A collection of statistics, examples and ideas about the iPhone App Economy and mobile media by David J Carr at Chemistry

1. iPhone
APPS.
What, how, why?

2. Response Structure.
o Background and context.
- iPhone consumer adoption and the App Store Launch
- Don’t forget the iTouch (and others)
o Start of the App Economy?
- Some numbers and 20 types of App (plus the people that download them)
- App design and longevity
- Apps and marketing
o What are the opportunities?
- Ideas and approaches

3. #1
BACKGROUND
and context.

4. Steve Jobs unveiled
the iPhone on the
January 2007...

5. ...to the delight of Apple devotees and
predictions of failure from the mobile
industry and the usual suspects.
a nce the
’s no ch to get
“There g
is goin t
iPhone ficant marke
i
a ny sign chance.” 07
re. No r, MSFT CEO 20
sha allme
Steve B

6. The original iPhone was made available in
the UK, France, and Germany in November
2007 by which time it had sold a very
respectable 1m units.

7. A NEW GEAR.
10th April 2008 11th April 2008
The App Store Launches. The iPhone 3G Launches.
Downloadable programmes GPS and faster data
for the iPhone & iPod Touch.

8. And the trend continued with the 3GS launch day
Source: Mary Meeker, Morgan Stanley, “Economy + Internet Trends”, October 2009; Neilsen Global Mobile – Strategies for Growth
in 2009 recording AT&T’s “best ever day’s sales”.
Mobile Internet Outpaces Desktop Internet Adoption
iPhone + iTouch Users = 8x AOL Users 8 Quarters After Launch
~57MM
60 Mobile Internet Desktop Internet
iPhone + iTouch Netscape*
50 Launched 6/07 Launched 12/94
Subscribers (MM)
40
~25MM Mobile Internet
30 NTT docomo i-mode
3G, App store
& supply Launched 6/99
problems
20
~11MM
Desktop Internet
10
AOL*
~7MM v 2.0 Launched 9/94
Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19
Quarters Since Launch
iPhone + iTouch NTT docomo i-mode AOL Netscape

9. Apple is now encroaching upon Nokia’s market
leadership in terms of handset sales and moving
to dominate the consumer Smartphone market.
Top Smartphone Platforms
Sept 09 Dec 09 Point Change
Total US Age 13+
RIM 42.6% 41.6% -1.0
Apple 24.1% 25.3% 1.2
Microsoft 19.0% 18.0% -1.0
Palm 8.3% 6.1% -2.2
Source: comScore Mobileens
Google 2.5% 5.2% 2.7

11. The iPod touch, the stealth device for iPhone OS,
will be the best-selling model for the platform in
2010, if it isn’t already, and it probably is.
37%
iPod 43%
touch iPod
63% touch 57%
iPhone iPhone
July 2009 January 2010
iPod Touch sales
increasing at 108%
while iPhone sales are
increasing at 61%.
Source: Apple Blog

12. And now there are new
platforms for Apple Apps.
But a question remains
over how widely the
iPad will be adopted?

13. So we must
remember that
iPhones (and even
Apples) are not
the only fruit.

14. Source: ComScore

15. Wholesale Applications Community
launched at Mobile World Congress,
Barcelona on 15 February 2010.
The alliance, which includes Looking to reclaim the initiative
Vodafone, China Mobile and from Apple and Google – an
Sprint, has access to more attempt by operators to “regain
than three billion customers. control of apps”.

16. #2

20. Who is buying them?
For mobile games
the median age is
for mobile
media users.
Source: ComScore data for EU5 countries

21. The average person in the eurozone
apps over the lifetime
of their iPhone,
Source: ComScore data for EU5 countries

22. So
months on and
the hype continues.
From ...to
saving creating
lives... them.

23. “There is an app for pretty much everything.”
In 20 categories,
Paid or Free.

24. A profit of between
$12,000 and
$22,000 a day.
o To get into the Top 25 with a
free game, you’ll need to
average more than 10,000
downloads per day.
o A Top 10 free app will
average more than 20,000
54%
downloads a day.
o To be in the top 100 free
apps games in a gaming category
have f of fre
users ewer e like Family Games, you’ll still
so the than
adver y can’ 1,000
tising t need to average more than
or ma sell
ke mo 2,000 downloads per day.
ney.

