1PRIVATE & CONFIDENTIAL

The App StoreRevolution Craze

Benny Leung

10 Sept 2009

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How many people?

Use iPhoneUse Nokia phoneUse BlackBerryUse Android phone

Use Windows Mobile phone

Use other SmartPhones

Have more than one mobile phones

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Why use Smartphone?

Download applications (e.g. games, tools, infotainments and etc.)

Communications (e.g. email, Windows Live Messenger and etc.)

Mobile / web Internet surfing Download mobile contents

(e.g. screen savers, wallpapers, ring tones)

Media (music, video, and photos)

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Mobile Culture Phenomenon

80’s Voice only

90’s Voice SMS Build in games and

applications

21st Century SMS Media (video, photo, music) Email Communication Voice

Now & Future Download apps Email Communication Mobile / Web Internet surfing Wallpaper, ring tone download SMS Voice

SmartPhone era!!

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What is “Craze”?

A craze is a product, idea, cultural movement, or model that gains popularity among a small section of the populace then quickly migrates to the mainstream.

Crazes are characterized by their lightning fast adoption and swift departure from public awareness.

Crazes are also characterized by their unusually high interest and sales figures relative to the time they are active in the marketplace, as compared with other similar products, ideas, cultural movements or models.

Source from Wikipedia

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“App Store” Craze

Apple iphone app store

CATALYST

Nokia ovi store BlackBerry AppWorld

Windows Mobile Marketplace Android AppMarket

RESULT

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Apple iphone app store

Basic Information Over 1 billion apps download (as at Q2

2009) Over 65,000 apps in app store

Pros Strong brand (“Trendy”) Simple purchase process Low entry barrier for the developer Less fragmentation

Cons Apps only download in app store Saturated marketplace No flash player

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BlackBerry AppWorld

Basic Information No new SDK or Developer tools Payment via Paypal Additional cost for any new app

development

Pros Strong Business and executive brands Relatively high APRU! Less fragmentation

Cons Expensive development cost High pricing barrier

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Android AppMarket

Basic Information Open Source development kit (Android

SDK) Launched in 2008

Pros 24 hour return policy Adopt outside of smartphones

Cons Low penetration rate Fragmentation likely

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Windows Mobile MarketPlace

Basic Information ETA: Q4 2009 Windows Mobile 6.5 Device Additional cost for every new app

development

Pros Lots of devices (HTC, SE, Samsung, LG…) Heavy branding Lots of existing apps to port / reuse

Cons Fragmentation Likely Still early on details (Windows Mobile 7?)

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Nokia ovi store

Basic Information Launched in May 2009 Largest devices distribution in the market Free of charge for apps development

(except Symbian certificate) Support Flash lite, Java, Symbian S60

Pros Global Market Not only apps, but also support other

media types (wallpaper, ring tone and etc.)

Open Policies (e.g. allow mobile carriers billing)

Cons Fragmentation S60 = aging mobile experience

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Mobile Business in SmartPhone

Mobile Carriers Music store service launched by CSL

in March 2009 Across both web and mobile

platforms Musicholic client apps (BlackBerry,

S60 smartphones, Java phones, Windows Mobile phones)

App download with monthly subscription ties in

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Mobile Business in SmartPhone

Sell Apps Free to Paid apps Paid apps Subscription model ties in

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Mobile Business in SmartPhone

Mobile Commerce

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Mobile Business in SmartPhone

Mobile Ads & Sponsorship

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Future

What shall app stores and mobile content be like in 2-3 years (more and more app stores, SmartPhones manufacturers)?

Is there a mobile app store “Bubble” forming (i.e. year 2000 DOT COM era)?

Are “app stores” the next big trend on portable devices other than SmartPhones (e.g. tablets)?