It absolutely makes sense for Groupon to launch a Square-like payments platform for its merchants -- part of its effort to diversify more holistically into local commerce. A payments tool for merchants (first reported by VentureBeat) would also support and complement its recently expanded Groupon Rewards loyalty program.
According to VentureBeat Groupon would seek to gain rapid merchant adoption by undercutting the fees on similar services from Square, PayPal, Intuit and the recently launched Sail. Reportedly there would be a 1.8% transaction fee and $0.15 transaction charge, which are lower than any of the fees from other, competing services. Groupon's payment platform would utilize the iPad and iPhone in a way similar to Square.
In this "race to the bottom," where merchant card fees are concerned, we're seeing the rapid commoditization of payment processing especially at the SMB store level. I was told that companies like First Data are very concerned about this development and are trying to "get closer to the consumer" as a result.
Meanwhile PayPal yesterday morning announced an expansion of its in-store payments program. Previously it had a single retailer, HomeDepot, now there are 15 more national retail chains:
Abercrombie & Fitch, Advance Auto Parts, Aéropostale, American Eagle Outfitters, Barnes & Noble, Foot Locker, Guitar Center, Jamba Juice, JC Penney, Jos. A. Bank Clothiers, Nine West, Office Depot, Rooms To Go, Tiger Direct and Toys “R” Us.
I have yet to use the system but it will need to provide substantial efficiency and convenience and/or "value adds" (e.g., loyalty rewards) to consumers to get them to use it vs. traditional payment cards. PayPal ultimately has to "back onto" either a bank account or a credit card.
My informal understanding is that the HomeDepot trial wasn't entirely successful because of low consumer awareness and low usage accordingly. This broader roll out should help awareness greatly.
Through these retailer relationships PayPal will glean enormously valuable consumer data and purchase history information that it can use potentially as inputs into its PayPal media network targeting capabilities. This data mining hasn't been confirmed to me but I suspect that consumers who use PayPal in stores will have that transaction data factored into future ad targeting if they're using any of the eBay/PayPal properties.
Just as with the commoditization of merchant payment services, services such as PayPal are creating a potential intermediary or "gateway" relationship between consumers and their credit card companies. Card companies will ultimately be forced to respond -- Amex is ahead of the curve -- with amp'd up loyalty and deal programs themselves.
We're in an acclearating "land grab" phase of mobile payments. Multiple providers can and will exist but all the coverage, announcements and general "noise" in the market right now has the paradoxical effect of both raising consumer awareness but also delaying adoption of any individual solution.
Nielsen has released some smarpthone market share figures for March. The metrics firm says that 50.5% of US mobile phone owners now carry smartphones. The data show the following breakdown by operating system:
Here's comScore's March data for comparison purposes:
Comscore puts smartphone penetration at 45.2% in the US by comparison.
There's a meaningful difference in the numbers in terms of Android and iOS market share percentages in both data sets. In addition Nielsen shows 5.8% penetration of Windows, while comScore shows 3.9%. That's also a fairly significant difference.
They both agree however that the Windows Phone platform so far hasn't moved the needle and Microsoft's overall share of the smartphone market is declining.
A couple of days ago local-social startup Glancee announced that it was being acquired by Facebook:
We started Glancee in 2010 with the goal of bringing together the best of your physical and digital worlds. We wanted to make it easy to discover the hidden connections around you, and to meet interesting people. Since then Glancee has connected thousands of people, empowering serendipity and pioneering social discovery. We are therefore very excited to announce that Facebook has acquired Glancee and that we have joined the team in Menlo Park . . .
Glancee, which is really just a 2.0 version of the original Loopt, adds to Facebook's growing arsenal of mobile assets. The social network has identified mobile as both an area of vulnerability and opportunity. In the Facebook IPO roadshow video COO Sheryl Sandberg calls out mobile as "a key area of growth for Facebook."
