Best Buy Mobile Survey Reveals America's Appetite for Smartphones and the Killer Apps They Can't Live Without

* Reuters is not responsible for the content in this press release.

Tue Jun 30, 2009 12:48pm EDT

MINNEAPOLIS--(Business Wire)--
Best Buy Mobile commissioned a survey revealing that a large portion of adults
in America plan to buy a smartphone in the next 12 months. However, many
barriers stand in their way, including confusion about the technology, the
shopping experience and price. The poll of 1,000 Americans, half men and half
women all over the age of 18, was conducted by telephone May 29-31 by GfK Roper,
a division of GfK Custom Research North America, to obtain a snapshot of current
habits, preferences and purchase intentions among today`s mobile phone users. 

Growing hunger for smartphones

The category of smartphones - mobile devices with computer functionality - has
become a cornerstone for Best Buy Mobile, now in 1,067 U.S. locations both
within traditional Best Buy stores as well as in standalone units. The GfK
survey demonstrates many of the drivers and barriers to Americans` smartphone
purchases. 

Only one in five of adults surveyed already owns a smartphone, but a sizable
segment of those in their 20`s and 30`s in particular consider it a purchase
they plan to make in the year ahead. 

Of adults who do not yet own a smartphone, nearly half (47%) claimed they are
too confused by the vast assortment of models and features. Barriers to
smartphone ownership include the difficulty with the shopping experience,
confusion about models and expense.

* 39% do not own a smartphone because they hate shopping for electronics
products, with 45% of women in particular expressing this concern. 
* 52% of women and 42% of men are confused about which model smartphone to buy,
and more than half (53%) of adults over 50 express this confusion. 
* 64% of Americans say they do not own a smartphone because they believe the
devices are too expensive. This sentiment is particularly felt in the South.

"The good news for customers who shop with Best Buy Mobile is that we offer a
choice of the major smartphones on the market from nine of the major carriers
and unbiased, non-commissioned pros to guide consumers through the devices,
features and services that may be right for them," said Scott Moore, vice
president of marketing for Best Buy Mobile. "We offer free upgrade checks to
anyone currently using any form of mobile service, so customers can see if
they`re eligible to get a smartphone; and in many cases, there are special
promotional deals along with our everyday instant rebates. We want everyone to
have a smartphone." 

Applications, real-time connectivity put smartphones on a pedestal

Traditional mobile phones have been characterized largely by the twin features
of calling and texting. Interest in smartphones has centered around a wider
universe of applications that allow consumers to read digital books, film
videos, get directions from any current location, make travel reservations,
download real-time content from the Internet and much more. 

For those surveyed who own smartphones, the most important features are
accessing information from the Internet, sending messages and taking digital
photos. More than half (58%) feel it is important to be able to listen to music
on their mobile phone. Forty-one percent feel it is important to be able to
engage in social networking such as Facebook, MySpace or Twitter. And 36% said
being able to play games is important. 

"Standard mobile phones offer people an ideal way to stay connected for both
professional or personal purposes," Moore added. "However, smartphones take that
connectivity to a new, more exciting level. The variety of features and tools
that smartphones bring to consumers, allows them to stay close to family, friend
and business partners through the method that most suits their needs - whether
it is voice, texting, instant messaging or the Internet. 

When it comes to which features are most in-demand, there is a gender divide.
Seventy-one percent of women said sending text messages is "very important"
compared to 46% of men. Taking digital photos with a phone was also "very
important" to 55% of women compared to 30% of men. Women also shared that
listening to music on their mobile device is "very important" (44%) compared to
only 25% of men. 

Men surveyed were more likely than women (46% versus 39%) to say that it is very
important that their phones have calendar applications that link back to their
computers. But in nearly all instances, women considered features and
applications - including video games - "very important" more than men did.
Fourteen percent of women ranked playing games as very important compared to 9%
of men. Men were also clearly less interested than women in reading books on
their phone: all of the 8% of respondents that were very interested in this
application were women. 

Women were also more likely than men to use their mobile phone`s GPS system.
Fifty-one percent of women, compared to 33% of men, considered getting
directions on their phone "very important." 

With all the applications that entice those in the younger age ranges, there is
still a perception among some that smartphones are more for business than
pleasure. Almost half (49%) of Americans without smartphones now believe that
people who use smartphones are too connected to their jobs at all times,
particularly the older generations who tend to view smartphones as more
functional than fun. Only 30% of adults 18-24 feel this way versus 60% of adults
35-49. 

The secret lives of a texting nation

Whether using traditional number keys, slide-out or built-in keyboards or even
touch-screen typing, an overwhelming majority of Americans prefer text messaging
as a quick and convenient way to communicate. And this affinity for the written
word in the hands of mobile phone users provided some provocative statistics. 

