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Apple & Android Apps Consumer
Profiles 2011
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1                                         Twitter:- @Zohe
SUMMARY
KEY FACTS & CONCLUSIONS—OF THE
CURRENT & FUTURE APPS ECOSYSTEM




                             Twitter:- @Zohe
The ―New‖ GIANT
Apple‘s stock development compared to indexes: S&P500, NASDAQ and
DOW, January 2007–January 2010.

                                                                   +500%
                                                                                      What Apple‘s iPad Can Teach You About Content
                                                                                      Strategy? There is literally an application for anything
                                                                   +400%              you can think of on the Apple platform. Want to edit
                                                                                      video, read a book, share files, make a podcast, watch
                                                                                      video or even TV. Write documents, edit
                                                                   +300%              spreadsheets, present a sales pitch, attend a webinar
                                                                                      or make Skype calls. Yes games too. And games for
                                                                                      the whole family.
                                                                   +200%
                                                                                      This is a device that serves multiple functions, can as
                                                                   +100%
                                                                                      easily be used by a toddler as it can by a retiree and
                                                                                      still be useful to a high powered executive in a board
                                                                                      meeting. The one thing that takes the iPad head and
                                                                   0%                 shoulders above the competition is the thousands of
                                                                                      quality applications that are its content. Think about
                                                                                      the quality and quantity of content you are going to
                                                                   -100%              deliver. It‘s the part that usually gets left until
Jan ‗07     Jan ‗08       Jan ‗09       Jan ‗10        Jan ‗11                        last, when it should be the first .

    AAPL               S&P500                 NASDAQ                  DOW


          Source: Yahoo! Finance 0920 January–March 2011 / Accenture Media | Entertainment “A is for Apple”                          Twitter:- @Zohe
3
0. Quarterly Volume Marketshare
The Android market overtakes Apple App Store
                                          Windows                              Palm
                                                                          Nook 0% Windows
                                           Phone
                                                                          -1%       Phone       Amazon
                      Palm            Nook 1% Amazon
                                                                                     1%           2%
                       0%              0%         0%             GetJar
                                                                  1%
                                Nokia                                             Nokia
                                                            Blackberry
                                 7%                                                9%
                                                               5%
    Blackberry       GetJar                       Android
       4%             6%                           21%
                                                             Bada
      Bada                                                    1%
       1%


                                                                                                            Android
                                                                                                             45%




                                                                          Apple
                                                                          36%

                                      Apple
                                      60%




                                  Q4 2010                                                 Q4 2012

          Source: Strategy Analytics, July 2011                                                          Twitter:- @Zohe
4
1. Quarterly Revenue Marketshare - Apple App
Store remain in the lead
                                           Palm
            GetJar       Nook                                                                Windows
                                            1%       Windows
             0%           0%                                                                  Phone
                                                      Phone
                                                                                                       Amazon
    Blackberry                  Amazon                 0%                                Palm 2%         3%
                                                                             Nook
       5%                         0%                                GetJar               1%
                                                                              1%
                                                                     0%
        Bada
                           Nokia                               Blackberry
         0%                                                                      Nokia
                            5%             Android                6%
                                            12%                                   6%
                                                               Bada
                                                                0%




                                                                                                            Android
                                                                                                             40%




                                                                         Apple
                                                                         41%
                             Apple
                             77%



                             Q4 2010                                                      Q4 2012

        Source: Strategy Analytics, July 2011                                                            Twitter:- @Zohe
5
2. Download Marketshare relative to Revenue
Marketshare 4Q12
The more curated a store, and the more paid apps in that store, means revenue
numbers are much higher in relation to complete apps portfolio

    100%
                82%            79%              76%


     50%
                                                       30%
                                                                 16%     15%

      0%
                                                                                 -10%
                                                                                          -30%
    -50%                                                                                          -39%



    -100%
                                                                                                         -100%


    -150%
               Nook          Amazon         Windows Blackberry   Apple   Palm   Android   Nokia   Bada   GetJar
                                             Phone



        Source: Strategy Analytics, July 2011                                                               Twitter:- @Zohe
6
3. A is for Apple, G is for Google & W is for ... ?
             Apple demonstrated that enabling developers to capture consumer cash (first source of revenue) fuelled the supply of
             high quality apps. Apps with a consumer price are usually higher quality than free only, ad-based apps. Also, giving the
             developer greater certainty their app will run across all Apple‘s 160M products has lead to a flood of high quality apps


                                                                     Revenue
                                        Windows Phone                                                               Apple

                       Operating Model:- Consumer & advertising                               Operating Model: Consumer Led
                                          led?                          HIGH
                       57% WinMo 7                       Top Free
                                        Download 12                                 Top Search          52% Male
                       users are very                    Category:                                                     46% Under 34       13% Under 17
                                        apps a month                               Term Games          48% Female
                         satisfied                      Games 17%

                       65% monthly       Top Paid                                    65% iPod           91% would        Top Free          Top Paid
                        downloaded       Category:                                  touch users        recommend         Category:         Category:
                       apps are paid      Games                                       under 17            iPhone        Games 45%         Games 49%

                                                                                   Iphone users                        79% monthly        50% download
Engagement




                                                                                                      Download 8.8
                                                                                   have an avg.                        downloaded         1 paid app per
                                                                                                      apps a month
                                                                                      47 apps                          apps are free          month



                    LOW                                                                                                                          HIGH
                                                Nokia                                                            Google

                                 Operating Model:- Device led?                               Operating Model: Advertising Led
                                                                                   Android users spend
                                                                                   most of their time on
                                         Top Free        Top Paid
                        Download 5                                                 Top email 37%
                                                                                       Search             73% Male
                                         Category:       Category:                                                      54% Under 34         7% Under 17
                       apps a month                                                 Term Free            27% Female
                                          Utilities       Games

                                                                                                       45% Android         Top Free            Top Paid
                                                                                   8% switched
                                                                                                          is 1st       Category: Google       Category:
                                                                                   from iPhone
                                                                                                       Smartphone         Apps 21%            Tools 20%


                                                                        LOW        Download 8.7
                                                                                                      87% monthly       21% download 1
                                                                                                      downloaded          paid app per
                                                                                   apps a month
                                                                                                      apps are free          month


                                                                                                                                                   Twitter:- @Zohe
             7
4. A is for Apple, G is for Google & W is for ... ?
                                                     Revenue

                            Windows Phone                                                   Apple

                                                                             Operating Model: Consumer Led
                                                      HIGH                                62% iOS users
                                                               In 2011 average iOS                                 60% iOS users
                                                                                         discover apps by
                                                                owner will download                               discover apps by
                                                                                       searching for specific
                                                                     83 apps                                     browsing rankings
                                                                                               apps
                           Operating Model:-                   iOS users spend 14.7    iOS users Spend 7x        90% iPhone users
                       Consumer & advertising led?              hours per/m playing    more than Android on     browse, search apps
                                                                      games              in app purchases            on device


                                                                                        83M monthly active
Engagement




                                                                iOS have double the                               46M daily active
                                                               standard banner CTR        users of iPhone         users of iPhone
                                                                   [0.37%] of avg         Facebook App             Facebook App



                 LOW                                                                                                          HIGH
                                 Nokia                                                    Google

                                                                            Operating Model: Advertising Led
                                                               Android users spend     Android users spend      Android users spend
                                                               most of their time on   most of their time on    most of their time on
                                                                   email 37%              games 21%                  maps 8%

                            Operating Model:-
                                                               Android users spend                              49M monthly active
                              Device led?                        9.3 hours per/m
                                                                                       Android users have
                                                                                                                 users of Android
                                                                                       banner CTR [0.14%]
                                                                  playing games                                   Facebook App

                                                      LOW
                                                                 31M daily active
                                                                 users of Android
                                                                  Facebook App




                                                                                                                                Twitter:- @Zohe
             8
5. A is for Apple, G is for Google & W is for ... ?
Apple demonstrated that enabling developers to capture consumer cash (first source of revenue) fuelled the supply of
high quality apps. Apps with a consumer price are usually higher quality than free only, ad-based apps. Also, giving the
developer greater certainty their app will run across all Apple‘s 160M products has lead to a flood of high quality apps


                         Windows Phone                                                                Apple
    Operating Model :- Consumer & Advertising Led ?                     Operating Model :- Consumer Led
    1. X-Box Live integration very strong gaming proposition with       Apple ‗s mastery of the value chain is underpinned by
       high quality & brand name games plus a few indies. Games         1. User friendliness prioritised over the possibility of full access
       & Enterprise will be key content categories. Premium                to every setting & detail
       games, categories dominate. Games & Apps more akin to a          2. Heavily curated, high quality content paid & free. Apps have
       ―high street‖ game & software store.                                strict design/layout guidelines, e.g. where the ―back‖-button
                                                                           should be placed, so that consistent user friendliness applied
    2. Integration of Bing / Facebook networks seamlessly so
                                                                           to all applications.
       advertising layer is integrated
                                                                        3. No specific trend of dominance of any type of app category
    3. Big focus on easy and innovative consumer experience                other than Games. The key is user experience of content is
                                                                           brilliant whatever the category. Games are the carrot in
                                                                           terms of quality & volume.



                                Nokia                                                                Google
    Operating Model :- Device Led                                       Operating Model :- Advertising Led
    1. Content portfolio per device cannot compete with Apple /         1. Google‘s late entryinto paid apps is most likely a result of
       Google selection for whole ecosystem                                focusing too much on just one revenue source: advertising.
    2. User experience is inconsistent especially with long tail apps      Google‘s first philosophy, ―Focus on the user and all else
                                                                           will follow‖ implies that if it is free for the
    3. Top 50 apps no one category is over indexing.
                                                                           consumer, advertisers will follow.
        Games, Apps, Personalisation & Audio | Video are there
        which suggests there is not enough quality & quantity in any    2. User experience is not consistent from app to app, nor is
        one category.                                                      quality
                                                                        3. Of the top free apps many are Google Services. Of the top
                                                                           paid apps many are long tail tools and utilities apps

                                                                                                                                   Twitter:- @Zohe
9
SO … WHAT?
CAN WE LEARN—FROM APPLE &
GOOGLE ABOUT THEIR APPS
CONSUMERS
                       Twitter:- @Zohe
7. To understand the iPhone Apps consumer, it
helps to view the Apple ecosystem
• Consumers have depth of choice on devices, operators, content & peripherals
• Developers need to consider all areas from peripherals to operators when building their app.
• Crucially, iOS offers seamless distribution to 100M devices [iPhone, iPad, iPod]. Clearly attractive to developers & also to
  consumers in the sense that single device owners can access content built for other devices.

                                                      Developers
 Objective-C                                                                                                              Xcode

 WebKit, WebCore, XML,                                                                   Open GL
 CSS, HTML5, WebCore                                                                     Cocoa Touch
                                                                                         DashCode

                                      Software Platform                   Device Distribution                    Content Sources

                                 Safari                Cocoa UI
                             Webkit
                                                     Sync Services
                                                                                                                    Media/Content
                                                       Core
                                   LLVM                Animation
                                                                                                                  iFOOD
                                                                                                                 App Store ‗Brand-Aids‘
                                           Devices                       Content/Services Distr
                                                                                                                          MobileMe
                                                                               WebApps     iBooks      QTime

                          iPhone              iPod            Touch
                                                                                                                     User-Generated
                                                                         App Store   iTunes            Podcast



     Peripherals/
     Accessories          iPad        MacBook / Pro           Apple TV    Hardware
                                                                                                    ―Pocket‖                         Mac
                                                                                                                                     Twitter:- @Zohe
11
8. And how, within that Ecosystem, Apple have
mastered the value chain
Every player in a rapidly changing, technology-driven industry should consider making ―super-user-
friendly‖ software its competitive edge. User-friendly products can outperform technology
leadership, since they target broader groups of customers. And user-friendly products that boost a
behaviour in other parts of the value chain could lead to an additional revenue share.


             Content                               Distribution           Product/Handheld
Advertiser    Apple                           3                                  1           2             Consumer

             Games, News, Guides, etc        SDK    Internet Provider   iPhone            App Store

         60                             70                                           40               30




 ―Apple‘s success with the iPhone/iPad is attributable to much more than its hardware and software. It
 depends on two other parts of the value chain: content distributors enabled by a SDK (Software
 Development Kit) and a consumer marketplace—the App Store. Together, with one high quality content
 after another these have enabled Apple not only to have a more successful phone but also to take a
 stronger grip on the entire value chain.‖ Source: Accenture Media | Entertainment ―A is for Apple‖

 However, Apple does not allow pre-installation on their handheld since they are focusing on
 educating consumers about how to go into the store (rational drive volume).

                                                                                                            Twitter:- @Zohe
 12
9. Global:- Apple iPhone vs. Android Apps
Consumer Profile – Demographic Dimension


 Dimension / OS            Apple                                                 Android

 Demographic/              •   Approx 52% are male | 48% female                  • Approx 73% are male | 27% female
 Traditional               •   Approx 46% are under 34 years old.                • Approx 54% are under 34 years old.
                           •   13% are under 17.                                 • Only 7% are under 17
                           •   80% of iPhone users earn more than 35k
                           •   For iPod touch users, over 65% are under 17

 Demographic/              • 91% who own an iPad & iPhone, 85% who own an        • 8% of Android users switched from an iPhone
 Advocacy                    iPhone but no iPad, 51% who own an iPad but no      • 45% of Android users claim Android is their
                             iPhone and 25% who own neither iPad or iPhone         first Smartphone
                             said their next desired Smartphone would be an
                             iPhone!
                           • No surprises then that 91% would recommend
                             iPhone to friends, family & colleagues.
                           • 40% iPhone users are most enthusiastic about
                             NFC mobile wallet. 61% trust Apple more than any
                             other brand to be able to deliver a mobile wallet




      Sources: Nielsen, Mobclix, Admob                                                                                  Twitter:- @Zohe
13
9a. Global:- Apple iPhone vs. Android Apps
Consumer Profile – Behavioural Dimension
 Dimension / OS              Apple                                                  Android

 Behavioural                 • iPhone users have an average of 47 apps              • Android users & download 8.7 apps a month
                               downloaded & download 8.8 apps a month.              • 87% of monthly downloads are free apps
 Downloading &               • 79% of monthly downloads are free apps.              • 21% download at least 1 paid app per month
 Discovery                   • 50% download at least 1 paid app per month.
                             • In 2011 the average iOS owner will download 83
                               apps.
                             • How do iphone users discover apps? 62% do so by
                               searching for specific apps. 60% browsing through
                               top app store rankings. 46% by word of mouth &
                               20% see ads whilst using other apps.

