droidcon2013 commercialsuccess rannenberg

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Android and the Commercial Success

- Why iOS is still ahead and how Android can improve?

Gökhan Bal

Christian Kahl

Ralf Strobel

Prof. Dr. Kai Rannenberg

Deutsche Telekom

Chair of Mobile Business & Multilateral Security

Goethe University Frankfurt a. M.

www.m-chair.net

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Agenda

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The Status Quo: Android vs. iOS

The Problem: iOS is still ahead

Privacy Excursus

How Android can improve

Solution Approach

Solution Concept

Solution Elements

Conclusion & Outlook

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Agenda

3



Privacy Excursus


Solution Approach

Solution Concept

Solution Elements


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The Status Quo: Android vs. iOS More Smartphones…

4

Number of smartphones sold to end users worldwide from 2007 - 2012

Sales in million units

139.29172.38

296.65

472.00

674.90

122.32

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

2007 2008 2009 2010 2011 2012

www.statista.com/statistics/12856/number-of-smartphones-sold-to-end-users-worldwide-since-2007/

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The Status Quo: Android vs. iOS …and more Apps

5

Number of mobile app downloads worldwide from 2009 - 2016

Number of app downloads in millions

4,507.00

21,646.00 24,936.00

45,617.00

81,422.00

131,695.00

309,606.00

2,516.00

0.00

50,000.00

100,000.00

150,000.00

200,000.00

250,000.00

300,000.00

350,000.00

2009 2010 2011 2012* 2013* 2014* 2015* 2016*

www.statista.com/statistics/76684/number-of-mobile-app-downloads-by-2013/

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The Status Quo: Android vs. iOS Android vs. iOS Market Share

Android market share increased rapidly.

Android has overtaken iOS already in Q2‘10.

6 www.statista.com/statistics/74592/quarterly-worldwide-smartphone-sales-by-operating-system-since-2009/

Global smartphone sales to end users 2009 - 2012, by OS

Sales in million units

0,00

50,00

100,00

150,00

200,00

250,00

Q1 '09 Q2 '09 Q3 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12

Android iOS Others

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Agenda

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Privacy Excursus


Solution Approach

Solution Concept

Solution Elements


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The Problem: iOS is still ahead Revenues

Android vs. iOS App revenue

iOS still far ahead regarding commercial success of apps

8 http://techcrunch.com/2013/01/30/japan-south-korea-led-google-play-app-to-revenue-to-double-from-q3-to-q4-2012-but-apple-still-revenue-leader/

http://www.insidemobileapps.com/2012/03/30/google-play-delivers-a-quarter-of-the-revenues-apple-and-amazon-do-says-flurry/

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The Problem: iOS is still ahead Possible Reasons (1)

Compatibility (Too?) many updates/changes in Android OS

Market for Android devices and OS more fragmented than for iOS

Difficulties for developers

Android app development requires more resources (time,

money, etc.).

Commercially promising apps rather developed for iOS

Usability and user relations Unified design in iOS (Apps look and feel more similar)

Usability on Android also depends on Android OS version

‘Beauty and Impressiveness’ of iOS Apps

iOS users rather like to impress their peers

9 http://www.mobileprwire.com/Why-iOS-Apps-are-More-Successful-than-Android-Apps.html

http://www.businessinsider.com/app-design-company-director-all-of-our-clients-choose-ios-

over-android-2012-7#ixzz2OAlMgc7A www.stuarthughes.com/newdawn/product_info.php?products_id=113

iphone 4S Elite Gold 'The worlds most

expensive Phone'

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10

© 2011 Hunch Inc.

http://blog.hunch.com/?p=51781

http://t3n.de/news/android-vs-ios-duell-

zahlen-infografik-326152/

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The Problem: iOS is still ahead Possible Reasons (2a)

www.engadget.com/2010/12/01/computer-engineer-barbie-now-available-and-her-phones-been-upg 11

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The “Band-Aid” Effect “There’s an app for that.” Apple has a reputation for

making apps

“The iPhone is synonymous with apps – plain and simple.” http://www.mobileprwire.com/Why-iOS-Apps-are-More-Successful-than-Android-Apps.html

iPhone users are rather early adaptors, interested in new

possibilities

(many casual smartphone users use Android devices).

“If you are going to be on one platform, you want to be where

the early adopters are.“ http://www.businessinsider.com/app-design-company-director-all-of-

our-clients-choose-ios-over-android-2012-7#ixzz2OAlMgc7A

Easier to market (?!) Developers can build on Apple ‘s

reputation

Many apps developed for iOS first


http://www.businessinsider.com/app-design-company-director-all-of-our-clients-choose-ios-over-android-2012-7#ixzz2OAlMgc7A

http://www.businessinsider.com/app-design-company-director-all-of-our-clients-choose-ios-over-android-2012-7



























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Purchasing iTunes fully integrated in iOS (seamless purchasing process)

Payment information usually already provided in iTunes

account

In Android, payment information is provided during checkout

iPhone users willing to spend more money

Store Reputation iOS has better store reputation.