Of all Americans with mobile phones, 62% say they use text messaging, mostly
because it's a convenient and quick way to communicate. More than one-third
(37%) say they use texting to avoid long or tough conversations, and over
one-quarter (27%) say they use it because they dislike talking on the phone.
One-quarter feel it's a great way to flirt, particularly among the
18-24-year-old set (39%). 

One in four of American mobile phone users surveyed admitted they have spied and
read someone else`s text messages without permission. This includes looking at
the messages of spouses, partners, friends or even their own kids. 

Nearly 38% said they had sent a text message to the wrong person by mistake.
Texting leaves a lot of room for interpretation by the recipient, and 37% say
they've been misunderstood by a person receiving their text message. 

One-fourth of Americans (23%) admitted to "TWI," or texting while intoxicated,
and 30% of men and 18% of women said they regretted something they had written
in a text message. 

"We send our customers out of the store with their smartphone loaded up with
their personal and professional contacts, and we can show you special features
to mitigate any embarrassing mistakes," said Moore of the store`s Walk Out
Working program. "Once it`s in their hands on a day-to-day basis, it`s up to
consumers to use the device responsibly." 

Going to extremes to maintain a mobile lifestyle

If caught in the rain with a choice of a mobile phone or an umbrella, nearly 37
percent of Americans would choose their mobile phone. Six in ten (60%) of those
surveyed shared they would rather abstain from alcohol for a week than give up
their mobile phone. One in three would give up television to keep their mobile
phone. A passionate minority of 15% of Americans said they would rather have
their teeth drilled at the dentist`s office than give up their mobile phone for
a week. 

"It`s clear Americans are fanatical about their phones and all the new features
they can get on these remarkable devices," added Moore. "It`s also very apparent
that the mobile phone shopping experience hasn`t been good for consumers in the
past. We believe shopping for mobile devices should be fun. We trust that
customers who are looking to get the most out of their mobile life will check
out our stores and visit with our associates to see what mobile devices and
programs may be right for their lifestyle needs." 

Best Buy Mobile has become a leading destination for smartphone purchases, in
part because of the following promises the store offers its customers:

* Better choice of phones and networks
Consumers can compare a wide selection of the top brands, the latest phones and
all major networks. Depending on store format and carrier mix, Best Buy Mobile
assorts more than 90 handsets. 
* Impartial, informed advice
Mobile phone specialists help customers find the best mobile phones for
individual or family needs. 
* Straightforward pricing
Customers experience savings upfront with no mail-in rebates on the backend. The
price customers see is the price they get. 
* There for the full life cycle of a phone
Customers can choose from an array of service plans, phone repair options and
helpful suggestions to get the most out of their mobile phones.

Best Buy Mobile offers an array of services aimed at improving the mobile phone
buying experience. Some of these services include:

* Upgrade Checker: A quick and easy in-store service that gives consumers the
ability to see when they are eligible for their next phone upgrade. When the
upgrade time is nearing, consumers receive a complimentary reminder call or
email.

* Walk Out Working: Free in-store smartphone setup by a Best Buy Mobile pro who
will sync email accounts, set up BlueTooth peripherals, transfer contacts and
activate other services to allow the customer to leave the store with a fully
functional new smartphone.

About Best Buy Mobile

Best Buy Mobile features one of the largest selections of carriers, handsets and
accessories available anywhere, as well as a highly-trained staff to help
customers make the most of their mobile phones. Best Buy Mobile locations
feature more than 90 different handsets from nine carriers, and one of the
widest assortments of accessories in retail. Employees undergo at least 80 hours
of intensive training, as well as continuing education on mobile phone
technology and trends. 

About Best Buy Co., Inc.

With operations in the United States, Canada, Europe, China and Mexico. Best Buy
is a multinational retailer of technology and entertainment products and
services with a commitment to growth and innovation. The Best Buy family of
brands and partnerships collectively generates more than $40 billion annual
revenue and includes brands such as Best Buy, Audiovisions, The Carphone
Warehouse, Future Shop, Geek Squad, Jiangsu Five Star, Magnolia Audio Video,
Napster, Pacific Sales Kitchen, Bath and Electronic Centers, The Phone House and
Speakeasy. Approximately 165,000 employees apply their talents to help bring the
benefits of these brands to life for customers through retail locations,
multiple call centers and Web sites, in-home solutions, product delivery and
activities in our communities. Community partnership is central to the way we do
business at Best Buy. In fiscal 2008, we donated a combined $31.8 million to
improve the vitality of the communities where our employees and customers live
and work. For more information about Best Buy, visit www.bestbuy.com. 





MS&L PR
for Best Buy Mobile
Stephen Brown, 404-870-6857
Stephen.brown@mslworldwide.com
or
Best Buy Public Relations, 612-292-NEWS
newscenter@bestbuy.com

Copyright Business Wire 2009

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