Mobile Apps: Where Are You in the Value Chain?

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Frost & Sullivan analysis on Indonesian Mobile Apps - Presented at Mobile Monday Indonesia, August 8, 2011.

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Mobile Apps: Where Are You in the Value Chain?

  1. 1. MOBILE APPS – WHERE ARE YOU IN VALUE-CHAIN?MOBILE MONDAY PRESENTATION Frost and SullivanAugust 8, 2011 ICT Practice “We Accelerate Growth”
  2. 2. Mobile Applications “Mobile App Market: $25 Billion by 2015” - World Mobile Applications Market 2011 - “Android To Surpass Apples App Store In Size By August 2011” -TechCrunch 2011 - “More than 15 billion apps have been downloaded from the revolutionary App Store and more than 425,000 apps are available” - Apple 2011- Source: Frost & Sullivan analysis 2 “We Accelerate Growth”
  3. 3. Mobile Broadband Market – Where are we? Subscriber Numbers Forecast Indonesia (% of population) 2.3%• One of the lowest fixed line voice & • At the end of 2009, Indonesia already fixed broadband penetration rates had more wireless broadband users in the region – this limits the avenues compared to fixed users, with 24.8 through which the general population million wireless broadband users can connect to the internet and 1.4 million fixed broadband users Source: Frost & Sullivan analysis 3 “We Accelerate Growth”
  4. 4. Mobile Broadband Market – What are the Key Drivers? • Very high mobile penetration rate ~59% – leading to an increasing user base who has the basic capability to access data services • Low voice ARPUs – forcing operators to look for new revenue opportunities • Low cost feature & smart phones – the availability of low-cost phones along with creative smart-phone promotions making it possible for majority Indonesians to get connected online • Introduction of low cost tablets – new low-cost tablets backed by good internet connectivity can help revive & provide momentum to schemes like „One Laptop per child‟ • Social Networking Trend – Indonesia has the second biggest Facebook user in the world with more than 36 Mn users and it is also one of the largest Twitter Global Markets with an estimated 19% of internet population utilizing the service Source: Frost & Sullivan analysis 4 “We Accelerate Growth”
  5. 5. Mobile Broadband Market – How far are we?As of 2010, the Indonesian market had a wireless broadband penetration rate of approx.2.3% and is expected to reach around 23% by 2015 Mobile Broadband 0.2 Subscribers - Indonesia (Mn) 0.2 45.7 0.2 27.5 0.2 15.6 0.2 8.1 0.1 3.8 1.4 8.2 9.7 10.5 10.8 3.8 6.2 2010 2011 2012 2013 2014 2015 Large screen Small screen Multi screen Total data revenues in 2010 represented approximately 33% of total wireless revenues. This share is expected to reach around 54% by 2015 Source: Frost & Sullivan analysis 5 “We Accelerate Growth”
  6. 6. Regional Smartphone Sales – Outlook Indonesia’s smartphone market leads growth in ASEAN with expected 18.7 sales Mn by 2015 Smartphone sales (Mn) 58.06% CAGR 2009-2015 2009 & 2015 18.7 89.81% 11.2 2009 46.41% 2015 60.44% 6.6 4.7 24.99% 2.6 1.2 0.3 0.7 0.7 0.2 Indonesia Malaysia Thailand Singapore Philippines Indonesia shows the highest growth in the ASEAN Region for both total mobile device & smartphone sales with 7.6% and 58.1% respectively Source: Frost & Sullivan analysis “We Accelerate Growth”
  7. 7. Smartphone Market – Indonesia is leading in ASEAN Region Smartphone sales – 2009 Est. Smartphone sales – 2015 8% 25% Indonesia Indonesia 22% 39% 43% Malaysia Malaysia Thailand Thailand Singapore Singapore 6% Philippines Philippines 15% 22% 11% 9% By 2009 Indonesia has 1.2 Mn smartphone sales and projected to reach 18 Mn by 2015 or ~43% of ASEAN market Source: Frost & Sullivan analysis 7 “We Accelerate Growth”
