Apps Affecting Consumer-Electronics Market
A new Deloitte, www.deloitte.com
, survey finds smartphone apps, ereaders, and tablets are “transforming” consumer behavior. In fact, the report—entitled “Revolutions 2010”—suggests smartphone/tablet owners are relying less on traditional consumer-electronics devices such as MP3 players, handheld video games, and GPS units for their media, entertainment, and information needs. Rather, these consumers are turning to apps.
Deloitte surveyed nearly 2,000 U.S. consumers aged 14 to 75 this summer and discovered a trend it says is leading to a “cannibalization” of consumer electronics, thanks to the increasing availability and functionality of apps.
For instance, the survey found 42% of app users have stopped using, or have reduced usage of their portable digital music players. Nearly one-third of those surveyed also report they have stopped using, or have reduced usage of handheld videogame consoles; and 28% have stopped or reduced usage of standalone GPS devices.
“While the market for mobile apps is still in its infancy, once consumers get a taste, they appear to start using those apps for all aspects of their digital lives,” says Phil Asmundson, Deloitte’s vice chairman and sector leader of technology, media, and telecommunications. “What we are seeing is a significant shift in how consumers access media, entertainment, and information.”
Owners of smartphones and tablets are report they are travelling with laptops and netbooks less frequently. Forty-one percent even admit they consider their smartphone to be a laptop replacement while on the go.
The same survey also found that 61% of ebook-reading consumers in the U.S. buy more books in digital format than they previously bought in hardcopy or softcopy. The company interprets this as a potential boon for publishing.
Lastly, Deloitte’s study explored the connected-TV market. Results suggest most consumers are not prepared for a transition to 3-D technology in their TV sets. Many respondents—83%—admit they have cut their budget for “entertainment,” which affected their willingness to invest in a new TV.