Mobile Phone Ecosystem

OPPORTUNITIES (LET'S MAKE LOTS OF MONEY) –

Pet Shop Boys

Frank H.P. Fitzek

Morten V. Pedersen
 Summary
This course element should investigate the
possibilites to monitize and distribute a
mobile application.

It will introduce the main players in the ball park

THE PLAYERS
Eco System as it used to be

Mobile Network
Customer
Manufacturer Provider
Eco System as it used to be
Service
Provider

Mobile Network
Customer
Manufacturer Provider
 Eco System as it is
Mobile Stores
Developers

Network
Providers

Stores

Mobile
Manufactures / Customers
Platforms Service
Provider
 How to make money
• Selling hardware
• Selling network connections
• Selling services (backbone oriented)
• Selling apps (kind of service but locally)
 Where to make the most money?
• Hardware is still ok (see iPhone, iPad, etc)
• Network connections is hard (keep the
networks up to date, pay license fees for the
spectrum)
• Service market is small
• Apps is HUGE
 Apps – a European view
• Hardware is done in Asia
• Knowledge transfer possible but less attractive
• Apps can be made locally but sold globally
 Smartphone Platform
Platform Programming
• Symbian OS • Qt
• MeeGo / Maemo • C Sharp
• iOS iPhone • Java
• Android • J2ME
• RIM
• Windows Mobile
• Bada
• Brew
Smartphone Platform
 Native versus Java
• The best performace in terms of energy
consumption, computational power, access to
APIs etc is achievable on the native platform.
• But JavaME will run on most platforms (Nokia,
SE, LG, Samsung, Windows Mobile, RIM but
not iPhone or Android (J2ME runner))
 Heterogeneous phone market
• Nearly every app needs to be tailored to the
different mobile phone types
• Different display size, functionalities (JSR for
Java), etc
• iPhone has only one build for everything
(exception is the iPad and version 1 devices)
• Android is also problematic (version 1.6 to 2.2
for different manufactures
 Distribution
Where do users find your app?
• Preinstallation on a mobile phone: Mobile
manufactures agree to preinstall your app.
Very rare occasion but then you are rich ...
– No installation needed
• Distribution over the stores of manufacturers
or network providers or distributers.
• Our own web page
– How to attrack users to come to this page?
• Viral loops: Mouth to mouth propaganda
 Distribution: Stores Mobile
Manufacturers: iTunes AppStore
• No further fees involved
• Just submit your
application and await
feedback (2-3 weeks)
• Carefully commit the
requested information
by Apple
• Do not use private APIs
 Distribution: Stores Mobile
Manufacturers: OVI
• First of all the
application needs to be
signed if JAVA (2-3
weeks)
• In case of strange
refusal just resubmit
(AT&T relasted stuff)
• Banners
• Recommended
 Distribution: Stores Mobile
Manufacturers: Google/Android
• First of all the
application needs to be
signed if JAVA (2-3
weeks)
• In case of strange
refusal just resubmit
(AT&T relasted stuff)
• Banners
• Recommended
Distribution: Stores Network Providers
Distribution: Stores 3rd Party
 App Store Sizes
App Store Number of apps Daily downloads Absolute
avaialbe Mio
Apple 225000 16.7 5bn
Apple iPad 11000 35m
Blackberry 7200 1
OVI 13000 1.7
Android 70000 1bn

Analysts Gartner claim 2.5 bn app downloads in 2009 (4.2 bn USD), 4.5 bn in 2010
(6.8 bn USD), and forsees 21 bn in 2013 (29.5 bn USD).

Source: http://mobilephonedevelopment.com/archives/1100
DISTRIBUTION OF THE APP
 Distribution: Stores
• Good ways to distribute the application
• Time consuming process to meet the different
standards (pictures sizes, text, etc)
• Time for approval between on day and one
month
 Distribution: Own web page
• Every app should have its own web page to
convey additional information and to be able
to download
– Link to stores
– Direct download link
• Easy to update
• Full controll
• No restrictions
 Distribution: Viral Loop
• Most powerful tool is mouth to mouth
propaganda
• Inbuild functionality in the app
• Social networks such as facebook and others
MAKING MONEY
 Making Money
• Selling the app: Price range between 0.79 to 999 Euro
– Store
• Part of the money goes to the store. Currently 30% for the stores and
70% for the developer
• Bills are issued by the stores
– Own web page
• Credit card needed (bad for the whole Asian and African continent)
• Collaboration with external shop systems (no micro payment)
• Freemium: Light version exists to attrack the user, full
version cost money
• Advertisements: In the app advertisements are placed.
How to get those advertisements?
• Selling features for the app e.g. Virtual goods or new levels
or new functionality
 Making Money: AppWorld
• Sell the app itself
• iAd
• Ingame purchase
 Making Money: Ovi
• Sell the app itself
• Advertisments have been discussed over ages
but not available atm
• Ingame purchase the same
EXAMPLE
 Example Gedda Headz
• Social Mobile Game
 Some facts
• JavaME and iPhone
• Over 400k users (real users not downloads)
• Viral loops installed (app spreader)
 Download
• AppStore for the Apple community
• Multifold for the JavaME
– Own webpage
– Direct link dl.gedda-headz.mobi
– Distributors
• OVI
• Getjar