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Smartphones are replacing MP3 players, digital cameras and GPS devices: Oracle

Smartphones are replacing  MP3 players, digital cameras and GPS devices more quickly than expected, according to a new consumer survey from Oracle.

The survey of 3,000 mobile phone consumers worldwide found that smartphone users are quickly embracing many of these device?s features, with 43 percent of respondents having already replaced their camera with their mobile phone, 34 percent have replaced their MP3 player and 24 percent their GPS device. Nearly 70 percent of the consumers surveyed use smartphones.

?The pace in which mobile devices are replacing iPods, GPS, and cameras is certainly faster than consumers and even industry leaders may have expected, as the technology is just becoming more sophisticated,? said Dan Ford, vice president of product marketing at Oracle Communications, Redwood Shores, CA.

?As smartphones, and now tablets, have become more advanced, the gap between the technology in a mobile device and its counterpart is closing, or is now non-existent,? he said.

?Now consumers can have the same technology in one device than if they bought three separate items.?

Data demand grows
A survey conducted by Oracle a year ago found 52 percent of respondents thought their mobile phone would replace their digital camera by 2015.

The Oracle report, ?Opportunity Calling: The Future of Mobile Communications ? Take Two,? shows that demand for data is growing, with 47 percent reporting that their data usage has increased in the past year. Only 41 percent reported an increase in their text usage, 39 percent call minutes and 38 percent apps.

The results also show that consumer demand for apps is growing significantly, with 55 percent of respondents having downloaded a free app, up from 42 percent in 2012. Additionally, 25 percent have paid for an app on their mobile device.

Interest in tablets is strong as well, with 16 percent of respondents already owning a tablet device and 42 percent planning to purchase one in the next 12 months.

The majority of customers want to access apps on both their mobile phone and tablet computer.

Interest in sharing location data via mobile is also growing, with 45 percent of respondents saying they have already shared location data with a mobile app. In the 2010 survey, 33 percent said they would be interested in receiving relevant information based on their location via mobile.

However, mobile users do have security concerns, with 68 percent not believing or feeling unsure about whether information stored or transmitted from their mobile device is secure.

?As more retailers leverage geofencing and extend targeted mobile offers, we would expect to see even more consumers share their location as there's a clear benefit to doing so,? Mr. Ford said.

Mobile users are embracing their mobile device for shopping activities, with 30 percent using mobile to comparison shop, 24 percent reading customer reviews and 14 having scanned a QR code.

?We found it interesting to see how many consumers were leveraging their mobile devices to comparison shop and look at reviews for products, while in a store,? Mr. Ford said. ?We expect consumer adoption of mobile comparison shopping to continue growing.

?The traditional ways of leveraging sales associates and catchy displays in stores is no longer enough to spur consumers to make purchases,? he said. ?Customers are becoming more sophisticated.

?They know they can scan a UPC code for a kitchen appliance they are shopping for, read its reviews, and comparison shop with other stores in the area or online for the best price. This puts greater pressure on retailers, service providers, and marketers to optimize their Web presence and marketing techniques.?

Optimized for tablets
The survey also found that 57 percent of mobile consumers already own, or plan to own a tablet within the next 12 months. This means a retailer?s Internet presence needs to be optimized both for smartphones and tablets, per Mr. Ford.

Consumers increasingly use mobile for commerce and banking transactions, with 28 percent of respondents saying they use their mobile phones to access online banking compared with 18 percent in 2010. Additionally, 18 percent have used their mobile phone to make purchases online compared with 9 percent in 2010.

However, only 6 percent have made a purchase in-store using their mobile phone.

?The biggest news for marketers is that consumers are gravitating toward smartphones and tablets at a blistering pace,? Mr. Ford said.

?Marketers are going to need to adjust their business strategies to keep pace with changing consumer preferences and purchase behaviors,? he said.

?Mobile complements existing advertising channels such as TV, radio, newspapers, and online and provides retail marketers a sophisticated new way of engaging their customers, extending personalized offers, and cost-effectively delivering a differentiated shopping experience.?

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York