Current Converged Mobile Devices Fail to Compel Users

SCOTTSDALE, Ariz., February 20, 2008 - The conventional wisdom within the portable device industry is that consumers have a preference to use converged devices, meaning single devices that combine the functionality of previously separate devices, reports In-Stat (http://www.in-stat.com). But the idea that there will be wholesale adoption of a device that simply combines multiple devices is unrealistic, the high-tech market research firm says. A recent In-Stat survey of US businesspeople shows that users tend to remain loyal to older technology, and employers are reluctant to force the issue.

“On the other hand, once a converged device proves to offer additional value and technological obstacles are addressed, adoption progresses relatively quickly,” says Bill Hughes, In-Stat analyst. “The smartphone is a successful example of a converged device where a single device combines a PDA computing device and a mobile phone.  In this case, the smartphone offers a benefit to the user in the form of real-time data, typically wireless email.”

Recent research by In-Stat found the following:

• One positive sign of progress in convergence is that 8% of road warriors, businesspeople who travel frequently, have given up a desk phone to rely solely on their mobile number.
• Before employers can insist that employees use fewer devices, manufacturers need to address battery life and ergonomics issues for portable devices.
• The survey shows that many more users prefer to carry redundant devices than chose to have a single telephone number and a single computing device.

Recent In-Stat research, Converged Devices: US Road Warriors Start Cord Cutting (#IN0804253MBM), covers the market for mobile devices. It includes results of a survey of US business users. It looks at what users say are their objections to using converged devices. Such information is important for device manufacturers and the wireless operators that sell subscriptions on which these devices operate to anticipate when the promise of converged devices will come to fruition.

For more information on this research or to purchase it online, please visit: http://www.instat.com/catalog/wcatalogue.asp?id=229 or contact a sales representative: http://www.instat.com/sales.asp

The price is $3,495 (US).

This research is part of In-Stat’s Mobile Business service, which covers US business demand for wireless services with an emphasis on mobile data devices and services. The service features annual surveys of more than 5,000 decision makers and mobile users, which provides clients with unprecedented, fact-based decision support research on demand for Smartphones, data applications, and mobility trends.

Related In-Stat reports:

Another area of progress for convergence is in the adoption of smartphones. The In-Stat report, “Smartphones 2007: The ARPU Generation Machine” http://www.instat.com/abstract.asp?id=66&SKU=IN0703823WH looks at the marketplace for smartphones and examines what features and capabilities users are seeking.

For more information, contact:

Bill Hughes, Principal Analyst
Phone: 425 453-9917
Email: bill.hughes@reedbusiness.com

Elaine Potter, Marketing Coordinator
Phone: 480-483-4441
Email: epotter@reedbusiness.com