iPhone Apps - What, how, why?

iPhone APPS. What, how, why?

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

#1 BACKGROUND and context.

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

...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

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.

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.

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

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

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

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

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

Source: ComScore

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”.

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

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

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

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

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.

- 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?

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

Apps and marketing.

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)

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.

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

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

#3 What are the OPPORTUNITIES?

“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

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

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

Big brands and entertainment properties using the Foursquare platform.

Augmented reality moving beyond marketing gimmick.

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.

dations of any approach: The foun

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?

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iPhone Apps - What, how, why?

by David Carr

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