Nearly Half of Mobile Phone Users Own Smartphones

According to new research from Nielsen, nearly half (48%) of all U.S. mobile phone users own smartphones as of January 2012.  That’s up from 36% in Q1 2011 and 23% in Q1 2010. 

Those in the 25–34 age group showed the greatest proportion of smartphone ownership, with 66% saying they had a smartphone. In the same age group, 8 of 10 of those that had gotten a new device in the last three months chose a smartphone. Among those who chose a device in the last three months, more than half of those under 65 had chosen a smartphone.

But age isn’t the only determinant of smartphone ownership. Income also plays a significant role. When age and income are both taken into account, older subscribers with higher incomes are more likely to have a smartphone. For example, those 55–64 making over 100K a year are almost as likely to have a smartphone as those in the 35–44 age bracket making 35–75K per year.

Adaption of smartphones continues to gain steam, changing the way consumers shop.  22% of U.S. smartphone owners have purchased merchandise on mobile commerce sites or apps, Nielsen finds in its study of 300,000 consumers who own mobile phones. 15% have placed a bid through an online auction, 12% have purchased tickets to events, and 10% have purchased digital music or videos.


M‑commerce sites and apps can be powerful cross-​channel selling tools. For example, 38% of smartphone owners browse products through mobile sites and apps, Nielsen finds. This can be in preparation for a trip to a store, or it can be an activity on the go, say while commuting on a train, to plan a later purchase on an e‑commerce site on a desktop computer or in a physical store. Further, 32% read customer reviews on their smartphones. Some retailers encourage shoppers through signs in stores to access reviews on smartphones, hoping the mobile customer reviews will clinch a sale.


24% of smartphone owners search for and use online coupons, the Nielsen survey says. Retailers can use online coupons as a cross-​channel play to boost sales while customers are in their stores. 22% of smartphone owners have scanned a bar code to obtain additional product information, such as videos or more details than can fit on an in-​store sign or product tag. And 18% of smartphone owners have used location-​based services, such as a GPS-​enabled store locator, to find a store.


On another m‑commerce front, there’s a lot of talk about mobile wallets today, but few wallet offerings and extremely low adoption. Mobile wallets store debit or credit card information in an app and enable a consumer to pay for purchases in stores. Nielsen finds that 16% of smartphone owners who have downloaded a mobile app are extremely interested in using a mobile wallet. 18% are very interested, 24% are somewhat interested, 13% are slightly interested and 30% are not interested.

The data is clear: Mobile devices are changing the way consumers shop,” says Nielsen president of strategic initiatives John Burbank. “And while we’re still in the early days, smart retailers are investing and learning now, ahead of the curve, in order to be best positioned to follow the consumer wherever she goes.”

[Source:  "Survey: New U.S. Smartphone Growth by Age and Income."  Nielsen.  20 Feb. 2012.  Web.  9 Mar. 2012.]