New Smartphone Statistics

More than 420 million smartphones will be sold around the world in 2011, accounting for 28% of total cell phone sales according to market research firm IMS Research. The firm sees the recent surge of more affordable smartphones as playing a major role in the continued growth of the market, and IMS analysts estimate that global smartphone sales will reach 1 billion devices by 2016 thanks to entry-level smart handsets. In recent months however, IMS’ data shows that Apple has made some of the largest gains in the space, accounting for 19% of global smartphone sales in the first quarter of 2011 compared to 16% in the same quarter last year. Of course Apple’s share continued to climb in the second quarter as well, as the company reported industry-leading sales of 20.4 million smartphones. The only company that made more impressive unit sales gains year-over-year in the first quarter was Samsung according to IMS; the South Korea-based vendor accounted for 13% of smartphones sold in the first quarter compared to just 3% in the same quarter in 2010. The biggest losers in the first quarter were Nokia, which slid from a 40% share in the first quarter last year to 24% in Q1 2010, and RIM, which dropped from 20% to 15% over the same period.

The Mobile Imaging Cloud is Here!

As you already know, Mitek’s technology allows people to deposit a check by snapping its picture with a phone’s camera. What you might not know is that earlier today, Mitek announced that it is planning on letting other businesses use its technology to create their own mobile applications.

Mitek’s character-recognition software, which reads handwriting and other information, will be embedded into apps for insurance, real estate and health care. By letting people use phones to submit paperwork, the technology could speed up customer enrollment, automate expense reports or update medical records.

The new Mobile Imaging Cloud service will be delivered to companies via Amazon.com Inc. (AMZN)’s cloud-computing system, which hosts programs in data centers. Already, banks such as JPMorgan Chase & Co. (JPM) use Mitek’s technology to let customers deposit checks without having to visit a branch. Mitek aims to follow the example of Google Inc. (GOOG)’s Maps service, which is integrated into hundreds of other companies’ apps.

A social-networking site, for instance, might let users add friends by scanning photos of business cards. CardMunch, which offers a similar service, was acquired by LinkedIn Corp. earlier this year.

Sales of software is this area — either for phones or conventional scanners — should reach $1.4 billion in 2015, up from $163 million last year, according to Harvey Spencer, founder of New York-based research firm Harvey Spencer Associates.

Mobile is Now

Advertisers wondering when mobile will catch on might want to take a big breath and hang on. Two separate reports released reveal that mobile device use, from smartphones to tablets, continues to increase.

Smartphones are now owned by 49.1 million people in the U.S. as of the three month ending in May — up 8.1% compared with the prior three months, according to a comScore MobiLens report released recently.

Mobile browser use also continues to rise. Browsers were used by 31.9% of U.S. mobile subscribers in the three months ending in May, up 2.3% points. Sixty-two percent of U.S. mobile subscribers used text messaging on their mobile device — up 1.4% points. Subscribers who used downloaded applications comprised 30% of the mobile subscribers, up 2.1% points from the previous period. The number of social networking sites or blogs accessed through a mobile device rose 2.6% points to 20.8% of all mobile subscribers.

The Research in Motion (RIM) mobile smartphone platform led in the U.S. with 41.7% share of U.S. smartphone subscribers, followed by Apple with 24.4%, and Microsoft with 13.2%. Google grew 4% points to capture 13% of the market. Palm rounded out the top five with 4.8%. Despite platforms losing share to Google Android, most continue to gain subscribers as the overall smartphone market grows.

Mobile is Moving!

Mobile Dependence is continuing as U.S. smartphone usage has grown 60% in the past 12 months … and is expected to grow another 49% in 2011.

This rate of growth is four times faster than the overall mobile phone market with key growth areas being new cell-phone owners jumping directly to smartphones and current users rapidly upgrading technology.

