Android In Asia April Meetup

Recent trends in the Android ecosystem Apr 2016

ANDROID vs. iOS

3

The meteoric rise of iOS and Android in one chart

Source: Business Insider (http://www.businessinsider.sg/ios-and-android-dominate-marketshare-2016-2/)

4

The end of the iPhone's amazing eight-year run

Source: Business Insider (http://www.businessinsider.sg/apple-iphone-sales-by-year-2016-4/)

5

The iPhone lost market share in most of the world last year

Source: Business Insider (http://www.businessinsider.sg/iphone-market-share-by-country-2016-1/)

6

GPlay dominates downloads but iOS still generates more revenue

Source: Business Insider (http://venturebeat.com/2016/01/20/app-annie-2015-google-play-saw-100-more-downloads-than-the-ios-app-store-but-apple-generated-75-more-revenue/)

App DownloadsIndexed

App RevenueIndexed

7

In 2016, Android will generate 119 Bn downloads vs. 27 Bn from iOS

2015 2016F 2020F

80

41

31

166

7854

352724

Mobile App DownloadsBillions (2015 - 2020F)

…

3rd-partyandroid

Source: AppAnnie presentation at TiA SG 2016

8

APAC will drive most of the growth

2015 2016F 2020F

162

80

5864

3628 58

3125 …

APAC

EMEA

AMERICAS

Mobile App DownloadsBillions (2015 - 2020F)

Source: AppAnnie presentation at TiA SG 2016

9

Developers in Asia think about Android first

Platform priority for Developers by country2014

Source: VisionMobile (http://www.slideshare.net/andreasc/mobile-megatrends-2014-25-may-2014)

10

But it’s a huge challenge due to fragmentation

Models by Android manufacturer (Aug 2015)

Source: Business Insider (http://www.businessinsider.sg/android-fragmentation-and-the-effect-on-samsung-sales-2015-8/)

Android versions (Apr 2016)

Users distributed by 10 Android versions

Impossible to guarantee compatibility with more than 20 thousand distinct Android devices out there…

3rd-PARTY ANDROID STORES

12

The AOSP (Android Open Source Project) revolution

Android worldwide smartphone shipments*

Millions. Q4 2014

100% 291

+7pp AOSP

devices

Google devices

Q4 2014

29%

71%

Q4 2013

242

22%

78%

1 https://www.abiresearch.com/press/4q-2014-smartphone-os-results-android-smartphone-s 2 https://www.abiresearch.com/press/abi-research-investigates-rise-alternative-mobile-/ 3 http://www.theverge.com/2015/9/29/9409071/google-android-stats-users-downloads-sales

Android worldwide smartphone shipments*

Millions. Q4 2014

100% 291

+7pp AOSP

devices

Google devices

Q4 2014

29%

71%

Q4 2013

242

22%

78%

“…more than 360 million AOSP handsets are expected to ship in 2016.”

-- ABI Research

“Android used by 1.4 billion people but only 1 billion have Google Play...”

-- Google

1 https://www.abiresearch.com/press/4q-2014-smartphone-os-results-android-smartphone-s 2 https://www.abiresearch.com/press/abi-research-investigates-rise-alternative-mobile-/ 3 http://www.theverge.com/2015/9/29/9409071/google-android-stats-users-downloads-sales

Android worldwide smartphone shipments*

Millions. Q4 2014

100% 291

+7pp AOSP

devices

Google devices

Q4 2014

29%

71%

Q4 2013

242

22%

78%

“…more than 360 million AOSP handsets are expected to ship in 2016.”

-- ABI Research

“Android used by 1.4 billion people but only 1 billion have Google Play...”

-- Google

13

Players building an independent Android experience on top of AOSP*

*Android Open Source Project 1 https://www.abiresearch.com/press/4q-2014-smartphone-os-results-android-smartphone-s

OEMs

OS

APP STORES

APPs / SERVICES

AOSP

The Android Open-Source Project is based on the open-source parts of Android and allows anyone to build or customize an Android ROM

14

Amazon is considering pitching their OS to OEMs

Source: Business Insider (http://www.businessinsider.sg/amazon-said-to-be-in-talks-with-oems-to-get-services-on-android-phones-2016-1/)

15

Indus Android OS for 1st-time smartphone users in India

Source: TechCrunch (http://techcrunch.com/2016/01/18/indus-os-series-a-10-million/)

“If you want proof that Android is the operating system of emerging markets, look no further than Indus OS.

