GMIC Beijing 2015 - AppSpace Presentation - Edward Tsang, CEO OnDemandWorld.

1. Developers are digging their own graves?
Edward Tsang - CEO
OnDemandWorld

2. Contents
• Mobile app sales growth continues to slow
down…
• Why is it happening?
• Can it be avoided?
• How can indie App firms sustain the next 18
months?
• Which App market to follow?
• A few strategies to consider…

3. The Slowdown – Why is it happening?
• 8 years of iPhones, 10 models, many colours.
• Starting at $649 each, not cheap.

4. The Slowdown – Why is it happening?
• Hardware:
• Motorola & Nokia both leapfrogged by newcomers.
• Samsung is now losing market share.
• Software & Internet:
• Mobile app industry already 7 years old.
Microsoft(40), Apple(39), Google(16), BAT(15-16),
Facebook (11).
• Software & Internet are not “young”.

5. The Slowdown – Can it be avoided?

6. The Slowdown – Can it be avoided?
• Continuous maturity of the market is normal.
• “IT Doesn’t Matter” (Nicholas Carr - HBR 2003)
on commoditisation of IT, started Cloud
Computing.
• Just Crossing the Chasm is not enough.
• Keep Innovating and get on next big wave
“early”. Wearable? VR/AR goggles? Robots?
Automated Cars?

7. Bucking the trend
• How can indie App firms sustain the next 18
months?
• Which App market to follow?
• A few strategies to consider… from my new book.
Driving Revenue Reducing Cost
Localisation New Programming
Languages
Diversification Buying Source Code

8. Bucking the trend – Which App market?
Wearable Average Weak Weak
Mobile Phone Strong Strong Weak
Tablet Strong Average Average
Laptop Strong Weak Strong
Desktop Weak Weak Strong
Server/Enterprise Weak Weak Strong
?

9. Bucking the trend – Strategy 1
Localisation
• Many apps not fully localised. Missing revenue.
• Localisation is not just translation.
• Get native speakers to help.
• New languages are added to OS releases, follow
them.

10. Bucking the trend – Strategy 2
Diversification
• Don’t spam.
• Define your sector.
• Target right market segment with specific
products.
• Microsoft and Google both have 50+ apps on
Apple App Store.

11. Bucking the trend – Strategy 3
New Programming Languages
• Apple Swift, Google Go, Facebook Hack and
others.
• Designed for coding efficiency.
• Easy to learn.
• Active Open Source communities.
• Impressive adoption rate with Swift.

12. Bucking the trend – Strategy 4
Buying in Source Code
• Github, Bitbucket, Stack Overflow - great sites
for free sample source code.
• New market places to buy source code cheaply.
• Improving effectiveness of development teams.
• e.g. Chupamobile, Apptopia, Binpress,
codecanyon…

13. Conclusion – Lessons Learnt So Far
• Mobile Apps can be seen as just miniaturisation.
• UI/UX better than desktop apps.
• Optimise features, grow content.
• Freemium, IAP, Ads are mostly B2C until now,
B2B and O2O will follow.
• Highly competitive, but still exciting!