APPS 4 CARS GENIVI All Members Meeting        April 25, 2012       Ludovic Privat              1
AutomotiveWireless        Consumer               Electronics           2
Automotive Automotive    AppsWireless           3
Topics of the day• App Store economics• What App Strategy for Car Makers? • Should you build an app store? • If not what t...
App Store Economics•Choice• Volume• Price (low)                5
Choice         NB         of      downloads                             NB of                             Apps550,000+ App...
Volume  7
Low price• Current average app price: $2.02• Current average game price: $1.02• Current average overall price: $1.88      ...
Low price Free   $0.99   $1.99   $2.99 $3.99 $4.99 $5.99 & up46.43% 25.77 %10.73 % 5.15 % 2.59 % 2.93 %    6.4 %        Pe...
Low price   • U.S. consumers who have never     paid more than $1 for an app:     • iPhone owners: 45%     • Android owner...
Auto appsHow much would they pay (US)?              11
Auto appsHow much would they pay (UK)?              12
Auto appsHow much would they pay (Ger)?              13
App Stores Revenue• Apple app store  •   550,00 Apps available, 25 Billion Apps downloaded until March 2012  •   $4 Billio...
App Stores Revenue        2011        $4B        15
App Store failuresHandset Maker        Operator                16
Long term model?• One closed garden replaces another • From wireless operator’s lock-up    to Apple/Google Lock-up• New fo...
In-car Apps     18
In-car App flavoursBuilt-in   Beamed-in   Brought-in               19
Are Car Manufacturer’sApp stores sustainable?           20
Mobile industry    480 Million smartphones sold in 2011    2 dominant platforms: iOS & Android       Large addressable mar...
Car industry      60 Million passenger cars sold in 2011         large fragmentation per brand         Small addressable m...
Wireless innovation        speed• Smartphone & tablets are becoming  powerhouses: CPU, GPU, Sensors• Product & innovation ...
Consumer interest for in-dash app stores?• Likely to be seen as duplication of their  smartphone apps• High cost of owners...
Built-in app store?         25
App opportunities for     car makers          26
Which apps?• Lifestyle apps: Internet radio, Twitter,  Facebook, etc.?• Driver apps: navigation, traffic, weather,  etc.?• ...
Key opportunities•   Focus on core competency: vehicle centric value-added    services•   Piggyback on driver data plan wh...
Key takeaways• App market is tough business• Don’t fight a lost battle against wireless  industry giants• Monetize opportun...
Thank you!ludovic.privat@gpsbusinessnews.com        +33 6 22 05 61 38   Twitter: @gpsbusinessnewshttp://www.gpsbusinessnew...
Upcoming SlideShare
Loading in …5
×

Should Automakers Build App Stores?

2,609 views

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,609
On SlideShare
0
From Embeds
0
Number of Embeds
1,514
Actions
Shares
0
Downloads
45
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Should Automakers Build App Stores?

  1. 1. APPS 4 CARS GENIVI All Members Meeting April 25, 2012 Ludovic Privat 1
  2. 2. AutomotiveWireless Consumer Electronics 2
  3. 3. Automotive Automotive AppsWireless 3
  4. 4. Topics of the day• App Store economics• What App Strategy for Car Makers? • Should you build an app store? • If not what to do? 4
  5. 5. App Store Economics•Choice• Volume• Price (low) 5
  6. 6. Choice NB of downloads NB of Apps550,000+ Applications on Apple App Store 6
  7. 7. Volume 7
  8. 8. Low price• Current average app price: $2.02• Current average game price: $1.02• Current average overall price: $1.88 Apple App store - April 2012 Source: 148apps.biz 8
  9. 9. Low price Free $0.99 $1.99 $2.99 $3.99 $4.99 $5.99 & up46.43% 25.77 %10.73 % 5.15 % 2.59 % 2.93 % 6.4 % Percentage of app in each price category Apple App Store (April 2011) Source: 148apps.biz 9
  10. 10. Low price • U.S. consumers who have never paid more than $1 for an app: • iPhone owners: 45% • Android owners: 62% • Blackberry owners: 63%TeleNav survey - 1,000 respondents (Aug 2011) 10
  11. 11. Auto appsHow much would they pay (US)? 11
  12. 12. Auto appsHow much would they pay (UK)? 12
  13. 13. Auto appsHow much would they pay (Ger)? 13
  14. 14. App Stores Revenue• Apple app store • 550,00 Apps available, 25 Billion Apps downloaded until March 2012 • $4 Billion paid to developers (to date); $2.1Billion paid in 2011 • Average revenue: $0.16 / app• Google app store • 400,000 Apps available, 10 Billion Apps downloaded (Dec. 2011) • Google Play (Android Market) is said to be 23% of iOS revenue per active user.• In-app advertising • Estimated at around $200-$300 million in 2011 14
  15. 15. App Stores Revenue 2011 $4B 15
  16. 16. App Store failuresHandset Maker Operator 16
  17. 17. Long term model?• One closed garden replaces another • From wireless operator’s lock-up to Apple/Google Lock-up• New forces: • Competing stores on Android (Amazon, GetJar & others) • HTML 5 apps, mobile payment 17
  18. 18. In-car Apps 18
  19. 19. In-car App flavoursBuilt-in Beamed-in Brought-in 19
  20. 20. Are Car Manufacturer’sApp stores sustainable? 20
  21. 21. Mobile industry 480 Million smartphones sold in 2011 2 dominant platforms: iOS & Android Large addressable marketConsumer interest developer interest Choice Developers are21 the real currency
  22. 22. Car industry 60 Million passenger cars sold in 2011 large fragmentation per brand Small addressable market Little developerNo consumer interest interest Little Choice 22
  23. 23. Wireless innovation speed• Smartphone & tablets are becoming powerhouses: CPU, GPU, Sensors• Product & innovation cycles are extremely fast, driven by intense market competition• In contrast car life cycle remains pretty stable 23
  24. 24. Consumer interest for in-dash app stores?• Likely to be seen as duplication of their smartphone apps• High cost of ownership (connectivity cost) • limited success of connected PND (25-30% of subscription renewal) demonstrates driver’s unwillingness to pay for another subscription 24
  25. 25. Built-in app store? 25
  26. 26. App opportunities for car makers 26
  27. 27. Which apps?• Lifestyle apps: Internet radio, Twitter, Facebook, etc.?• Driver apps: navigation, traffic, weather, etc.?• Vehicle apps: eco-driving, remote door opening, tracking, monitoring, etc.? 27
  28. 28. Key opportunities• Focus on core competency: vehicle centric value-added services• Piggyback on driver data plan when possible• Big data opportunity about car knowledge (parts, etc...)• Big data opportunity on driver knowledge (driver behaviour analytics)• Extended customer relationship over the full lifecycle of the car• B2B monetization opportunities with third parties: insurance companies, car part suppliers, etc... 28
  29. 29. Key takeaways• App market is tough business• Don’t fight a lost battle against wireless industry giants• Monetize opportunities based on vehicle- centric core competencies 29
  30. 30. Thank you!ludovic.privat@gpsbusinessnews.com +33 6 22 05 61 38 Twitter: @gpsbusinessnewshttp://www.gpsbusinessnews.com 30

×