lss'09 mobile panel g sterling intro
DESCRIPTION
Mobile – The Future of Apps is Bright This panel is all about apps – in particular social and local apps (and some mapping which is of course a key part of local)… Phones started out as social devices – we made voice calls. Then we had SMS (text) and then email (think Blackberry). Now we have smart phones, iPhones and Gphones – personal mobile devices. What does the present and future hold for “local social” on Mobile? How does the rise of the iPhone and emergence of Android change the game? We will examine the fast growth of and impact of applications (and app stores). We may also see some wicked demos, discuss new business models and view what an ‘augmented’ real local world might look like. Moderator: Greg Sterling, Internet/Mobile AnalystTRANSCRIPT
Greg SterlingSterling Market Intelligence/Opus Research
A Few Words about Mobile Apps
2
SMS: Broadest reach, platform “agnostic”
Apps: Richest experience, smaller audience
Mobile Web: PC sites rendered in browsers can be
optimized
Reach Functionality
Segments: SMS, M-Web, Apps
• The iPhone has popularized mobile applications
• Now every major smartphone platform has apps; many operators too
Apps Pre-Date the iPhone, but . . .
Apps All Around
The Major Platforms:
iPhone: 100,000 (approx); 2 billion downloads
Android: 10,000
RIM/BlackBerry: 3,040
Nokia Ovi Store: 660
Windows Mobile (Marketplace): 246
Palm: 100 official, 280 “homebrew”
Source: company reports, range of estimates
Number of Downloads (Monthly)
Source: AdMob 8/09, (US data)
Engagement: Time Spent with Apps
Source: AdMob 8/09, (US data)
Many Intentions & Uses of Apps
Branding
Zippo Lighter
Rugby (Ralph Lauren)
New Revenue
Sports Illustrated
Jimmy the Bartender
Reference Apps
Games
Advertising
Seventeen Magazine
Style.com
Commerce/Lead Gen
Amazon Mobile
eBay
Adobe
Meaningful Revenues (for Companies)
Generated US$1 million in sales since launch -- roughly 3 mos. ago
Meaningful Revenues (for Developers)
Pinch Media:
iPhone: 2B app downloads; paid apps 610M of that
Revenue earned by developers in 15 mos. approx US$900M
Hypothetical average paid app revenue to developers: $12,100 ($8.5K net) £7446 (£5230)
• No “average” (only big winners and underperformers)
Paid Apps Used More Heavily
Source: Pinch Media (10/09)
Usage of Most Apps Doesn’t Last
Most apps are downloaded but abandoned quickly