Upwardly mobile

Mobile phones have evolved significantly since their bulky, expensive debut in the 1980s. Back then, they were used mainly by executives who had been given them as an office perk. Today, there are more mobile phones on the planet than people.

In the first decade, 130 million cell phones were sold worldwide. Ten years later, that figure reached 1.1 billion, with countries like Finland, Denmark, Korea, and Sweden leading adoption rates, outperforming larger markets such as the US. In Finland – home of Nokia – adoption among 18-34-year-olds was a staggering 104% (i.e. some had more than one device).

The increased rate of adoption across the world was driven by the introduction of smaller, more affordable, and more stylish phones, as well as continuous innovations like SMS and personalized ringtones. These features catered to the evolving needs of users, transforming cell phones from car-mounted gadgets into essential tools for communication and personal expression, playing a crucial role in their widespread adoption.

The trends highlight how the ‘perceived attributes’ of an innovation influence the rate of adoption.

According to diffusion theory, variance in the rate of adoption of innovations, is explained by five attributes: relative advantage, compatibility, complexity, trialability, and observability. All evident in the adoption of mobile phones:

Relative advantage – the degree to which an innovation is considered better than its predecessor. In the case of mobile phones, primary adopters (businesspeople) saved an estimated 2 hours a week, avoiding missed appointments through conversations on-the-move. As technology evolved, households and individuals also embraced cell phones for social connectivity and lifestyle enhancement.

‍

“Most of the variance in the rate of adoption of innovations, is explained by five attributes: relative advantage, compatibility, complexity, trialability, and observability."

‍

Compatibility and complexity speak for themselves; the latter considered a negative influence on the rate of adoption. Mobile phones got the balance right; compatible with existing telephone systems, so users didn’t need to learn new skills, while the simplicity of familiar functionality further boosted their appeal and adoption.

Trialability is the degree to which an innovation can be sampled. The basic act of borrowing someone else’s phone allowed for easy trialability, encouraging more people to adopt the technology.

Finally, observability – is the innovation visible to others? The visibility of cell phone use in public places highlighted their desirability, making them even more attractive to potential buyers.

Mobile phones ticked every box when it comes to the perceived attributes driving adoption. While much has changed since their introduction, the underlying principles behind their rapid adoption remain relevant today and continue to shape the adoption of newer technologies.

The message is clear: adoption of an innovation relies not only on interpersonal networks and opinion leaders, but also on a product’s perceived attributes. Both are essential.