Smart phones are increasingly more present within the UK and greatly influence consumer habits.To what extent are the smart phones impacting on the lives of its users? A report published in 2014 by Deloitte named UK Mobile Consumer Survey gives us some key insights into this query.Keeping informed, entertained and in touch with family and friends is becoming more and more seamless thanks to the ever increasing popularity of mobiles and handheld devices worldwide. Within the UK two thirds of people (35 million people) now own a smart phone. For the majority of UK mobile users it is the first thing they check in the morning and the last thing before they turn in for the night. One of the main reasons for the increase in mobile activity is thanks to the fact that we can now perform tasks on them that were previously only possible on computers. For example, 2014 saw a sharp rise in consumers checking their bank balances with 40% signing in with a smart phone, 10% more than the previous year. Smartphones are constantly facilitating our daily lives thus leading to this 'addictive' attachment.
Within the last year instant messaging has really come to the fore within the UK. The service is seen as a cheap alternative to the standard SMS that has dominated the messaging market for years. However, MIM's are still some way from displacing SMS in the UK, unlike in the South American market where WhatsApp (one of the most popular MIMs) is installed on 90% of all smart phones. Within the UK, only 25% of mobile users use any form of MIM. Although there may be a small amount of users it is thought that they send 55 MIMs a day compared to 8 SMS sent in the same time period. This accumulates to an estimated 300 billion MIMs to be sent in 2014. SMS' sent on the other hand are expected to fall to 140 billion, 5 billion less than in 2013.
There are several reasons why MIM's have failed to take off within the UK but the main two reasons are the lack of a reliable internet connectivity and the fragmentation of MIM applications. SMS is the only service that works in the absence of data connectivity and thus 91% of MIM users also send SMS's. There are also several MIM's such as WhatsApp, Viber, WeChat etc, this variety leads to fragmentation in users which means the consumers are not able to communicate to all their friends on a single platform. For these reasons SMS seems to be here to stay for the near future but MIM's will force a change in the long term for mobile operators. As consumers become more acquainted with apps for communicating, mobile operators will have to find a way to subsidies the loss of SMS revenue.
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