 Behavioural                 • iOS gamers spend 14.7 hours per month playing        • Android users spend most of their time on
                               games which is twice as much is the industry           email (37%), games (21%), maps/nav (8%)
 Interaction with              average of 7.8 hours.                                • Android gamers spend 9.3 hours per month
 Apps                        • iPhone users spend 7x more than Android users in       playing games
                               in-app game purchases. Upgrading from lite to full   • Android users have banner CTR of [0.14%]
                               version is the most common reason to buy a paid      • 49M monthly active users of Facebook
                               app.                                                   Android App & 31M daily active users.
                             • 90% iphone users browse, search apps on device.
                               Over 50% spend > 30 mins/day on apps
                             • iOS user have double the standard banner CTR
                               [0.37%] performance of Android OS
                             • 83M monthly active users of Facebook iPhone App
                               & 46M daily active users.



        Sources: Nielsen, Mobclix, Admob                                                                                  Twitter:- @Zohe
14
SO … WHAT DOES A HEAVILY
CURATED & VETTED PORTFOLIO VS.
FREE FOR ALL—TELL US ABOUT
THEIR APPS CONSUMERS?

                            Twitter:- @Zohe
11. Global Apps Actual Search Terms Trends via the
―Chomp‖ App on Android and iOS.
     iOS
         UK                Canada               Saudi Arabia      Germany         India           Australia
     1   Games             Games                Games             iOS utilities   Games           Games

     2   Entertainment     Puzzle Games         Adventure Games   Games           Art             Puzzle Games

     3   Utilities         Adventure Games      Kids Games        Business        Books           Adventure Games

     4   Adventure Games   Entertainment        Puzzle Games      Entertainment   Business        Utilities

     5   Books             Role playing games   Education         Movies          Productivity    Business

     6   Music             Lifestyle            Books             Puzzle Games    Utilities       Magazines

     7                     Books                Photography       Audio Books     Entertainment   Action Games



     Android
         UK                Canada               Saudi Arabia      Germany         India           Australia
     1   Free              Free                 Free              Free            Free            Free

     2   Games             Games                Games             Games           Entertainment   Games

     3   Entertainment     Utilities            Free 3DGames      Utilities       Games           Utilities

     4   Utilities         Entertainment        Adventure Games   Entertainment   Utilities       Entertainment

     5   Puzzle Games      Shooting games       Travel Guides     Action Games    Photography     Books

     6   Utilities         Rpg Games            Chat              Productivity    Books           Productivity

     7   Adventure Games   Music                Puzzle Games      Navigation      Productivity    Adventure Games

                                                                                                                 Twitter:- @Zohe
16
12. Global Top Downloaded Apps by
Categories, Platform
                          Top Apps Downloads - Which Categories are they from?
                           Apple have 76.53% share of the Top Apps vs. Android
     25.00



     20.00

                                                                                                                                                                     Apple               Android
     15.00



     10.00



      5.00



      0.00




                                                                                                                                                                                                                       Reference
                                  Communication




                                                                                                                                                                                                                                                             Travel
                                                                                        Games




                                                                                                                                                                                          Photography
                                                                                                                                                Multimedia




                                                                                                                                                                                                                                   Social
                                                                                                                                      Medical
                                                                                                Health
                                                                              Finance




                                                                                                                     Live Wallpaper




                                                                                                                                                                                                        Productivity
               Books




                                                                                                                                                                                                                                                     Tools
                                                              Entertainment
                       Business




                                                                                                                                                                                  News
                                                  Education




                                                                                                                                                                                                                                            Sports
                                                                                                                                                                     Navigation




                                                                                                                                                                                                                                                                      Utilities
                                                                                                         Lifestyle




                                                                                                                                                             Music




             Sources: Distimo Q1 2011 Report                                                                                                                                                                                                                    Twitter:- @Zohe
17
13. iPhone vs Android Free Games Category
Consumer Profile – Global
• iPhone level of refresh for Action games. Arcade games see a slight                                                                                                                                                                                                                                                 • Curiously Android have half the categories to Apple
  growth                                                                                                                                                                                                                                                                                                              • 3 new categories entirely which are Live Wallpaper, Racing &
• Adventure, Board & Sports games see decreases in portfolio                                                                                                                                                                                                                                                            Widgets
• Family, Kids, Puzzle & Simulation games see same level                                                                                                                                                                                                                                                              • Android does not have Family, Kids or Education Games
  maintained or slight increase                                                                                                                                                                                                                                                                                         category, however does have a Education Apps category where
• Action & Arcade games total 34% vs Android 31%                                                                                                                                                                                                                                                                        many kid friendly games can be found
                                                                                                                                                                                                                                                                                                                      • Android have 30% puzzle games vs iPhone 10%

Global iPhone Free Games Category Breakdown                                                                                                                                                                                                                                                                         Global Android Free Games Category
                                                                                                                                                                                                                                                                                                                    Breakdown
    20.00%                                                                                                                                                                                                                                                                                                             40.00%

                                                                                                                                        Q1 2011                                                  Q42010                                                                                                                                                                                                 Q1 2011                               Q4 2010
    15.00%                                                                                                                                                                                                                                                                                                             30.00%



    10.00%                                                                                                                                                                                                                                                                                                             20.00%



    5.00%                                                                                                                                                                                                                                                                                                              10.00%



    0.00%                                                                                                                                                                                                                                                                                                               0.00%




                                                                                                                                                                                                                                                                                                                                                                                                                       Games-Live Wallpaper
                                                                                                                                                                                                                                                                                                                                                                                                        Games-Casual




                                                                                                                                                                                                                                                                                                                                                                                                                                               Games-Racing




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Games-Widgets
                                                                                                                                                                                                                                                                                                                                  Games-Arcade & Action
                                                                                                                                        Games-Family




                                                                                                                                                                                                                                                                       Games-Strategy




                                                                                                                                                                                                                                                                                                                                                                                 Games-Cards & Casino




                                                                                                                                                                                                                                                                                                                                                                                                                                                               Games-Sports Games
             Games-Action




                                                                                                                                                                                                                                                                                                                                                          Games-Brain & Puzzle
                                                                                                                    Games-Educational




                                                                                                                                                                                                                                     Games-Simulation
                                                                                        Games-Casino




                                                                                                                                                                                                 Games-Racing




                                                                                                                                                                                                                                                                                        Games-Trivia
                                                                                                                                                                                                                                                                                                       Games-Word
                                              Games-Arcade




                                                                                                                                                                                                                                                        Games-Sports
                            Games-Adventure


                                                             Games-Board



                                                                                                       Games-Dice



                                                                                                                                                       Games-Kids
                                                                                                                                                                    Games-Music
                                                                           Games-Card




                                                                                                                                                                                  Games-Puzzle


                                                                                                                                                                                                                Games-Role Playing




             Sources: Distimo Q1 2011 Report                                                                                                                                                                                                                                                                                                                                                                                                                  Twitter:- @Zohe
18
14. iPhone vs Android Paid Games Category
Consumer Profile – Global
• Very similar to free games iPhone profile                                                                                                                                                                                                                                                                            • Paid game widgets seem to be removed completely
• Paid Simulation games small decrease possibly to make room for free                                                                                                                                                                                                                                                  • Android have 50% paid Arcade & Action games vs iPhones 40%
  sim games?
• Paid board games like free board games small decrease in portfolio
  size

Global iPhone Paid Games Category Breakdown                                                                                                                                                                                                                                                                           Global Android Paid Games Category
                                                                                                                                                                                                                                                                                                                      Breakdown
  25.00%                                                                                                                                                                                                                                                                                                                60.00%


                                                                                                                                                                                                                                                                                                                        50.00%
  20.00%
                                                                                                                                                                                                                                                                                                                                                                                                         Q1 2011                     Q4 2010
                                                                                                                                         Q1 2011                                      Q4 2010
                                                                                                                                                                                                                                                                                                                        40.00%
  15.00%

                                                                                                                                                                                                                                                                                                                        30.00%
  10.00%
                                                                                                                                                                                                                                                                                                                        20.00%

     5.00%
                                                                                                                                                                                                                                                                                                                        10.00%


     0.00%                                                                                                                                                                                                                                                                                                               0.00%
                                                                                                                                          Games-Family
                                                                                         Games-Casino




                                                                                                                                                                                                   Games-Racing




                                                                                                                                                                                                                                                                                                         Games-Word
                                               Games-Arcade




                                                                                                                                                                                                                                                                         Games-Strategy
                                                              Games-Board



                                                                                                        Games-Dice
                             Games-Adventure
              Games-Action




                                                                            Games-Card




                                                                                                                                                         Games-Kids
                                                                                                                     Games-Educational




                                                                                                                                                                                                                                       Games-Simulation
                                                                                                                                                                                    Games-Puzzle




                                                                                                                                                                                                                                                                                          Games-Trivia
                                                                                                                                                                                                                                                          Games-Sports
                                                                                                                                                                      Games-Music



                                                                                                                                                                                                                  Games-Role Playing




                                                                                                                                                                                                                                                                                                                                                                                                           Games-Casual



                                                                                                                                                                                                                                                                                                                                                                                                                          Games-Racing




                                                                                                                                                                                                                                                                                                                                                                                                                                                               Games-Widgets
                                                                                                                                                                                                                                                                                                                                   Games-Arcade & Action




                                                                                                                                                                                                                                                                                                                                                                                  Games-Cards & Casino
                                                                                                                                                                                                                                                                                                                                                           Games-Brain & Puzzle




                                                                                                                                                                                                                                                                                                                                                                                                                                          Games-Sports Games
             Sources: Distimo Q1 2011 Report                                                                                                                                                                                                                                                                                                                                                                                                   Twitter:- @Zohe
19
•
                                                                                                                                                                                                              •
                                                                                                                                                                                                              •
                                                                                                                                                                                                              •
                                                                                                                                                                                                              •




20
                                                              0%
                                                                       10%
                                                                                  20%
                                                                                              30%
                                                                                                                    40%
                                                                                                                                50%
                                               All Games
                                                   Books
                                                Business
                                               Education
                                           Entertainment

                                                                                                                                                                                                              Music also decreases
                                                 Finance
                                                                                                                                                                                                              Total games increases


                                    Healthcare & Fitness
                                                 Lifestyle




                                                                                                                                      Category Breakdown
                                                  Medical
                                                    Music
                                               Navigation




 Sources: Distimo Q1 2011 Report
                                                    News




                                                                                                          Q1 2011
                                                                                                                                                                                                              Entertainment decrease in portfolio share




                                             Photography
                                              Productivity
                                               Reference
                                                                                                                                      Global iPhone Free Apps & Games



                                       Social Networking


                                                                                                          Q4 2010
                                                                                                                                                                                                              Free productivity & photography apps sees decrease




                                                   Sports
                                                                                                                                                                                                              Apple have 16% Entertainment apps vs Android‘s 9%




                                                   Travel
                                                  Utilities
                                                 Weather

                                                                                        10%
                                                                                                    15%
                                                                                                                          20%
                                                                                                                                25%




                                                                       0%
                                                                             5%
                                   Applications-Books & Reference
                                               Applications-Comics
                                      Applications-Communication
                                                                                                                                                                                                       homescreens




                                        Applications-Entertainment
                                                                                                                                                                                                       messenger apps




                                              Applications-Finance
                                                Applications-Health
                                     Applications-Health & Fitness
                                    Applications-Libraries & Demo
                                              Applications-Lifestyle
                                       Applications-Live Wallpaper
                                       Applications-Media & Video
                                                                                                                                                                                                                                                                                     Category Consumer Profile – Global




                                            Applications-Multimedia
                                        Applications-Music & Audio
                                                                                                                                                                                                     • Android books section is double Apples




                                   Applications-News & Magazines
                                     Applications-News & Weather
                                      Applications-Personalization
                                         Applications-Photography
                                          Applications-Productivity
                                                                                                           Q1 2011




                                            Applications-Reference
                                                                                                                                                                                                                                                                                     15. iPhone vs Android Free Apps & Games




                                             Applications-Shopping
                                                 Applications-Social
                                                                                                                                                                                                     • Android have a significant amount of productivity & tools apps




                                                Applications-Sports
                                                 Applications-Tools
                                                                                                           Q4 2010
                                                                                                                                                                                                     • 21% Android apps are widgets which allow updates to & usage from




                                        Applications-Transportation
                                                                                                                                                       Global Android Free Apps Category Breakdown




                                                Applications-Travel
                                        Applications-Travel & Local
                                              Applications-Weather
                                                                                                                                                                                                     • Android using a Communication category for email, address book, sms instant




               Twitter:- @Zohe




                                              Applications-Widgets
21
                                                                    0%
                                                                              10%
                                                                                         20%
                                                                                                               30%
                                                                                                                                 40%
                                                                                                                                        50%
                                                     All Games
                                                         Books
                                                      Business
                                                     Education
                                                 Entertainment
                                                       Finance
                                          Healthcare & Fitness
                                                       Lifestyle


                                                                                                                                              Category Breakdown
                                                        Medical
                                                          Music




 Sources: Distimo Q1 2011 Report
                                                     Navigation




                                                                                                     Q1 2011
                                                          News
                                                   Photography
                                                    Productivity
                                                     Reference




                                                                                                     Q4 2010
                                                                                                                                              Global iPhone Paid Apps & Games




                                             Social Networking
                                                         Sports
                                                         Travel
                                                        Utilities
                                                                                                                                                                                                                                                                     • Again Apple‘s entertainment section almost double Android




                                                       Weather




                                                                         0%
                                                                                    5%
                                                                                               10%
                                                                                                                 15%
                                                                                                                                  20%
                                                                                                                                        25%




                                   Applications-Books & Reference
                                              Applications-Business
                                                                                                                                                                                                               disappear




                                      Applications-Communication
                                             Applications-Education
                                        Applications-Entertainment
                                               Applications-Finance
                                                Applications-Health
                                     Applications-Health & Fitness
                                    Applications-Libraries & Demo
                                               Applications-Lifestyle
                                       Applications-Live Wallpaper
                                                                                                                                                                                                                                                                                                                                   Category Consumer Profile – Global




                                       Applications-Media & Video
                                               Applications-Medical
                                            Applications-Multimedia
                                                                                                                       Q1 2011




                                        Applications-Music & Audio
                                   Applications-News & Magazines
                                     Applications-News & Weather
                                      Applications-Personalization
                                         Applications-Photography
                                                                                                                       Q4 2010
                                                                                                                                                                                                                                                                                                                                   16. iPhone vs Android Paid Apps & Games




                                          Applications-Productivity
                                            Applications-Reference
                                                Applications-Social
                                    Applications-Software libraries
                                                Applications-Sports
                                               Applications-Themes
                                                                                                                                                               Global Android Paid Apps Category Breakdown




                                                 Applications-Tools
                                                Applications-Travel
                                        Applications-Travel & Local
                                              Applications-Weather
               Twitter:- @Zohe
                                                                                                                                                                                                             • Android significant increases to Personalisation, Productivity, Tools & Widgets