What she's talking about is revenue rather than usage. The company already has more than 500 million active mobile users. And Flurry Analytics recently said that social networking activities now consume as much daily mobile app munitues as games, the former number one category. Much of that activity takes place within Facebook.
The purchase price of Glancee was not disclosed but we can assume it was an "acquhire," rather than a technology acquisition -- though there may have been a bit of technology that motivated the purchase.
Glancee was part of a group of "passive" or "ambient" location startups that include the over-hyped Highlight and a dozen others. I have argued in the past that ordinary people (as opposed to those in the tech industry) don't want to continuously broadcast their locations even to close friends and colleagues. Accordingly these friend finding and pseudo-dating apps are destined to fail unless the offer some other angle or utilitarian functionality.
Facebook may choose to use some of Glancee's capabilities as part of a new version of its app. But my guess is that Glancee, like Gowalla, will be completely shuttered and that Facebook won't turn its app into a ambient friend finder. That would complicate the privacy picture for Facebook -- though I expect geofencing and geotargeted advertising to be part of what Facebook eventually develops for mobile marketers.
We're likely to see more acquisitions from Facebook as the company continues to build up its mobile capabilities. What the company hasn't figured out is how to make money in mobile, commensurate with its mobile usage. It now pumps Sponsored Stories through its users' news feeds, having just introduced mobile advertising. However that by itself won't fulfill the mobile ad revenue imperative about to be imposed on Facebook by its IPO.
As we all wring our hands over the slow and uneven development of mobile payments -- and watch the contest between PayPal, Google Wallet, Square, LevelUp, Boku, mobile carriers and others – it's possible that mobile payments might become mainstream in less anticipated ways. Individual retailers and franchises, for example, might be much more successful in motivating consumers to adopt the technology than the major payments players taking a “horizontal” approach.
Starbucks was a trailblazer with its mobile app and wallet functionality in the US. Home Depot recently enabled PayPal to be used in selected stores. And TGI Friday’s has just followed with iPhone and Android apps that include a mobile wallet. The casual restaurant chain has 600 locations in the US and roughly 350 of them are now equipped to let customers pay by app. Startup Tabbedout provides the payments capability in the new TGI Friday’s app.
After the app is downloaded the TGI Friday’s customer opens a tab. She or he receives a code through the app, which is then shown to the server who enters it in the restaurant’s POS system. No card swipe means greater security for the consumer. (I once had my credit card number stolen by a waiter in a high-end restaurant.) A consumer credit card is associated with the app, which is where the payment comes from.
In addition to paying in the restaurant, the app helps users find restaurant locations, see the menu and receive offers. Payments become a kind of hook for a broader set of services and loyalty efforts. While TGI Friday’s is the first restaurant chain to adopt mobile payments (after Starbucks), expect others in the segment to follow relatively soon.
Fast casual and so-called “quick service” restaurants (fast food) will likely duplicate this move in short order. One can easily imagine a McDonalds or Chipotle app with a restaurant locator and mobile payments. Chipotle already allows mobile ordering.
The integration of mobile payments into loyalty apps by major brands is likely to help educate US consumers, “socialize” mobile payments and drive consumer adoption much more quickly than abstract initiatives from PayPal or Google or mobile carriers. The consumer doesn’t have to think about which merchants or stores will accept mobile payments in the single-store scenario. In other words, the consumer “why” of mobile payments is answered much more readily in a specific context, like the one presented by TGI Friday’s.
A recently published study from the UC Berkeley Law School about mobile payments and related issues finds some significant consumer resistance -- at least in the abstract. A survey discussed in the report found that "over three-quarters (74%) of Americans said that they are 'not at all likely' or 'not too likely' to adopt mobile payment systems. Just 24% say that they are likely to adopt mobile payments."
Enthusiasm or resistance to mobile payments varied by age. Interestingly the people most enthusiastic about the technology were those in the 35-44 age range -- not the youngest adults. Yet attitudes and behavior are often distinct and surveys don't always reflect what people actually do in concrete situations in the world. Still the data potentially reflect a stiff uphill climb for mobile payments purveyors.
