Why would the consumer buy a smartphone PERS app from Philips?

Philips Lifeline has had, to say the least, an unusual week. First they launch a smartphone PERS application makes no sense. The press release quotes the Philips/Georgetown GSEI study that repeats that tiresome cliché that "seniors want to stay as independent as possible as they get older" -- really, no kidding. Therefore smartphone-enabled seniors would want this $13.95/month service. Since they put out a press release and sought media attention with this app, it is safe to say that want us to know about it. And in volume, this would be a nice incremental revenue stream and another use of their highly trained call center reps. But what volume? 19% of the 65+ population own a smartphone -- that's a market of 8 million people. But two-thirds of adults with smartphones download no apps -- using only those which came with the phone. Now we're down to 2.8 million in an available market.

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