Banking, online shopping most popular apps in Latin America

Latin America has a mix of market maturity levels and user profiles when it comes to information and communication technology (ICT).

An Ericsson Mobility Report from November 2015 shows that mobile subscription penetration in Latin America has reached 115 percent, with most of its countries above 100 percent, however mobile broadband still has a long way to go in order to reach the vast majority of the population

The increasing availability of lower-priced smartphones and the need to remain constantly connected are rapidly boosting the adoption of devices and services in the region.

In 2015, smartphones account for approximately 75 percent of the region’s handset sales, compared to 65 percent last year.

Just as smartphones and the internet are changing the way people around the world interact, the same tools are transforming consumers’ daily routines.

There has been a rise in instant messaging, social networking, browsing, and entertainment activities like music and video streaming.

This is reflected in the ranking of the 25 most popular apps per country, based on monthly active users.

Among the top 25 apps there are local apps too.

The most popular local apps in Brazil and Colombia are related to banking, while in Argentina they are related to online shopping.

As a consequence of the popularity of apps and online services, data is rapidly gaining relevance as a revenue stream.

Operators have realized that new business models for data monetization are imperative to surviving this industry transformation. On average, data already represents 1 40 percent of operators’ total income in the region.

Latin Americans want to achieve a more connected life by using multiple devices. Smartphones are already as popular as PCs (laptops and desktops) for connecting to the internet.

Smartphones show a high level of connectedness, and they are the most popular device for internet access.

89 percent of smartphone users, compared to 76 percent of PC users, go online daily. Ownership is increasing rapidly, and smartphones will stand out as the main internet-enabled device.

They are at the top of consumers’ shopping lists, with 36 percent intending to buy one in the next 12 months.

On average, there are three connected devices per household in Latin America and devices are selected based on the activities users want to perform.

Smartphones are favoured for messaging, social networking, music and games. PCs are preferred for internet browsing, watching video and online shopping.

However, smartphones are gaining popularity as devices for watching video.

Over 70 percent of consumers are doing so, according to the Ericsson ConsumerLab TV and media study 2015.

This generates higher demands on connectivity, as speed and coverage become even more relevant. Consumers use different types of connections, as shown in the graphic below.

In the pursuit of a better experience, they will switch connections from Wi-Fi to mobile broadband and vice versa.

54 percent of consumers switch to improve speed or reliability of coverage, while only 24 percent switch due to cost.

Ericsson is the driving force behind the Networked Society – a world leader in communications technology and services.

With approximately 115,000 professionals and customers in 180 countries, Ericsson combines global scale with technology and services leadership.

Ericsson supports networks that connect more than 2.5 billion subscribers.

Forty percent of the world’s mobile traffic is carried over Ericsson networks.