Services like Square and PayPal Here may be exceptions because they don't require a change in consumer behavior. The consumer is still swiping a card; it's the merchant experience which is changed.
A 2012 consumer survey conducted by the US Federal Reserve found that 12% of respondents had made a “mobile payment” within the past year. However “payment” was broadly defined to include online bill paying, m-commerce, charitable giving and money transfers, among other transactions. Online bill paying was by far the most common “mobile payment” activity according to the survey.
(Source: US Federal Reserve Q1 2012, n=1,780 US adults)
Concerns over security and the lack of apparent/clear benefits were the top two obstacles to mobile payments adoption according to the Federal Reserve survey.
The UC Berkeley survey looked at related areas surrounding mobile payments adoption. It explored location tracking and other privacy related issues (i.e., giving merchants information as part of the mobile transaction). Among other things, the survey asked consumers about how much information they were willing to give to merchants and how comfortable they were allowing their movements in or around shopping areas to be tracked by retailers or other entities.
The report says that, "Americans overwhelmingly oppose the revelation of contact information (phone number, email address, and home address) to merchants when making purchases with mobile payment systems. Furthermore, an even higher level of opposition exists to systems that track consumers’ movements through their mobile phones." An overwhelming 96% of survey respondents say they objected to having their movements tracked by merchants or retailers; and 79% said they would “definitely not allow” it, with the remaining 17% saying they would “probably not allow” it.
Again this may be an abstract fear that dissipates if consumers realize concrete benefits from permitting themselves to be tracked or by divulging information. Regardless, mobile payments vendors and merchants will need to overcome the catalog of user fears and offer very concrete benefits to drive adoption. There are a large number of people who not only don't see mobile payments inevitable, useful or convenient but see it as a net negative.
That perception will need to be overcome to mainstream the phenomenon. And that will probably happen by getting a sufficient early adopter critical mass of people who can then proselytize and educate their friends, family and colleagues.
One of the keys to estimating mobile ad revenue is making valid assumptions about consumer-user behavior. Mobile search advertising (mostly benefiting Google right now) is currently the single largest mobile ad revenue category in the US market. The key drivers of mobile search revenue are CPC pricing, advertiser volume and user query volume.
In data revealed during the the Google-Oracle litigation, Google (in Q1 2010) projected mobile ad revenues based on an assumption of 1.1 mobile searches per day per user, or roughly 30 searches per month. However additional data released suggest that Android users are actually conducting 2.65 mobile search queries per day, or more than 60 mobile searches per month.
Estimate how many times EACH MONTH you search Google on your mobile phone?
Source: Opus Research (4/12 n=1,522 US adult mobile users)
However this mobile search volume is inconsistent with what user surveys reveal about query volume. For example our most recent survey indicates that a majority of mobile users don't search Google on their handsets. This sample included non smartphone users so the numbers are more skewed than if this sample was smartphone users exclusively.
Other surveys report that most smartphone owners conduct fewer than 20 mobile searches per month, though a meaningful minority are power users and do more than 20 or 30 mobile queries on a monthly basis. In our survey above, 81% said they performed fewer than 20 searches per month and most performed fewer than 10.
Accordingly there's a disconnect between Google's apparently actual 2010 behavioral data about Android user mobile search volumes and what users report on surveys about their mobile search activities.
Each of the ad networks presents somewhat different data on the question of who's got more market share iOS or Android. Nielsen reported that recent sales of iPhones have been "closing the gap" between Apple's handset and the "Android army." However networks Millennial Media and JumpTap show Android impressions being roughly 2:1 what iOS impressions are on their networks.
This morning inMobi released new data (for February and Q1) showing that the iPhone has a greater share of impressions on its network vs. Android. According to inMobi, "iOS has maintained its dominant market position over Android in North America since January this year, with iOS total share of impressions for the quarter at 37%, against Android at 34%."