                                               Applications-Widgets
                                                                                                                                                                                                             • Android Media & Video decrease & Health, Medical, Travel & Multimedia seem to
SO ... THAT‘S THE GLOBAL VIEW
LETS SHINE THE SPOTLIGHT—ON
THE UNITED KINGDOM BECAUSE
THE PICTURE CHANGES LOCALLY
                          Twitter:- @Zohe
17. iPhone Games Category Consumer Profile –
UK
• Decrease in Action & Adventure games. Increase in Puzzle & 61.8%           • Similarly for free games there is a rise in puzzle & simulation titles
  increase in Simulation games. 75% decrease in Music games.                   & again these are reflected in top downloads
• 42% increase in paid Arcade Games                                          • Kids & family games have respectable presence in top apps but
• UK iPhone gamers clearly enjoy Action & Arcade games which is                new titles stayed level with previous quarter which suggests Apple
  reflected in top app downloads & rise in number of titles in portfolio &     are trying to maintain consistency
  are happy to pay for them

Free Games - UK                                                              Paid Games - UK
  20.00%                                                                     25.00%
  18.00%
  16.00%                                                                     20.00%
  14.00%                                                                                                     Q1 2011     Q2 2010
                                    Q1 2011     Q4 2010
  12.00%                                                                     15.00%
  10.00%
      8.00%                                                                  10.00%
      6.00%
      4.00%                                                                   5.00%
      2.00%
      0.00%                                                                   0.00%
                   Games-Family




                                                                                            Games-Family
                   Games-Arcade




                                                                                            Games-Arcade
                  Games-Strategy




                                                                                           Games-Strategy
                    Games-Trivia
                    Games-Word




                                                                                             Games-Trivia
                                                                                             Games-Word
                    Games-Board
                     Games-Card




                                                                                             Games-Board
                                                                                              Games-Card
                   Games-Casino



                     Games-Kids
                    Games-Music

                   Games-Racing

                Games-Simulation




                                                                                            Games-Casino

                                                                                              Games-Kids
                                                                                             Games-Music

                                                                                            Games-Racing

                                                                                         Games-Simulation
                   Games-Action




                                                                                            Games-Action
                   Games-Sports




                                                                                            Games-Sports
                Games-Adventure




                                                                                         Games-Adventure
               Games-Educational




                   Games-Puzzle




                                                                                            Games-Puzzle
               Games-Role Playing




                                                                                        Games-Role Playing
              Sources: Distimo Q1 2011 Report                                                                                            Twitter:- @Zohe
 23
18. iPhone Apps Category Consumer Profile – UK

• Most categories saw a decrease in portfolio. Small increases in                                                                                                                                      • The only paid apps category to show a significant increase is
  News, Reference and Utilities free titles.                                                                                                                                                             Photography apps.
• Productivity & Weather apps seem to have disappeared in the free                                                                                                                                     • Paid reference apps seem to have disappeared
  section.                                                                                                                                                                                             • And they seem to be experimenting with a new paid Lifestyle category
• Free Health & Fitness apps seems to be a new free category.


iPhone Category Free Top Overall - UK                                                                                                                                                                  iPhone Category Paid Top Overall - UK
  60.00%                                                                                                                                                                                               70.00%


  50.00%                                                                                                                                                                                               60.00%

                                                                                                                                                                                                       50.00%
  40.00%                                                                                                                                                                                                                                                                            Q1 2011                        Q4 2010
                                                                                   Q1 2011                      Q4 2010                                                                                40.00%
  30.00%
                                                                                                                                                                                                       30.00%
  20.00%
                                                                                                                                                                                                       20.00%

  10.00%                                                                                                                                                                                               10.00%

   0.00%                                                                                                                                                                                                0.00%




                                                                                                                                                                                                                                                                                                                                                                           Utilities
                                                                                                                                                                                                                                                                                                     Photography

                                                                                                                                                                                                                                                                                                                   Productivity
                                                                                                                                                                                                                                          Entertainment



                                                                                                                                                                                                                                                                                 Lifestyle
                                                                                                                                                                                                                              Education




                                                                                                                                                                                                                                                                                                                                  Reference
                                                                                                                                                                                                                                                          Healthcare & Fitness



                                                                                                                                                                                                                                                                                             Music




                                                                                                                                                                                                                                                                                                                                                                  Travel
                                                                                                                                                                                                                  All Games




                                                                                                                                                                                                                                                                                                                                              Social Networking
                                                                                                                                                                                             Weather
                                Entertainment
                        Books




                                                                                            Navigation




                                                                                                                               Reference




                                                                                                                                                                                 Utilities
                                                                                    Music




                                                                                                                Productivity
                                                                       Lifestyle




                                                                                                                                                               Sports

                                                                                                                                                                        Travel
            All Games




                                                                                                         News




                                                                                                                                           Social Networking
                                                Healthcare & Fitness




           Sources: Distimo Q1 2011 Report                                                                                                                                                                                                                                                                                                           Twitter:- @Zohe
 24
19. Android Games Category Consumer Profile –
UK
• Arcade, Action & Puzzle account for almost 60% in Free games.                                                                                                                  • Arcade, Action & Puzzle account for more than 70% in Paid
                                                                                                                                                                                   games.



 Android Category Free Games - UK                                                                                                                                                Android Category Paid Games - UK
  40.00%                                                                                                                                                                           60.00%

  35.00%
                                                                                                                                                                                   50.00%
  30.00%
                                                                                                  Q1 2011                     Q4 2010                                              40.00%
  25.00%
                                                                                                                                                                                                                                                                    Q1 2011                  Q4 2010
  20.00%                                                                                                                                                                           30.00%

  15.00%
                                                                                                                                                                                   20.00%
  10.00%
                                                                                                                                                                                   10.00%
   5.00%

   0.00%                                                                                                                                                                            0.00%
             Games-Arcade & Action




                                                                                                      Games-Live Wallpaper
                                                                                   Games-Casual




                                                                                                                             Games-Racing




                                                                                                                                                                 Games-Widgets
                                                            Games-Cards & Casino




                                                                                                                                            Games-Sports Games
                                     Games-Brain & Puzzle




                                                                                                                                                                                                                      Games-Brain & Puzzle




                                                                                                                                                                                                                                                                     Games-Casual



                                                                                                                                                                                                                                                                                    Games-Racing




                                                                                                                                                                                                                                                                                                                        Games-Widgets
                                                                                                                                                                                              Games-Arcade & Action




                                                                                                                                                                                                                                             Games-Cards & Casino




                                                                                                                                                                                                                                                                                                   Games-Sports Games
           Sources: Distimo Q1 2011 Report                                                                                                                                                                                                                                                            Twitter:- @Zohe
  25
26
                                                                                         10.00%
                                                                                                   15.00%
                                                                                                                        20.00%
                                                                                                                                 25.00%




                                                                       0.00%
                                                                                5.00%
                                   Applications-Books & Reference
                                               Applications-Comics
                                      Applications-Communication
                                        Applications-Entertainment
                                              Applications-Finance                                                                                                                & Entertainment
                                                Applications-Health
                                     Applications-Health & Fitness
                                    Applications-Libraries & Demo
                                              Applications-Lifestyle
                                       Applications-Live Wallpaper
                                       Applications-Media & Video
                                            Applications-Multimedia
                                        Applications-Music & Audio




 Sources: Distimo Q1 2011 Report
                                   Applications-News & Magazines



                                                                                                             Q1 2011
                                     Applications-News & Weather
                                      Applications-Personalization
                                         Applications-Photography
                                          Applications-Productivity
                                                                                                                                          Android Category Free Apps - UK




                                            Applications-Reference
                                                                                                             Q4 2010

                                             Applications-Shopping
                                                 Applications-Social
                                                Applications-Sports
                                                 Applications-Tools
                                        Applications-Transportation
                                                Applications-Travel
                                        Applications-Travel & Local
                                              Applications-Weather
                                              Applications-Widgets
                                                                                                                                                                                • Obvious spikes in Widgets, Tools, Productivity, Communications




                                                                                          10.00%
                                                                                                    15.00%
                                                                                                                        20.00%
                                                                                                                                 25.00%




                                                                        0.00%
                                                                                 5.00%




                                   Applications-Books & Reference
                                             Applications-Business
                                      Applications-Communication
                                        Applications-Entertainment
                                              Applications-Finance
                                                Applications-Health
                                     Applications-Health & Fitness
                                    Applications-Libraries & Demo
                                              Applications-Lifestyle
                                       Applications-Live Wallpaper
                                       Applications-Media & Video
                                                                                                              Q1 2011




                                              Applications-Medical
                                            Applications-Multimedia
                                        Applications-Music & Audio
                                   Applications-News & Magazines
                                     Applications-News & Weather
                                                                                                              Q4 2010




                                      Applications-Personalization
                                         Applications-Photography
                                                                                                                                          Android Category Paid Apps - UK
                                                                                                                                                                            • Paid tools almost double in total to free tools.




                                          Applications-Productivity
                                            Applications-Reference
                                                 Applications-Social
                                                Applications-Sports
                                                                                                                                                                            • Obvious spikes in Widgets, Tools, Productivity again




                                              Applications-Themes
                                                 Applications-Tools
                                                Applications-Travel
                                        Applications-Travel & Local
                                                                                                                                                                                                                                                   20. Android Apps Category Consumer Profile – UK




                                              Applications-Weather
               Twitter:- @Zohe




                                              Applications-Widgets
21. What are the 73% of Male Android users rating?

                                                    High
                                                              Productivity
                         Games – Arcade                       7%
                         & Action 9%                                                               Tools
                                                                                                   22%
                                          Books &
                                           Ref 7%
Positive Ratings




                                                                                      Games – Arcade &
                                  Communication                                       Action 9%
                                  7%                             Entertainment
                                                                 7%
                   Low                                                                                       High
                                                                      Media & Video
                                                                      3.59%

                                           Social          Games –
                                           3.29%           Casual
                                                           3.59%




                                                    Low
                                      Amount of Ratings
                                                                                                         Twitter:- @Zohe
          27
22. What are the 73% of Male Android users
downloading?
 Android Paid Apps                                   Android Free Apps
 Rank      Application                               Rank   Application

      1                                                1
                  PowerAMP Full Version Unlocker                   Gmail
     +3                                               +1
      2                                               2
                  Titanium Backup PRO Key  root                   Google Maps
     +10                                              -1
     3                                                 3
                  Beautiful Widgets                                Flash Player 10.2
     -2                                               +2
      4                                               4
                  ROM Manager (Premium)                            Facebook for Android
     +4                                               -1
      5                                                5
                  Root Explorer (File Manager)                     YouTube
     +8                                               +5
     6                                                6
                  Documents To Go Full Version Key                 Advanced Task Killer
     -1                                               -2
      7                                               7
                  ADWLauncher EX                                   Barcode Scanner
     +27                                              -
     8                                                 8
                  WeatherBug Elite                                 Talking Tom Cat free
     -5                                               +1
     9                                                9
                  SetCPU for Root Users                            Google Sky Map
     -                                                -1
     10                                               10
                  PicSay Pro – Photo Editor                        The Weather Channel
     -4                                               -4


                                                                                          Twitter:- @Zohe
28
23. How do Windows Phone users Paid downloads
compare? Big Name Publishers vs. Indie Publishers.
 Windows Paid Apps                               iPhone Paid Apps
 Rank      Application                           Rank   Application

      1                                            1
                  Need for Speed™ Undercover                   WhatsApp Messenger
      -                                           +1
      2                                           2
                  Fruit Ninja                                  Angry Birds
     +37                                          -1
      3                                            3
                  Tiki Towers                                  Fruit Ninja
     New                                          +2
      4                                           4
                  PAC-MAN™                                     Tiny Wings
     New                                         New
   5                                              5
                  Rise of Glory                                Cut the Rope
 +2979                                            -2
      6                                           6
                  Zombies!!! ©                                 Angry Birds Seasons
     New                                          -2
     7            Assassin‘s Creed™ - Altair‘s    7            Doodle Jump – BE WARNED:
     -5           Chronicles HD                   -            Insanely Addictive!
      8                                           8
                  I Dig It                                     Plants vs. Zombies
     New                                          -2
      9                                            9
                  Parachute Panic                              TuneIn radio Pro
     New                                          +8
      10                                           10
                  ilomilo                                      STREET FIGHTER IV
     New                                          +66


                                                                                          Twitter:- @Zohe
29
SO ... HOW ABOUT PUBLISHERS?
ARE THE TOP 25 SIMILAR ON
BOTH PLATFORMS?—
NO! THEY ARE NOT.
                          Twitter:- @Zohe
24. Global Top 25 Publishers are completely different,
bar 5 publishers
 Top 25 Publishers
                                               iPhone                                                    Android
                                                Number Of Free   Number Of Paid                          Number Of Free   Number Of Paid
     Position Publisher Name                                                      Publisher Name
                                                 Applications     Applications                            Applications     Applications
        1     Gameloft                               79               102         Google Inc.                 36                0
        2     Electronic Arts Nederland B.V.         28                83         Rovio Mobile Ltd.            4                0
        3     Clickgamer.com                         26               107         Lupis Labs Software          2                1
        4     WhatsApp Inc.                           0                 1         Max MP (MSR Limited)         0                1
        5     Rovio Mobile Ltd.                       3                 2         yongzh                       7                8
        6     Outfit7                                 6                 6         KittehFace Software         20               23
        7     Halfbrick Studios                       2                 5         GameHouse                   16               25
        8     Chillingo Ltd                          65               114         Camel Games                 14               10
        9     Donut Games                            12                25         Adobe Systems                9                0
       10     Miniclip.com                            5                 7         Halfbrick Studios            0                2
       11     Google                                 11                 0         ClockworkMod                 4                7
       12     Electronic Arts                        30                74         Ken Magic                    1                0
       13     PopCap Games, Inc.                      0                 6         Magma Mobile                39                4
       14     Andreas Illiger                         0                 1         CrossConstruct               1                1
       15     Triniti Interactive Limited            42                61         Titanium Track               1                2
       16     Lima Sky                                3                36         Smartpix Games               6                6
       17     iHandySoft Inc.                         9                13         Psym Mobile                  5                3
       18     Apple®                                  6                 3         Glu Mobile                  14               17
       19     Glu                                    33                25         GAMEVIL Inc.                10               11
       20     Backflip Studios                       12                 8         LevelUp Studio               8                2
       21     CAPCOM                                  9                12         Outfit7                      4                6
       22     TeamLava                               13                 1         Com2uS                       4                6
       23     Facebook, Inc.                          1                 0         MHGames                      1                0
       24     Firemint Pty Ltd                        2                 3         Dragonplay                   2                0
       25     Tapulous, Inc.                          6                21         Facebook                     1                0



                                                                                                                             Twitter:- @Zohe
31
AND ... WINDOWS 8?
WHAT IS THE OPPORTUNITY?
— FOR CONTENT STRATEGY.

                       Twitter:- @Zohe
25. How will an Apple or Google user view the Windows 8
Ecosystem as an Ecosystem to switch over to? What
would they miss?