As of a few months ago:

– 89% of U.S. online consumers age 15+ own a cell phone
– 41% own a smartphone (with email capabilities, Web access, and other advanced functionality)
– 48% own a feature phone (typically limited to calling and text messaging)
– Just 11% don’t own a cell phone

But what are smartphone owners doing besides becoming Angry Birds addicts? Almost 53% of smartphone owners say they use all the functions of their smartphone, declaring that “It’s my life.” Another 30% say they use all the basic functions of their device, plus a few apps. And almost 17% use their smartphones exclusively for calling, text messaging, and email. The many applications that are readily available are the main drivers of the smartphone market growth – they help users perform tasks quicker and more efficiently.

Mobile Banking is Alive and Kicking

Javelin just released a report yesterday entitled “Smartphone Banking Security: Mobile Banking Utilization Stalls On Consumer Fears”. The report suggests that mobile banking adoption is slowing down – but it’s based on questionnaire responses from 5,102 consumers, versus legitimate audience data.
When it comes to mobile digital audience measurement, the undisputed leader is ComScore’s MyMetrix division. As a service to the mobile banking industry we are publishing an analysis of their panel of 35,000 mobile users (and by the way, no questionnaires are involved – their panel is measured digitally, just like TV audiences).

As you can see in the chart, mobile banking is far from stalling. And smartphone mobile banking is rocketing, up from 22.3 million active users in February 2011 to 25.7 million active users in May 2011. That’s a 74% annual growth rate.

*** All of information in today’s post was gained from mFoundry, specifically their Blog that has an abundance of great information.

 

 

 

 

 

 

The New Hotness ~ Mobile Payments

A few weeks ago, Juniper estimated that the transaction value of mobile payments for digital and physical goods, money transfers and NFC transactions will reach a whopping $670 billion by 2015, up from $240 billion this year. Today, Gartner is releasing its data report, taking a look at actual users of mobile payments services. Gartner’s research shows that mobile payment users worldwide will surpass 141.1 million in 2011, a 38.2 percent increase from 2010, in which mobile payment users reached 102.1 million. Worldwide mobile payment volume is projected to total $86.1 billion, up 75.9 percent from 2010 volume of $48.9 billion.

Gartner says that particularly in developing markets, growth in mobile payments is not as strong as expected. Sandy Shen, research director at Gartner, writes, While developing markets have favorable conditions for mobile payments, such as high penetration of mobile devices and low banking penetration, this is no guarantee of success, unless service providers adapt their strategies to local market requirements.

Shen adds that she believes the mass market adoption of NFC payments is at least four years away, with the biggest “hurdle” as changing users behavior from using cash and credit cards to using their mobile phone. And she predicts that in 2011, merchandise purchases from mobile apps like eBay and Amazon will account for 90 percent and 77 percent of all mobile payments transactions in North America and Western Europe, respectively.

In developing markets, Gartner says money transfers and prepaid incentives will drive transaction volumes. In Eastern Europe, the Middle East and Africa, these two services will account for 54 percent and 32 percent of all transactions in 2011, respectively. It’s interesting that Gartner doesn’t seem to be too bullish on NFC in the near future. Clearly Google is making a big bet on NFC with the launch of its mobile payments product Google Wallet. And PayPal just announced its integration with NFC for Android phones. Perhaps that leaves more breathing room for innovative companies like Square to continue to disrupt the mobile payments space without adopting NFC technology.

FACTS & FIGURES

– There will be 5.8 billion mobile subscribers worldwide by 2013 (Portio Research)
– 38% of adults say their mobile phone is more important than their wallet
– 11% of smart phone owners are already using mobile banking
– 41% of mobile banking users have looked up banking-related promotions and discounts
– 49% of mobile banking users have used their mobile to buy and sell stocks
– The Tower Group predicts there will be a 50% increase in mobile bank users by 2013
– 32% of US Online bankers would use mobile banking instead if it was offered
– YouGov research revealed improved opinions of banks that offer mobile banking services

Smartphones & Tablets will Drive Revenue

More customers than ever will buy tablet computers and smartphones this year, driving consumer electronics revenue to a record high of $190 billion in 2011, according to a new forecast from a leading industry trade group.