The top three devices on inMobi's network in North America are:
The network also reported that on a global basis, Nokia still had the largest percentage of ad impressions (35%), "although its OS share of impressions decreased slightly over the last quarter."
Despite all the activity and hype in the segment, mobile payments and mobile wallets have been adopted by relatively few consumers in North America to date. It's well below 10% of the smartphone population according to data I've seen. Lack of availability, lack of awareness and consumer security fears are among the reasons.
Despite slow consumer adoption of mobile payments, companies such as Square, PayPal and Intuit are making major inroads on the merchant side. For example, Square is processing millions of dollars of payments per day at local businesses.
Its main product relies on a traditional card swipe, so the consumer does nothing new and needs no new apps or equipment. PayPal and Intuit have essentially copied Square's product. In particular PayPal's brand awareness and footprint have helped the company generate significant, immediate demand for the new PayPal Here product.
These and other mobile payments apps (e.g., Levelup) include directories of merchants using their payments systems. It leads me to think these payments apps could become the next generation of LBS or local directory apps. It's natural for them to try and build out more comprehensive local listings, as well as get more deeply into offers and deals (not to mention analytics and CRM).
It also makes sense for a company like Foursquare, which already has a large user footprint, to acquire or create a mobile payments capability itself -- as a complement to its positioning as a loyalty tool for SMB marketers.
Google announced this morning that it is offering free mobile websites to US small businesses for one year through its howtogomo.com portal. DudaMobile is the vendor providing the site building capability (DIY) and hosting.
After the year is up I would imagine that DudaMobile's pricing and rate card kick in. However its basic hosting is free already. So this must be a premium account that Google is offering. Accordingly it would likely cost business owners $9 per month to maintain their mobile sites on DudaMobile.
The company also offers a do-it-for-me service that costs $500 for the build/set-up fee and then $90 per year for hosting.
What's interesting here is that Google isn't doing this with its own mobile site builder, which by implication the company is admitting is inferior to the DudaMobile product.
Fortune's Philip Elmer-DeWitt reports on the results of the latest teen survey by investment firm Piper Jaffray. The survey polled 5,600 American teens, evenly divided between genders. The average age was 16.
The following are a couple of the questions and answers from the survey:
While the sample is very large, the question is: how representative of all US teens is this survey?
There are somewhere between 25 and 30 million teenagers in the US, depending on how "teen" is defined, according to the US Census Bureau. Thirty four percent of 25 million would be 8.5 million teens with iPhones. That seems plausible. Another 8.5 million teens have tablets/iPads by the same extrapolation.
According to comScore's most recent figures 13.5% of US mobile subscribers own iPhones (or roughly 14.04 million people out of a total smartphone population of 104 million). These data points are from different sources but the numbers suggest that more US teens than adults own iPhones. That doesn't seem correct.
What's not exposed is the degree to which teens aspire to ownership of any other type of smartphone. Also not discussed is whether the tablet 34% of teens claim to "own" is actually theirs or owned by a parent. It would be interesting to know whether there are multiple iPads/tablets in the house.
Beyond its February US smartphone marketshare data, released earlier today, comScore also exposed some additional, interesting data about WiFi usage among Android and iPhone owners in the US and UK. In general iPhone owners are apparently much heavier users of WiFi than Android owners. And UK residents are also generally bigger consumers of WiFi than their US counterparts.
In the US the percentage of Android WiFi users is half as large (32% vs. 71%) as iPhone WiFi users. But why?
As someone who owns both devices I can speculate about why this may be.
More Android handsets operate on 4G networks, whereas the iPhone is limited to slower 3G networks. The move to WiFi alleviates some of the frustration of being on slower networks for iPhone owners. Beyond this, on Sprint and Verizon in the US, iPhone owners can't access voice and data at the same time. Where WiFi is available they can.
