Tag Archives: mobile application development

2 Billion Smartphones Predicted to Ship in 2018

New predictions from ABI Research forecast that smartphone shipments will reach 1.25 billion before 2014’s end.

Even more exciting that that is the accelerated growth they forecast over the upcoming 4 years. They predict a compound annual growth rate of global smartphone shipments over the period of 12% leading to smartphone shipments in 2018 of 2 Billion units.

“While smartphone growth is beginning to fall, plenty of growth remains, with smartphone penetration of mobile subscribers under 30% worldwide,” states Nick Spencer, ABI Research.

As the device market continues to expand, mobile application markets continue to show exceptional growth as well. Gartner states in-app purchases are growing at a phenomenal 27.83% compound annual growth rate and predicts paid mobile application downloads will grow at a compound annual growth rate of 14.22% through 2017. Mobile application development is certainly going to be a key component of most businesses’ marketing strategy.

Wearable technology is set to enhance the mobile environment even further.

“When wearable technology reaches a point where it can be integrated into everyday life, companies who take advantage of its ability to interact effortless with consumers will benefit by being prepared to meet customers needs,” says Kimber Johnson, Managing Director of Pacific App Design.

Many Users Want Improved Contact with Brands

In a recent survey conducted by Contact Solutions, researchers found that mobile shoppers want more contact than many retailers are currently giving them. Based on study results, nearly three-fourths of shoppers said they would use mobile applications that offered a live chat option to users.

The survey points out that many consumers would like more enhanced forms of contact with retailers and brands via mobile channels.

“To start meeting the needs of customers, retailers must develop a strategy that provides consumers with a positive, interactive engagement with the brand,” says Kimber Johnson, Managing Director of Pacific App Design. “While mobile applications have been a great way to access information, retailers need to see apps as more of a two way communication tool.”

The survey goes on to detail other findings that support this conclusion, such as the feeling many shoppers had they can’t solve problems via mobile.

“Proactively acting to offer the shopping experience that consumers are looking for will set brands apart from their competitors,” concludes Mr. Johnson.

Keys to Mobile Commerce 2.0

What do consumers want when shopping from mobile applications?

In a recent study designed to look at mobile shopping, Catalina found that what shoppers want in a mobile commerce experience is quite simple: they want to save time and money without extra hassle. Their survey was based on a nationwide survey of 1,000 smartphone owners who are also the primary grocery shopper within their respective households.

Mobile applications have changed the way we look at retail as we can now shop using just a few touches of our fingers. The next wave of mobile applications that are being designed with a shopper-centric approach will accelerate adoption of mobile shopping by providing content that is relevant to individual shoppers.

“We are seeing shopping experiences grow from the catalog approach that mirrored catalogs into personalized shopping experiences that save consumers time and cater to their interests,” says Kimber Johnson, Managing Director, Pacific App Design. “Relevant content is enhancing user experiences and savvy shoppers are gravitating towards the retailers and brands that are delivering the shopping experience that consumers want.”

Mobile commerce is an area where brands are actively working to deliver better shopping experiences so brands can’t wait to act.  Study data shows that about two-thirds of primary household shoppers have already used their smartphone on a shopping trip. These users are rapidly forming preferences.

Free Apps Blaze The Way

In the early years of mobile apps,  paid apps generated more revenue for many developers, but over the years we have see a shift. According to data from Distimo, in-app purchases (usually from free apps), are now steering the revenue charge.

Distimo data looks at revenue from the app stores and finds that almost 98 percent of Google Play revenue and 92 percent of Apple App Store revenue that were created from in-app purchases were made from within free apps (November 2013). As recently as the beginning of 2013, both Google’s and Apple’s stores were seeing around 10 percent less revenue from in-app purchases each. Additionally, eMarketer suggests that just over 40 percent of all app revenues will came from in-app purchases in 2013 and that the share will grow to 47.5 percent by 2017.

Over 62 percent of the US population now owns a smartphone with the most logged on to web site being the Google sites at 88 percent reach, followed by Facebook at 84 percent reach. Broken down, comScore reports that as a manufacturer Apple leads the way with a 40 percent OEM marketshare, while Google/Android holds 52 percent of the platform marketplace. Regarding mobile apps, Facebook’s mobile app comes in first, reaching 75 percent of the marketplace.

Consumers Willing to Receive In-Store Mobile Alerts

Swirl Networks just released their recent research about consumer willingness to receive in-store beacon triggered alerts. Swirl’s research points out that 77 percent of consumers are willing to enable their smartphone location data [a requirement for beacon-triggered alerts via mobile application] as long as they received proper value in return.

“Consumers are integrating the mobile experience into their everyday lives more and more every day,” states Pacific App Design’s Managing Director Kimber Johnson. “As long as the experiences are positive for the consumer, we will see them continue to integrate mobile more fully into all of their daily activities.”

Swirl’s study points out that consumers are significantly more likely to share their location information to retailers (65%) than to independent shopping apps or even Google or Facebook.

In conclusion, Kimber Johnson states, “Retailers must be careful with the trust consumers give them and provide alerts that are relevant and have value, if they are not providing that, consumers will quickly discontinue participation in the program.”