It’s been looming and was long expected but today Vodafone announced it would embed its Vodafone 360 app store on two Android devices next to Android Market. Vodafone says their store would give partners a richer retailing experience than Android Market – but then they would say that, wouldn’t they?
But cheap puns aside, the move does have some legs: Vodafone uses Qualcomm’s Xiam personalisation engine, which provides recommendations based on user behaviour. They claim – and you may have heard that before in any number of my talks – that recommendations are a much stronger driver than promotions, stronger by a level of 4x to be exact. This ties in with my preachings: nearly 3/4 of all purchasing decisions (not only mobile, all of them!) are made on the recommendation of friends. And, alas, this is where “user behaviour” as the applicable pattern comes short: do I care how many, say, Amazon buyers of Grisham novels are also buying other authors’ crime thrillers? No. Why not? Because I don’t know these people. Do I care what my friends may think I like? You bet! Why? Because they know me and my tastes. Doh!
Anyway, back to Vodafone. They have realised (and, credit to them, admit it!) that a vertical implementation where you only get the full scope of 360 services if you have one of two phones doesn’t work. And, well, that’s somewhat obvious, isn’t it? Or is it a reasonable assumption that all my friends will all of a sudden (and at the same time) exchange their various handsets for a Samsung M1? No, I thought not either.
Vodafone did divulge a little data sniplet that must encourage them though, and that is that 360 customers have a 3x higher ARPU than others. If you look at the above (recommendations, friends, etc), that is not completely surprising. So now the next hurdle is to roll it out across their whole range of handsets. And let’s face it: a simple store won’t cut that on its own. Going cross-platform also means that – depending which handset you fancy – you may find different app stores of differing attraction competing with Vodafone’s own for attention (e.g. does Nokia’s Ovi offering seem to have more traction than, say, Blackberry App World but the latter has – from a publisher’s perspective – vastly superior price levels). All in all pretty sub-optimal, I think.
On a sideline: I will be moderating a panel on “How to Make Money as a Developer” this week at Mobile 2.0 Europe in Barcelona and I will be having the immense pleasure of having two operators on the panel (Orange and Telefonica-O2) as well as Microsoft (representing the OS side). This Vodafone announcement highlights some of the challenges the industry is facing. Interesting times!
First, Samsung
Symbian of course boasts a still very impressive number of legacy devices, and it will therefore be here for a while. However, what does the long-term outlook look like? Android, LiMo, etc all “boast” a nimbler, more agile set-up, allowing for faster development and, arguably, better user experience. This is not necessarily Symbian’s fault (it carries with it its legacy around) but it makes it that much harder for it to reinvent itself.
A new round of fragmentation looms. It is something I have been fearing for a while now: that OEM (and carriers) would make use of the open source of the likes of Android and LiMo to produce their very own flavour of apps. So after
Ouch. An additional SDK. Which is not yet there yet. Whilst the
After much huffing and puffing, Vodafone
It has an address book with nodes into Facebook, IM (Windows and Google) and will “soon” also cover Twitter, Hyves and StudiVZ (the German Facebook clone). Two tailor-made (!) handsets that use a proprietary (!) interface based on LiMo’s release 2 mobile Linux OS. Users can create groups across different networks (which is very neat!), an app store with 1,000 apps at launch (no word so far what this comprises) and syncing with your computer.