                               Google                                                                   Apple
• Integration of ―Trojan‖ Google apps attracts both Google &   • Entering your Google profile user id into an Android synchs
  Apple users                                                    automatically with other Google services on Android e.g. Gmail,
• Extreme, high quality apps, huge choice on Apple Store         Google Talk, Calendar etc . Almost every Google service is
                                                                 available as an App.
• All the hygiene apps are on App store
                                                               • Sharing photos or other media is seamlessly integrated into
• One device can access many apps designed for other
                                                                 several social networks [even if you have not downloaded
  devices
                                                                 dedicated app], into other Google products like Gmail, Goggles,
• Huge added value chain from peripherals to app reviews         Picasa & other 3rd party apps can access the API to be included
  magazines supplement the ecosystem                             in the list
• Apple only apps like Instagram, Hipstamatic                  • Developer / Geeky / Hacker Utilities & Tools apps
                                                               • Homescreen Widgets & Live Wallpaper




     Opportunity for Windows 8 to port ALL                        Opportunity for Windows 8 to port ALL Apps
            Google Apps & Tools                                           that show in Apple charts

                                                                                                                       Twitter:- @Zohe
33
Apple & Android Consumer
Profiles Non-Distimo Data
 Data from: Admob, Mobclix, Nielsen, Appsfire, Chillingo,
   Ericsson Consumer Labs for Global and Regional




                                                            Twitter:- @Zohe
27. Global iPhone Demographics Consumer
Graphs – Source Nielsen & Admob
The iPad skews younger and male
                                                               Age
      5%                                               2%                                               2%              4%     0%                                       Gender
                              10%                      7%                       9%                      6%
      12%                                                                                                              12%
                                                                                                        12%
                              16%                      13%                     13%

      21%                                                                                               14%
                                                                                                                       17%                                            35%                             38%
                                                       15%                     16%                                                                     48%                    48%        48%
                              16%                                                                                                         50%                                                                      Female

      13%                                                                                               19%            26%
                              13%                                              17%                                                                                                                                 Male
                                                       27%


      24%                     20%
                                                                                                        25%
                                                                               27%                                     24%
                                                       21%                                                                                                            65%                             62%
                              15%                                                                                                         50%          52%                    52%        52%
      18%
                                                                                9%                      22%            18%
                              12%                      15%
      6%                                                                        8%

    Acer                Amazon                 Apple iPad               Apple iPhone                Apple iPad Touch Sony Playstation
  Aspire One             Kindle                                                                                         Portable          Acer        Amazon      Apple        Apple   Apple iPad      Sony
                                                                                                                                        Aspire One     Kindle     iPad        iPhone     Touch      Playstation
<18        18-24      25-34         35-44          45-54       55-64           65 years and older
                                                                                                                                                                                                     Portable



                                              Age by Platform                                                                                                   Gender by Platform
                                              5%                                8%                              7%
                14%                           6%
                                              6%                                                               16%
                                                                               17%
                                              4%
                18%
                                              13%                                                                                                                            27%
                                                                                                                                              43%               46%                        42%
                                                                               21%                             29%                                                                                                 Female
                21%
                                                                                                                                                                                                                   Male

                                                                               30%
                21%                                                                                            24%
                                              65%
                                                                                                                                                                             73%
                                                                                                                                              57%                                          58%
                                                                                                                                                                54%
                12%
                                                                               17%
                                                                                                               22%
                13%
                                                                                7%                                        2%

            iPhone                      iPod Touch                         Android                            webOS                          iPhone        iPod Touch       Android       webOS

17 or younger         18-24           25-34            35-44           45-54              55 or older


                   Sources: Nielsen, Admob                                                                                                                                                                   Twitter:- @Zohe
35
28. Global iPhone Behavioural Consumer Graphs
– Source Nielsen & Admob
• IPod users more than both iPhone / Android!
• App consumption is higher on a more dedicated media device i.e. Non-phone
• Could the fact that iOS gamers spend more time playing games be down to the fact that the games
  are better?

Average App Downloads per Month                        iOS gamers spend almost twice as
                                                       much time playing games as the
                                                       average mobile gamer


                                                       Hours per Month Spent on Mobile Games
15
                                                       Played Games in the last 30 Days
                                           Free Apps
                        12.1
                                           Paid Apps
                         1.6
10      8.8                        8.7
        1.8                        1.1
                                                                                       Industry Average – 7.8
                                             5.7
                        10.5                  0.6         14.7
 5
        7.0                        7.6                               9.3
                                              5.1
                                                                               4.7          4.5       4.5
 0
      iPhone           iPod      Android   webOS          Apple    Android   Windows      Feature      RIM
                      Touch                              iPhone              Phone 7      Phone     Blackberr
                                                          (iOS)                                         y




       Sources: Nielsen, Admob                                                                           Twitter:- @Zohe
36
29. Global iPhone Behavioural Consumer Graphs
– Source Nielsen & Admob
• Clearly iPhone users are influenced by app store rankings. Opportunity for Windows 8 to implement rankings? For iPhone
  users who may consider switching to Windows 8 they will look for a similar experience to previous provider
• The fact that they are searching for a specific app suggests that all other columns influence this behaviour. That is to be
  searching for a specific app they must have heard about this somewhere


How do iPhone users discover Apps?
      70%
                62%                 60%
      60%

      50%                                              46%
      40%

      30%
                                                                          20%                19%
      20%
                                                                                                                                    13%
                                                                                                                   10%
      10%

        0%
             Searching for a    Browsing through     Word of mouth      See ads while       Press/news           A brand I know     Other
             specific type of     top app store    (recommendations    using other apps   articles or blogs introduces an app and
                   app              rankings         from friends or                                           reaches out to me
                                                       colleagues)



         Source: Admob                                                                                                                 Twitter:- @Zohe
 37
30. Global General Apps Consumer Profile
 Most Popular Mobile App Categories                                                                                                                                                                                                                                                                                     Leading Paid App Categories
 (Downloads in past 30 days), Q2 2011                                                                                                                                                                                                                                                                                   (% of App Downloaders who would pay in past 30
                                                                                                                                                                                                                                                                                                                        days), Q2 2011
      64
              60
                         56
                                              51
                                                                                                                                                                                                                                                                                                                            93%
                                                                    44                                                                                                                                                                                                                                                                      87%
                                                                            39                                                                                                                                                                                                                                                                        84%          84%
                                                                                   34              32                                                                                                                                                                                                                                                                        77%
                                                                                                                     26              26                26                  25
                                                                                                                                                                                                                                                                                                                                                                                         76%
                                                                                                                                                                                    21             20                          18            18
                                                                                                                                                                                                                                                      13        11
                                                                                                                                                                                                                                                                                      6




                                                                                                                                                                                    Productivity
                                                                                                   Banking/Finance
             Weather

                       Social Networking




                                                                                                                                                                                                                                                                                     Household/Personal Care
                                                                                   Entertainment




                                                                                                                                                       Dining/Restaurant




                                                                                                                                                                                                                                             Travel

                                                                                                                                                                                                                                                       Health
                                                                            News




                                                                                                                                                                           Sports
     Games




                                           Maps/Navigation/Search




                                                                                                                                                                                                                                                                Education/Learning
                                                                                                                                     Shopping/Retail




                                                                                                                                                                                                   Communications (IM ... )
                                                                    Music




                                                                                                                     Videos/Movies




                                                                                                                                                                                                                                Food/Drink
                                                                                                                                                                                                                                                                                                                            Games    Entertainment Productivity   Maps ...   Food       News




                                                                                                                                                                                                                              100%                         3%                                                      2%               5%
                                                                                                                                                                                                                                                                                                                                                   11%            No
                                                                                                                                                                                                                                                           5%                                                     10%
                                                                                                                                                                                                                              90%                                                                                                   12%
                                                                                                                                                                                                                                                                                                                                                                  Maybe
                 Are you likely to                                                                                                                                                                                                                                                                                                                 20%
                                                                                                                                                                                                                              80%
                                                                                                                                                                                                                                                                                                                                                                  Yes
       recommend your device to a
                                                                                                                                                                                                                              70%
              friend or colleague
                                                                                                                                                                                                                              60%

                                                                                                                                                                                                                              50%
                                                                                                                                                                                                                                                         91%                                                      88%
                                                                                                                                                                                                                                                                                                                                    88%
                                                                                                                                                                                                                              40%
                                                                                                                                                                                                                                                                                                                                                   69%
                                                                                                                                                                                                                              30%

                                                                                                                                                                                                                              20%

                                                                                                                                                                                                                              10%

                                                                                                                                                                                                                               0%
                                                                                                                                                                                                                                                      iPhone                                                   iPod Touch         Android         webOS

                             Source: Admob, marketingcharts.com                                                                                                                                                                                                                                                                                                                 Twitter:- @Zohe
38
31. Global 500,000 Apps in iOS App Store
                          65% are free or below $0.99                                                                               Distribution has been even keel since day one

  May 2011 Live App Prices                                                                                                         Category Distribution over Time
                                                                                                                 Free               4%              5%                  6%          5%            5%          5%     6%       6%      6%           7%            7%

  $3.64
                                                                           2%
                                                                                                                 $0.99
                                                                  4%                                             $1.99
                                                                                                                                                                                                  18%         17%    16%      15%     15%          14%       15%
                                                          3%                                                     $2.99                                                             19%
  Is the average price                                                                                           $3.99             24%
                                                                                                                                                    23%                 21%
                                                                                                                                                                                                                                      11%          11%       11%
  for paid Apps                                          6%                                                      $4.99
                                                                                                                                    8%              10%                 13%
                                                                                                                                                                                   14%            14%         13%    12%      12%
                                                                                                      36%        $5.99                                                                                                                8%           8%            8%
                                                                                                                                                                                                              7%     7%       8%
                                                                                                                                    3%                                                            7%
                                                                                                                                                    7%                              6%

  147,966
                                                                                                                 $6.99                                                  7%
                                                                                                                                   10%
                                                                                                                 $7.99                              5%                                            13%         14%    18%      18%     17%          17%       14%
                                                                                                                                                                        9%         12%
                                                    13%                                                          $8.99
  Total free Apps                                                                                                $9.99
                                                                                                                 $10.99


  244,720
                                                                                                                 $11.99
                                                                                                                 $12.99
                                                                                                                 $13.99
  Total paid Apps                                                              29%                               $14.99 and more
                                                                                                                                   51%              49%                 44%        43%            44%         44%    41%      42%     43%          43%       44%

                                                                                                                                    9/1             12/1             3/1            6/1            9/1        12/1    3/1      6/1     9/1        12/1        4/1
Number of Developers,                Change in average App Price (for Paid Apps) over                                              2008             2008            2009           2009           2009        2009   2010     2010    2010        2010       2011
Month over Month                     time
Jul 2008                             $7.00
Aug 2008
Sep 2008
                                     $5.25
Oct 2008
Nov 2008
                                                                                                                                   Most Popular iTunes Categories, ranked by download
Dec 2008                             $3.50
Jan 2009
Feb 2009                                                                                                                                                                2% 2% 0%
Mar 2009                             $1.75                                                                                                                         2%
                                                                                                                                                              2%
Apr 2009                                                                                                                                                 2%
May 2009                               $0                                                                                                           2%                                Games 15%
Jun 2009
                                             July 2008        June 2009   July 2009   January 2010   July 2010     January 2011
 Jul 2009                                                                                                                                      3%
Aug 2009                                                                                                                                                                                                              Games                  Sports
Sep 2009                                                                                                                                  3%
Oct 2009                                                                                                                                                                                                              Books                  News
Nov 2009
Dec 2009
Jan 2010
Feb 2010
Mar 2010
Apr 2010
                                     $891,982.24                                                                                    Sports 3%


                                                                                                                                    Business 4%                                                   Books 14%
                                                                                                                                                                                                                      Entertainment
                                                                                                                                                                                                                      Education
                                                                                                                                                                                                                      Lifestyle
                                                                                                                                                                                                                                             Productivity
                                                                                                                                                                                                                                             Healthcare
                                                                                                                                                                                                                                             Navigation
May 2010
Jun 2010
                                     Value of all Apps currently live                                                               Reference 4%                                                                      Utilities              Photography
 Jul 2010                                                                                                                                                                                                             Travel                 Finance
Aug 2010                                                                                                                             Music 4%
Sep 2010                                                                                                                                                                                                              Music                  Social Networking
Oct 2010
Nov 2010
Dec 2010
Jan 2011
Feb 2011
Mar 2011
                                     4.6                                                                                                  Travel 6%
                                                                                                                                                                                          Entertainment 11%           Reference
                                                                                                                                                                                                                      Business
                                                                                                                                                                                                                                             Medical
                                                                                                                                                                                                                                             Weather

Apr 2011
                                     Average number of Apps per Developer                                                                           Utilities 6%

                                                                                                                                                                   Lifestyle 7%
                                                                                                                                                                                   Education 8%
            25K   50K   75K   100K


                   Source: 148 Apps, Chillingo, May 2011                                                                                                                                                                                        Twitter:- @Zohe
 39
32. USA iOS Consumer Graphs
Apple advocacy and trust in the brand is very strong. Large numbers open to new technology which ties
with early adopters image of Apple

Next Desired Smartphone                                                                         iPhone & iPad User Profiles
Among likely smartphone upgraders and current owners                                            Age                                          Income
               91%                                                                              100%                                        100%
                                   85%                                                                                              56+                                                     Decline to answer
                                                                                                 90%                                         90%
                                                                                                 80%                                37-55    80%                                            100k+
                                                                                                 70%                                25-36
                                                                                                                                             70%                                            75k – 100k
                                                       51%                                       60%                                         60%
                                                                                                                                    18-24                                                   50k – 75k
                                                                                                 50%                                         50%
                                                                                                 40%                                         40%                                            35k – 50k
                                                                           25%                   30%                                         30%                                            Below 35k
                                                                                                 20%                                         20%
                                                                                                 10%                                         10%
                                                                                                  0%                                          0%
      Own an iPad and          Own an iPhone     Own an iPad         Do not own                         iPad    iPhone All
                                                                                                                     Subscriber
        an iPhone               but no iPad     but no iPhone      iPad or iPhone                                        s




Are you waiting for NFC (mobile wallet) compatibility                                           Which companies would you trust to provide a mobile
on the next cell phone you buy?                                                                 wallet?
                                                                                                             Android owners                 iPhone owners              All phone owners
            iPhone owners                Android owners
                                                                                                                           61%                    61%


                      44%                                                                       46%
                                                                    40%                                45%                                  40%
         35%                                       32%
                                                                                                             36%
                                         25%                                     24%                                               36%                  36%
                                                                                                                                                              28% 27% 26%
                                                                                                                                                                                             33%
                                                                                                                     27%
                                                                                                                                                                                22%
                                                                                                                                                                                      15%




     No, I‘m not interested in a   I don‘t know what NFC or a   Yes, I want to be able to pay          Google              Apple          Master Card, Visa AT&T, Verizon, or    None of the
     phone with a mobile wallet          mobile wallet is       in the store w/my cell phone                                                or American      your Cell Phone       Above
                                                                                                                                              Express            Carrier

