Usually refers to a person. Means intelligent, smart, good at something, able to grasp something or deal with something at an above-basic level. So if someone is internet-savvy it means that the person is able to browse and do things on the internet, and manipulate things in a way better than the ordinary person. Or if someone is tech-savvy this means that the person understands gadgets and technology. An application can be labeled savvy if it handles certain things exceptionally well, but this usage is not yet common.

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