Consumer electronics: The App effect

The advent of the app era has certainly changed how people
view their phones, but its real impact has been less on telecommunications –
and more on the electronics industry.

A new study by Deloitte, released today, finds that mobile
apps actually aren’t a key driver on smartphone sales, but they do play a big
role in people’s decision-making when they’re looking for something like a
gaming console or GPS.

Deloitte found that nearly 42 percent of app users have
reduced or completely eliminated their use of MP3 players, choosing instead to
focus on smartphones or tablets (such as the iPhone and iPad). One-third of
those same users say they have also stopped using AM/FM radios, handheld gaming
systems (like the Nintendo DS or Sony PSP) and stand-alone GPS devices.

Despite the huge impact on other technologies, apps are top
of mind for just 18 percent of the people looking at smartphones. The majority
(some 58 percent) say price, camera, size and keyboard style are what influence

eReaders, meanwhile, are starting to expand their footprint.
Deloitte’s study found 10 percent of the country has bought an e-book. Of
those, more than half say they’re reading more now than when they strictly
bought bound books – and 61 percent prefer eBooks to the traditional format.