Smartphone Users Use Devices More like Computers Than Phones, Study Reveals

Report by Counterpoint Research Reveals that Over Half of All Users Surveyed, Spend More than 5 Hours a Day on Smartphones

Counterpoint Research compiled global insights by pulling data from an extensive survey of 3,500 smartphone users aged 15-45 across the globe to better understand mobile user behavior, patterns, preferences and factors that influence purchasing decisions. Today, approximately half the world’s total population (7.6 billion users) uses smartphones. Annual spending exceeded $370 billon in 2017.

Time Spent Daily Using Smartphones

Since its introduction in 2007, the iPhone changed how users interacted with their phones and helped integrate varied, desired functionality into one device such as browsing the Internet, composing emails, taking photographs, sending text messages, making phone calls and playing games. Unlike prior smartphones where users still used the devices primarily for making phone calls, iPhones opened up opportunities for more computing and actual work functionality. Fast forward to today, smartphone users of both iPhones and other devices, use their smartphones for mobile computing activities primarily. Many dedicated users run businesses on their phones. Others consume digital content for hours.

Mobile User Behavior

The iPhone Brought Powerful Desktop Computing to A Small Screen

These consumer trends in many ways mirror Apple’s own foray into the smartphone world where the initial iPhone product in 2007 brought powerful desktop computing features into a portable, small device, including WiFi networking but was not necessarily the best mobile telephone at the time, given restrictions with carriers, shorter battery life and lagging in the trend in the next few years towards 3G and 4G Lite. However, the iPhone introduced the concept of apps to the world beyond computing professionals through the launch of the App Store and allowing third-party software to run code on iPhone devices. This sparked a tremendous revolution across industries, spurring innovation and new ideas, as well as offering developers the opportunity to create software on their own terms. Games were among the most popular apps initially and the quality of games on the iPhone was far superior to any other existing platform at the time because of the larger screen, graphics capability and computing power. Eleven years later, this dominance is still prevalent, although other platforms have also significantly improved and providing excellent mobile experiences. Other phone platforms such as Microsoft’s Windows Mobile were unable to compete after the launch of the iPhone as they failed to provide an enjoyable mobile user experience and functionality.

How the laptop combined the functionality of numerous office devices and applications

Essential laptop functionality is now available on your iPhone and other smartphones

Today, you can walk on any street in practically any neighborhood in the world and see a smartphone user engaging with content on their mobile device with focused attention. Smartphones are ubiquitous and offer consumers independence to search for information themselves, communicate directly wherever they are, work or entertain themselves.

Preference for Mobile Sophistication and Ease of Use

The iPhone offered a smoother mobile browsing experience than any preceding smartphone when it launched. With the use of Notifications, the iPhone helped introduce users to simplified, faster communication updates, that Apple then rolled out to other mobile devices such as the iPad and for the Apple Watch, which does not use an independent web browser, but relies solely on apps.

This conscious choice by Apple to provide a simplified and distinct mobile computing experience helped win consumer loyalty due to an enhanced and enjoyable user experience. This was in sharp contrast to Microsoft’s effort to scale down its Windows PC platform to a mobile device through all of its iterations from Windows Mobile to Windows Phone, Window’s RT tablets and detachables. Despite its initial success with Surface, Microsoft has been unable to grow sales beyond a million devices per quarter - the same sales numbers the company garnered from a decade prior.

Google, on the other hand, succeeded in making the Android platform attractive to smartphone users by offering similar features to the iPhone. However, Google’s mobile computing efforts lag behind the iOS ecosystem for several reasons ranging from cybersecurity to providing streamlined mobile web browsing, lack of customization options, lack of development tools and by being very slow to attract and retain popular, exclusive games.

Smartphone users are looking for greater sophistication in their mobile devices and are thus willing to pay more for premium devices.

Demand for a Higher Quality, More Sophisticated Mobile Platform

The report revealed that more than half of the Australian, Chinese, German and Saudi smartphone users are willing to spend more than US$400 to replace their current devices. Apple also dominated the user base in both Germany and Australia with as many as 85% of users insisting on brand loyalty.

Japanese users were less willing to spend more than $400 on new devices, despite Apple being the most popular smartphone brand in their country. This trend in Japan reflects cultural preference as Japanese consumers tend to be more conservative than consumers in other countries.

Also Japanese consumers tend to buy higher priced models and hold on to them longer (average of 26 months) as compared to Mexican consumers for example, that have the shortest life cycle of smartphones (average of 18 months or less). Over one-third of all Mexican consumers however purchase used smartphones. The smartphone replacement cycle has shortened significantly due to developing markets, which is also spurred on by the rise of newer Chinese brands that provide higher quality models at affordable prices than previously available. The report also revealed that as high as two out of three mobile users in India intend to upgrade to a newer phone within the next twelve months.

