Wednesday, October 13, 2010

Mobile Apps Are Transforming Consumer Behavior

According to a survey from Deloitte, Revolutions 2010, smartphone Apps and ereaders are indeed transforming consumer behavior. More consumers are turning to their smartphone for entertainment, news and information than previous traditional sources.

Deloitte surveyed nearly 2,000 U.S. consumers between the ages of 14 to 75 and discovered a trend it says is leading to a “cannibalization” of consumer electronics, thanks to the increasing availability and functionality of apps. The survey finds that 42 percent of app users have reduced or completely eliminated their use of MP3 players in favor of smartphones or tablets.  As the iPhone progresses with more and more functionality, I can't see why you need an iPod anymore or have to carry both products.  As consumers, we want one product that does it all, the one that you can't leave the house without.

So will the iPad have the same effect on laptops? 
This survey certainly suggests it might well encroach upon the laptop sector; 41 percent use their smartphone as a replacement for their laptop or mobile device while away from home and 15 percent do so while at home.  That's a significant shift and one you can bet Apple is watching closely with regard to future product development of the iPad.  

Another 62 percent in the survey said the availability or presence of mobile Apps causes them to carry their smartphones when they otherwise would not.  That means as consumers, we cannot leave home without our smartphone.  

Similar interesting trends are happening with ereaders.  According to the Deloitte survey, 10 percent of U.S. consumers have purchased an e-book, 56% of this group are reading more books in digital format than previously in hardcopy, and 61% are purchasing more e-books than they did in the traditional print versions. But is it the convenience factor or the cost of buying books that is fueling this trend?  There's no question that ereaders have slashed the cost of buying a book, so perhaps we can now afford to buy more.  But convenience is a serious factor.  The iPad alone is bringing new life to old world publications' (newspapers) dwindling print sales.  Just this week, the Financial Times reported the iPad has generated $1.5 million in Ad revenues in only five months.  That's not subscription but Ads!

This is all great news for content publishers and writers especially, who for too long now have been giving away their content for free as the digital world finds a new business model.  Thanks to the iPad and smartphones, this too is about to change.  


Post a Comment


Business Issues Today Copyright © 2009 Blogger Template Designed by Bie Blogger Template