Is the smartphone train running out of steam?

Stuart Corner
Wednesday, 25 January 2012 12:30

IT Industry - Market

The uptake of smartphones in the last few years has been astonishing, and nowhere more so than in Australia, but one analyst firm says that, in Europe and the USA, their high price and a perceived lack of need for their functionality are turning consumers off the devices.

The study, from Analysys Mason, also points the finger at operators for confusing users as to the technological 'maturity of their devices. "For example, ambiguous marketing by some mobile network operators and the numbering of Apple's iPhone models has resulted in 46 percent of iPhone 4 users thinking that they are already using a 4G-capable [ie LTE] handset," Analysys Mason said.

"Almost half (46 percent) of mobile phone users that have not already bought a smartphone do not feel they have the motivation to upgrade," the research firm said.

The findings are part of Analysys Mason's Connected Consumer Survey 2012 for which the company surveyed 7485 consumers in Denmark, France, Germany, Poland, Spain, the UK and the USA.

Smartphone enthusiasm was not the only area in which Analysys Mason's findings contradict the accepted wisdom. It also reported "intentions for reversed fixed-mobile substitution."

Also, according to the report "The balance of power between operators, vendors and over-the-top (OTT) players continues to waver; an increasing number of alliances are beginning to form between OTT players and operators, which marks a change of approach in comparison with 2010."