Research on apps analyzes usage, spending, purchase drivers and more
App-enabled devices continue to gain traction in U.S. households with smartphones, tablets and smart TVs among the top growth products, according to CEA’s 16th Annual CE Ownership and Market Potential Study (2014), each category saw gains in ownership of at least six percentage points over 2013.
Both the Apple and Android markets offered more than one million apps at the beginning of 2014. According to data from Flurry Analytics in the report, messaging and social media apps enjoyed the largest year-over-year growth in terms of usage with a 203 percent increase going into 2014. Productivity apps have also seen rapid growth (149 percent) as have music, media and entertainment apps (78 percent).
In general, app users are interested in apps with a high level of functionality (e.g., controlling other devices, 52 percent) and compatibility (e.g., working across various types of devices, 61 percent). While two-thirds of app users (67 percent) indicate they enjoy using apps, 59 percent believe the number of apps now available is overwhelming. Additionally, less than half (46 percent) of app users agree that apps remove the need to purchase separate electronic devices.
“There are several positive dynamics currently at play in the mobile device app market,” said
App-enabled Device Purchase Drivers
With regard to purchasing an app-enabled electronic device, technical (e.g., screen size, memory, operating system) and market (e.g., brand and price) characteristics matter most to consumers considering tablets, smartphones and smart TVs. The quality and variety of apps available for download are also important to consumers planning to purchase an app-enabled device.
Consumers appear to be reluctant to pay for apps. Only one-third of app users surveyed (32 percent) indicate they are willing to pay for apps. Roughly half (48 percent) of app users did not spend any money on apps in the past 12 months and 52 percent spent some money, bringing the average amount spent on apps per-user to
Interest in App Capabilities
Consumer interest in additional app functionality includes apps that allow users to monitor or manage their home (55 percent among current app users), monitor the health of a vehicle (49 percent), manage personal health (48 percent), monitor aging family members or those that have been diagnosed health issues (43 percent), improve fitness or sports performance (41 percent) and make payments at physical retail stores (38 percent).
The Intersection Between Apps and Hardware (