CHAPTER 1: INTRODUCTION
1. Introduction: Smartphone Usage
Mobile phones nowadays are addressed as smartphone as they offer more advanced connectivity and computing ability than a normal cell phone. The term smartphone refers to a programmable mobile phone that offers advanced capabilities and features that help individuals in their daily work and personal life (Euromonitor, 2010). Smartphone basically is the combination of both cell phone and a PDA. 70% of the world’s population own at least one mobile phone. In a telephone survey, 83% of respondents said that they owned a cell phone and 35% of the 2,277 U.S. adults said that they owned a smartphone. Literately, a smartphone is a handheld computer, as it is powerful enough to deliver various functionalities comparable to a computer. The release of dual-core processors smartphone recently has further reaffirmed this assertion. A research on 5013 US adult smartphone Internet users at the end of 2010 reveal the types of smartphone users. i. General Smartphone Usage: Cell phones have been a must have item in daily lives. With the invention of smartphones, owing a cell phone is no longer for calling; it has become a trend and is a substitute for computers, telephone and PDA. 81% uses smartphone to browse the Internet, 77% search, 68% use an application and 48% watch videos on their smartphone.
ii. Action-Oriented Searchers: Smartphones is used to find wide variety of information and to navigate the mobile internet. Search engine websites are the most visited websites with 77% of US smartphone users citing this.
iii. Local Information Seekers: Smartphone is convenient because it users can easily access to information through internet and software provided. 95% of US smartphone users have looked for local information.
iv. Purchase-driven Shoppers: Smartphones has been relatively useful for women because it provides shopping tools, from comparing prices, finding more product information to locating a retailer. 74% of US smartphone shoppers make a purchase, whether online, in-store, or on their phones.
v. Reaching Mobile Consumers: Businesses never miss the opportunity to advertise their products. With smartphones, consumers are exposed cross-media and a majority of them notice mobile ads which lead to taking action on it. 82% notice mobile ads with half of take action, 35% visiting a website and 49% making a purchase.
Figure 1.1 Smartphone Penetrations across Global Markets
Source: http://www.asymco.com/2011/12/13/global-smartphone-penetration-below-10/ (2011) Smartphones have penetrated many countries since its first launching. The number of users started to expand massively in 2010. Figure 1.1 depicts Singapore to be the country with the most smartphone penetration in year 2011. 2. Smartphone usage in Malaysia
With the popularity and functions offered in the phone, smartphones have seen an increase in terms of demand (Park and Chen, 2007). It is reported that in year 2010, 85% of Malaysians own mobile phones. Number of smartphones sold doubles within 12 months. In 2010, mobile phone industry in Malaysia started to boom. The overall value of the industry increased by 30 per cent compared to the year before. The main contributor to the good performance of the industry was the sales of smartphones. The number of units sold went two-fold growth of 208 per cent. Figure 1.2 Smartphone and Internet Usage in Asia
Source: http://www.malaysianwireless.com/2010/05/nsn-talks-about-lte-mobile-broadband/ Figure1.2 shows that Malaysia is the fifth country in Asia with growing percentage of smartphone and internet usage. With mobile broadband becoming more widely available and affordable, it’s not surprising that a growing number of Malaysians are accessing the Internet via smartphones. Massive competition on mobile broadband industry causes the price of subscription become lower. This is an...
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