  8. 8. Mobile OS share – Symbian & BlackBerry are head to head• Blackberry & Symbian OS 52.99% SymbianOS are on top two places in 38.38% Indonesia with market share around 38% by Jun 2011 Android 10.70% 3.90%• While in Asia market BlackBerry OS 9.64% Symbian still sits on top with 38.64% 52% share Samsung 7.62% 2.25% iOS 6.20% 0.62% Asia Sony Ericsson 4.55% Indonesia 7.50% Source: StatCounter.com 2011; Frost & Sullivan analysis 8 “We Accelerate Growth”
  9. 9. Why Smartphone? – Push your content & ads’ “eyeballs”Content matters little if potential consumers have no idea it exists… Traditional Media… …More “eyeballs”….. …Higher revenues Internet: 2.1 Bn1 Facebook: 350 Mn2 Twitter: 75 Mn2 LinkedIn: 50 Mn2 Source: Frost & Sullivan analysis, various sources 1internetworldstat.com 2011 2 facebook.com 2011 9 “We Accelerate Growth”
  10. 10. The value chain: Before the rise of “smartphones”Mobile devices Handset/ Mobile Applicati Transacti device platform on dev. on mgt. providers Service delivery Consumers Content Telco Advertiser Aggregator provider operator Service provision Network Customer Billing Marketing element care Key access to consumers Source: Frost & Sullivan analysis, various sources 10 “We Accelerate Growth”
  11. 11. The rise of “smartphones” & changes in the ecosystem Content pools: Advertiser Agency Aggregator Media, Apps, GamesContent delivery Mobile Apps Mobile platform Stores WebsHandset & Operator Handset/device Telco providers operator Key access to consumers Source: Frost & Sullivan analysis, various sources 11 “We Accelerate Growth”
  12. 12. Where YOU will be NEXT? Agency Aggregator Apps Advertiser Stores Telco operator Mobileplatform Mobile Handset/device Webs providers Source: Frost & Sullivan analysis, various sources 12 “We Accelerate Growth”
  13. 13. Understand your market: Social Network – IndonesiaIndonesia is the 2nd largest “facebook” user after the United States Top 10 Sites Top 10 Facebook Users 1 United States 155,388,440 Indonesia 36,493,440 United Kingdom 29,729,640 2 Turkey 28,455,820 Google.co.id India 25,726,380 3 Mexico 24,336,060 Philippines 23,458,980 France 21,981,740 4 Italy 19,205,260 Germany 18,487,320 5 6 7 8 9 10 Source: Frost & Sullivan analysis, various sources 13 “We Accelerate Growth”
  14. 14. Understand your market: Where smartphones are used? Home 93% Commuting 87% In a store 77% Restaurant 73% Work 72% Social gathering 66% At café 54% At doctors 53% Airport 50% Library 32% School 29% Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT , Apr 2011 5,013 smartphone users Frost & Sullivan analysis 14 “We Accelerate Growth”
  15. 15. Understand your market: Most frequent activities Browsed the 81% internet Used a search 77% engine Used an App 68% Watch videos 48% Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT , Apr 2011 5,013 smartphone users Frost & Sullivan analysis 15 “We Accelerate Growth”
  16. 16. Understand your market: The most visited sites Search engine 77% Social networking 65% Retail websites 46% Video sharing 43% General consumer website 38% Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT , Apr 2011 5,013 smartphone users Frost & Sullivan analysis 16 “We Accelerate Growth”
  17. 17. “Understand your market, knowwhere you are in value chain, then monetize your apps” 17 “We Accelerate Growth”
  18. 18. About Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The companys Growth Partnership Service provides theCEO and the CEOs Growth Team with disciplined research and best-practice models to drive the generation,evaluation, and implementation of powerful growth strategies.Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emergingbusinesses and the investment community from more than 40 offices on six continents. To join our GrowthPartnership, please visit http://www.frost.comDewi NurainiCorporate Communications, Frost & SullivanPhone : (+6221) 571.0838 / 571.3246Email : dewi.nuraini@frost.com http://www.facebook.com/pages/Frost-Sullivan/ http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivan http://twitter.com/FROST_ID “We Accelerate Growth”

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