Our mobile world: ‘always on’ #FOMO or necessity?
Deloitte Mobile Consumer 2014: the Australian Cut
25 November 2014: An inaugural Deloitte Australian survey of 2,000 mobile consumers places Australia as the sixth most concentrated smartphone market in the world after Singapore, South Korea, Norway, Spain and Sweden.
Part of a global four year longitudinal Deloitte study of 37,000 consumers spanning 22 countries – our Australian ‘always on’ mobile world has six clear trends, led by this smartphone penetration.
1. Wake up and connect – Smartphone penetration is growing and our dependence is intensifying.
Deloitte Technology, Media and Telecommunications leader, Stuart Johnston says: “For millions of us, the first thing we do when we wake up is to reach for our phone and connect. Most generations interact with their phones constantly throughout the day and many of us unashamedly look at our phones last thing before falling asleep. A staggering nine percent of us look at our phones between 50 and 100 times a day, with six percent doing so either 100 or more than 200 times!”
Smartphone penetration (developed countries)
Q: How many times would you estimate you look at your phone in a day?
2. Smartphones…a nation divided – the smartphone market in Australia is dominated by two players: Apple and Samsung.
Deloitte TMT Consulting partner Jeremy Drumm, co-author of the mobile consumer report said: “The iPhone is the clear winner for those aged 45 or younger, and the lower cost Android based handsets are preferred by baby boomers. However both Apple and Samsung consumers, are fiercely loyal, and opt to stay with their ‘brand’ and upgrade ‘within the brand family’.
“Given our demanding and ‘always-on’ usage profile it is not surprising that battery life is the most important factor that we will be looking for in our next smartphone purchase, followed by price. So the opportunity is there for the manufacturers to build connectivity in ways that support and stimulate service providers to continue build offerings that we Australians ‘can’t live without.’ Australians take-up of mobile banking – ahead of the US, UK and Germany - is such a development.”
3. Who do you trust with your money on mobile? Many Australians are somewhat prickly about banks but when it comes to mobile banking our ‘need’ for accessible, secure, and instant banking services is trusted pretty much to our banks.
Johnston said: “Although 55% of us use a mobile banking app to transfer money, when it comes to mobile payments only 35% of survey respondents are prepared to use their mobiles as payment device. However as a nation we are strong users of online commerce, so if you put our willingness to transact and do commerce online, together with our smartphones - our device of choice - and our increasing use of our phones in an in-store shopping experience, we expect to see these trends converge into a greater use of our phones as a payments device. We expect this to further increase as more Near Field Communications – enabled phones like the iPhone 6 become main stream.
“We can legitimately ask is the smartphone going to replace the credit card?”
Q: If a solution whereby you would be able to pay in shops by using your mobile phone, would become available, would you use it?
4. Like, share, tweet … repeat – It is in many ways the online social world that is driving our deep smartphone penetration. With Fear of Missing Out, #FOMO, a significant issue in the younger demographic in particular.
Drumm said: “Australian consumers under 45 are ahead of the global trends when it comes to checking our social sites - 44% of us update and check our social networks daily on our smartphones. But our over 45s lag many countries. We expect this to pick up exponentially in the next couple of years as this demographic gets more into social,” he said.
“Facebook for instance has ~13 million unique visitors to the site per month in Australia, more than half our population (57%).”
5. Messaging wave is still to come – Messaging has been one of the most talked about and anticipated services this year globally. In many countries text messaging via short messaging service (SMS) has declined in favour of mobile instant messaging (MIM).
Johnston said: “In Australia, SMS still dominates with MIM services used by a minority of phone users so we anticipate that the mobile instant messaging wave is yet to come. Our youngsters are the most dominant MIM users, doing so instead of calling. In fact only 73% of 18-24 year olds use their phone for phone calls, compared with 88% of 35-44 year olds. Also as the messaging trend continues to spread across the rest of the population there will be significant increases in data usage. In fact handset data downloads have increased by 97% in the year leading up to 30 June 2014, nevertheless voice services remain the dominant source of revenue for mobile network operators for now.”
6. WiFi or 4G – can you tell the difference? – WiFi is the way most of us connecting to the internet on our smartphones. This preference is largely driven by us piggybacking on our home, work or school broadband connections.
“However when we are away from ‘free’ WiFi connectivity we revert to our mobile networks,” says Drumm.. Australians use 4G networks more than the global average and most say that the 4G experience is comparable or better than WiFi. Although, a large percentage of respondents don’t see any difference between 3G, 4G and WiFi, and don’t feel 4G is particularly important when selecting a mobile operator.
“But remaining constantly connected is very important to Australians and we are just as happy using our mobile networks to do so when out and about. Although 31% of respondents have a 4G-capable smartphones only about half are currently subscribed to a 4G network (18%). This uptake is ahead of many countries including the UK (8%) but is well behind Singapore (45%), Korea (44%) and the US (34%).
“As carriers invest in WiFi networks speed and availability will be more accessible.”
The information and insights in the Deloitte Mobile Consumer 2014: the Australian Cut report are important for technology, media and telecommunications businesses – but not exclusively so.
About the survey
The Australian Cut is part of the Deloitte Global Mobile Consumer Survey, a multi-country study of mobile phone users and usage around the world. This 2014 study comprises 37,000 respondents across 22 countries and five continents. Data cited in the report is based on a nationally representative sample of ~2,000 Australia consumers aged 18-75. Field work took place in May 2014 and was carried out online by Ipsos, an independent research firm, based on a question set provided by Deloitte.
We also refer to the Deloitte Media Consumer Survey 2014 and our Technology, Media & Telecommunications Predictions 2014. The report provides a perspective on the insights that the survey has revealed. Additional analyses including: reasons for buying mobile devices, reasons for joining/leaving mobile operators, attitudes towards triple/quad play, our responses to mobile advertising, tablet usage and other views on the mobile consumer market. For further information about this research, please click here to download a copy of the report.
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