Mobile Startups - Why to focus on mobile?

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Why mobile is an interesting opportunity for startups: AppStore and it's rivals are offering both distribution and small payment solutions.

Simple solutions for small payments do not exists in web, thus mobile can offer an interesting possibility to test new (old) business models.

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Mobile Startups - Why to focus on mobile?

  1. 1. TEEMU KURPPA teemu@huikea.com
  2. 2. Mobile startups Why to focus on mobile?
  3. 3. 1. Mobile apps 2. Mobile payments 3. Web
  4. 4. 1. Mobile apps Finally possible 2. Mobile payments 3. Web
  5. 5. 1. Mobile apps Finally possible 2. Mobile payments The gist 3. Web
  6. 6. 1. Mobile apps Finally possible 2. Mobile payments The gist 3. Web New business models?
  7. 7. 1. Mobile apps Finally possible
  8. 8. Mobile Focus shifted Web
  9. 9. Negotiating with operators is time not spent with users Really bad for a small startup
  10. 10. iPhone changed the game
  11. 11. Why iPhone matters? Sold units S60 140M
  12. 12. Why iPhone matters? Sold units S60 140M iPhone 20M
  13. 13. Why iPhone matters? % flat-rate Sold units data plan S60 140M × 0.20 iPhone 20M
  14. 14. Why iPhone matters? % flat-rate Potential Sold units data plan customers S60 140M × 0.20 = 28M iPhone 20M
  15. 15. Why iPhone matters? % flat-rate Potential Sold units data plan customers S60 140M × 0.20 = 28M iPhone 20M × 1.00
  16. 16. Why iPhone matters? % flat-rate Potential Sold units data plan customers S60 140M × 0.20 = 28M iPhone 20M × 1.00 = 20M
  17. 17. Why iPhone matters? % flat-rate % knows Educated Sold units data plan about apps customers S60 140M x 0.20 x 0.10 = 3M iPhone 20M x 1.00 x 0.50 = 10M
  18. 18. App Store,1B downloads since 2008 GetJar, 460M downloads since 2004
  19. 19. A distribution solution
  20. 20. for both users and publishers
  21. 21. 1000 million apps installed
  22. 22. 1000 million apps installed 30 million devices
  23. 23. 1000 million apps installed ÷ 30 million devices = 33 apps in every device
  24. 24. 40 000 apps published
  25. 25. 2. Mobile payments The gist
  26. 26. Premium SMS 30-50% of price to operators Stupid but not the real problem
  27. 27. Premium SMS The problem is tens of operators middlemen country-specific rules monthly fees
  28. 28. Premium SMS Really bad for a small startup targeting global markets with a yet unproven idea
  29. 29. A payment solution
  30. 30. for both users and publishers
  31. 31. Some money to be made Koi Pond 900k downloads in 9 months 0.99$ Zen Bound 100k downloa in 3 months 3.99$ Blue Skies 55k downloads in 6 months 2.99$
  32. 32. Hit-driven Sustainable? Scalable?
  33. 33. iPhone OS 3.0 in-app purchases
  34. 34. buy books in e-book reader buy a timetracking feature to your loved ToDo-app buy a virtual birthday card buy a new level for a game buy a subscription to a quality business podcast
  35. 35. 3. Web New (old) business models?
  36. 36. Web URL is a superior distribution model
  37. 37. Web Good payment solutions still missing
  38. 38. What if? Typical transaction in your web service is 0.99$?
  39. 39. What if? JavaScript APIs to App Store payment system?
  40. 40. What if?
  41. 41. What if?
  42. 42. Q&A TEEMU KURPPA teemu@huikea.com slides soon: dirtyaura.org/blog

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