Vishal Gurbuxani presented an industry update on the app market. He discussed the growth of mobile from 2007-2012, with smartphones now outshipping desktops. The market is dominated by Android and fragmentation across platforms is an issue for developers. The app gold rush is showing signs of slowing down with over 1 million apps in the Apple App Store, many of which have been removed.

1. Napa App Retreat
November 2nd, 2012
PRESENTED Industry Update:
BY Vishal Analysis of the App Market
Gurbuxani
vgurbuxani@velti.co
m
Let’s get started!
1

5. Mobile was easy in 2007

6. Still an Apple world in 2008

7. Winds of
Android change

8. The iPad hit.
So did Android.

9. Desktop Mobile
December 2010
Mobile Out Ships
Desktop

10. 2012
Mobile Chaos
Reigns

14. Source: Flurry, comScore, Alexa

15. Source: IDC

16. Q3/Q4- Aggregate
Impact of Project Plan
Activity Sep Oct Nov Dec Responsible
Develop Requirements
Mobile Requirements finalization for tracking Christos
Preliminary MIR architecture Jake, Rama
Roadmap/Aggregate Project Plan sign off Christos
Resource Planning/Commitment to Plan PM, Engineering
Multi Channel Tracking and User Data Collection
Rapid prototyping (iterative and time boxed)
Innovation,
Engineering
ment
Development (iterative and time boxed)
Engineering
Release MVP Engineering, Christos
To Deliver MVP
Engineering* Months Required for Completion ??
Resour
3
Desired Months Required for Completion
ces
Implied Engineering Resource (in Eng. Months) 0
Resource Utilization (%) ??
*Engineering resources include QA 16

17. Complexity
of Mobile

18. Smartphone
Sales
Market share

19. Android
Dominates
Smartphone market share by OEM and
platform (H2 2011)

20. Tailored value chain leads to hyper growth
Healthy profits allows to invest more in innovation, product development and marketing
Estimates
Complexity
of Mobile 2 players
dominate
smartphone
shipments
10 OEMs with
more than 2%
market share
Source: Asymco

21. Profits are monopolized by companies with a tailored
100%
90%
Complexity
of Mobile 80%
LG 70%
Sony Ericsson
RIM
60%
Motorola
50%
HTC
Nokia 40%
Apple
30%
Samsung
20%
10%
0%
2007 2008 2009 2010 2011 2012
Share of profits across top-8 handset vendors. Source: Asymco

22. Where are we on HTML5?
• Apple looking to move the web away from Flash
Html5?
• Google searching for more ways to commoditize complements
• Facebook aiming to break-down Apple/Google silos and distance Adobe
• Microsoft to onboard web developers onto Windows 8
• Mobile operators hoping to regain control lost to native platforms
• Qualcomm aiming to create a competitive advantage for its chips
• Brands looking use web as a low-cost way to go cross-device and cross-screen
• Adobe aiming to sell tools that facilitate web-to-native hybrid apps

23. HTML5 is fragmented across platforms
HTML5 Test Score
Complexity
of Mobile iOS 5.1 324
BlackBerry OS 7 273
Android 4.0 273
Bada 2.0 268
Android 3.2 235
Android 2.3 189
Amazon Silk 1.0 174
Windows Phone 7.5 (Mango) 138
0 50 100 150 200 250 300 350
Source: html5test.com, April 2012.

24. Google ingredients on top ofbuildingtechnology
adding missing
& FB are HTML5 enabling complete platforms
Complexity
of Mobile

25. So manyreal challenge making apps for little platforms
Developers face a
platforms, so multiple time
Complexity
of Mobile

26. App gold rush showsplatformssign of slow-down
with ever-growing number of apps in leading
no
AppRush!

27. Complexity
of Mobile
Source: 148Apps.biz, iTunes App Store (iOS), updated 2012-03-26

28. • Apple App Store
• Over the past 4 years, App Store has seen ~1m Applications, with
AppStore 334,000 apps being removed
Stats • United States Market becoming less important for app distribution
• In 2010, 38% of free downloads came from the US
• In 2012, 26% of free downloads come from the US
• Top Countries for Distribution
• United States
• China
• Japan
• UK
• Germany
• France
• Canada
• Amongst Top 200 Developers
• Gross revenue up by 300%