Shorter Smartphone Use Cycle Worldwide

The report revealed that Apple was in the top three most sought out brands for purchase for all respondents. Roughly 50% of all survey respondents in developed countries also subscribe to digital streaming services, with Netflix in use by 30% of Australian users and 40% of German respondents using Amazon Prime.

In addition, digital payment methods are increasing in popularity worldwide, particularly in China (AliPay and WeChat) and Thailand (True Money). This is due to their ease of use and ability to override gaps in financial infrastructure for many developing markets.

Amazon Opens New 4-Star Store in Soho

Featuring some of the most popular items rated 4 stars and above from its website, Amazon’s new 4-Star Store in Soho, NY ties into its bestselling Amazon Prime deals.

As its name implies, Amazon’s new 4-Star Store features top-rated products that have four stars or more in online reviews. The new store that opened today, is stocked with a selection of consumer electronics, kitchen and home items, toys, books, games, and more that have four star ratings or higher.

Further cementing its entry into brick and mortar retail, Amazon’s newest store lowers risks associated with retail sales by showcasing popular products in demand. The store also offers avenues for discovery, going beyond merely stocking most-loved items on Amazon.com, by organizing products into specific categories such as Most-Wished-For, Trending Around NYC, Amazon Exclusives and more.

Prime Benefits

Prime members benefit from Amazon primes while non-Prime members have to pay manufacturer’s suggested retail prices (MSRP). The price tags show both prices, thus reinforcing how much Prime members save.

Showcase Amazon Products

The new store also offers Amazon another avenue to showcase its own products. Customers can play with Amazon Echo and other Amazon devices that they may not have viewed in person before purchasing the items on Amazon’s website.

Amazon’s foray into brick and mortar stores has been strategic and has expanded in recent years. The company’s purchase of Whole Foods brought instant access to hundreds of stores in the United States and boosted Amazon’s entry into one of the largest and most important consumer markets - groceries and household items. The company also has other stores - select bookstores that sell only the most popular books and the innovative cashier-less Amazon Go stores that first launched in Seattle in December 2016.

Amazon Go - Checkout Free Customer Convenience

Without checkout lines, cashiers and registers, Amazon Go lets Amazon customers just get the items they want and leave. Their Amazon accounts are charged afterwards. Amazon Go stores are monitored by video cameras that track your activity.

As a customer, when you enter the Amazon Go store, you start by scanning an app. As you shop, the sensors in the store identify the items in your shopping cart and then charge them to your account when you leave. While the Amazon Go store initially opened to employees in 2016, public versions opened in 2017 in Seattle and Chicago. Over 3,000 Amazon Go stores are expected to launch by 2021.

The convenience for the consumer is obvious as you do not have to wait in line or try to figure out self-checkout machines that often fail to register items smoothly. Amazon benefits too as the company can track your purchasing behavior through the store and see items that you may have been interested in, prior to your final purchase decision. This would increase the recommendations the company would in turn offer you online.

Amazon Go stores stock popular items that you would find in any local store such as snacks, sandwiches, salads, milk, bread, drinks and more. Some of the stores also feature meal kits by Amazon similar to Blue Apron delivery and also a selection of wines, beer and other alcohol. By offering quick service fresh items with an easier and faster checkout experience, Amazon Go can threaten existing businesses and convenience chains ranging from 7-Eleven Inc, Subway and Panera Bread to food delivery trucks and mom and pop stores. The challenge to growing this new high tech chain of stores however is the high cost of hardware per store.

Amazon’s interest in expanding its reach via brick and mortar stores is strong but the company remains committed to only doing so if they offer something new, instead of just repeating what already exists in this competitive and popular consumer market space.

“Our focus is on customer obsession rather than competitor obsession, eagerness to invent and pioneer, willingness to fail, the patience to think long-term, and the taking of professional pride in operational excellence.”

— Jeff Bezos, CEO in Amazon shareholder letter

Some of the world’s greatest companies can attest to this. By putting the customer first, successful brands become synonymous with excellence and drive customer engagement and loyalty.

AI Feature by Magic Leap with Gesture Input & Mesh Capabilities

We like this new feature by Magic Leap that demonstrates mesh capabilities and gesture input and also uses NVIDIA imaging. This is part of their VR headset. We would love to see this in smartphones and iPads.

We’ve been intrigued for a while by Magic Leap, an AI company based in Florida that was acquired by Google. Magic Leap has demonstrated innovative artificial intelligence capabilities to audiences worldwide, including this student demonstration below.

You can visit their website here to learn more.