What occupies our geeky minds

Australian Smart Device Saturation Point Is Closer Than We Thought

Short URL 2 Comments

Next time you’re in a café, airport departure lounge, or any other place in Australia where phone/tablet usage is acceptably explicit, take the time to do a quick count of those using smart devices compared to those folk texting away on their ‘appless’ mobile.

And the result? Well according to mobile analytics company Flurry, your ‘café survey’ should show almost 8 out of 10 people using a smart device. Flurry’s most recent mobile usage report finds 79% of Australians aged 15-64 years actively use an iOS or Android capable device.  It’s an impressive figure (particularly given its omission of other operating systems such as Windows Phone and Blackberry) and places Australia 4th in the league of smart device penetration, beating technology loving nations such as the US (78%), South Korea (76%) and the UK (74%).

Chart showing Smart Device Penetration by Country

This rate of growth is making a mockery of respected industry forecasts. It wasn’t supposed to happen this fast. According to Flurry, the growth of iOS and Android is happening 3X quicker than our recent uptake of social media and 10X more rapid than the 1980s uptake of personal computing. And very soon the vast majority of these smart devices will be downloading and pushing data at 4G speeds transforming the experience from super convenient alternative to our undisputed Internet of choice.

Make no mistake, this hyper-connected mobile audience presents the greatest opportunity for industry since the creation of the worldwide web. And as per the desktop web, the service industries have been first out of the blocks: Banking, Insurance, Telecommunications, Travel, Government and Health were first to mobile optimise web sites and build self service apps. After all 100% of Australians connected to a mobile Internet means 100% of Australians capable of serving themselves, anytime and anywhere, massively reducing the all important cost-to-serve.

But mobilising pre-existing company services is just the beginning; think of it as the necessary housekeeping before moving onto the important stuff. Creating entirely new mobile services for existing customers and the wider market is where the real opportunity lies. The banks are a case in point, after taking the standard online banking experience to the phone, the banks quickly turned their thoughts to the creation of new services such as mobile-to-mobile payment.  The result has been a race to market between ANZ’s goMoney and CBA’s Kaching, with both banks actively campaigning the new services.

The health insurance industry has also been quick to respond. The first apps in this sector focused on mobilising existing services such as online claiming and account management but quickly progressed to entirely new applications like Bupa’s FoodSwitch app, a food nutrition aid and HBF’s ‘Pocket Health’ app*, a personal health record to help members document their family health. These apps serve not only as a retention tool to existing health insurance members but also provide compelling reasons to recommend the brand to others.

And so as Australia’s big brands move from ‘mobile housekeeping’ to ‘mobile innovation’, so they will be rewarded with unique opportunities to disrupt the market and differentiate through utility. It has already begun, even the slowest moving organisations are restructuring for disruption, creating internal innovation groups charged with harnessing the power of ‘Big Data‘ to provide highly sticky applications that customers simply cannot give-up. So it should come as no surprise, that with 100% smartphone saturation fast approaching, many of these innovation groups are taking a ‘mobile first’ approach.

 

Editor’s note: (16/10/2012) The title of this article has been changed from ‘Smartphone’ to ‘Smart Device’ to more explicitly show the inclusion of tablets in the referenced research data.

[*Disclosure: HBF is an Adapptor client]

Posted by adapptor in Mobile, News, Observations, Opinion | Tags: , ,
  • Just looking at your headline and Flurry’s blog post. I didn’t see that Flurry limited “iOS devices” to just iPhones. If not, Flurry’s “iOS” equals “iPhones, iPads and iPod Touches”. iPod Touch may not make much of a blip in the volumes but iPad must.

    • Marc

      It’s a good point Alan. iPad would be a big contributor to the iOS smart device count. We’ve updated the article title to better reflect the content of the post. Thanks for your feedback.