The company is tweaking the Google-run operating system to the unique demands and culture of India.

Indus OS believes that one of the primary problems is complexity, and it is retooling Android accordingly.”

16

App owners are also addressing non-email users

Source: MyChat (http://mychat.mysquar.com/)

17

Main 3rd-party android app stores in the world

User interest in 3rd-party AndroidGoogle Trends (Jan 2013 - Apr 2016)

GetJarMoboGenie

Aptoide

9AppsMoboMarket

Source: Google Trends (https://www.google.com.sg/trends/explore#q=mobogenie%2C%209Apps%2C%20aptoide%2C%20mobomarket%2C%20getjar&date=4%2F2012%2049m&cmpt=q&tz=Etc%2FGMT-8)

3rd-party app stores is also not an easy task…

Source: The Verge (http://www.theverge.com/2016/3/4/11160942/barnes-noble-nook-app-store-shutting-down-march-15th)

…and requires a lot of marketing investment

MoboMarket billboard in JakartaSponsored articles by Mobomarket

Source: DailySocial (https://dailysocial.id/wire/mobomarket-ungkap-kebiasaan-para-pengguna-android-di-indonesia/) & Tech in Asia (https://www.techinasia.com/baidu-android-mobomarket-active-users-indonesia-2014)

GOOGLE ANTITRUST CASE

21

EU antitrust case against Google regarding Android

Source: Bloomberg, The Verge, New York Times

“…we believe that Google’s behaviour denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players…”

— Margrethe Vestager, EU commissioner for competition

22

Google replied to the accusations…

Source: Business Insider (http://googlepolicyeurope.blogspot.sg/2016/04/androids-model-of-open-innovation.html)

“Our partner agreements are entirely voluntary -- anyone can use Android without Google.

…you can download the entire operating system for free, modify it how you want, and build a phone

…major companies like Amazon do just that.”

23

…but did not mention it in the earnings call

Source: Business Insider (http://www.businessinsider.sg/alphabet-investors-not-worried-google-europe-anitrust-commission-android-battle-2016-4/)

BOTS & STREAMING APPs

25

Messenger bots have the goal of facilitating interactions

Source: Venture Beat (http://venturebeat.com/2016/04/27/zuckerberg-facebook-bots-will-help-businesses-respond-faster-than-with-messaging/)

“…a way to increase the speed and efficacy of interactions between users and businesses …

…people already message businesses on Facebook, but need to wait for a reply…

“…we can look at responses businesses give and automate them [with bots] to help decrease latency.”

26

Google app streaming initiative

Source: The Verge (http://www.theverge.com/2015/11/18/9755890/google-can-now-stream-apps-to-your-phone)

ANDROID MALWARE

28

Claims that Google Play has malware…

Source: The Register (http://www.theregister.co.uk/2016/04/26/android_malware_whack_a_mole/)

“Security researchers have discovered a strain of Android malware that keeps finding its way onto Google Play – despite the store supposedly being scrubbed clean of infiltrated apps..

The software nasty – Android.Spy.277.origin – is hidden in more than 100 applications on Google Play.”

29

… and also 3rd-party App Stores

Source: PC World (http://www.pcworld.com/article/3032296/security/android-root-malware-widespread-in-third-party-app-stores.html)

“Four third-party app stores for Android have apps with a malicious component that seeks root access to devices, according to Trend Micro.

The apps containing the component were downloaded across 169 countries between Jan. 29 and Feb. 1 from marketplaces called Aptoide, Mobogenie, mobile9 and 9apps.”

30

Our in-house anti-virus and anti-malware platform

Source: Aptoide Blog (http://blog.aptoide.com/evolution-of-aptoide-malware-detection-system/)

31

Number of infected apps submitted every month

Uploads submitted to Aptoide Percentage of infected uploads

Source: Aptoide Blog (http://blog.aptoide.com/evolution-of-aptoide-malware-detection-system/)

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