While some consumers vex about all the complex gadgetry on their cell phones, an IBM survey found 80 percent of consumers are looking for more applications and services - not only for entertainment but also for basic transactional and utility purposes.
For instance, 56 percent of the 700 consumers surveyed worldwide indicated they were "interested" - either somewhat or very - in banking via mobile devices. A whopping sixty eight percent indicated they were interested in using mobile devices for maps; 55 percent to get news; 52 percent for e-mail services; 56 percent for instant messaging; and 53 percent for browsing the internet. In more pure entertainment areas, 53 percent were interested in using their mobile devices to watch TV; 41 percent to play online games; 45 percent to buy music; 44 percent to buy videos; and 41 percent in buying games.
In its survey, only 20 percent of customers indicated they were "very satisfied" with their current mobile internet services, while the remaining 80 percent were split among "somewhat satisfied (40 percent)," "somewhat dissatisfied" (12 percent), "not satisfied" (five percent) and non-users (23 percent).
Asked what's stopping them from using mobile internet more often, too expensive (50 percent) was the most cited reason. That was followed by connection too slow (40 percent); don't find it convenient (37 percent); tried but didn't find it useful (17 percent); never tried it, but never felt like using mobile internet (16 percent); don't know about it (eight percent); and don't know how to use it (six percent).
The study, titled Go mobile, grow from IBM's Institute for Business Value, estimates the market for mobile internet services will reach $80 billion by 2011, with increasing usage expected to fuel growth in both the provision of services and mobile internet advertising. At the same time, the number of mobile internet users worldwide is projected to approach 1 billion, a 191 percent increase from 2006 and a compound annual growth rate of 24 percent.
"Clearly the same market forces which empowered consumers to choose personal computers that were open and enabled them to customize their applications are at play in the mobile web marketplace," said Dr. Sungyoul Lee, global consulting leader, Electronics Industry, IBM, in a statement.
Discussion Questions: How do you think the further development of mobile internet services will reshape consumer spending habits? In what ways can retailers prepare for this event? Are retailers underestimating or overestimating this opportunity?