Tablets drive app spending

Research from Analysys Mason indicates tablets drive heavier app usage

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Tablets drive app spending Tablet owners tend to download more smartphone apps, according to Analysys Mason’s European and US Connected Consumer Survey.
By  Roger Field Published  July 10, 2013

Tablet owners spend significantly more on smartphone apps than those who do not own a tablet, according to the latest results from Analysys Mason’s European and US Connected Consumer Survey.

The share of smartphone owners who spend more than EUR5 a month on apps is nearly three times higher for tablet owners. App spend is driven by a minority of users, which therefore generates intense competition among app publishers and little revenue for operators providing billing capabilities on app stores.

The ability to isolate, understand and then encourage users to spend more on apps is critical for a long-term sustainable app strategy. Multi-device ownership is also known to drive mobile data spend. Operators can bundle app vouchers with multi-device tariffs to differentiate from the competition and drive multi-device connectivity onto their network. iPhone owners are twice as likely as other smartphone owners to buy an app.

The report, The Connected Consumer Survey 2013: mobile content and apps, by principal analyst, Ronan de Renesse, revealed that 53% of smartphone respondents had never bought a mobile app when our survey was conducted in October 2012.

The survey covered the telecoms and media usage and preferences of 6600 consumers in France, Germany, Poland, Spain, the UK and the USA.

According to the survey, smartphone app spend is hindered by:

   • the increasing availability of free apps

   • the unwillingness for smartphone users to register their credit-card details with app    store owners

   • the inability to transfer paid-for applications from one smartphone platform to             another.

The share of smartphone respondents buying apps and the level of spending allocated to apps vary significantly by device model. For example, only 30% of iOS owners in Analysys Mason’s panel of respondents had never bought an app compared with 58% to 66% of respondents with smartphones that use other operating systems.

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