Adoption of converged mobile devices slow: Survey

By Mickey Alam Khan

February 21, 2008

Bill Hughes is analyst at In-Stat

The wholesale adoption of a mobile device that combines several functions will take some time, according to a new dry-eyed survey of converged-instruments usage.

An In-Stat survey of U.S. business executives found that users stay loyal to older technology, with employers reluctant to push the issue.

“Many converged devices, as they exist today, fail to offer a sufficiently easy user interface or offer sufficient value for the convergence,” said Bill Hughes, analyst at In-Stat, a Scottsdale, AZ-based market researcher.

“There are notable exceptions: The smartphone is an example of a success,” he said. “There is also significant customer inertia. We see this in the number of Palm Treo users that retain their Palm PDA.”

The survey showed that more users prefer to carry redundant devices than chose to have a single phone number and one computing device.

“What this means for marketers is that a converged device really needs a more compelling story than one device weighs less than two,” Mr. Hughes said.

But things might change.

Per In-Stat, one positive indication of adoption of converged mobile devices is that 8 percent of business executives who travel frequently have ditched their desk phone in favor of their mobile number.

“Manufacturers need to present a real case how a converged device adds value and is more convenient,” Mr. Hughes said. “There is a trend among some users to give up home phone service in favor of using a mobile phone.

“As this trend progresses, it will mean less expense for their employers, but the real advantage is that the user no longer has to check their voicemail system at work,” he said.

The survey findings are part of Mr. Hughes’ report titled “Converged Devices: U.S. Road Warriors Start Cord Cutting.”

In that report, Mr. Hughes emphasizes that handset makers must address battery life and ergonomics issues for portable devices before employers insist that employees carry a single converged mobile phone.

“I have faith in the inevitability of convergence, but the path is neither direct nor short,” Mr. Hughes said. “Manufacturers that assume such behavior are setting themselves up for disappointment.”