               Source: 148 Apps, Chillingo, May 2011                                                                                                                             Twitter:- @Zohe
40
33. USA, 2011 Android ―Services‖ Consumer
Profile
• Android users are social networking most likely via apps during 4 main                                                         • GPS on Android devices is being used whenever users may be mobile with
  peaks, morning, lunch, late evening & bed                                                                                        most obvious spike for commuting
• Opportunity for Windows 8 to use Day-parting targeting in mobile                                                               • Content opportunity for Windows 8 to source more apps like Waze
  campaigns that are focused on social networking apps                                                                           • Music use sees a peak during commuting whilst Games peak in late
• Also opportunity for Windows 8 marketing to focus on social apps                                                                 evening and in bed. Games clearly used for relaxation.
  marketing showing users in situations at these times                                                                           • Opportunity for Windows 8 to source more games that help pass time and
                                                                                                                                   help people wind down , possibly snack and puzzle games


―My top 3 situations for                                          ―My top 3 situations for                                          ―My top 3 situations for                                                                ―My top 3 situations for
using my smartphone‖                                              using social                                                      using internet & GPS‖                                                                   using music and
                                                                  networking‖                                                                                                                                               games‖
 Smartphone non-                          65%         64%
 voice usage
                              57%
                                    56%
                                                                                                                                                                                                                                        28%                                                      28%
        51% 51%         51%                                                                                                                          29%
                  50%                                                                                                34%

                                                                                                                                                                  26%                                  26%
                                                                                                                                             23%                                                                                                        23%
                                                                                                                                                                                         24%
                                                            40%
                                                                                           26%                                                                           22%
                                                                                                                                                                                                                                                                                                        20%

  35%                                                                                                                                                      19%                   19%                                                                                         18%
                                                                         22%
                                                                                                                           20%                                                             17%                 17%
                                                                                                                                                                                                                                                                               15%
                                                25%                18%                                 18% 18% 25%                    18%
                                                                                                                                                                                                                                                                     14%
                                                                                     16%                                                                                           14%
                                                                                                                                                                           12%                                                                                12%      12%                     12%
                                                                                                 14%                                                                                                                  11%    11%               11%    11%
                                                                                                                                                   11%                                                   11%

                                                                               10%                                                                                                                                                                              9%
                                                                                                                                                             8%                                                                    8%     8%
                                                                                                                                              7%                                                 7%                                                                                                    7%
                                                                                                                                                                                                                        6%
                                                                                                                                                                    5%
                                                                                                                                                                                                  5%                                                                                      5%
                                                                                                                                                                                                                                                 4%                                  4%

                                                                                                                                        2%

                                                                                                                                                                                                                 0%




                                                                                                                                       Internet              GPS                                                            Music                      Games




                  Source: Ericsson Computer Labs                                                                                                                                                                                                                      Twitter:- @Zohe
 41
34. USA OS Data Usage Consumer Graph
Quarterly Data Usage in MB by Operating System
                                                          582
                                                  525             • Essential metric that
                                          495
                                                  468     492       developers look for and
                                                                    take into consideration
                                          415                       when creating apps.
                           381

313                                                               • Android users
                           354
                                                          317       significantly ahead of
312                                                                 Apple
233                                       227     205
                           169                            174
                                                  149
                                                          127
81                         102             95     103

 Qtr 1                     Qtr 2          Qtr 3   Qtr 4   Qtr 1
 2010                      2010           2010    2010    2011

                     Android OS
                     Apple iPhone (iOS)
                     Windows Mobile
                     Windows 7
                     Blackberry OS



         Source: Nielsen                                                            Twitter:- @Zohe
42
35. Europe iOS Consumer
App Store                                             Usage & Installations
                                                       84 minutes: Median time spent     • iOS apps users clearly
               • 350K apps                             per day using apps of all kinds     become very used to
               • 160M users                                                                device based apps
                                                         108 iOS apps; 88 apps
               • 10B downloads                           downloaded from App Store;      • Over 40% of time
                                                         20 default apps                   spent is on
                                                                                           communication apps
Usage (time)                                                               App Profile
                      10 min
                      (12%)
                      Web/
     27 min (32%)     Apps      40 min (47%)
     Telephony                  All other apps

     • Phone                    •   Maps
     • Skype                    •   Angry Birds
     • Messages                 •   Dropbox
                                •   Instagram
                                •   More ...
                     7 min
                     (9%)
                     Mail
                     App




        32%                       68%
       Games                   Non-Games




           Source: Apps Fire, July to December 2010                                                      Twitter:- @Zohe
43
36. Global:- Some other useful info bites

• 54% of activated games on                 • iOS has double the standard banner
  feature phones are pre loaded               CTR to other platforms. Perhaps ad
                                              spend mobile banners should be
                                              biased towards iOS.




                          Source: Nielsen

                                                                       Twitter:- @Zohe
   44
App Genome Report Feb 2011
 By Lookout Mobile Security
Does Apple & Android‘s model of sourcing & pricing
apps have an effect on Consumer Behaviour?




                                                     Twitter:- @Zohe
37. No. of Developers Android vs. Apple

Number of Developers in Android
                                                                                     • The number of unique developers
Market and Apple App Store
                                                                                       publishing applications in the Android
                                                                                       Market and Apple App Store is growing at
                       80k                                                             a comparable rate for each platform—
                                                                                       with Apple slightly in the lead.
                                                                   Apple App Store   • The Apple App Store attracted nearly 24k
                       60k                                                             developers between August 2010 and
Number of Developers




                                                                                       February 2011, whereas the Android
                                                                                       Market attracted just over 4k developers
                                                                                       in the same time period [see diagram
                       40k                                                             left].
                                                                                     • The number of unique developers in the
                                                                                       Apple App Store grew by approximately
                       20k                                                             48% over the past 6 months, while the
                                                                                       number of unique developers in the
                                                                   Android Market      Android Market grew by just over 40%
                                                                                       [see diagram above].
                       0k
                                   15 August 2010              14 February 2011      • Sheer volume of Apps attracts
                                                                                       consumers to the platforms. More
                                                                                       choice


                             Source: Lookout Mobile Security                                                            Twitter:- @Zohe
     46
38. Apps Per Developer Android vs. Apple

Apps per Developer in Android Market
                                                                                            • The Android Market generally has more
and Apple App Store
                                                                                              apps per developer than the App Store
                            100                                                               [see diagram above]. The average
                                                                                              number of apps submitted per developer
                                                                                              is 6.6 in the Android Market and 4.8 in the
                                                8.4%                            6.1%          App Store [see diagram left].
Percentage of Developers




                             75                                                 7.0%
                                                8.2%
                                                                                            • Consumers are likely to download
                                                                                              multiple apps from publishers and
                                                                                35.1%         developers they know and like and have
                                               38.8%                                          had a good experience with
                             50



                             25
                                                                                51.8%
                                               44.7%



                               0
                                      Android Market                      Apple App Store

                           >10 Apps          6-10 Apps               2-5 Apps       1 App




                                   Source: Lookout Mobile Security                                                               Twitter:- @Zohe
      47
39. The App Economy, Who‘s Charging for Apps

Free vs. Paid Apps in Android Market
                                                                                           • Previously, apps in the Android Market
and Apple App Store
                                                                                             have been primarily free; however, over
                      100                                                                    the past 6 months, the Android Market
                                                                                             has seen an influx of paid apps. In
                                                                                             contrast, the Apple App Store has seen
                                                                                             an increase in the proportion of free
                        75                         29.4%                                     apps, with prices of paid apps remaining
                                                                             33.8%
Percentage of Apps




                                                                                             steady.
                                                                  65.9%                    • The Android Market saw its prevalence of
                                    77.6%
                        50                                                                   paid apps grow from 22% to 34% during
                                                                                             the past 6 months
                                                                                           • The prevalence of paid apps in the Apple
                                                   70.6%
                                                                             66.2%           App Store decreased from 70% to 66% in
                        25
                                                                                             the past 6 months
                                                                  34.1%
                                    22.4%

                         0
                                 15 August 2010                14 February 2011

                     Android Free           Android Paid       iPhone Free   iPhone Paid




                             Source: Lookout Mobile Security                                                                   Twitter:- @Zohe
    48
40. Price of Apps - Android

Price of Apps in Android Market
                                                                                                 • In the Android Market, prices have shifted
                                                                                                   upwards whereas in the Apple App Store,
                           100                                                                     prices have remained relatively steady.
                                                                                                 • More than 95% of paid apps in the
                                                                                                   Android Market cost less than $10,
                                                                                                   though the prevalence of apps priced
                             75
Percentage of Paid Apps




                                                                                                   greater than $10 has significantly
                                                                                                   increased during the past 6 months [see
                                                                                                   left].
                             50                                                                  • While most Android Market apps are
                                                                                                   priced at $2.99 or less (73%), the $0.99
                                                                                                   or less price point has seen a major
                                                                                                   decrease
                             25
                                                                                                 • The largest areas of growth in the Android
                                                                                                   Market are in apps priced between $1-
                                                                                                   $9.99, with both the $1-$2.99 and $3-
                              0                                                                    $9.99 segments seeing significant growth
                                      15 August 2010                  14 February 2011

                          $10.00 or more        $3-9.99             $1-2.99      $0.99 or less




                                  Source: Lookout Mobile Security                                                                    Twitter:- @Zohe
      49
41. Price of Apps - Apple

Price of Apps in Apple App store
                                                                                                 • In the Apple App store, price points have
                           100                                                                     for the most part remained steady.
                                                                                                   ―Apple, made a mistake on pricing: It let
                                                                                                   the apps sell too cheap! There‘s an
                                                                                                   economic phenomenon called anchoring,
                             75
Percentage of Paid Apps




                                                                                                   in which the amount that shoppers are
                                                                                                   willing to pay is constrained, or anchored,
                                                                                                   by the first price presented to them. Once
                                                                                                   a price point is set, it‘s hard to dislodge
                             50
                                                                                                   the anchor. Many apps take a lot of work
                                                                                                   to design, but on the App Store, the
                                                                                                   expectation now is that they can‘t cost
                             25                                                                    more than a certain price — and that
                                                                                                   most should cost $0.99 or £0.59 in the
                                                                                                   UK. Dan Ariely, Wired Uk July 2011‖

                              0
                                                                                                 • Will Apple consumers ever be willing to
                                      15 August 2010                  14 February 2011             pay more? Its also set the precedent for
                                                                                                   other App Stores on pricing.
                          $10.00 or more        $3-9.99             $1-2.99      $0.99 or less




                                  Source: Lookout Mobile Security                                                                     Twitter:- @Zohe
      50
42. Ad Networks on Android & Apple Advertising
SDK Integration
Advertising Prevalence in Android
                                                                                                     • In free apps for both the Android
Market
                                                                                                       Market and Apple App Store, Google
                                                                                                       AdMob is the most popular ad
                         50                                                                            platform. The marketshare of
                                                                                                       advertising SDKs in free apps has
                                                                                                       remained relatively consistent, with the
                                                                                   Ad Mob
                         40                                                                            exception of iAd rapidly gaining
Percentage of Free Ads




                                                                                                       traction in free Apple App Store apps.
                                                                                                       Its expected that iAd surpass AdMob
                         30                                                                            in prevalence amongst free Apple App
                                                                                                       Store apps during the first half of 2011.
                                                                                                     • AdMob is the dominant player on the
                         20
                                                                                                       Android Market, being integrated into
                                                                                                       over 40% of free apps. Amongst free
                         10                                                        Google Ads          Android Market apps, the AdMob SDK
                                                                                   Mobclix             has increased in prevalence from 37%
                                                                                                       to 41% over the last 6 months
                                                                                   Millenial Media
                          0
                                 15 August 2010                 14 February 2011




                              Source: Lookout Mobile Security                                                                           Twitter:- @Zohe
     51
43. Ad Networks on Android & Apple

Advertising Prevalence in Apple App
                                                                                            • AdMob is the incumbent on iOS, being
Store
                                                                                              present in 17% of free apps on the Apple
                                                                                              App Store
                          20
                                                                                            • iAd may emerge to become the dominant
                                                                                              player on iOS, having grown from just
                                                                          Ad Mob
                                                                                              5.6% of free Apple App Store apps to
                          15                                              iAd                 15% during the past 6 months
Percentage of Free Apps




                                                                                            • This graphs does not measure the reach,
                                                                                              number of ad impressions, or any related
                                                                                              measures of mobile ad market share for
                          10
                                                                                              the advertising networks used by these
                                                                                              SDKs.

                           5                                              Mobclix
                                                                          Millenial Media
                                                                          Google Ads
                           0
                                     15 August 2010              14 February 2011




                               Source: Lookout Mobile Security                                                                 Twitter:- @Zohe
      52

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Apple vs. Android Mobile Apps Consumer Profile 2011