29. Q3/Q4- Aggregate
Global Project Plan
Activity Sep Oct Nov Dec Responsible
Develop Requirements
Requirements finalization for tracking Christos
Preliminary MIR architecture Jake, Rama
Roadmap/Aggregate Project Plan sign off Christos
Resource Planning/Commitment to Plan PM, Engineering
Multi Channel Tracking and User Data Collection
Rapid prototyping (iterative and time boxed)
Innovation,
Engineering
ment
Development (iterative and time boxed)
Engineering
Release MVP Engineering, Christos
To Deliver MVP
Engineering* Months Required for Completion ??
Resour
3
Desired Months Required for Completion
ces
Implied Engineering Resource (in Eng. Months) 0
Resource Utilization (%) ??
*Engineering resources include QA 29

30. Q3/Q4- Aggregate
Infrastructur Project Plan
Activity Sep Oct Nov Dec Responsible
Develop Requirements
e Requirements finalization for tracking Christos
Preliminary MIR architecture Jake, Rama
Roadmap/Aggregate Project Plan sign off Christos
Resource Planning/Commitment to Plan PM, Engineering
Multi Channel Tracking and User Data Collection
Rapid prototyping (iterative and time boxed)
Innovation,
Engineering
ment
Development (iterative and time boxed)
Engineering
Release MVP Engineering, Christos
To Deliver MVP
Engineering* Months Required for Completion ??
Resour
3
Desired Months Required for Completion
ces
Implied Engineering Resource (in Eng. Months) 0
Resource Utilization (%) ??
*Engineering resources include QA 30

31. Q3/Q4- Aggregate
Platforms Project Plan
Activity Sep Oct Nov Dec Responsible
Develop Requirements
Requirements finalization for tracking Christos
Preliminary MIR architecture Jake, Rama
Roadmap/Aggregate Project Plan sign off Christos
Resource Planning/Commitment to Plan PM, Engineering
Multi Channel Tracking and User Data Collection
Rapid prototyping (iterative and time boxed)
Innovation,
Engineering
ment
Development (iterative and time boxed)
Engineering
Release MVP Engineering, Christos
To Deliver MVP
Engineering* Months Required for Completion ??
Resour
3
Desired Months Required for Completion
ces
Implied Engineering Resource (in Eng. Months) 0
Resource Utilization (%) ??
*Engineering resources include QA 31

32. Q3/Q4- Aggregate
Real-Time Project Plan
Activity Sep Oct Nov Dec Responsible
Develop Requirements
Web Requirements finalization for tracking Christos
Preliminary MIR architecture Jake, Rama
Roadmap/Aggregate Project Plan sign off Christos
Resource Planning/Commitment to Plan PM, Engineering
Multi Channel Tracking and User Data Collection
Rapid prototyping (iterative and time boxed)
Innovation,
Engineering
ment
Development (iterative and time boxed)
Engineering
Release MVP Engineering, Christos
To Deliver MVP
Engineering* Months Required for Completion ??
Resour
3
Desired Months Required for Completion
ces
Implied Engineering Resource (in Eng. Months) 0
Resource Utilization (%) ??
*Engineering resources include QA 32

33. Q3/Q4- Aggregate
Digital Project Plan
Activity Sep Oct Nov Dec Responsible
Develop Requirements
Marketing Requirements finalization for tracking Christos
Preliminary MIR architecture Jake, Rama
Roadmap/Aggregate Project Plan sign off Christos
Resource Planning/Commitment to Plan PM, Engineering
Multi Channel Tracking and User Data Collection
Rapid prototyping (iterative and time boxed)
Innovation,
Engineering
ment
Development (iterative and time boxed)
Engineering
Release MVP Engineering, Christos
To Deliver MVP
Engineering* Months Required for Completion ??
Resour
3
Desired Months Required for Completion
ces
Implied Engineering Resource (in Eng. Months) 0
Resource Utilization (%) ??
*Engineering resources include QA 33

34. Mobile Advertising
$20bn 2015
34