In addition, whenever a new WiFi network becomes available iPhone owners get a prominent, even disruptive, notification that takes over the screen. iPhone owners are thus much more likely to be aware of the presence of WiFi than Android owners. The process of connecting to WiFi is also faster and easier on my iPhone than it is on my HTC Android phone.
There are two contradictory memes in the market about Android. One is that the platform is surging toward world domination; the competing narrative is that Android is losing adherents and is faltering.
ComScore boosted the first narrative today with a release (based on survey data) that shows Android crossing the 50% threshold in February. In other words, 50% of US smartphones now are Android handsets.
Interestingly comScore's data show only 44% US smartphone penetration, while Nielsen shows 50%.
In addition, Nielsen and financial analysts from Canaccord Genuity claim that the iPhone is "clawing its way back" among recent purchasers and closing the gap with Android. The Q1 2012 Appcelerator also appears to show mobile app developers losing some interest in Android.
These indicators suggest Android is losing some momentum, although the comScore data directly contradict that assertion. Regardless, it's clear that Android is on its way to replacing Nokia as the leading smartphone platform globally.
The comScore report also confirms the accelerating decline of RIM and shows that US consumers are not buying Windows Phones. We'll see what happens after the massive marketing campaign that's about to be unleashed by AT&T, Nokia and Microsoft.
Last May Tel Aviv-based mobile app/search engine do@ (pronounced “do at”) launched with high expectations. The company raised $7 million against the promise of delivering a search experience to smartphones that was both more efficient and more elegant than Google.
Rather than indexing pages, do@ showed live sites that were optimized for mobile. Sites were initially ranked by default but users had the ability to re-order results. It was a radically different and smart approach to mobile search -- and one that might have been expected to work at some level. However nobody used it, reflecting the power of Google's brand and its prominence on both the iPhone and Android devices.
You can see a video of do@ in action here.
Now the company has re-imagined do@ as a kind of mobile meta-search engine: Everything.me. You enter a query and can search "vertically" in any of the many different sites displayed on the screen. Logos replace Google's blue links.
Because Everything.me gives you access to familiar, branded sites (and some that are less familiar) it has a better chance than do@ did. However, many people have smartphone apps for common mobile search categories: restaurants, travel, shopping/price comparisons. Then, of course, there's Google for "everything else."
Accordingly I think the company is fighting the same battle it was before. And even though this relaunch is a clever adaptation of the company's underlying technology it will face the same challenges of adoption and usage.
Although the Pew Internet Project was the first to report that at least 50% of US mobile phone owners had smartphones, Nielsen waited until today to make the same statement: "Almost half (49.7%) of U.S. mobile subscribers now own smartphones, as of February 2012." This compares with 36% a year ago.
However if smartphone ownership is segmented by age and income, the numbers are much higher than 50% for some categories.
Nielsen says that Android's share of smartphones in February was 48% while Apple's was 32%. However among 90-day recent buyers, the numbers are much closer (48% vs. 43%), reflecting the popularity of the iPhone 4S and its availability from mulitple carriers.
All others, including RIM and Microsoft are under 20% collectively. However the trend is away from these platforms among recent buyers. Microsoft is hoping to reverse that with the expensive and high-profile launch of the Lumia 800 at AT&T next month.
In a new report on the iPad and related user behavior just released by app-store analytics provider Distimo finds that news publications and magazines on the iPad in the US are generating $70,000 daily (among the top 100 newsstand apps). The top five grossing US publications in order are Murdoch's The Daily, The New York Times, The New Yorker, National Geographic and Cosmopolitan.
The report also says that China is now the largest market in the world for free iPad apps, but it's not among the top five countries for paid app revenues. Distimo reported that the top 200 paid apps globally are generating roughly $2 million per day in revenues. The top iPad app-revenue countries are US, UK, Canada and Australia.