  • 1. Apple & Android Apps Consumer Profiles 2011 Please view in Presentation Mode 1 Twitter:- @Zohe
  • 2. SUMMARY KEY FACTS & CONCLUSIONS—OF THE CURRENT & FUTURE APPS ECOSYSTEM Twitter:- @Zohe
  • 3. The ―New‖ GIANT Apple‘s stock development compared to indexes: S&P500, NASDAQ and DOW, January 2007–January 2010. +500% What Apple‘s iPad Can Teach You About Content Strategy? There is literally an application for anything +400% you can think of on the Apple platform. Want to edit video, read a book, share files, make a podcast, watch video or even TV. Write documents, edit +300% spreadsheets, present a sales pitch, attend a webinar or make Skype calls. Yes games too. And games for the whole family. +200% This is a device that serves multiple functions, can as +100% easily be used by a toddler as it can by a retiree and still be useful to a high powered executive in a board meeting. The one thing that takes the iPad head and 0% shoulders above the competition is the thousands of quality applications that are its content. Think about the quality and quantity of content you are going to -100% deliver. It‘s the part that usually gets left until Jan ‗07 Jan ‗08 Jan ‗09 Jan ‗10 Jan ‗11 last, when it should be the first . AAPL S&P500 NASDAQ DOW Source: Yahoo! Finance 0920 January–March 2011 / Accenture Media | Entertainment “A is for Apple” Twitter:- @Zohe 3
  • 4. 0. Quarterly Volume Marketshare The Android market overtakes Apple App Store Windows Palm Nook 0% Windows Phone -1% Phone Amazon Palm Nook 1% Amazon 1% 2% 0% 0% 0% GetJar 1% Nokia Nokia Blackberry 7% 9% 5% Blackberry GetJar Android 4% 6% 21% Bada Bada 1% 1% Android 45% Apple 36% Apple 60% Q4 2010 Q4 2012 Source: Strategy Analytics, July 2011 Twitter:- @Zohe 4
  • 5. 1. Quarterly Revenue Marketshare - Apple App Store remain in the lead Palm GetJar Nook Windows 1% Windows 0% 0% Phone Phone Amazon Blackberry Amazon 0% Palm 2% 3% Nook 5% 0% GetJar 1% 1% 0% Bada Nokia Blackberry 0% Nokia 5% Android 6% 12% 6% Bada 0% Android 40% Apple 41% Apple 77% Q4 2010 Q4 2012 Source: Strategy Analytics, July 2011 Twitter:- @Zohe 5
  • 6. 2. Download Marketshare relative to Revenue Marketshare 4Q12 The more curated a store, and the more paid apps in that store, means revenue numbers are much higher in relation to complete apps portfolio 100% 82% 79% 76% 50% 30% 16% 15% 0% -10% -30% -50% -39% -100% -100% -150% Nook Amazon Windows Blackberry Apple Palm Android Nokia Bada GetJar Phone Source: Strategy Analytics, July 2011 Twitter:- @Zohe 6
  • 7. 3. A is for Apple, G is for Google & W is for ... ? Apple demonstrated that enabling developers to capture consumer cash (first source of revenue) fuelled the supply of high quality apps. Apps with a consumer price are usually higher quality than free only, ad-based apps. Also, giving the developer greater certainty their app will run across all Apple‘s 160M products has lead to a flood of high quality apps Revenue Windows Phone Apple Operating Model:- Consumer & advertising Operating Model: Consumer Led led? HIGH 57% WinMo 7 Top Free Download 12 Top Search 52% Male users are very Category: 46% Under 34 13% Under 17 apps a month Term Games 48% Female satisfied Games 17% 65% monthly Top Paid 65% iPod 91% would Top Free Top Paid downloaded Category: touch users recommend Category: Category: apps are paid Games under 17 iPhone Games 45% Games 49% Iphone users 79% monthly 50% download Engagement Download 8.8 have an avg. downloaded 1 paid app per apps a month 47 apps apps are free month LOW HIGH Nokia Google Operating Model:- Device led? Operating Model: Advertising Led Android users spend most of their time on Top Free Top Paid Download 5 Top email 37% Search 73% Male Category: Category: 54% Under 34 7% Under 17 apps a month Term Free 27% Female Utilities Games 45% Android Top Free Top Paid 8% switched is 1st Category: Google Category: from iPhone Smartphone Apps 21% Tools 20% LOW Download 8.7 87% monthly 21% download 1 downloaded paid app per apps a month apps are free month Twitter:- @Zohe 7
  • 8. 4. A is for Apple, G is for Google & W is for ... ? Revenue Windows Phone Apple Operating Model: Consumer Led HIGH 62% iOS users In 2011 average iOS 60% iOS users discover apps by owner will download discover apps by searching for specific 83 apps browsing rankings apps Operating Model:- iOS users spend 14.7 iOS users Spend 7x 90% iPhone users Consumer & advertising led? hours per/m playing more than Android on browse, search apps games in app purchases on device 83M monthly active Engagement iOS have double the 46M daily active standard banner CTR users of iPhone users of iPhone [0.37%] of avg Facebook App Facebook App LOW HIGH Nokia Google Operating Model: Advertising Led Android users spend Android users spend Android users spend most of their time on most of their time on most of their time on email 37% games 21% maps 8% Operating Model:- Android users spend 49M monthly active Device led? 9.3 hours per/m Android users have users of Android banner CTR [0.14%] playing games Facebook App LOW 31M daily active users of Android Facebook App Twitter:- @Zohe 8
  • 9. 5. A is for Apple, G is for Google & W is for ... ? Apple demonstrated that enabling developers to capture consumer cash (first source of revenue) fuelled the supply of high quality apps. Apps with a consumer price are usually higher quality than free only, ad-based apps. Also, giving the developer greater certainty their app will run across all Apple‘s 160M products has lead to a flood of high quality apps Windows Phone Apple Operating Model :- Consumer & Advertising Led ? Operating Model :- Consumer Led 1. X-Box Live integration very strong gaming proposition with Apple ‗s mastery of the value chain is underpinned by high quality & brand name games plus a few indies. Games 1. User friendliness prioritised over the possibility of full access & Enterprise will be key content categories. Premium to every setting & detail games, categories dominate. Games & Apps more akin to a 2. Heavily curated, high quality content paid & free. Apps have ―high street‖ game & software store. strict design/layout guidelines, e.g. where the ―back‖-button should be placed, so that consistent user friendliness applied 2. Integration of Bing / Facebook networks seamlessly so to all applications. advertising layer is integrated 3. No specific trend of dominance of any type of app category 3. Big focus on easy and innovative consumer experience other than Games. The key is user experience of content is brilliant whatever the category. Games are the carrot in terms of quality & volume. Nokia Google Operating Model :- Device Led Operating Model :- Advertising Led 1. Content portfolio per device cannot compete with Apple / 1. Google‘s late entryinto paid apps is most likely a result of Google selection for whole ecosystem focusing too much on just one revenue source: advertising. 2. User experience is inconsistent especially with long tail apps Google‘s first philosophy, ―Focus on the user and all else will follow‖ implies that if it is free for the 3. Top 50 apps no one category is over indexing. consumer, advertisers will follow. Games, Apps, Personalisation & Audio | Video are there which suggests there is not enough quality & quantity in any 2. User experience is not consistent from app to app, nor is one category. quality 3. Of the top free apps many are Google Services. Of the top paid apps many are long tail tools and utilities apps Twitter:- @Zohe 9
  • 10. SO … WHAT? CAN WE LEARN—FROM APPLE & GOOGLE ABOUT THEIR APPS CONSUMERS Twitter:- @Zohe
  • 11. 7. To understand the iPhone Apps consumer, it helps to view the Apple ecosystem • Consumers have depth of choice on devices, operators, content & peripherals • Developers need to consider all areas from peripherals to operators when building their app. • Crucially, iOS offers seamless distribution to 100M devices [iPhone, iPad, iPod]. Clearly attractive to developers & also to consumers in the sense that single device owners can access content built for other devices. Developers Objective-C Xcode WebKit, WebCore, XML, Open GL CSS, HTML5, WebCore Cocoa Touch DashCode Software Platform Device Distribution Content Sources Safari Cocoa UI Webkit Sync Services Media/Content Core LLVM Animation iFOOD App Store ‗Brand-Aids‘ Devices Content/Services Distr MobileMe WebApps iBooks QTime iPhone iPod Touch User-Generated App Store iTunes Podcast Peripherals/ Accessories iPad MacBook / Pro Apple TV Hardware ―Pocket‖ Mac Twitter:- @Zohe 11
  • 12. 8. And how, within that Ecosystem, Apple have mastered the value chain Every player in a rapidly changing, technology-driven industry should consider making ―super-user- friendly‖ software its competitive edge. User-friendly products can outperform technology leadership, since they target broader groups of customers. And user-friendly products that boost a behaviour in other parts of the value chain could lead to an additional revenue share. Content Distribution Product/Handheld Advertiser Apple 3 1 2 Consumer Games, News, Guides, etc SDK Internet Provider iPhone App Store 60 70 40 30 ―Apple‘s success with the iPhone/iPad is attributable to much more than its hardware and software. It depends on two other parts of the value chain: content distributors enabled by a SDK (Software Development Kit) and a consumer marketplace—the App Store. Together, with one high quality content after another these have enabled Apple not only to have a more successful phone but also to take a stronger grip on the entire value chain.‖ Source: Accenture Media | Entertainment ―A is for Apple‖ However, Apple does not allow pre-installation on their handheld since they are focusing on educating consumers about how to go into the store (rational drive volume). Twitter:- @Zohe 12
  • 13. 9. Global:- Apple iPhone vs. Android Apps Consumer Profile – Demographic Dimension Dimension / OS Apple Android Demographic/ • Approx 52% are male | 48% female • Approx 73% are male | 27% female Traditional • Approx 46% are under 34 years old. • Approx 54% are under 34 years old. • 13% are under 17. • Only 7% are under 17 • 80% of iPhone users earn more than 35k • For iPod touch users, over 65% are under 17 Demographic/ • 91% who own an iPad & iPhone, 85% who own an • 8% of Android users switched from an iPhone Advocacy iPhone but no iPad, 51% who own an iPad but no • 45% of Android users claim Android is their iPhone and 25% who own neither iPad or iPhone first Smartphone said their next desired Smartphone would be an iPhone! • No surprises then that 91% would recommend iPhone to friends, family & colleagues. • 40% iPhone users are most enthusiastic about NFC mobile wallet. 61% trust Apple more than any other brand to be able to deliver a mobile wallet Sources: Nielsen, Mobclix, Admob Twitter:- @Zohe 13
  • 14. 9a. Global:- Apple iPhone vs. Android Apps Consumer Profile – Behavioural Dimension Dimension / OS Apple Android Behavioural • iPhone users have an average of 47 apps • Android users & download 8.7 apps a month downloaded & download 8.8 apps a month. • 87% of monthly downloads are free apps Downloading & • 79% of monthly downloads are free apps. • 21% download at least 1 paid app per month Discovery • 50% download at least 1 paid app per month. • In 2011 the average iOS owner will download 83 apps. • How do iphone users discover apps? 62% do so by searching for specific apps. 60% browsing through top app store rankings. 46% by word of mouth & 20% see ads whilst using other apps. Behavioural • iOS gamers spend 14.7 hours per month playing • Android users spend most of their time on games which is twice as much is the industry email (37%), games (21%), maps/nav (8%) Interaction with average of 7.8 hours. • Android gamers spend 9.3 hours per month Apps • iPhone users spend 7x more than Android users in playing games in-app game purchases. Upgrading from lite to full • Android users have banner CTR of [0.14%] version is the most common reason to buy a paid • 49M monthly active users of Facebook app. Android App & 31M daily active users. • 90% iphone users browse, search apps on device. Over 50% spend > 30 mins/day on apps • iOS user have double the standard banner CTR [0.37%] performance of Android OS • 83M monthly active users of Facebook iPhone App & 46M daily active users. Sources: Nielsen, Mobclix, Admob Twitter:- @Zohe 14
  • 15. SO … WHAT DOES A HEAVILY CURATED & VETTED PORTFOLIO VS. FREE FOR ALL—TELL US ABOUT THEIR APPS CONSUMERS? Twitter:- @Zohe
  • 16. 11. Global Apps Actual Search Terms Trends via the ―Chomp‖ App on Android and iOS. iOS UK Canada Saudi Arabia Germany India Australia 1 Games Games Games iOS utilities Games Games 2 Entertainment Puzzle Games Adventure Games Games Art Puzzle Games 3 Utilities Adventure Games Kids Games Business Books Adventure Games 4 Adventure Games Entertainment Puzzle Games Entertainment Business Utilities 5 Books Role playing games Education Movies Productivity Business 6 Music Lifestyle Books Puzzle Games Utilities Magazines 7 Books Photography Audio Books Entertainment Action Games Android UK Canada Saudi Arabia Germany India Australia 1 Free Free Free Free Free Free 2 Games Games Games Games Entertainment Games 3 Entertainment Utilities Free 3DGames Utilities Games Utilities 4 Utilities Entertainment Adventure Games Entertainment Utilities Entertainment 5 Puzzle Games Shooting games Travel Guides Action Games Photography Books 6 Utilities Rpg Games Chat Productivity Books Productivity 7 Adventure Games Music Puzzle Games Navigation Productivity Adventure Games Twitter:- @Zohe 16
  • 17. 12. Global Top Downloaded Apps by Categories, Platform Top Apps Downloads - Which Categories are they from? Apple have 76.53% share of the Top Apps vs. Android 25.00 20.00 Apple Android 15.00 10.00 5.00 0.00 Reference Communication Travel Games Photography Multimedia Social Medical Health Finance Live Wallpaper Productivity Books Tools Entertainment Business News Education Sports Navigation Utilities Lifestyle Music Sources: Distimo Q1 2011 Report Twitter:- @Zohe 17
  • 18. 13. iPhone vs Android Free Games Category Consumer Profile – Global • iPhone level of refresh for Action games. Arcade games see a slight • Curiously Android have half the categories to Apple growth • 3 new categories entirely which are Live Wallpaper, Racing & • Adventure, Board & Sports games see decreases in portfolio Widgets • Family, Kids, Puzzle & Simulation games see same level • Android does not have Family, Kids or Education Games maintained or slight increase category, however does have a Education Apps category where • Action & Arcade games total 34% vs Android 31% many kid friendly games can be found • Android have 30% puzzle games vs iPhone 10% Global iPhone Free Games Category Breakdown Global Android Free Games Category Breakdown 20.00% 40.00% Q1 2011 Q42010 Q1 2011 Q4 2010 15.00% 30.00% 10.00% 20.00% 5.00% 10.00% 0.00% 0.00% Games-Live Wallpaper Games-Casual Games-Racing Games-Widgets Games-Arcade & Action Games-Family Games-Strategy Games-Cards & Casino Games-Sports Games Games-Action Games-Brain & Puzzle Games-Educational Games-Simulation Games-Casino Games-Racing Games-Trivia Games-Word Games-Arcade Games-Sports Games-Adventure Games-Board Games-Dice Games-Kids Games-Music Games-Card Games-Puzzle Games-Role Playing Sources: Distimo Q1 2011 Report Twitter:- @Zohe 18
