US leads the world in technology innovation. But one can not say the same when it comes to mobile innovation. You see tremendous innovation is Asia, Europe and even some countries in Africa in mobile services. Things seem to be turning around in the US now thanks to open mobile platforms like iphone and android.
Business Week says mobile commerce may finally be taking off in the US.
Yet, m-commerce may finally be hitting its stride. And some analysts who in recent years became more conservative in their forecasts are now having to make upward revisions. In January, consultant ABI Research projected North American sales of physical goods ordered via cell phone would reach $544 million this year, up from $346 million in 2008. Now, Mark Beccue, senior analyst at ABI, is considering updating his 2009 forecast to $800 million. “I thought hockey-stick growth was going to come in 2010, but it looks like it’s already a hockey stick,” Beccue says. “Next year, it will double again.”
And now, thanks to the growing popularity of smartphones with rich, detailed Web browsers and easy-to-use keyboards, consumers across the country are finally using wireless devices to buy physical items—not just pizzas and sodas, but also books and clothes and the sorts of things typically associated with in-store browsing or online shopping via personal computer. Retailers that make it easy for customers to place mobile orders and purchases stand to gain, assuming they can ensure the security of transactions and information. So do wireless carriers that make Web surfing part of their monthly service bundles—though they need to ensure networks can handle the extra traffic generated by m-commerce.
Much recent m-commerce growth can be traced to eBay (EBAY) and Amazon.com (AMZN), which last year accounted for about 70% of all mobile sales of physical goods. In September, eBay said its iPhone application alone facilitated $380 million in sales this year. The tool lets cell-phone users search and bid on auction items, receive alerts when they are outbid, and to pay for goods via eBay’s iPhone application. At Amazon, which doesn’t release mobile sales figures, phone shopping “is becoming more popular all the time,” says Howard Gefen, director of the Amazon Mobile Payments Service, which lets consumers pay for purchases via mobile.
Other retailers are getting the m-commerce religion, too. By the end of 2009, about half of established retailers may have mobile Web sites, up from less than 20% in 2008, Beccue estimates. “Really, it’s us keeping pace with our customers,” says Mike Dupuis, a vice-president for marketing at apparel retailer American Eagle Outfitters (AEO), which launched its mobile Web site in September. “We believe this is a critical place for us to focus our attention.”