The iPad has far more tablet-specfic apps than any of its competitors. The company says that Samsung tablets have roughly 32,000 apps available for various screen sizes. According to Distimo:
However, only a small proportion of applications in Google Play are optimized for tablets. When we look at the Samsung Appstore . . . we see that roughly 32K Android applications are available in the device stores for tablets (Galaxy Tab 10.1, Galaxy Tab 7.0 and Galaxy Tab). The majority of applications are available for the Galaxy Tab and Galaxy Tab 10.1 only, but there are also a substantial 4K applications available for the Galaxy Tab 7.0, which has a different screen ratio.
I'm quite surprised by the finding of 32K apps for Android tablets. In my roughly 9 months of 10-inch Galaxy Tab ownership I found almost zero apps for the device. This paucity of tablet-optimized apps is one of the reasons for the failure of Android tablets generally. It's the same catch-22 scenario I discussed yesterday regarding Windows Phones and the lack of apps: because most Android tablets haven't sold, developers so far aren't creating tablet-optimized apps for these devices (Kindle Fire may be an exception).
Given the success of Kindle Fire and Nook it appears that Android tablets will mostly focus on the 7-inch form factor. And at that size smartphone apps are not as glaringly ill-formatted as they are on the 10-inch screen.
Distimo also identified most popular iPad app categories (by downloads) in pink in the chart below:
The gray bar on the right indicates the number of available apps in the category. Where the pink bar exceeds the gray bar, Distimo says there's high demand vs available supply and a corresponding developer opportunity.
No more "early days" excuses will be possible if the Nokia (Windows Phone) Lumia 900 fails to deliver. The flagship Windows Phone will go on sale on April 8 from AT&T in the US for an aggressively discounted $99 (with a two-year contract). It will be the least expensive high-end smartphone on the market.
The price will help but it could still flop.
AT&T promises to support the launch with considerable marketing muscle. It's far from clear, however, that consumers will bite. Some no doubt will buy because of the $99 price. Aggressive pricing is key to Nokia's US market strategy.
The Lumia 710 has apparently done relatively well at T-Mobile (at either $49 or free). However, developer interest in Windows Phones remains muted. And without sufficient apps, Windows Phones simply won't be competitive.
Earlier this year I had predicted that Nokia-Windows Phone handsets would see modest but not spectacular uptake in the US market. If this launch is fumbled and fails to generate real momentum for Windows Phones it could be a serious blow to the outlook for the platform -- at least in the US market.
As a promotion Microsoft has mounted a Pepsi-Challenge like contest, inviting iPhone and Android users to take the $1,000 Windows Phone challenge and supposedly discover that Windows Phones are faster. But the PR value of the effort has already been compromised by a blogger named Sahas Katta.
Katta used his Galaxy Nexus and beat the challenge in a Microsoft store but was denied the $1,000 prize by store officials. He blogged about it and that post has now seen widespread attention.
Even though increasing numbers of consumers are starting to transact on smartphones, m-commerce hasn't taken off. Trust, security and credit card entry issues still need to be resolved for most e-commerce merchants (though not Amazon).
But there is another way in which smartphones are helping e-commerce -- so-called "showrooming." That's where consumers visit stores to examine and verify products and then order online (mostly from Amazon). This problem has been especially bad for stores like Best Buy but it's a problem that all traditional retailers are starting to grapple with.
Recent survey data from ClickIQ (via Internet Retailer) confirms this pattern:
29% of consumers who use a smartphone to research a product while in a retail store end up purchasing the item online, many from. . .
Of consumers who used a smartphone to research in-store and then purchase online, 55% were men and 45% were women, says the survey of 406 U.S. consumers who have researched a product while in a store and purchased that product.
Recently the Pew Internet Project issued similar findings about Q4 smartphone shopping behavior.
Here's what the Pew survey data say about what happened after the smartphone/Internet was consulted by consumers in stores:
What this means, effectively, is that 64% of in-store smartphone users decided not to buy on the spot -- probably because of some piece of information they accessed then and there (price, reviews, etc.).
The 19% who purchased the product online is 10 points lower than the ClickIQ findings. But both these surveys show that consumer behavior is being affected by access to the Internet in stores, with some meaningful percentage of people buying online after confirming the product is the one they want.