  • 19. 14. iPhone vs Android Paid Games Category Consumer Profile – Global • Very similar to free games iPhone profile • Paid game widgets seem to be removed completely • Paid Simulation games small decrease possibly to make room for free • Android have 50% paid Arcade & Action games vs iPhones 40% sim games? • Paid board games like free board games small decrease in portfolio size Global iPhone Paid Games Category Breakdown Global Android Paid Games Category Breakdown 25.00% 60.00% 50.00% 20.00% Q1 2011 Q4 2010 Q1 2011 Q4 2010 40.00% 15.00% 30.00% 10.00% 20.00% 5.00% 10.00% 0.00% 0.00% Games-Family Games-Casino Games-Racing Games-Word Games-Arcade Games-Strategy Games-Board Games-Dice Games-Adventure Games-Action Games-Card Games-Kids Games-Educational Games-Simulation Games-Puzzle Games-Trivia Games-Sports Games-Music Games-Role Playing Games-Casual Games-Racing Games-Widgets Games-Arcade & Action Games-Cards & Casino Games-Brain & Puzzle Games-Sports Games Sources: Distimo Q1 2011 Report Twitter:- @Zohe 19
  • 20. • • • • 20 0% 10% 20% 30% 40% 50% All Games Books Business Education Entertainment Music also decreases Finance Total games increases Healthcare & Fitness Lifestyle Category Breakdown Medical Music Navigation Sources: Distimo Q1 2011 Report News Q1 2011 Entertainment decrease in portfolio share Photography Productivity Reference Global iPhone Free Apps & Games Social Networking Q4 2010 Free productivity & photography apps sees decrease Sports Apple have 16% Entertainment apps vs Android‘s 9% Travel Utilities Weather 10% 15% 20% 25% 0% 5% Applications-Books & Reference Applications-Comics Applications-Communication homescreens Applications-Entertainment messenger apps Applications-Finance Applications-Health Applications-Health & Fitness Applications-Libraries & Demo Applications-Lifestyle Applications-Live Wallpaper Applications-Media & Video Category Consumer Profile – Global Applications-Multimedia Applications-Music & Audio • Android books section is double Apples Applications-News & Magazines Applications-News & Weather Applications-Personalization Applications-Photography Applications-Productivity Q1 2011 Applications-Reference 15. iPhone vs Android Free Apps & Games Applications-Shopping Applications-Social • Android have a significant amount of productivity & tools apps Applications-Sports Applications-Tools Q4 2010 • 21% Android apps are widgets which allow updates to & usage from Applications-Transportation Global Android Free Apps Category Breakdown Applications-Travel Applications-Travel & Local Applications-Weather • Android using a Communication category for email, address book, sms instant Twitter:- @Zohe Applications-Widgets
  • 21. 21 0% 10% 20% 30% 40% 50% All Games Books Business Education Entertainment Finance Healthcare & Fitness Lifestyle Category Breakdown Medical Music Sources: Distimo Q1 2011 Report Navigation Q1 2011 News Photography Productivity Reference Q4 2010 Global iPhone Paid Apps & Games Social Networking Sports Travel Utilities • Again Apple‘s entertainment section almost double Android Weather 0% 5% 10% 15% 20% 25% Applications-Books & Reference Applications-Business disappear Applications-Communication Applications-Education Applications-Entertainment Applications-Finance Applications-Health Applications-Health & Fitness Applications-Libraries & Demo Applications-Lifestyle Applications-Live Wallpaper Category Consumer Profile – Global Applications-Media & Video Applications-Medical Applications-Multimedia Q1 2011 Applications-Music & Audio Applications-News & Magazines Applications-News & Weather Applications-Personalization Applications-Photography Q4 2010 16. iPhone vs Android Paid Apps & Games Applications-Productivity Applications-Reference Applications-Social Applications-Software libraries Applications-Sports Applications-Themes Global Android Paid Apps Category Breakdown Applications-Tools Applications-Travel Applications-Travel & Local Applications-Weather Twitter:- @Zohe • Android significant increases to Personalisation, Productivity, Tools & Widgets Applications-Widgets • Android Media & Video decrease & Health, Medical, Travel & Multimedia seem to
  • 22. SO ... THAT‘S THE GLOBAL VIEW LETS SHINE THE SPOTLIGHT—ON THE UNITED KINGDOM BECAUSE THE PICTURE CHANGES LOCALLY Twitter:- @Zohe
  • 23. 17. iPhone Games Category Consumer Profile – UK • Decrease in Action & Adventure games. Increase in Puzzle & 61.8% • Similarly for free games there is a rise in puzzle & simulation titles increase in Simulation games. 75% decrease in Music games. & again these are reflected in top downloads • 42% increase in paid Arcade Games • Kids & family games have respectable presence in top apps but • UK iPhone gamers clearly enjoy Action & Arcade games which is new titles stayed level with previous quarter which suggests Apple reflected in top app downloads & rise in number of titles in portfolio & are trying to maintain consistency are happy to pay for them Free Games - UK Paid Games - UK 20.00% 25.00% 18.00% 16.00% 20.00% 14.00% Q1 2011 Q2 2010 Q1 2011 Q4 2010 12.00% 15.00% 10.00% 8.00% 10.00% 6.00% 4.00% 5.00% 2.00% 0.00% 0.00% Games-Family Games-Family Games-Arcade Games-Arcade Games-Strategy Games-Strategy Games-Trivia Games-Word Games-Trivia Games-Word Games-Board Games-Card Games-Board Games-Card Games-Casino Games-Kids Games-Music Games-Racing Games-Simulation Games-Casino Games-Kids Games-Music Games-Racing Games-Simulation Games-Action Games-Action Games-Sports Games-Sports Games-Adventure Games-Adventure Games-Educational Games-Puzzle Games-Puzzle Games-Role Playing Games-Role Playing Sources: Distimo Q1 2011 Report Twitter:- @Zohe 23
  • 24. 18. iPhone Apps Category Consumer Profile – UK • Most categories saw a decrease in portfolio. Small increases in • The only paid apps category to show a significant increase is News, Reference and Utilities free titles. Photography apps. • Productivity & Weather apps seem to have disappeared in the free • Paid reference apps seem to have disappeared section. • And they seem to be experimenting with a new paid Lifestyle category • Free Health & Fitness apps seems to be a new free category. iPhone Category Free Top Overall - UK iPhone Category Paid Top Overall - UK 60.00% 70.00% 50.00% 60.00% 50.00% 40.00% Q1 2011 Q4 2010 Q1 2011 Q4 2010 40.00% 30.00% 30.00% 20.00% 20.00% 10.00% 10.00% 0.00% 0.00% Utilities Photography Productivity Entertainment Lifestyle Education Reference Healthcare & Fitness Music Travel All Games Social Networking Weather Entertainment Books Navigation Reference Utilities Music Productivity Lifestyle Sports Travel All Games News Social Networking Healthcare & Fitness Sources: Distimo Q1 2011 Report Twitter:- @Zohe 24
  • 25. 19. Android Games Category Consumer Profile – UK • Arcade, Action & Puzzle account for almost 60% in Free games. • Arcade, Action & Puzzle account for more than 70% in Paid games. Android Category Free Games - UK Android Category Paid Games - UK 40.00% 60.00% 35.00% 50.00% 30.00% Q1 2011 Q4 2010 40.00% 25.00% Q1 2011 Q4 2010 20.00% 30.00% 15.00% 20.00% 10.00% 10.00% 5.00% 0.00% 0.00% Games-Arcade & Action Games-Live Wallpaper Games-Casual Games-Racing Games-Widgets Games-Cards & Casino Games-Sports Games Games-Brain & Puzzle Games-Brain & Puzzle Games-Casual Games-Racing Games-Widgets Games-Arcade & Action Games-Cards & Casino Games-Sports Games Sources: Distimo Q1 2011 Report Twitter:- @Zohe 25
  • 26. 26 10.00% 15.00% 20.00% 25.00% 0.00% 5.00% Applications-Books & Reference Applications-Comics Applications-Communication Applications-Entertainment Applications-Finance & Entertainment Applications-Health Applications-Health & Fitness Applications-Libraries & Demo Applications-Lifestyle Applications-Live Wallpaper Applications-Media & Video Applications-Multimedia Applications-Music & Audio Sources: Distimo Q1 2011 Report Applications-News & Magazines Q1 2011 Applications-News & Weather Applications-Personalization Applications-Photography Applications-Productivity Android Category Free Apps - UK Applications-Reference Q4 2010 Applications-Shopping Applications-Social Applications-Sports Applications-Tools Applications-Transportation Applications-Travel Applications-Travel & Local Applications-Weather Applications-Widgets • Obvious spikes in Widgets, Tools, Productivity, Communications 10.00% 15.00% 20.00% 25.00% 0.00% 5.00% Applications-Books & Reference Applications-Business Applications-Communication Applications-Entertainment Applications-Finance Applications-Health Applications-Health & Fitness Applications-Libraries & Demo Applications-Lifestyle Applications-Live Wallpaper Applications-Media & Video Q1 2011 Applications-Medical Applications-Multimedia Applications-Music & Audio Applications-News & Magazines Applications-News & Weather Q4 2010 Applications-Personalization Applications-Photography Android Category Paid Apps - UK • Paid tools almost double in total to free tools. Applications-Productivity Applications-Reference Applications-Social Applications-Sports • Obvious spikes in Widgets, Tools, Productivity again Applications-Themes Applications-Tools Applications-Travel Applications-Travel & Local 20. Android Apps Category Consumer Profile – UK Applications-Weather Twitter:- @Zohe Applications-Widgets
  • 27. 21. What are the 73% of Male Android users rating? High Productivity Games – Arcade 7% & Action 9% Tools 22% Books & Ref 7% Positive Ratings Games – Arcade & Communication Action 9% 7% Entertainment 7% Low High Media & Video 3.59% Social Games – 3.29% Casual 3.59% Low Amount of Ratings Twitter:- @Zohe 27
  • 28. 22. What are the 73% of Male Android users downloading? Android Paid Apps Android Free Apps Rank Application Rank Application 1 1 PowerAMP Full Version Unlocker Gmail +3 +1 2 2 Titanium Backup PRO Key  root Google Maps +10 -1 3 3 Beautiful Widgets Flash Player 10.2 -2 +2 4 4 ROM Manager (Premium) Facebook for Android +4 -1 5 5 Root Explorer (File Manager) YouTube +8 +5 6 6 Documents To Go Full Version Key Advanced Task Killer -1 -2 7 7 ADWLauncher EX Barcode Scanner +27 - 8 8 WeatherBug Elite Talking Tom Cat free -5 +1 9 9 SetCPU for Root Users Google Sky Map - -1 10 10 PicSay Pro – Photo Editor The Weather Channel -4 -4 Twitter:- @Zohe 28
  • 29. 23. How do Windows Phone users Paid downloads compare? Big Name Publishers vs. Indie Publishers. Windows Paid Apps iPhone Paid Apps Rank Application Rank Application 1 1 Need for Speed™ Undercover WhatsApp Messenger - +1 2 2 Fruit Ninja Angry Birds +37 -1 3 3 Tiki Towers Fruit Ninja New +2 4 4 PAC-MAN™ Tiny Wings New New 5 5 Rise of Glory Cut the Rope +2979 -2 6 6 Zombies!!! © Angry Birds Seasons New -2 7 Assassin‘s Creed™ - Altair‘s 7 Doodle Jump – BE WARNED: -5 Chronicles HD - Insanely Addictive! 8 8 I Dig It Plants vs. Zombies New -2 9 9 Parachute Panic TuneIn radio Pro New +8 10 10 ilomilo STREET FIGHTER IV New +66 Twitter:- @Zohe 29
  • 30. SO ... HOW ABOUT PUBLISHERS? ARE THE TOP 25 SIMILAR ON BOTH PLATFORMS?— NO! THEY ARE NOT. Twitter:- @Zohe
  • 31. 24. Global Top 25 Publishers are completely different, bar 5 publishers Top 25 Publishers iPhone Android Number Of Free Number Of Paid Number Of Free Number Of Paid Position Publisher Name Publisher Name Applications Applications Applications Applications 1 Gameloft 79 102 Google Inc. 36 0 2 Electronic Arts Nederland B.V. 28 83 Rovio Mobile Ltd. 4 0 3 Clickgamer.com 26 107 Lupis Labs Software 2 1 4 WhatsApp Inc. 0 1 Max MP (MSR Limited) 0 1 5 Rovio Mobile Ltd. 3 2 yongzh 7 8 6 Outfit7 6 6 KittehFace Software 20 23 7 Halfbrick Studios 2 5 GameHouse 16 25 8 Chillingo Ltd 65 114 Camel Games 14 10 9 Donut Games 12 25 Adobe Systems 9 0 10 Miniclip.com 5 7 Halfbrick Studios 0 2 11 Google 11 0 ClockworkMod 4 7 12 Electronic Arts 30 74 Ken Magic 1 0 13 PopCap Games, Inc. 0 6 Magma Mobile 39 4 14 Andreas Illiger 0 1 CrossConstruct 1 1 15 Triniti Interactive Limited 42 61 Titanium Track 1 2 16 Lima Sky 3 36 Smartpix Games 6 6 17 iHandySoft Inc. 9 13 Psym Mobile 5 3 18 Apple® 6 3 Glu Mobile 14 17 19 Glu 33 25 GAMEVIL Inc. 10 11 20 Backflip Studios 12 8 LevelUp Studio 8 2 21 CAPCOM 9 12 Outfit7 4 6 22 TeamLava 13 1 Com2uS 4 6 23 Facebook, Inc. 1 0 MHGames 1 0 24 Firemint Pty Ltd 2 3 Dragonplay 2 0 25 Tapulous, Inc. 6 21 Facebook 1 0 Twitter:- @Zohe 31
  • 32. AND ... WINDOWS 8? WHAT IS THE OPPORTUNITY? — FOR CONTENT STRATEGY. Twitter:- @Zohe
  • 33. 25. How will an Apple or Google user view the Windows 8 Ecosystem as an Ecosystem to switch over to? What would they miss? Google Apple • Integration of ―Trojan‖ Google apps attracts both Google & • Entering your Google profile user id into an Android synchs Apple users automatically with other Google services on Android e.g. Gmail, • Extreme, high quality apps, huge choice on Apple Store Google Talk, Calendar etc . Almost every Google service is available as an App. • All the hygiene apps are on App store • Sharing photos or other media is seamlessly integrated into • One device can access many apps designed for other several social networks [even if you have not downloaded devices dedicated app], into other Google products like Gmail, Goggles, • Huge added value chain from peripherals to app reviews Picasa & other 3rd party apps can access the API to be included magazines supplement the ecosystem in the list • Apple only apps like Instagram, Hipstamatic • Developer / Geeky / Hacker Utilities & Tools apps • Homescreen Widgets & Live Wallpaper Opportunity for Windows 8 to port ALL Opportunity for Windows 8 to port ALL Apps Google Apps & Tools that show in Apple charts Twitter:- @Zohe 33
  • 34. Apple & Android Consumer Profiles Non-Distimo Data Data from: Admob, Mobclix, Nielsen, Appsfire, Chillingo, Ericsson Consumer Labs for Global and Regional Twitter:- @Zohe
