iPhone Apps - What, how, why?

iPhoneAPPS. What, how, why?

Response Structure.

o Background and context. - iPhone consumer adoption and the App Store Launch - Don’t forget the iTouch (and others)

o Start of the App Economy? - Some numbers and 20 types of App (plus the people that download them) - App design and longevity - Apps and marketing

o What are the opportunities? - Ideas and approaches

#1

BACKGROUNDand context.

Steve Jobs unveiled the iPhone on the January 2007...

...to the delight of Apple devotees and predictions of failure from the mobile industry and the usual suspects.

“There’s no chance the

iPhone is going to get

any significant market

share. No chance.”

Steve Ballmer, MSFT CEO 2007

The original iPhone was made available in the UK, France, and Germany in November

2007 by which time it had sold a very respectable 1m units.

A NEW GEAR.

10th April 2008The App Store Launches.

Downloadable programmes for the iPhone & iPod Touch.

11th April 2008The iPhone 3G Launches.

GPS and faster data

AOL*

NTT docomo i-mode

iPhone + iTouch Netscape*

10

20

30

40

50

60

Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19

Quarters Since Launch

Su

bsc

ribe

rs (

MM

)

iPhone + iTouch NTT docomo i-mode AOL Netscape

Desktop Internet

v 2.0 Launched 9/94

Mobile Internet

Launched 6/99

Mobile Internet

Launched 6/07

~57MM

~25MM

~7MM

Desktop Internet

Launched 12/94

~11MM

Source: Mary M

eeker, Morgan Stanley, “Econom

y + Internet Trends”, October 2009; Neilsen Global M

obile – Strategies for Growth

3G, App store & supply problems

And the trend continued with the 3GS launch day in 2009 recording AT&T’s “best ever day’s sales”.

Mobile Internet Outpaces Desktop Internet Adoption iPhone + iTouch Users = 8x AOL Users 8 Quarters After Launch

Sept 09 Dec 09 Point Change

42.6% 41.6% -1.0

24.1% 25.3% 1.2

19.0% 18.0% -1.0

8.3% 6.1% -2.2

2.5%

RIM

Apple

Microsoft

Palm

Google 5.2% 2.7

Top Smartphone PlatformsTotal US Age 13+

Source: comScore M

obileens

Apple is now encroaching upon Nokia’s market leadership in terms of handset sales and moving to dominate the consumer Smartphone market.

July 2009 January 2010

37%iPod

touch63%

iPhone

43%iPod

touch 57%iPhone

The iPod touch, the stealth device for iPhone OS, will be the best-selling model for the platform in 2010, if it isn’t already, and it probably is.

Source: Apple Blog

iPod Touch sales increasing at 108% while iPhone sales are increasing at 61%.

And now there are new platforms for Apple Apps.

But a question remains over how widely the

iPad will be adopted?

So we must remember that iPhones (and even Apples) are not the only fruit.

Source: ComScore

The alliance, which includes Vodafone, China Mobile and Sprint, has access to more

than three billion customers.

Looking to reclaim the initiative from Apple and Google – an

attempt by operators to “regain control of apps”.

Wholesale Applications Community launched at Mobile World Congress,

Barcelona on 15 February 2010.

#2

Who is buying them?

Source: ComScore data for EU5 countries

for mobile media users.

For mobile games the median age is

The average person in the eurozone

apps over the lifetime of their iPhone,

Source: ComScore data for EU5 countries

months on and the hype continues.

From saving lives...

...to creating

them.

So

“There is an app for pretty much everything.”

In 20 categories,Paid or Free.

A profit of between

$12,000 and $22,000 a day.o To get into the Top 25 with a free game, you’ll need to average more than 10,000 downloads per day.

o A Top 10 free app will average more than 20,000 downloads a day.

o To be in the top 100 free games in a gaming category like Family Games, you’ll still need to average more than 2,000 downloads per day.

54% of free

apps have fewer than 1,000 users so they can’t sell advertising or make money.

What makes a successful app?

Experience & entertainment

Originality or niche appeal

Utility &functionality

ContentEvolution

or longevity

- Does it solve a unique problem?- Does it appeal to a specific niche audience need?- Is it new, innovative or significantly enhancing an exisiting idea?

