Do You Have an App for That? asknet Survey Finds a Third of US Consumers Frustrated by High Cost of Mobile Apps & Difficult P...
January 21 2010 - 9:00AM
Business Wire
An asknet (FWB: A5A) survey of 400 smartphone users has
found that in spite of a strong consumer demand for personal and
business mobile applications, consumers are frustrated by the cost,
accessibility, and mechanisms supporting mobile e-commerce.
In late October 2009, analyst firm ABI Research revised its
forecast of the mobile commerce market’s sales for this year
upwards from $544 million which it predicted in January 2009 to
$750 million, representing an 117% year-on-year growth rate. It
expects sales to surpass $1 billion in 2010. However, despite
obvious growth, there is evidence that many consumers are still not
convinced.
The survey, conducted simultaneously in Boston and San Francisco
in late 2009, found that despite building consumer demand for
applications, over a third (38%) of smartphone users said they were
frustrated with the high cost of applications. A similar percentage
(29%) said they were uncomfortable entering credit card details for
mobile purchasing. Overall, when asked why they didn't buy
applications – including music, games, business applications or
consumer software – for their phone, 34% said that it was just ‘not
worth the time or effort’.
asknet is a leading provider of e-commerce distribution
solutions for leading software companies including DivX, F-Secure,
Nero, and Panda Security. Since 1995, asknet has seen consistent
growth, and in Q3 2009, asknet announced an increase in gross
profits of 2.4 million Euros, an 11% increase from Q3 2008.
asknet’s Mobile Shopping Cart solution is designed to let customers
purchase and download products or software directly by the mobile
phone, safely, securely and without exposing credit card
details.
F-Secure has successfully used asknet’s Mobile Shopping Cart to
sell its mobile security software through its mobile shop since it
was first implemented in December 2007.
Stefan Konopatzki, director global eCommerce and online
marketing of F-Secure, said, “Mobile malware such as viruses, worms
and trojans have become a nuisance that more and more smartphone
users have to deal with. Malware can cause unwanted billing, delete
valuable information on the device or make the phone unusable.
F-Secure Mobile Security allows smartphone users to experience the
full potential of their devices without the fear of mobile threats.
With the asknet Mobile Cart, we can offer our F-Secure Mobile
Security exactly where it is needed – on the smartphone.”
In the survey, almost half of respondents (45%) said they had
never bought applications or software for their smartphone. Of the
55 percent that had bought software or applications for their
smartphone, over four-fifths (87%) had spent less than $50 in a
year, 9% had spent $51-100, 3% had spent $101-150, and 1% said they
spent more than $150 a year on apps and downloads.
When asked about the downloading and purchasing habits of those
that had bought items, 61% had bought music in the last year, 41%
had bought games, 35% ringtones 33% news, 29% GPS/location-based
software and 27% had bought business applications.
The survey also revealed significant consumer demand for
specific applications: when asked what they would like to buy more
of for their phone, 63% said they would spend more money on music,
51% said they would buy more business applications, 48% wanted
access to GPS applications, and 37% said they wanted to purchase
games.
Aston Fallon, president of asknet Inc., said, “Mobile commerce
is a rapidly maturing market. We have seen e-commerce continue to
gain widespread user acceptance. At this point, we believe that the
barrier has moved beyond just the hesitation of the consumer. Our
survey suggests that the mechanisms for e-commerce may be having
the greatest effect on the rate at which consumers embrace
smartphones for mobile purchasing. It is up to handset
manufacturers to work in tandem with mobile developers to create
more secure, user friendly platforms to promote the adoption of
e-commerce.”
In terms of smartphone models owned, the asknet survey found
that RIM’s BlackBerry and the Apple iPhone topped the list, with
more than half (53%) of those polled in Boston owning a BlackBerry,
37% owning iPhones, and 10% owning other brands. On the West Coast
41% owned other models, a third (34%) owned a RIM BlackBerry and a
quarter (25%) owned an Apple iPhone.
The top three wireless network providers were AT&T, Verizon
and T-Mobile, with AT&T leading in responses (43%) followed by
Verizon (31%) and T-Mobile (19%) across the entire survey
group.
About asknet
asknet offers its clients customized outsourcing
solutions for global software sales via the Internet. Founded in
1995 as a spin-off of the University of Karlsruhe, one of Germany’s
most prestigious technical universities, the company has become the
number two independent global provider for electronic software
distribution. In addition to its fully integrated shop solutions
for software publishers, the company develops and maintains portals
for software distribution such as softwarehouse.de, one of Europe's
largest. In 2008, asknet posted sales of approximately 74.7 million
euros. In 2009 the Karlsruhe company was named in the Deloitte
Touche Tohmatsu “Technology Fast 50” ranking of the fastest-growing
technology firms in Germany. asknet’s clients include numerous
providers of specialty software such as CollabNet, DivX, Ipswitch,
F-Secure, Nero, Panda Security, Steganos, and NetObjects. The
company also supplies software products to around eighty percent of
German universities. http://www.asknet.com/
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