  • 35. 27. Global iPhone Demographics Consumer Graphs – Source Nielsen & Admob The iPad skews younger and male Age 5% 2% 2% 4% 0% Gender 10% 7% 9% 6% 12% 12% 12% 16% 13% 13% 21% 14% 17% 35% 38% 15% 16% 48% 48% 48% 16% 50% Female 13% 19% 26% 13% 17% Male 27% 24% 20% 25% 27% 24% 21% 65% 62% 15% 50% 52% 52% 52% 18% 9% 22% 18% 12% 15% 6% 8% Acer Amazon Apple iPad Apple iPhone Apple iPad Touch Sony Playstation Aspire One Kindle Portable Acer Amazon Apple Apple Apple iPad Sony Aspire One Kindle iPad iPhone Touch Playstation <18 18-24 25-34 35-44 45-54 55-64 65 years and older Portable Age by Platform Gender by Platform 5% 8% 7% 14% 6% 6% 16% 17% 4% 18% 13% 27% 43% 46% 42% 21% 29% Female 21% Male 30% 21% 24% 65% 73% 57% 58% 54% 12% 17% 22% 13% 7% 2% iPhone iPod Touch Android webOS iPhone iPod Touch Android webOS 17 or younger 18-24 25-34 35-44 45-54 55 or older Sources: Nielsen, Admob Twitter:- @Zohe 35
  • 36. 28. Global iPhone Behavioural Consumer Graphs – Source Nielsen & Admob • IPod users more than both iPhone / Android! • App consumption is higher on a more dedicated media device i.e. Non-phone • Could the fact that iOS gamers spend more time playing games be down to the fact that the games are better? Average App Downloads per Month iOS gamers spend almost twice as much time playing games as the average mobile gamer Hours per Month Spent on Mobile Games 15 Played Games in the last 30 Days Free Apps 12.1 Paid Apps 1.6 10 8.8 8.7 1.8 1.1 Industry Average – 7.8 5.7 10.5 0.6 14.7 5 7.0 7.6 9.3 5.1 4.7 4.5 4.5 0 iPhone iPod Android webOS Apple Android Windows Feature RIM Touch iPhone Phone 7 Phone Blackberr (iOS) y Sources: Nielsen, Admob Twitter:- @Zohe 36
  • 37. 29. Global iPhone Behavioural Consumer Graphs – Source Nielsen & Admob • Clearly iPhone users are influenced by app store rankings. Opportunity for Windows 8 to implement rankings? For iPhone users who may consider switching to Windows 8 they will look for a similar experience to previous provider • The fact that they are searching for a specific app suggests that all other columns influence this behaviour. That is to be searching for a specific app they must have heard about this somewhere How do iPhone users discover Apps? 70% 62% 60% 60% 50% 46% 40% 30% 20% 19% 20% 13% 10% 10% 0% Searching for a Browsing through Word of mouth See ads while Press/news A brand I know Other specific type of top app store (recommendations using other apps articles or blogs introduces an app and app rankings from friends or reaches out to me colleagues) Source: Admob Twitter:- @Zohe 37
  • 38. 30. Global General Apps Consumer Profile Most Popular Mobile App Categories Leading Paid App Categories (Downloads in past 30 days), Q2 2011 (% of App Downloaders who would pay in past 30 days), Q2 2011 64 60 56 51 93% 44 87% 39 84% 84% 34 32 77% 26 26 26 25 76% 21 20 18 18 13 11 6 Productivity Banking/Finance Weather Social Networking Household/Personal Care Entertainment Dining/Restaurant Travel Health News Sports Games Maps/Navigation/Search Education/Learning Shopping/Retail Communications (IM ... ) Music Videos/Movies Food/Drink Games Entertainment Productivity Maps ... Food News 100% 3% 2% 5% 11% No 5% 10% 90% 12% Maybe Are you likely to 20% 80% Yes recommend your device to a 70% friend or colleague 60% 50% 91% 88% 88% 40% 69% 30% 20% 10% 0% iPhone iPod Touch Android webOS Source: Admob, marketingcharts.com Twitter:- @Zohe 38
  • 39. 31. Global 500,000 Apps in iOS App Store 65% are free or below $0.99 Distribution has been even keel since day one May 2011 Live App Prices Category Distribution over Time Free 4% 5% 6% 5% 5% 5% 6% 6% 6% 7% 7% $3.64 2% $0.99 4% $1.99 18% 17% 16% 15% 15% 14% 15% 3% $2.99 19% Is the average price $3.99 24% 23% 21% 11% 11% 11% for paid Apps 6% $4.99 8% 10% 13% 14% 14% 13% 12% 12% 36% $5.99 8% 8% 8% 7% 7% 8% 3% 7% 7% 6% 147,966 $6.99 7% 10% $7.99 5% 13% 14% 18% 18% 17% 17% 14% 9% 12% 13% $8.99 Total free Apps $9.99 $10.99 244,720 $11.99 $12.99 $13.99 Total paid Apps 29% $14.99 and more 51% 49% 44% 43% 44% 44% 41% 42% 43% 43% 44% 9/1 12/1 3/1 6/1 9/1 12/1 3/1 6/1 9/1 12/1 4/1 Number of Developers, Change in average App Price (for Paid Apps) over 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 Month over Month time Jul 2008 $7.00 Aug 2008 Sep 2008 $5.25 Oct 2008 Nov 2008 Most Popular iTunes Categories, ranked by download Dec 2008 $3.50 Jan 2009 Feb 2009 2% 2% 0% Mar 2009 $1.75 2% 2% Apr 2009 2% May 2009 $0 2% Games 15% Jun 2009 July 2008 June 2009 July 2009 January 2010 July 2010 January 2011 Jul 2009 3% Aug 2009 Games Sports Sep 2009 3% Oct 2009 Books News Nov 2009 Dec 2009 Jan 2010 Feb 2010 Mar 2010 Apr 2010 $891,982.24 Sports 3% Business 4% Books 14% Entertainment Education Lifestyle Productivity Healthcare Navigation May 2010 Jun 2010 Value of all Apps currently live Reference 4% Utilities Photography Jul 2010 Travel Finance Aug 2010 Music 4% Sep 2010 Music Social Networking Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Mar 2011 4.6 Travel 6% Entertainment 11% Reference Business Medical Weather Apr 2011 Average number of Apps per Developer Utilities 6% Lifestyle 7% Education 8% 25K 50K 75K 100K Source: 148 Apps, Chillingo, May 2011 Twitter:- @Zohe 39
  • 40. 32. USA iOS Consumer Graphs Apple advocacy and trust in the brand is very strong. Large numbers open to new technology which ties with early adopters image of Apple Next Desired Smartphone iPhone & iPad User Profiles Among likely smartphone upgraders and current owners Age Income 91% 100% 100% 85% 56+ Decline to answer 90% 90% 80% 37-55 80% 100k+ 70% 25-36 70% 75k – 100k 51% 60% 60% 18-24 50k – 75k 50% 50% 40% 40% 35k – 50k 25% 30% 30% Below 35k 20% 20% 10% 10% 0% 0% Own an iPad and Own an iPhone Own an iPad Do not own iPad iPhone All Subscriber an iPhone but no iPad but no iPhone iPad or iPhone s Are you waiting for NFC (mobile wallet) compatibility Which companies would you trust to provide a mobile on the next cell phone you buy? wallet? Android owners iPhone owners All phone owners iPhone owners Android owners 61% 61% 44% 46% 40% 45% 40% 35% 32% 36% 25% 24% 36% 36% 28% 27% 26% 33% 27% 22% 15% No, I‘m not interested in a I don‘t know what NFC or a Yes, I want to be able to pay Google Apple Master Card, Visa AT&T, Verizon, or None of the phone with a mobile wallet mobile wallet is in the store w/my cell phone or American your Cell Phone Above Express Carrier Source: 148 Apps, Chillingo, May 2011 Twitter:- @Zohe 40
  • 41. 33. USA, 2011 Android ―Services‖ Consumer Profile • Android users are social networking most likely via apps during 4 main • GPS on Android devices is being used whenever users may be mobile with peaks, morning, lunch, late evening & bed most obvious spike for commuting • Opportunity for Windows 8 to use Day-parting targeting in mobile • Content opportunity for Windows 8 to source more apps like Waze campaigns that are focused on social networking apps • Music use sees a peak during commuting whilst Games peak in late • Also opportunity for Windows 8 marketing to focus on social apps evening and in bed. Games clearly used for relaxation. marketing showing users in situations at these times • Opportunity for Windows 8 to source more games that help pass time and help people wind down , possibly snack and puzzle games ―My top 3 situations for ―My top 3 situations for ―My top 3 situations for ―My top 3 situations for using my smartphone‖ using social using internet & GPS‖ using music and networking‖ games‖ Smartphone non- 65% 64% voice usage 57% 56% 28% 28% 51% 51% 51% 29% 50% 34% 26% 26% 23% 23% 24% 40% 26% 22% 20% 35% 19% 19% 18% 22% 20% 17% 17% 15% 25% 18% 18% 18% 25% 18% 14% 16% 14% 12% 12% 12% 12% 14% 11% 11% 11% 11% 11% 11% 10% 9% 8% 8% 8% 7% 7% 7% 6% 5% 5% 5% 4% 4% 2% 0% Internet GPS Music Games Source: Ericsson Computer Labs Twitter:- @Zohe 41
  • 42. 34. USA OS Data Usage Consumer Graph Quarterly Data Usage in MB by Operating System 582 525 • Essential metric that 495 468 492 developers look for and take into consideration 415 when creating apps. 381 313 • Android users 354 317 significantly ahead of 312 Apple 233 227 205 169 174 149 127 81 102 95 103 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 2010 2010 2010 2010 2011 Android OS Apple iPhone (iOS) Windows Mobile Windows 7 Blackberry OS Source: Nielsen Twitter:- @Zohe 42
  • 43. 35. Europe iOS Consumer App Store Usage & Installations 84 minutes: Median time spent • iOS apps users clearly • 350K apps per day using apps of all kinds become very used to • 160M users device based apps 108 iOS apps; 88 apps • 10B downloads downloaded from App Store; • Over 40% of time 20 default apps spent is on communication apps Usage (time) App Profile 10 min (12%) Web/ 27 min (32%) Apps 40 min (47%) Telephony All other apps • Phone • Maps • Skype • Angry Birds • Messages • Dropbox • Instagram • More ... 7 min (9%) Mail App 32% 68% Games Non-Games Source: Apps Fire, July to December 2010 Twitter:- @Zohe 43
  • 44. 36. Global:- Some other useful info bites • 54% of activated games on • iOS has double the standard banner feature phones are pre loaded CTR to other platforms. Perhaps ad spend mobile banners should be biased towards iOS. Source: Nielsen Twitter:- @Zohe 44
  • 45. App Genome Report Feb 2011 By Lookout Mobile Security Does Apple & Android‘s model of sourcing & pricing apps have an effect on Consumer Behaviour? Twitter:- @Zohe
  • 46. 37. No. of Developers Android vs. Apple Number of Developers in Android • The number of unique developers Market and Apple App Store publishing applications in the Android Market and Apple App Store is growing at 80k a comparable rate for each platform— with Apple slightly in the lead. Apple App Store • The Apple App Store attracted nearly 24k 60k developers between August 2010 and Number of Developers February 2011, whereas the Android Market attracted just over 4k developers in the same time period [see diagram 40k left]. • The number of unique developers in the Apple App Store grew by approximately 20k 48% over the past 6 months, while the number of unique developers in the Android Market Android Market grew by just over 40% [see diagram above]. 0k 15 August 2010 14 February 2011 • Sheer volume of Apps attracts consumers to the platforms. More choice Source: Lookout Mobile Security Twitter:- @Zohe 46
  • 47. 38. Apps Per Developer Android vs. Apple Apps per Developer in Android Market • The Android Market generally has more and Apple App Store apps per developer than the App Store 100 [see diagram above]. The average number of apps submitted per developer is 6.6 in the Android Market and 4.8 in the 8.4% 6.1% App Store [see diagram left]. Percentage of Developers 75 7.0% 8.2% • Consumers are likely to download multiple apps from publishers and 35.1% developers they know and like and have 38.8% had a good experience with 50 25 51.8% 44.7% 0 Android Market Apple App Store >10 Apps 6-10 Apps 2-5 Apps 1 App Source: Lookout Mobile Security Twitter:- @Zohe 47
  • 48. 39. The App Economy, Who‘s Charging for Apps Free vs. Paid Apps in Android Market • Previously, apps in the Android Market and Apple App Store have been primarily free; however, over 100 the past 6 months, the Android Market has seen an influx of paid apps. In contrast, the Apple App Store has seen an increase in the proportion of free 75 29.4% apps, with prices of paid apps remaining 33.8% Percentage of Apps steady. 65.9% • The Android Market saw its prevalence of 77.6% 50 paid apps grow from 22% to 34% during the past 6 months • The prevalence of paid apps in the Apple 70.6% 66.2% App Store decreased from 70% to 66% in 25 the past 6 months 34.1% 22.4% 0 15 August 2010 14 February 2011 Android Free Android Paid iPhone Free iPhone Paid Source: Lookout Mobile Security Twitter:- @Zohe 48
  • 49. 40. Price of Apps - Android Price of Apps in Android Market • In the Android Market, prices have shifted upwards whereas in the Apple App Store, 100 prices have remained relatively steady. • More than 95% of paid apps in the Android Market cost less than $10, though the prevalence of apps priced 75 Percentage of Paid Apps greater than $10 has significantly increased during the past 6 months [see left]. 50 • While most Android Market apps are priced at $2.99 or less (73%), the $0.99 or less price point has seen a major decrease 25 • The largest areas of growth in the Android Market are in apps priced between $1- $9.99, with both the $1-$2.99 and $3- 0 $9.99 segments seeing significant growth 15 August 2010 14 February 2011 $10.00 or more $3-9.99 $1-2.99 $0.99 or less Source: Lookout Mobile Security Twitter:- @Zohe 49
  • 50. 41. Price of Apps - Apple Price of Apps in Apple App store • In the Apple App store, price points have 100 for the most part remained steady. ―Apple, made a mistake on pricing: It let the apps sell too cheap! There‘s an economic phenomenon called anchoring, 75 Percentage of Paid Apps in which the amount that shoppers are willing to pay is constrained, or anchored, by the first price presented to them. Once a price point is set, it‘s hard to dislodge 50 the anchor. Many apps take a lot of work to design, but on the App Store, the expectation now is that they can‘t cost 25 more than a certain price — and that most should cost $0.99 or £0.59 in the UK. Dan Ariely, Wired Uk July 2011‖ 0 • Will Apple consumers ever be willing to 15 August 2010 14 February 2011 pay more? Its also set the precedent for other App Stores on pricing. $10.00 or more $3-9.99 $1-2.99 $0.99 or less Source: Lookout Mobile Security Twitter:- @Zohe 50
  • 51. 42. Ad Networks on Android & Apple Advertising SDK Integration Advertising Prevalence in Android • In free apps for both the Android Market Market and Apple App Store, Google AdMob is the most popular ad 50 platform. The marketshare of advertising SDKs in free apps has remained relatively consistent, with the Ad Mob 40 exception of iAd rapidly gaining Percentage of Free Ads traction in free Apple App Store apps. Its expected that iAd surpass AdMob 30 in prevalence amongst free Apple App Store apps during the first half of 2011. • AdMob is the dominant player on the 20 Android Market, being integrated into over 40% of free apps. Amongst free 10 Google Ads Android Market apps, the AdMob SDK Mobclix has increased in prevalence from 37% to 41% over the last 6 months Millenial Media 0 15 August 2010 14 February 2011 Source: Lookout Mobile Security Twitter:- @Zohe 51
  • 52. 43. Ad Networks on Android & Apple Advertising Prevalence in Apple App • AdMob is the incumbent on iOS, being Store present in 17% of free apps on the Apple App Store 20 • iAd may emerge to become the dominant player on iOS, having grown from just Ad Mob 5.6% of free Apple App Store apps to 15 iAd 15% during the past 6 months Percentage of Free Apps • This graphs does not measure the reach, number of ad impressions, or any related measures of mobile ad market share for 10 the advertising networks used by these SDKs. 5 Mobclix Millenial Media Google Ads 0 15 August 2010 14 February 2011 Source: Lookout Mobile Security Twitter:- @Zohe 52