Wed, 16 May, 2012, 2:06 PM EDT - Canadian Markets close in 1 hr 54 mins

Mobile apps losing their lustre?

Could the bloom be off of the mobile app rose?

While just-released survey data from the Pew Research Center's Internet & American Life Project suggests the app revolution may not be as revolutionary as Apple and Google would like us to believe, apps aren't going to disappear from our smartphones and tablets anytime soon.

The rapid transition from basic voice- and text-only feature phones to smartphones means more users are now capable of downloading and using apps.

About 42 per cent of adults in the U.S. now have phones with apps on them, almost double the 22 per cent recorded in September 2009. Despite the rising numbers, the majority of smartphone users — 68 per cent — tend to open five or fewer apps at least once a week. About 17 per cent don't use any apps at all.

HTML 5 a death knell for apps?

Part of the challenge facing app makers lies in the improving quality of mobile web sites. As designers adapt their sites to the growing numbers of users logging in from pocketable devices, their usefulness as a quick alternative to a downloaded app continues to grow. The increasing use of HTML5 in web design is further accelerating the trend, as the updated design standard allows websites to be nearly as interactive as a corresponding app. Increasingly capable mobile browsers add further fuel to the mobile web fire, resulting in large numbers of users choosing web surfing over app downloads.

A recent Zmags survey validates this evolution, with only 4 per cent of consumers choosing to use a branded app for shopping or browsing compared to 87 per cent who stick with a mobile or conventional browser.

Why do apps get less love from some users? An app makes more sense if you plan on connecting with a particular business frequently enough to justify taking the time to download the app in the first place. If you're addicted to Starbucks or Tim Hortons, for example, it's likely worth your while to have their respective apps on your device. But if you're searching the mobile web for a one-time purchase, an app for a particular retailer you're probably not going to visit again anytime soon, if at all, would be overkill.

That stickiness factor largely explains why so many apps fail to see the light of day.  Anindya Datta, who founded the app analytic firm, Mobilewalla, estimates users eventually delete between 80 per cent and 90 per cent of the apps on their phones, adding a 30 per cent retention rate is considered desirable.

Less eyes on apps

The so-called long tail is also an influencing factor in app use. Despite online app stores stuffed with hundreds of thousands of titles, limitations in how the online repositories make new titles visible result in consumers seeing only a tiny fraction of what's out there.

An AppsFire analysis of iTunes App Store downloads showed 51.5 per cent of users installed the fifth-ranked app, while only 1.76 per cent installed the 1,000th-ranked title. A recent Nielsen survey reports Android users spend 43 per cent of their time using the top 10 apps in the Android Market — and 60 per cent of their mobile device time using the top 50 titles. This means most users never see much else, which largely explains why apps that fail to make the top 10, 25 or 50 lists often languish in the dusty corners of their respective online marketplaces.

The smartphone tipping point is also a factor as the Nielsen data shows 57 per cent of U.S. consumers still use basic feature phones. As more consumers ditch their old devices for smartphones, app awareness and usage will rise. Education level is another issue, as relatively recent smartphone purchasers may not be fully aware of how apps can change the user experience. Exploding demand for tablets will also drive usage levels up, as there is strong correlation between smartphone and tablet demand, especially among consumers who own both.

Despite the conflicting numbers over how many apps are downloaded, used and ultimately retained by end users — and challenges facing app store vendors in helping developers market less-popular titles — the space will continue to grow as more smartphones are sold and as consumers continue to learn how they can enhance the ownership experience.

Carmi Levy is a London, Ont.-based independent technology analyst and journalist. The opinions expressed are his own. carmilevy@yahoo.ca

 

30 comments

  • markleaman50  •  2 months ago
    Those days still exist for me. I almost never use my phone, but when I do, it is to make a brief voice call !
    • Harry R. Sole 2 months ago
      Exactly what a "phone" was designed to do.
  • burgerbarn  •  Burlington, Ontario  •  2 months ago
    this is bcuz 50% or more of the apps are garbage and are a waste...half of them are a joke and when you first buy a phone capable of downloading apps you start to realize this...then when you get apps you check to see if its really worth downloading and usefuli have maybe 30 apps and i use daily about 10 if that....
    • anthony 2 months ago
      what 10 apps could you possibly have to use everyday
    • burgerbarn 2 months ago
      let me see now, price is right game hey these are apps...messenger (facebook),facebook,dealfind, love that place,102.1 edge,see whats playing on music, the weather network,,covert units app...ok that not everyday but use it alot,flashlight app so i can see in the dark getting to my vehicle..metrodome when i practice drums need that one for sure,and play the brisksaber app but that one will eventually die out but right now it's cool,kijiji when i am looking for something and yellowpages when i need to get a number...SO ya about 10 apps a day...why does that sound so surprising to you? are these to hard for you to figure out or just not fun for you? like whats up my man?
  • Larry  •  Toronto, Ontario  •  2 months ago
    Rumour has it that there was actually a time when you just used your phone to talk to people. Pioneer, 'Little House on the Prairie' days I guess.
  • Redfoxx  •  Winnipeg, Manitoba  •  2 months ago
    Overkill- if I want to find out where my dog is in the backyard, I will just whistle and she will come running.
    • valleyboi 2 months ago
      Thanks for makin' my day... Awesume comment .... LOL.
  • Puzzled  •  Mississauga, Ontario  •  3 months ago
    so which tablet/ smartphone maker has the most fully functional browser to enable the richest web browsing experience and relies least on mobile apps?
    • Harry R. Sole 2 months ago
      They're still puzzled about that.
    • A. Guy 2 months ago
      Android.
    • DavidR 2 months ago
      Believe it or now, it's Research In Motion. They offer the most functional browsing experience on Tablets (The best HTML 5 support & rock-solid Flash support). On phones, they're second only to iOS, but were Significantly ahead of them until iOS 5 dropped. I expect that they're pass iOS (again) before too long.
  • ATVs  •  2 months ago
    apps was an industry buzz word. Now that the dust is settling the app-mania is ending because it never really delivered and the "gotta-have-one" corporate yell turned into an "app-not-getting-results" cry.

