1) The document summarizes research into the tablet market share of Apple and Android devices. It outlines the market overview, research questions, methodology used, key findings and managerial implications. 2) The findings show that Apple has a dominant market share but Android tablets are seen as cheaper and more customizable. Five consumer segments were identified, with most preferring Apple except those focused on hardware performance. 3) The implications suggest ways for OEMs and Google to increase their user base, such as improving apps and customization for Android while simplifying development. Strengthening the ecosystem through alliances and addressing each consumer segment's priorities could help close the gap with Apple.

1. Università Commerciale Luigi Bocconi
Faculty of Economics
Master of Science in Marketing Management
APPLE AND ANDROID IN THE
TABLET MARKET:
AN EMPIRICAL RESEARCH
Advisor: Prof. Luca Molteni
Discussant: Prof. Alessando Recla
Master of Science Thesis of: Alberto Xodo
Student ID: 1452747

2. Agenda
Market overview and research questions
Methodology
Findings
Managerial implications
Conclusions and Q&A
2

3. Market overview
Players 300 Volume Size1 (M Units)
250
Apple Android
200
150
100
Windows 8 50
RIM
(Fall 2012)
0
WebOS 2010 2011 2012
(Withdrawn)
Tablets PCs Notebooks
Shares by Volume in Q3 20112 Projected growth3
400
300
26.9% Apple
200
Others
66.6% 100
6.5% Android
0
3

4. Research questions
1 – What are the characteristics of
tablet consumers?
2 – How are Android and Apple
positioned in the market?
3 – What are the main segments in
the tablet market?
4 – How are Android and Apple
perceived by the different segments?
4

5. Methodology
Secondary research Preliminary interviews
• Books and Journals • 2 Knowledgeable Users
• Magazines and blogs • 2 Experts
Online survey
• 638 Respondents (450 complete)
• 367 Clean records
• 215 Users and 152 Non-Usersa
Data analysis
• Univariate: measures of location, spread and shape
• Bivariate: contingency tables and comparisons of means
• Multivariate: factor and cluster analysis
5
aUsers and Non-Users are defined on the basis of familiarity with tablets, not ownership

6. Findings: Users’ Characteristics
Gender Distribution Income Distribution
100% 100%
90% 90% 85.7%
80% 80%
70% 70% 66.3%
60.9%
60% 60% 54.3%
50% 50% 45.7%
39.1%
40% 40% 33.7%
30% 30%
20% 20% 14.3%
10% 10%
0% 0%
Users Non-Users IncomeQ1 IncomeQ2 IncomeQ3 IncomeQ4
Male Female
Users Non-Users
70%
Preferred Sources of Information on tablets
47% 50%
44%
37% 40%
26%
22%
6%
Internet Family Magazines Blogs Experts In-Store Forums Corporate Friends
Websites 6

7. Findings: Apple vs. Android
Market Shares by OS (Non-Owners Included)
25% Owners Apple
Owners Android
Owners Others
8%
66% Non-Owners
1%
80%
72%
Market Shares by OEM (Non-Owners excluded)
70%
60%
50%
40%
30%
20%
10% 4% 6% 5%
1% 1% 0% 2% 2% 0% 2% 2% 2% 1%
0%
Apple HP Motorola Samsung HTC RIM Barnes & Asus LG Acer Amazon Sony Toshiba Other
7
Nobles

8. Findings: Apple vs. Android
Brand preferences by OS (Have No Preference Included)
Prefer Apple
39% Prefer Android
49%
Prefer others
Have no favorite brand
11%
1%
90%
80% Brand Preferences by OEM (Have No Preference Excluded)
80%
70%
60%
50%
40%
30%
20%
8%
10% 4% 2%
0% 0% 0% 1% 0% 0% 1% 1% 0% 1%
0%
Apple HP Motorola Samsung HTC RIM Barnes & Asus LG Acer Amazon Sony Toshiba Other
8
Nobles

9. Findings: Apple vs. Android
APPLE’S STRENGTHS >
9
8
7
6
5
4
3
2
1
9
Mean Android Mean Apple

10. Findings: Apple vs. Android
ANDROID’S STRENGTHS POINTS OF PARITY
> =
9 9
8 8
7.28 7.17
7 6.69 6.78 7
6.76 6.69 6.59
6.24 6.32
6.9 6.8
6 6 6.48 6.61 6.63
4.9 6.03
5 5
4 4
3 3
2
2
1
1
Price Customization Ease of CPU Speed Streaming Webcam Price of the Battery Life
Connectivity Service Quality Applications
Mean Android Mean Apple
Mean Android Mean Apple
10

11. Findings: Five Segments
App Freaks – 14,4%
• Male, older, more educated and richer • Prefer Apple (48,4% share) over Android (6,5%)
• Only care about the apps’ ecosystem • Images: Useful and Easy to Use
iPerformers – 25,6%
• Mostly students & managers • Apple 29,1% and Android 23,6% (Asus 10,9%)
• Focus on hardware components and price • Images: HighPerforming, Innovative & Safe
Softwaristas – 27,9%
• Overrepresentation of female respondents • Prefer Apple (50% share) over Android (8,3%)
• Mostly care about ease of use and brand image • Images: All of them
Mobilites – 17,7%
• Female, young and students. Lowest income • Prefer Apple (39,5% share) over Android (7,9%)
• Only care about 3G & 4G connections • Images : HighPerforming, Easy to Use & Useful
Hardware Maniacs – 14,4%
• Male, older and lower earning • Prefer Android (29% share) over Apple (22,6%)
• Focus on dimensions, components and price • Images : High Performing and Useful
11

12. Findings: Five Segments
Performance
Communication Applications
3G/4G Dimensions
Image Software & Usability
App Freaks iPerformers Softwaristas Mobilites Hardware Maniacs
12

13. Managerial Implications
Increase User Base Strengthen ecosystem
Customer education Applications
Improve corporate OEMs should ally to
websites
develop platform-wide
• Informative, easy and intuitive apps
Direct contact Simplify for developers:
• Temporary stands, dedicated • Reduce fragmentation
corners etc • Reduce OS personalization
Attract independent
developers
13

14. Managerial Implications
App Freaks • Offer more high quality apps
For OEMs & Google • Increase quantity, quality and variety of apps
• Make the OS more user friendly and intuitive
Softwaristas
• Offer basic OS + free downloadable customization plug in
For Google
• Reinforce the Android common brand
• Focus on high performing hardware
iPerformers
• Explore hybrids
For OEMs
• Offer more high quality apps
Hardware Maniacs
• Keep offering a wide variety of sizes and specs
For OEMs
Mobilites
• Offer 3G/4G devices
For OEMs 14

15. Conclusions
Low knowledge of the product
(41,4% Non-Users)
Apple: dominant market share and mind share
Android: cheaper and more customizable
Five segments identified and all but one (Hardware
Maniacs) prefer Apple
15

16. Limitations and further research
Limitations
• Market novelty
• Non-representative sample
• Answer biases
Further Research
• More representative sample (best: probability sampling)
• Other research methods (interviews, focus groups..)
• Different geographies
• OEMs’ level vs. Platform level
16

17. APPLE AND ANDROID IN THE
TABLET MARKET:
Thank you for your AN EMPIRICAL RESEARCH
attention!
Advisor: Prof. Luca Molteni
Discussant: Prof. Alessando Recla
Master of Science Thesis of: Alberto Xodo
Student ID: 1452747
17