There are a few things that retailers can do to combat this growing pattern:
However it's foolish for retailers to try and prevent smartphone use in stores or rely on unique SKUs that prevent barcode-scanning based comparisons.
The Q1 2012 Appcelerator developer survey is out and it contains some interesting findings. The data are based on a survey of 2,173 Appcelerator developers from January 25-27, 2012.
Among the findings, HTML5 is being widely embraced: "79% of developers [are] saying they plan to integrate some HTML5 into their mobile apps that they build this year." In addition, a significant minority (39%) of developers "say the network effects of Google’s total assets (like Google+, search, Gmail, Android, Android Market, etc.) are more important to them than Facebook’s social graph." However developers in this survey demonstrate limited understanding of how to fully leverage social in their apps.
In terms of platforms, iOS remained at the top of the developer interest graph (below). Windows Phone gained some mindshare since Q4 but, surprisingly, Android seems to have lost some mindshare among developers. This comes at a time when Android's OS market share on a global basis continues to gain.
Here's what Appcelerator had to say about what might be called "Android fatigue" (due to monetization challenges and platform fragmentation):
This quarter, interest in Android phones dropped 4.7% points to 78.6%, and Android tablets dropped 2.2% points to 65.9% from the previous survey. Although close to or within the margins of error, these drops are consistent with the trend of small but steady erosion in Android interest over the last four quarters, even as enormous growth in Android unit shipments continues.
RIM is one of the big losers in the chart above, with developer interest all but falling off a cliff since last year. RIM will be forced to "double down" on the Android app ecosystem or be totally marginalized. But that's already happening in the US market. Elsewhere RIM has greater strength.
Finally, most developer-respondents in this survey indicated that they had a reasonable but not great understanding of social and how to fully utilize it within their apps, and as a tool for app discovery and marketing.
On a conference call this morning discussing Apple's decision to issue a dividend and buy back $10 billion worth of shares, CEO Tim Cook said the following about iPad sales so far: “We had a record weekend and we’re thrilled with it.” He declined to discuss it further.
Some analysts and pundits over the weekend were arguing that sales were less than anticipated. However, according to AT&T (via CNN) the company said it saw record activations of the 4G iPad on its network:
On Friday, March 16, AT&T set a new single-day record for its iPad sales and activations, demonstrating robust demand for the new iPad on the nation's largest 4G network, covering nearly 250 million people.
We won't know what pre-order and initial weekend sales were unless or until Apple puts out a press release. Given AT&T and Tim Cook's remarks, however, I suspect the company will do so.
Update: And they did a little while ago. Apple said it had sold more than 3 million "new iPads" as of today: "Apple today announced it has sold three million of its incredible new iPad, since its launch on Friday, March 16."
JD Power and Associates yesterday put out its 2012 handset customer satisfaction survey findings, covering both smartphones and non-smartphones. The iPhone won the smartphone category (for the "seventh consecutive time"); LG and Sanyo were at the top of the non-smartphone handset category.
HTC was second in the smartphone category. Android market leader Samsung was third but "below industry average."
JD Power used a range of criteria to measure satisfaction, which were slightly different in each category. For smartphones the weighted criteria were: performance (35%); ease of operation (24%); features (21%); and physical design (20%).
The iPhone rankings are not a surprise. The much more interesting aspect of these survey results is the low score of Nokia. On both lists it was second from the bottom.
If this survey were conducted in Europe or developing markets Nokia might get higher marks. But the low scores in the US survey reflect the poor performance of its existing products and the weakness of its brand. That brand weakness is further diminished by the scores themselves.
It will be very challenging, even with its new Lumia Windows Phones, for Nokia to "climb out of the basement." Indeed, the existing weakness of Nokia in the US/North American market creates a "deficit" for Lumia devices as both Nokia and Microsoft seek to market them to North American consumers.
Related: iPhone Grabs Camera Market From Sony