    Why? Because websites can do anything an app can do. In fact the "app" was just a bridge between what a website could show and what a lower tech phone could not. Now that phones can easily display full web page functionality the app party is over.
    • ATVs 2 months ago
      another buzz word - "high tech gadgets". These are electronic gizmos that are in fact low tech versions of high tech computer version shoved into a small package. Why call them high tech if they are in fact lower tech? because gadgets are profitable.

      A little insider secret - only people call them high tech gadgets, makers call them "units" and will always try to sell you a "unit" for purposes you can't even imagine let alone need. The game is about getting a unit into your life, and money out of your wallet, and what that "unit" is does not matter so long as it can be sold in mass at a decent profit clip. THIS is why patents are becoming important, it's hard to create new and useful "units" because people don't really need them to begin with.
  • OnesOpinion  •  2 months ago
    How much does one spend on their Phone every month is my concern.

    I have a basic phone and text .....$25.00 a month and No Internet use ..
    I have internet at home and it costs $25.00 a month and we watch movies and hardly no TV anymore...........
    I have seen friends spending over $100.00 on a cell phone and complaining they have no money to buy RESP's with.
    It makes no sense to me...........Try to actually voice call someone now and these young kids have no idea.....TEXT me they say or follow me on twitter.
    Like I care you are driving to work stuck in traffic. ..............
  • storyteller1333  •  Ottawa, Ontario  •  2 months ago
    only apps i realy use is the classical games, 8 and 16 bit games rock(SNES player for life ^^)
  • Working Stiff  •  2 months ago
    Lots of useless Apps out there should be the storyline.
    Everyone and their mother is trying to write an App.
  • AD  •  Montreal, Quebec  •  2 months ago
    I don't think apps are going anywhere Per-say, they may migrate to links to online sites designed for mobile viewing but its essentially the same idea. the growth has probably slowed as many more ppl now have smart phones and have already added all the apps they want also the market has probably hit a saturation point, also most new phones come with the most handy apps already installed, apps are here to stay in one form or another its a stupid assertion that they'll disappear any time soon.
  • ilm25_5  •  Newmarket, Ontario  •  2 months ago
    Apps are extremely useful. The problem is most people don't really look for good ones that can help them in their daily lives. I have many apps, some are charts that help me pick correct size parts for equipment that I repair at my job. Some apps schedule my day and until these apps I was the most unorganized person on the planet. How about the fact that everyone now has a calculator on their phone (makes me mad at the teachers who told me that in the real world we wouldn't have a calculator). If you think about your needs instead of your wants you really will find very good apps that you will use on a daily basis.
  • ALPHAMEL  •  Phoenix, United States  •  2 months ago
    What the hell are "apps" anyway? Appliances? Apartments? Appointments?
  • Mr T.  •  2 months ago
    I don't even like talking on my mobile, reception is often lousy. So I sms, then I have a record of when the call came or went and what was said. Everything else is for amusment and I prefer to take my amusment in other ways, not on my phone. Furthermore, I'm not "married" to my phone. I feel no obligation to answer or respond. When I feel like it, I will. If I don't, I won't. People that drop everything to answer their phone drive me crazy. They have a problem which I think Mother Bell nurtured a long time ago.
  • To  •  Calgary, Alberta  •  2 months ago
    doesn't matter if peopel use them it's who buys them that counts. I may only use 4-5 apps but I have 40-50 on my phone lol
  • John  •  Mississauga, Ontario  •  2 months ago
    The problem with apps is you have to buy them to try them out - and if it's not what you were looking for, you can't get your money back but you are also not going to use that lousy app again. Abd this includes a great deal of the available apps.

    Apple and Android need to change their ways and allow us to try them first. I'm tired of wasting good money on bad apps. Because I no longer trust the app store, I haven't bought a new app in months.
  • jorge  •  2 months ago
    Redfoxx if you want to find your dog ,there's an app for that.
  • Just someone  •  Calgary, Alberta  •  2 months ago
    Why the hell would anyone want to use random apps? They want all those info from your phone, such as your number, name, network provider ( I get those, but how about making phone calls on your behalf, or send random messages and use the internet at any time even if you are not using the app..... If I read that kind of stuff I don't even bother with the app. I don't think they need it they just want all my details so one day they might misuse it and I get a phone bill from hell, but hey whatever. don't need apps!
  • RON  •  Toronto, Ontario  •  2 months ago
    well some apps work well for me. but i guess the smartphone only recognizes north american voices. my accent screws up my personal assistant.
  • boshuda21  •  Berkeley, United States  •  2 months ago
    I think part of it is that the 'cool' factor is gone. It used to be something to brag to all your friends that you got this cool new app and now nobody really cares. People are now opting for (the few) apps that are useful on a regular basis, useful being ones with more universal appeal. The majority of apps are for a subset of users, to be used only a subset of the time. Their appeal is driven by novelty only. It is no surprise that the app craze is dying. In fact it is happening later than I expected. What may start happening is that people may be forced to buy phones with popular apps pre-installed in order to suck the last few drops of life from the app phenomenon.
  • Andrew McCulloch  •  St Catharines, Ontario  •  2 months ago
    Aw this sucks. i was going to make an app to fundraise for a volunteer trip, but it doesn't seem like it would work out now =/.