- Does the content have lasting appeal as a reference tool?- Does the content or experience update or evolve over time?- Can content be added to or improved through user or community interaction?

- Is it designed to make the most out of the hardware and software?- Is it useable, useful and delightful?- Is it quick and easy to understand, navigate and use?Does it offer something a website or desktop app cannot?

- Is it playable or engaging?- Does it make people laugh or give people access to great content?- Does it have a polished look and feel and great experience?

How often are they used? On average for about 30 days.

Books

Weather

Lifestyle

Games

EntertainmentMedical

SocialNetworking

Reference News

Navigation

Productivity

Travel

Utilities

Finance

Music Business

EducationSports

Health & Fitness

14

10.5

7

3.5

0

0% 12.5% 25% 37.5% 50%

Fre

qu

ency

of

use

per

wee

k

Retention over 90 daysSource: Flurry

Apps and marketing.

It all began with an Cannes award winning pint.

It was free, new and made entertaining use of the unique technology features of the iPhone for £70k.And it is still the most downloaded app in the UK. (it was also a branded copy of an exisiting iBeer App)

Barclaycard Waterslide extremeFree iPhone game. Within the first week of hitting the iTunes store, the game rapidly rose to the NUMBER 1 FREE APP IN 57 COUNTRIES and had 2 million downloads. 12 days after launch, it hit 3 MILLION downloads and was still in number 1 spot in all 57 countries making it the most successful free branded advertising game ever to hit the iTunes store.

Just some of the apps on the brand wagon...

Kelloggs – My special KWalkers Flavour Race Tesco – Tesco Finder, Tesco Wine FinderCoke – Spin the Coke, Magic Coke bottleNestle (Japan) Nescafe ChargeUnilever Ola (Walls ice cream) Netherlands Kleenex Lotion Tissue FEELAudi, VW, BMW, ToyotaAbsolut – DrinkspirationCharmin (USA) – Sit or SquatBA – Flight InfoNike – True City, NikeiDAdidas – Urban Art, Outlet FinderMen’s Health – Workouts MasterCard – ATM HunterKodak – GalleryHP – iPrint PhotoBritish Gas – Meter Read

Spin the Coke & Coke Cheers NikeID & Football+ Master Control

Walkers Flavour Race My Special K diet planner

From games and gimmicks to utilities.

#3

What are theOPPORTUNITIES?

“The majority of the real-time search boom will be in its convergence with another rapidly growing industry, mobile computing.

[Offering people] real-time recommendations based on your current location using an application that aggregates information from real-time searches as well as social sites like Yelp and Urban Spoon...... local advertisements and “limited time” discounts on your mobile.”*

Social Periphery*Rob Diana

Physical objects in intelligent

environments

Brands as the filter and the enabler.

Ideas must be “good enough to share”

On is off/Off is onas physical and

digital worlds fuse

Social networks

Blogs, UGC & niche sites

Global Services and Communities

Communities & forumsRFID &

NearField

Barcodes, QR codes and markers

Local networks of sensors and devices

GPS, location & bespoke

sensors

Dynamic communication based on action and relevance (Ambient awareness/Social Peripheral Vision)

Mobile & mixed media applications/tools

Social Periphery & Mobile Social Networks

Context & Location as filter

Content & relationships

as intelligence

by David J. Carr davidjcarr.wordpress.comBased on Nokia’s Mobile Gateway & Jyri Engestrom

Helping us plan for now and what’s next.

Outside the brand app bubble:Playful location-based social periphery & networking tools.

Big brands and entertainment properties using the Foursquare platform.

Augmented reality moving beyond

marketing gimmick.

What services and content can we deliver at the

content/context cross-section?

Chain-wide localised, product-specific and cost effective marketing when the inventory in more than 70 Adidas Outlet Stores varies from store to store – and so do the special offers. Or Tesco porting its Clubcard to phones and starting to make them smarter.

The foundations of any approach:

Can we extend our usage beyond the average of 3 months?

Can we create something that is“good enough to share”?

Can we connect people with each other people & a worthy cause?