Nearly 900 million handheld computers are expected to be in use by 2015. How relevant is this shift to mobile and the growth of apps? Benedict Evans, consultant with media & technology analyst firm Enders Analysis, believes we are in a fundamental transition in the way we use digital

1. The explosion of apps and mobile
Benedict Evans
benedict.evans@endersanalysis.com
@benedictevans
@b di t
July 2011

2. Routes to market – from the open web to curation and mediation
Top ten web searches SEO
Facebook
Facebook login
Youtube
Craigslist Facebook
Myspace
Facebook.com
Facebook com
Ebay
App
Yahoo stores
www.facebook.com
mapquest
Vertical
V i l
s
Apps and mobile 2

3. App Phones expand from 20% to 80% of the population
Smartphone UK share of sales and users (%) UK time spent online (bn hours)
100 25
1.6
1.4
80
8 80
8 80
8 80
8 1.2 5.4
80 75 20
5
71 1 4.3
65
60 33
3.3
60 15 0.6
06
55
2.2
0.4
1.4
3
38 0.2
0.8
40 35
3 10
16.8 17.8
15.7
24 14.4
20 21 12.9
17 11.4
20 5
15 5 9
9.8
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015
% Sales % User base (year end) [Source: EAL estimates]
PC Mobile Browsing Mobile apps
[Source: EAL estimates]
Apps and mobile 3

4. The iPad explosion
Global tablet unit sales (m)
9.0
8.4
8.0
7.3
7.0
7 0
6.0
5.0
5 0 4.7
4.2
4.0
3.3
3.0
2.0
1.0 0.8
0 0 0 0.2
‐
Jun‐2010 Sep‐2010 Dec‐2010 Mar‐2011 Jun‐2011 e
iPad Other
[Source: Enders Analysis]
[S E d A l i ]
Apps and mobile 4

5. Apple, Android and…
Smartphone & tablet performance
140
120
100
80
m)
Units sold (m
60
U
40
20
0
0 100 200 300 400 500 600 700
‐20
ASP($)
Nokia smartphones Android RIM iPhone iPad Android tablets
[Source: Enders Analysis]
[S E d A l i ]
Apps and mobile 5

6. Price and utility in consumer electronics
Relation of price and experience (illustrative)
f experience
Quality of e
0 100 200 300 400 500 600 700 800 900 1000
Price
Phones Tablets PCs
Apps and mobile 6

7. Consumerisation of IT
• “Eighty‐seven percent of IT managers said workers get their Mobile users consuming news
smartphones and other mobile devices from the company,
and that the company covers their costs. Yet more than half of
employees with iPhones, Android phones and iPads said they
l h h d d h d d d h %
50%
bought the devices themselves” 46%
45%
• 40% of devices used to access business information are owned 4
40%
by employees, up from 30% a year ago 35%
30%
• IDC – IT managers think 35% of staff have smartphones –
IDC IT managers think 35% of staff have smartphones
actual figure was 69% 25%
20%
• 60% of business users are using smartphones for browsing
g p g
business information 15%
10%
10%
5%
0%
Business professionals Consumers
[Source: FT]
[S FT]
Apps and mobile 7