Here’s a report about an interesting piece of research into the elusive animal that is the iPhone and Android user, or more precisely that animal’s usage of apps (“… there’s an app for that…”).
The researchers from Gravity Tank chose Android (well, the G1) next to the iPhone because Android Market and Apple’s App Store both allow “unlike older smartphones [sic!] easy access to a range of free or low-cost applications”. Now this is what the (mobile) world has become in the last 12 months…
Anyway, the survey finds that the average (!) user has 23.6 applications on his/her phone and uses 6.8 of them every day. 48 percent report shopping for apps more than once a week. About the same number (49 percent) report using apps on their phone for more than 30 minutes a day. Woah, nice!
But it goes on: 32% said they used portable gaming devices less because of their app-enabled phones. This reminds me of one of my predictions on how the iPhone would eat into the handheld gaming market (see here, here, here and here).
And it shows, more importantly maybe, that these owners of the “newer” smartphones use them as true multimedia devices rather than only phones: 31% read newspapers less, 28% use GPS devices less, 28% use MP3 players less (well, they have one of the better ones if they use an iPhone), and 24% are watching less TV. Media going mobile then, finally…
And then – another indication on how far we have gone – the NY Times starts to whine: it notes that “despite Apple’s relentless advertising of its App Store, it seems that the availability of applications is not the primary driver of phone-buying behavior.” Doh. Now, here’s a finding. 74% of the respondents said the device “allowed” them to check their e-mail and calendar, and it allowed them to consolidate multiple devices into a single device whereas “only” 67% cited the availability of new games and applications. Only 67%, huh? Brave new world!
Today, there was a piece analyzing recent reports whereby Apple was well on its way to wipe out DS and PSP from the handheld gaming sphere, and that it would therefore seek to address a number of weaknesses in its next iteration of the iPhone (and iPod Touch) that would add a few currently missing features that should bridge the – already slim – gap to the PSP.
- Enhanced graphics (to address its current lack of loading complex textures);
- improved processing capabilities (through its own ARM chip, which is currently developing; this follows the acquisition of PA Semi last spring);
- Better camera (minimum 3.5 mega-pixels) and video-recording.
It is quite breathtaking: it took them 3 months to hit 100m. Then, only 5 weeks after they announced that they went past 300 million downloads, Apple announced that they just raced past 500 million. This means 200 million downloads in 5 weeks, 40 million per week, 5.7 million per day or 4,000 per minute! Get that! Whilst numbers don’t equate to happiness, I sincerely hope that Steve Jobs will be taking some comfort from this and recover well.
A recent article discussed the rise and rise of the iPod Touch (that’s the iPhone without the phone). It apparently surged to the top of Amazon‘s sales charts, and mobile ad firm AdMob reports that ads served to the device more than tripled between November and December to 292m. This growth is said to even shadow growth of iPhone ads served and is being called, well, unprecedented. People are said to shun the forced marriage with AT&T’s long-term phone plan that come with the iPhone. Makes you think (if you’re an operator).
“Whether you chose to play on your DS or listen to music on your iPod, we’re already in the same competitive space for time.”And whilst one could argue about the pound-for-pound comparison of pure touchscreen vs devices with gamepads for certain types of games, the huge upside Apple has created is the hassle-free and easy distribution model for games: a DS developer needs to buy the cartridges (and pay for them up-front), find retailers, and then sell. This means huge cash outlay and very significant commercial risk over and above the development cost, making for a much less risky business model. And as to the input: some of the accelerometer-powered racing games are significantly better to control than with any game pad.
Someone went deep into EA’s financials to find that the gaming giant actually makes more money with its mobile games than it does with releases on the super-high-end Sony PS3: the numbers are apparently $37m for mobile vs. $21m and $17m for PSP and PS3 respectively, and this is despite a shallow 5.7% revenue growth (industry leaders Gameloft grew by 51% in the same time).
However, one must of course take into account that the PS3 was only released in spring 2007, so will have a smaller install base and – arguably most importantly – it leaves aside the first big season for the PS3, namely the upcoming Christmas sales, which traditionally account for a huge amount of console and game sales.
It is nonetheless very encouraging that even mighty EA, despite the huge marketing effort by Sony, made more from mobile, which is still being perceived niche by many, than from Sony’s new flagship!
According to the FT, Sony Ericsson ponders the release of PSP and Bravia (its TV moniker) branded high-end mobile phones, quoting SE’s president, Miles Flint. The Bravia-phone is – I was surprised to learn – already a reality, namely as a mobile TV phone with DoCoMo in Japan. Regarding a PSP phone, Flint was cautious, saying that the technology was still some way from being perfected. “We need to make sure that it is a credible phone, and be sure we are justified in putting that identity on it,” he was quoted.
This approach would continue SE’s strategy to leverage Sony consumer electronics brands in its phone business, which it has done with the ubiquitous Walkman (now turned video player) and its digital camera brand, Cybershot. This strategy has apparently helped to double its margins – in addition to moving up one spot from #5 to #4 in the leading manufacturers’ list.
It seems eminently sensible to try and build on Sony’s considerable fame in consumer electronics, in particular as Nokia (most recently with its high-powered and feature-packed N95) and new entrant Apple seem to be pushing the edge of the envelope, and LG adding on the design front (the Prada phone and the LG Shine spring to mind). SE’s approach of weaving the trust it enjoys from consumers for its electronic devices into the mobile phone branding may well be suitable to counter this race. However, as was also noted, Mr Flint did not forget to point out the most important thing: “We need to make sure that it is a credible phone, and be sure we are justified in putting that identity on it.” There you go!
The statements probably come on the back of reports during the last weeks (e.g. here and here) that SE was to release a games phone with a games-oriented user interface and styling, and comprising – geek excitement levels rising through the roof – things like motion-sensitivity, which will pave the way for Wii-like gameplay on a handset (be aware of flying handsets on your commute then).
