Luca Cioletti - The Past, The Present and The Future Of Mobile Apps Ecosystem. Why we are where we are now and what would be the future.

1. Who am I
- originally from Florence, Italy
- living for 25 years in Finland
- degree in Electronic Engineering
- degree in International Business Management
- over 16 years of international business experience
- executive and professional in the Telecom industry,
- strategic thinker,
- visionary and inspiring Leader,
- consumer,
- human being
more about me on www.linkedin.com/in/gianlucacioletti
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2. This is my bet!!!
What is changing in the apps market and how
does it change?
What are the trends?
What would be the next “big thing”
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3. Everything started from the Business market
- The Business market is a “rich” market. Why?
- The first mobile phones were for Business people
the price was 24,000 Finnish Marks in 1987 (approximately EUR 4,560)
- The world’s first GSM call was made in 1991 and the
first mobile “killer app / service” the SMS message was
sent in 1992
- The second mobile ”killer app /service” was the e-mail, in 2008
the market was estimated for $3,5 billion
- Why Black Berry succeed in the Enterprise business sector?
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4. …from the Business market to the mass market…
- The mass market is a “poor” market (and volume market), but…
- In the emerging markets most of the mobile services are SMS
based and to support the business
- In 2008 the SMS market was $130 billion and expected to be
$224 by 2013
- In 2006 China Mobile made $100 million in 10 minutes when the
Chinese year changed and Chinese sent over 1 billion SMS.
- Apple app store: over 190.000 apps, over 4 billion downloads
average price ~ $2,5, but over 70% of the downloads are free
apps
- Mobile9.com: 6,517,712 members, 1,039,848 free stuffs,
9,836,049,530 downloads
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5. The Convergence
- In Platforms, PC <=> mobile
- Apps <=> services
Worldmate by Mobimate
World Traveler by Psiloc
Handy Shell by Epocware (Paragon)
Snaptu
Seesmic
- Social Network <=> Community
- Location based services
- The Cloud
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6. What iPhone and App Store changed in the ecosystem
Everything!!!!
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7. From the developers point of view:
- a clear business model 70/30
- an operator independent channel for app distribution
- but the most important thing is the cycle of a company => in the
past the death valley was 3-4 years and now 1-2 years
- also the “life” cycle of apps became shorter
growth today
in the past
time
death valley
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8. From the operator point of view:
- In the past operators “owned” the subscribers, the buz. model was based on
calls and SMS, now is data traffic, they see only bits, how to differentiate
themselves, how to keep loyalty in their subscribers?
Non-Messaging Data ARPU Progression, 2004-2009 ($)
Voice ARPU Progression, 2004-2009 ($)
- Operator started to build their own app stores
- they reduced the share from 85/15 to 50/50.
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9. From the handsets manufacturers point of view:
- All handsets manufacturers are now following iPhone
- User Interface and User Experience are the key issues
- Who will “own” the developers ecosystem
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10. From the VCs and investors point of view:
- Today developers companies are smaller even single developers
- Decision criteria for investments not based on revenues but on
users
- buz. model for apps in future will be based on ads (the most)
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11. Conclusions
- Data packages => roaming, still an important and big issue
- Content discovery => how do I (developer) ensure that people notice my app?
How do I (consumer) find new content?
- Now nearly 200,000 apps on App Store, 50,000 in Android Market, ~10,000 in OVI Store, ~6,000 in BB
App World etc….
- Monetisation models:
- Pay-Per-Download
- freemium with in-app billing mechanism
- Ads
- Apps as Marketing tool
- Carling launched iPint app for the iPhone in July 2008:
achieved 6 million downloads in four months
- Apps as Retail Mechanism
- eBay launched its iPhone app in July 2008 integrated with PayPal Mobile as payment system:
8.5 million downloads (around 15% of iPhone users) by April 2010
- Emerging/developing markets account for 79% of mobile subscribers but just
31% of all non-voice revenues
- In emerging/developing markets the first web experience through mobile
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12. Thanks!!!
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