In terms of desktops, the iMac continues to perform well with 20% of Apple planned buyers saying they will purchase one in the next 90 days.

Dell. The results for Dell are mixed, with laptops (24%; up 3-pts) improving for the third consecutive survey even as desktop buying (27%) has dipped 1-pt.


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*Note that 20% of Dell’s PC business comes from consumer sales, while 80% is corporate.

Lenovo. In a positive finding for Lenovo, planned laptop (16%; up 2-pts) and desktop buying (11%; up 3-pts) are both showing momentum – matching their all-time ChangeWave highs.

Hewlett-Packard. After three surveys of improvement, demand for Hewlett-Packard is down in both desktops (22%; down 2-pts) and laptops (19%; down 3-pts).

*We note that approximately 60% of H-P’s sales come from outside the U.S., whereas ChangeWave surveys focus primarily on the North American market.


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsHere’s a look at the complete PC buying results:(FOR THOSE BUYING A COMPUTER IN NEXT 90 DAYS) Who is the manufacturer and what computer type are you planning on buying? (Check All That Apply)Desktops



Apple - Desktop Computer 29% 33%Dell - Desktop Computer 27% 28%Hewlett-Packard (including Compaq) - Desktop Computer 22% 24%Lenovo - Desktop Computer 11% 8%Acer (including Gateway & eMachines) - Desktop Computer 8% 7%ASUS - Desktop Computer 4% 7%Other - Desktop Computer 8% 7%Don't Know 25% 20%

LaptopsCurrentSurveyNov ‘13


Apple - Laptop Computer 37% 36%Dell - Laptop Computer 24% 21%Hewlett-Packard (including Compaq) - Laptop Computer 19% 22%Lenovo - Laptop Computer 16% 14%Toshiba - Laptop Computer 13% 12%ASUS - Laptop Computer 11% 11%Samsung - Laptop Computer 8% 6%Acer (including Gateway & eMachines) - Laptop Computer 8% 8%Sony - Laptop Computer 5% 3%Vizio - Laptop Computer 1% 1%Other - Laptop Computer 2% 3%Don't Know 27% 24%


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsOther PC Findings

Influence of Work OS on PC Buying Decision. The operating system respondents use at work has a significant influence on the OS they use at home. Better than a third of planned computer buyers (35%) say the OS they use at their office has a Significant Influence on the OS they want installed on their next personal computer.

Another 26% say it has a Modest Influence.

How much of an influence - if any - does the Operating System you use at work have on the OS you’d like preinstalled on the next computer you buy?

PlannedComputer

BuyersNov ‘13

Significant Influence 35%Modest Influence 26%Slight Influence 12%No Influence 27%

Interest in Dual Boot Laptops. Some manufacturers are expected to release new laptops capable of running both the Windows 8 and Android operating systems at the same time (i.e., dual-boot laptops). We asked respondents how interested they would be in having this dual functionality on their next laptop.

Some analysts believe several manufacturers will soon release new laptops capable of running both the Windows 8 and Android operating systems at the same time (i.e., dual-boot laptops). These dual-boot laptops allow users to seamlessly switch between both operating systems.

How interested - if at all - are you in having your next laptop be able to run both operating systems?


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AllRespondents

AndroidTablet

OwnersVery Interested 8% 14%Somewhat Interested 27% 37%Not Very Interested 27% 25%Not At All Interested 23% 13%Don't Know 8% 4%No Answer 7% 8%

Among all respondents, 8% say they’re Very Interested and 27% Somewhat Interested in a dual-boot laptop. Interest is much higher among those already using Android Tablets (14% Very; 37% Somewhat).

Importance of Touch Screen. A total of 34% of planned laptop buyers said it is Very or Somewhat Important for their next laptop computer to have a touchscreen.

How important is it that your next laptop computer have a touch-screen?Planned

ComputerBuyersNov ‘13

Planned Computer

BuyersMay ‘13

Very Important 7% 10%Somewhat Important 26% 21%Not Very Important 24% 38%Not At All Important 35% 28%Don’t Know/NA 9% 3%


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Consumer Ultrabooks: Future DemandAfter a pullback in the previous survey, planned Ultrabook buying has increased 1-pt, with 6% now saying they’ll buy one in the future.

Are you planning to buy an Ultrabook computer in the future?CurrentSurveyNov ‘13





Yes 6% 5% 8% 5% 7%No 80% 81% 78% 81% 75%Don't Know 13% 14% 15% 14% 18%

Lenovo (27%; up 4-pts) remains the leader among planned Ultrabook buyers that know which manufacturer they'll choose. Dell (20%; up 7-pts) is now in second, followed by Samsung (16%; up 3-pts).

