What Are People Doing on Their Smartphones?

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Sept. 4 (Bloomberg) –- Technalysis Research CEO and Founder Bob O’Donnell and Korea Economic Institute’s Troy Stangarone discuss smartphone usage and larger screens. They speak on “Bloomberg West.” (Source: Bloomberg)

Thank you for joining us.

Bob, you have done a lot of research on what people actually use on their phone.

What do people do on their phone these days?

Really, the name phone is a misnomer.

They are not making phone calls.

I did a survey of 2500 people around the world.

What we find is that phone calls are the fourth most common activity.

It's only about 11% of the time.

Instead, what they're doing is browsing the web, doing texting.

More and more about watching tv and things like that.

All of those things really cry for a bigger screen.

Because of that, we will see a huge hit for iphone six and it will give further legitimacy to the other large fonts.

You look at korea, in the korean market, it's already about 75-80% of all their smartphones are the large size smartphones.

In china, that is what everybody is using there as well.

This survey would ask people, what is it you are thinking about buying over the next year?

The number one thing people were interested in buying, a large smartphone.

A large smartphone or tablet?

It's like a pocket computer.

We mentioned before, apple is the last to market with a large phone.

Steve jobs was famous for saying, we will give the people what they want.

We tell them what they want.

Samsung is different.

They do a lot of user research and then come up with a phone.

Samsung is very methodical with what they've done.

Apple may have been first on the smartphone market, but samsung went through and saw what types of applications people would be using and what times they were watching.

In korea, virtually everybody on the subway sitting on their cell phone watching tv, watching video.

Video usage needs a slightly larger screen.

Samsung was the first ones into this tablet or large cell phone market.

We can see that now with the announcement of the galaxy edge.

This is something that will be interesting to see how this goes because it will give you two screens on one phone.

I don't know about the note edge.

It looks really different, bob.

It's an intriguing product.

But samsung is good at doing is finding every possible niche out there.

They will get a phone to fit into that niche.

It's one of those devices that not everybody will be interested in but it's a cool, interesting twist.

The note four is taking the tablet or pocket computer to that next level paired they have been doing it for a long time.

People are starting to get it.

It's about adjusting the size to fit your hand.

You were talking about how it's going to fit in your hand.

There are ways to make bigger screens still fit in your hand.

You can get too big and not everybody will want it.

I think we are going to see tablets outsell the combination of pcs and tablets by 2016 and 2018, my production is they will be half of all smartphones because everybody will get used to having that figures -- that bigger screen.

Quite a production.

It's not just samsung making larger screen fonts.

Tell me about the upstarts out there.

Some of them are established players in this business.

One of them is lg, a korean competitor.

When i talk to my korean colleagues, they speak highly of the new lg models.

You have xiaomi in china and others.

This is the challenge samsung faces.

They are facing competition on the high-end from apple and on the low end from chinese competitors as well.

Aside from xiaomi -- aside from apple, what is the number one competitor?

Lg is going to be very important.

With lenovo purchasing motorola, it will be a big deal.

You have a bunch of other local players in different markets.

It is true that we are going to see the price points really being hit hard.

Even though we are going to see smartphone growth on a unit perspective, we are going to see the revenue peak out maybe 2016 and then start to decline because those price points are going to be brought down by these less expensive chinese competitors.

Bob o'donnell and troy.

Thank you both.

We are going to be beating the drum until thursday when these new iphones come out.

We will see how they match up to

This text has been automatically generated. It may not be 100% accurate.

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