mobile apps: the big picture · 2020-04-18 · mobile appstore ecosystem oems operators content...

Mobile Apps: The Big Picture

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© Chetan Sharma Consulting, All Rights Reserved Oct 5, 20102http://www.chetansharma.com

Chetan Sharma ConsultingChetan Sharma Consulting

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§ 9 yr old Seattle based Strategy firm exclusively focused on Mobile§ Advisor to major operators, brands, startups, VCs, and Fortune 500 firms around

the world. § Strategy for each of the top 6 global mobile data operators§ Have a unique 360o view of the ecosystem



http://www.chetansharma.comhttp://www.chetansharma.com



MOBILE ECOSYSTEM TRENDS



Mobile Ecosystem is getting ComplexMobile Ecosystem is getting Complex

Fixed broadband networkoperator

TV creation & distribution

SearchOther CE creation & distribution

Software & applications

Mobile Operators

Social Networking

mPayments

Home networking & automation

Games

Fixed video network operator

Music creation & distribution

Print creation & distribution

Movie creation & distribution

Mobile device creation & distribution

Consumers

Source: Adapted from T-Mobile USA, Inc.



Voice Revenues have Voice Revenues have PlateauedPlateaued

•Voice Revenues in Japan have beendeclining for years, it started in the USlast year•Implications – more focus on data – for marketing, products, churn management, etc.



Data Revenues > Voice RevenuesData Revenues > Voice Revenues

Data surpassed Voice revenues at SoftbankLast quarter, DoCoMo next quarter, US late 2012/early 2013



DATA IS LEADING THE CHARGE/CHANGE



Global Mobile Technology EvolutionGlobal Mobile Technology Evolution

First time, data is leading the charge



Mobile Revenue DistributionMobile Revenue Distribution



Data Revenue DistributionData Revenue Distribution



Global Trends: Mobile RevenuesGlobal Trends: Mobile Revenues



MOBILE APPS MARKET BY THE NUMBERS



Growth in Mobile AppstoresGrowth in Mobile Appstores

Source: Wipconnector

The # of appstores have tripled in a year



Apps moving beyond the phonesApps moving beyond the phones

BMW Appstore



Growth is fueled by smartphones and Growth is fueled by smartphones and adoption of data servicesadoption of data services



Global Mobile Apps MarketGlobal Mobile Apps Market



Mobile Apps: Revenue by channelMobile Apps: Revenue by channel



Apps vs. Web: The Futile DebateApps vs. Web: The Futile Debate

• Developers care about two things:– Reach – potential of reaching most number of paid

(onetime, subscription, inapp) or clickhappy subscribers

– Cost – cheapest way to reach these subscribers

• Adoption Drivers– Penetration of HTML5+ browsers on mobile

– Difference between the native OS support and browser access to the same APIs

– Implementation differences between various browsers



Use what makes senseUse what makes sense

…… and push the boundariesand push the boundaries

Native iPhone App

Native + Browser iPad App



Smartphone Usage: Apps vs. BrowserSmartphone Usage: Apps vs. Browser

Source: Comscore MobiLens, Oct 2010Smartphones are generally using 3G+



Games dominate apps usageGames dominate apps usage

Source: Distimo, Q3 2010, Top 100 apps



So So ……

• Games are hard to build in the browser today

• Games are always at the cutting edge of the user experience

• However, apps that don’t require access to “all”available native APIs can easily be rendered in HTML5+ and they will …– Broadband network availability/reliability is not

completely there yet



However, one thing is for sure However, one thing is for sure ……



Impact on CarriersImpact on Carriers

• Carriers starting to get cut of the Apps economy– Offdeck revenues > Ondeck revenues in 2010

– Create competing appstores

– Figure out mobile advertising strategy• Look at multi-device, three-screen strategies

• Collaborate to Compete

– Find new ways to monetize app traffic

– Stay content with bit revenue



CONTEXT DRIVEN ECONOMYCONTEXT DRIVEN ECONOMY



Analytics frameworkAnalytics framework

Static , BatchReporting

CustomizedAlerts

Statistical Analysis

PredictiveAnalytics

EmbeddedPredictive

Analytics &Optimization

Drill Down

Ad-Hoc Reporting

Intelligence from Data, Effort

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Shift from IconShift from Icon--Centric NavigationCentric Navigation



MOBILE APP ECOSYSTEM: WHAT MATTERS



Start w/ Rev ShareStart w/ Rev Share

NTT DoCoMo Most Appstores

1999 91/9 10/90

2002 91/9 20/80

2005 91/9 50/50

2009 91/9 70/30 - 90/10

2011-12 91/9 100/0?



Mobile Appstore EcosystemMobile Appstore Ecosystem

OEMS Operators

Content & IPAdmob

RIM

Motorola

LG

Microsoft

Google

Verizon ATT

Sprint

T-Mobile

Orange

China Mobile

Acquisitions

Tool Providers

Flurry

Apple

Samsung

Nokia

Millennial Media

SUN Paypal

Microsoft

Google

LOWEST HIGHEST

# of APPS % of PROFITS

HIGHER LOWER

HIGHEST LOWEST orNEGLIGIBLE

Glu Mobile

Digital Choclate

Amazon

Direct TVReal

The Weather Channel

TiVO Facebook

NY Times



Sustaining the Open Developer EcosystemSustaining the Open Developer Ecosystem

Rovio Tapulous ngmoco



It is not about the OS/Appstore, It is not about the OS/Appstore, It is about the EcosystemIt is about the Ecosystem

• iFund, Connection with Investors (50% of the companies now with > $10M in rev)

• iTunes, Carrier Billing• Location, Presence• User Profile, Context• Reports, Analytics• $0 Signup, $0 Certification• Better Search and Discovery, Social Interaction, Virality• Better bandwidth management • Caching and Optimization• Time to approval/market• Flexible payment/billing models• Better networks, devices• Greater Rev Share• Reduced Fragmentation • More Open APIs• Marketing Dollars



Thank YouThank [email protected] omtwitter.com/chetansharma


mobile apps: the big picture · 2020-04-18 · mobile appstore ecosystem oems operators content...

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