25. - Is it designed to make the most out of - Is it playable or engaging?
the hardware and software? - Does it make people laugh or give
- Is it useable, useful and delightful? people access to great content?
- Is it quick and easy to understand, Experience & - Does it have a polished look and feel
navigate and use? entertainment and great experience?
Does it offer something a website or
desktop app cannot?
Utility & Content
functionality Evolution
or longevity
Originality or
- Does it solve a unique problem? - Does the content have lasting appeal as
- Does it appeal to a specific niche niche appeal a reference tool?
audience need? - Does the content or experience update
- Is it new, innovative or significantly or evolve over time?
enhancing an exisiting idea? - Can content be added to or improved
through user or community interaction?
What makes a successful app?

26. How often are they used?
On average for about 30 days.
14
News
Books Reference
10.5
Frequency of use per week
Weather
Lifestyle
Navigation
Utilities Health &
Games Productivity
Fitness
7
Travel
Social
Networking Finance
Music Business
Sports Education
3.5
Medical
Entertainment
0
0% 12.5% 25% 37.5% 50%
Retention over 90 days
Source: Flurry

27. Apps and
marketing.

28. It all began with
an Cannes award
winning pint.
It was free, new and made
entertaining use of the
unique technology features
of the iPhone for £70k.
And it is still the most
downloaded app in the UK.
(it was also a branded copy of an exisiting iBeer App)

29. Barclaycard
Waterslide extreme
Free iPhone game.
Within the first week of hitting
the iTunes store, the game rapidly
rose to the NUMBER 1 FREE
APP IN 57 COUNTRIES and had
2 million downloads. 12 days after
launch, it hit 3 MILLION
downloads and was still in number
1 spot in all 57 countries making
it the most successful free
branded advertising game ever to
hit the iTunes store.

30. Just some of the apps
on the brand wagon...
Kelloggs – My special K
Walkers Flavour Race
Tesco – Tesco Finder, Tesco Wine Finder
Coke – Spin the Coke, Magic Coke bottle
Nestle (Japan) Nescafe Charge
Unilever Ola (Walls ice cream) Netherlands
Kleenex Lotion Tissue FEEL
Audi, VW, BMW, Toyota
Absolut – Drinkspiration
Charmin (USA) – Sit or Squat
BA – Flight Info
Nike – True City, NikeiD
Adidas – Urban Art, Outlet Finder
Men’s Health – Workouts
MasterCard – ATM Hunter
Kodak – Gallery
HP – iPrint Photo
British Gas – Meter Read

31. Walkers Flavour Race My Special K diet planner
From games and gimmicks to utilities.
Spin the Coke & Coke Cheers NikeID & Football+ Master Control

33. #3
What are the
OPPORTUNITIES?

34. “The majority of the real-time search boom will be
in its convergence with another rapidly growing
industry, mobile computing.
[Offering people] real-time recommendations
based on your current location using an
application that aggregates information from
real-time searches as well as social sites like
Yelp and Urban Spoon...... local advertisements
and “limited time” discounts on your mobile.”*
Social Periphery
*Rob Diana

35. Social Periphery &
Mobile Social Networks
Local networks of Global Services
Mobile & mixed media
sensors and devices and Communities
applications/tools
Content &
Context & relationships
Location as filter as intelligence
GPS, location Social Communities
RFID & & bespoke networks & forums
NearField sensors
Blogs, UGC
Barcodes, QR codes
& niche sites
and markers
Dynamic communication
based on action and relevance
(Ambient awareness/Social Peripheral Vision)
Brands as the filter
Physical objects On is off/Off is on
and the enabler.
in intelligent as physical and
Ideas must be “good
environments digital worlds fuse
enough to share”
Helping us plan for now and what’s next.
by David J. Carr davidjcarr.wordpress.com
Based on Nokia’s Mobile Gateway & Jyri Engestrom

36. Outside the brand app bubble:
Playful location-based social periphery & networking tools.

37. Big brands and entertainment properties
using the Foursquare platform.

39. Augmented reality
moving beyond
marketing gimmick.

40. What services and content can we deliver at the
content/context cross-section?
Chain-wide localised,
product-specific and cost
effective marketing when the
inventory in more than 70 Adidas
Outlet Stores varies from store to
store – and so do the special
offers. Or Tesco porting its
Clubcard to phones and starting
to make them smarter.

41. dations of any approach:
The foun

42. Can we extend our usage beyond
the average of 3 months?
Can we create something that is
“good enough to share”?
Can we connect people with each
other people & a worthy cause?