Who is the manufacturer of the new Ultrabook computer you plan on buying?CurrentSurvey Nov ‘13

Previous

SurveyAug ‘13


Previous

Survey Feb ‘13

PreviousSurvey Nov ‘12

Lenovo (e.g., Thinkpad X1 Carbon, IdeaPad U410)

27% 23% 20% 17% 17%

Dell (e.g., Inspiron 15z, XPS 14) 20% 13% 17% 15% 22%Samsung (e.g., Series 9, Series 5) 16% 13% 12% 17% 18%ASUS (e.g., VivoBook S500CA, Zenbook Prime)

14% 13% 15% 12% 8%

Hewlett-Packard (e.g., Envy Pro, Folio 13)

12% 17% 19% 21% 18%

Sony (e.g. VAIO T Series, Duo 11) 7% 9% 5% 7% 6%Acer (e.g., Aspire S7, Aspire S5) 4% 3% 4% 4% 5%Toshiba (e.g., Satellite U845W, Portégé Z935)

2% 4% 5% 3% 4%

Vizio (e.g., Thin + Light) 1% 1% 0% 0% 1%Other 6% 3% 5% 4% 1%

Note that 42% of all Ultrabook planned buyers still do not know which model they're going to choose.


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ChangeWave Research: Consumer Tablet, PC and Ultrabook Demand TrendsIn terms of timing, one-third of planned buyers (34%) say they’ll make their purchase within the next 90 days – a strong 12-pts higher than in August.

When do you think you'll purchase your new Ultrabook computer?CurrentSurveyNov ‘13

CurrentSurveyAug ‘13




Within the Next 30 Days 12% 8% 9% 3% 3%30-60 Days 12% 5% 5% 3% 11%60-90 Days 10% 9% 12% 8% 14%3-6 Months 21% 20% 12% 25% 24%6-12 Months 28% 27% 30% 31% 24%More Than 12 Months 11% 19% 23% 18% 13%Don't Know/NA 12% 11% 9% 10% 11%

Consumer Interest in Chromebooks. In our previous report we gauged consumer interest in Google’s Chromebook laptops, and while the results were not striking they did show some interest among consumers.

In the current survey, interest has edged higher with 10% now saying they are Very or Somewhat Likely to purchase a Chromebook.

A Chromebook is a relatively low-cost personal computer running the Google Chrome operating system. The device features faster start up times and is designed to be used while connected to the Internet and support web applications rather than traditional PC applications (e.g., Microsoft Office).

How likely are you to buy a Chromebook for yourself or someone else (e.g., a family member) in the future?



Very Likely 2% 1%Somewhat Likely 8% 7%Unlikely 76% 75%Already Own a Chromebook 1% 1%Don’t Know 11% 12%NA 3% 4%


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ChangeWave Research MethodologyThis report presents the findings of an October 30 – November 14, 2013 ChangeWave survey on consumer demand for Tablets, PCs and Ultrabooks. A total of 2,480 consumers participated.

ChangeWave's proprietary research and business intelligence gathering system is based upon the systematic gathering of valuable business and investment information directly over the Internet from accredited members of its research network.

The business and investment intelligence provided by ChangeWave provides a real-time view of companies, technologies, and consumer and business trends in key market sectors, along with an in-depth perspective of the macro economy – well in advance of other available sources.

About ChangeWave ResearchChangeWave Research, a service of 451 Research, is a survey research firm that identifies and quantifies change in corporate buying & business trends, telecom trends, and consumer spending & electronics trends.

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals – as well as early adopter consumers – who work in leading companies of select industries. ChangeWave surveys its Network members weekly on a range of business and consumer topics, and converts the information into a series of proprietary quantitative and qualitative reports. ChangeWave delivers its products and services on the Web at www.ChangeWaveResearch.com.

451 Research, LLC, including its ChangeWave Research service, does not make any warranties, express or implied, as to results to be obtained from using the information in this report. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report.

About 451 Research451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of 451 Research – at end-user, service-provider, vendor, and investor organizations – rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making. For additional information on 451 Research, go to: 451research.com.

For More Information:ChangeWave Research Telephone: 301-250-23637101 Wisconsin Ave. Fax: 240-200-3988Suite 1301 www.ChangeWaveResearch.comBethesda, MD 20814 [email protected]


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