Strict review process vs. open source approach https://www1.cs.fau.de/filepool/publications/zina/chi2013-smartphones-wip-FINAL.pdf



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What can be Android’s

competitive advantage?



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Agenda

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Privacy Excursus


Solution Approach

Solution Concept

Solution Elements


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Privacy Excursus

Privacy?!

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Privacy Excursus Problems regarding privacy

Current smartphone platforms and app market places do not provide users an

appropriate level of transparency regarding smartphone applications’ sensitive

information processing activities.

Often, users are not aware that sensitive resources have been accessed and

processed by applications.

This leads to a biased conception of how smartphone application usage

impacts users’ privacy.

Privacy principles such as informational self-determination, transparency, and

user control are violated.

37% of people who don’t use a smartphone, explain their refusal with a lack of

trust in smartphone devices1.

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1BMELV 2012, Sicherheit und Datenschutz bei Smartphones, Hintergrundpapier zur

Verbraucherumfrage vom Mai 2012. Bundesministerium für Ernährung, Landwirtschaft und

Verbraucherschutz / Federal Ministry of Food, Agriculture and Consumer Protection

(Germany).

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Privacy Excursus Problems regarding privacy (2)

… static,

… coarse-grained,

… timed inappropriately,

… ignored largely,

… not an effective measure

to inform users about

individual privacy risks of

apps.

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Current privacy information is …

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Agenda

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Privacy Excursus


Solution Approach

Solution Concept

Solution Elements


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Agenda

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Privacy Excursus


Solution Approach

Solution Concept

Solution Elements


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How Android can improve Solution Approach

Transparency and privacy as a competitive

advantage for Android

Android users are more privacy aware.1

Transparency regarding access/usage of

personal data by particular apps is important

Transparency increases trust in an app (Which data is

used? How is data used?)

Creates added value of an app for privacy aware users

Added value could be monetised (e.g. User pays for

transparency; User pays with money or with personal

data for app)

How to further use this as a competitive

advantage? 21 1https://www1.cs.fau.de/filepool/publications/zina/chi2013-smartphones-wip-FINAL.pdf

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Agenda

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Privacy Excursus


Solution Approach

Solution Concept

Solution Elements


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Solution Concept Communicate Privacy(-impacting) behaviour

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Inform about privacy-impacting behaviour patterns1 of

apps instead of static permissions!

Information about how an app actually behaves on the

user‘s device

E.g. what sensitive resources does it access? When?

How frequent? What information can be extracted

about the user?

How does the developer use the information?

1BAL, G. 2012. Revealing Privacy-Impacting Behavior Patterns of Smartphone Applications. MoST

2012 - Proceedings of the Mobile Security Technologies Workshop 2012.

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Agenda

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Privacy Excursus


Solution Approach

Solution Concept

Solution Elements

Local Runtime Privacy Information

Privacy score for apps in app markets

Trust-enhanced app discovery


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Solution Elements 1. Local Runtime Privacy Information

1) Monitoring and analysis of app behaviour,

2) Notification when app matches a pattern

(“unlock” of privacy information).

3) Information about app behaviour

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Runtime

notification

Details about

unlocked

information

Information about

new “unlock”

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More details:

What is unlocked?

More details: How

did app unlock?


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4) Possibility to give feedback

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More details:

Relevant excerpts

of Privacy Policy

Feedback

mechanism

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Solution Elements 2. Privacy score for apps in app markets

Calculating a privacy score based on the users’

app-behaviour ratings (crowdsourcing).

Visualization of the privacy score for apps.

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Solution Elements 3. Trust-enhanced app discovery

App behaviour profile

impacts search result

order.

Additional visual indicator

for apps’ privacy behaviour

profile.

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What you can do already now

Be transparent.

Inform users why you need access to privacy

sensitive resources.

Tell them what you do with their

information.

Keep the number of permissions small.

Check if you really need all permissions.

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Enhance user trust into the app ecosystem

Provide useful privacy information about individual

apps covering the phases of app discovery, installation

and usage

Usage of crowdsourcing to rate privacy-invasiveness of

apps

Who could run the market?

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Deutsche Telekom Chair of

Mobile Business & Multilateral Security

Prof. Dr. Kai Rannenberg

Chair of Mobile Business & Multilateral Security

Goethe University Frankfurt

[email protected]

www.m-chair.net

@mchair

Thank You!

Prof. Dr. Kai Rannenberg Christian Kahl Ralf Strobel

droidcon2013 commercialsuccess rannenberg

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