Sales of tablet computers such as Apple Inc’s iPad and its rivals will reach 26.5 million units, resulting in $14 billion in revenue, the Consumer Electronics Association said in a report released on Monday.
Smartphone sales will increase by 45 percent to $23 billion, the study said.

“One year ago, tablets were a new and unproven market, and now they, along with other mobile connected devices including smartphones and e-readers, are leading the entire industry to positive growth,” Steve Koenig, the group’s director of industry analysis, said in a statement.

The consumer electronics industry will expand by 5.6 percent this year, ahead of the GDP growth rate in the United States of 2.4 percent. Shipment revenues for consumer electronics will also climb next year, to an all-time high of $197 billion.

Unit sales of e-readers, such as Amazon.com’s Kindle, will double, bringing in $1.8 billion. These mobile products are boosting revenue growth for the industry as other types of consumer electronics, such as flat-screen TVs, show declines, Koenig added.

The study found that 88 percent of U.S. households own at least one digital TV. Because of this high rate, sales of TVs are set to fall this year, with revenue of more than $18 billion. TVs that are connected to the Internet are likely to be a growing area, with more than 10.4 million units shipping to stores this year. Despite the slow adoption of 3D, TVs that have that feature will ship 3.6 million units, up from 1.9 million units last year.

Apple will release its quarterly results today, and sales numbers of the new, thinner iPad 2 will be in the spotlight. Wall Street estimates that Apple sold about 8 million new iPads in the quarter.

The Importance of a Smartphone

For some, the smartphone is a status symbol. For others, it’s a necessary work tool. And for millions of Americans, it’s the only computer they own.

In New York or Los Angeles, in real life or on the big screen, you can usually identify a would-be sophisticate or power player by a smartphone surgically attached to their hand or face. But a recent study from the Pew Internet and American Life project indicates that high-tech mobile devices aren’t merely status symbols. For millions of Americans, they’re the only way to get online.

Nearly one-third of cell owners say they own a smartphone, and most of them are young and working. Use is highest among Americans in their mid-twenties through mid-thirties (58% of 25-34 year olds own a smartphone) and nearly half of full-time employees (48%) have a smartphone of some kind. Ownership drops off among 40-year-olds, and 13% of retirees said they use a smartphone.

But as the cost of manufacturing mobile phones declines, we’re seeing the rise of “cell mostly” smartphone users who use their handhelds as their number one way to get online. These users — young, mostly minority, under 30, and with little or no college education — have less access to high-speed internet service and less income to buy laptops or desktops. For millions of Americans, their home computer is their cell phone.

For the low-income consumer, the smartphone has become a replacement or substitute good for both home broadband access and landline phones, which have been disappearing for years. As free information services are being eliminated, consumers are moving all of their at-home tech needs onto one device.

In the end, high-income and low-income adopters are driven by the same incentive: utility. Where the BlackBerry-wielding exec was a status symbol of pre-crash America, widespread consumer adoption is driven by how useful a device is.

The Boom of Mobile Payments

More than three quarters of executives across the financial services, technology, telecommunications and retail industries believe mobile payments and banking transactions will achieve widespread mainstream consumer adoption within four years, according to a new global survey conducted by advisory services firm KPMG International.

Eighty-three percent of the 1,000 execs surveyed by KPMG anticipate mobile payments will go mainstream by 2015, compared to 9 percent of respondents who feel m-payments are mainstream today. Moreover, 46 percent of execs believe mobile payments will be mainstream within two years.

Seventy-two percent of respondents believe mobile payments are now or will be reasonably important in the future, citing specialist online systems (e.g., PayPal and Google Checkout) as the leading payment method and m-banking and Near Field Communications-based contactless transactions also significantly gaining traction. Fifty-eight percent told KPMG they already have a mobile payments strategy in place.
KPMG notes that executives in the U.S. and abroad view security as the biggest challenge to developing mobile payments strategies. Technology and consumer adoption follow at a distant second, trailed by privacy.