Tag: app store Page 7 of 10

App-sharing coming to iPhone and Android?

On 05/06/2009

The breath of fresh air that Apple has been bringing to the mobile content industry does not seem to end. However, this time, it is not so much fresh air by Apple but rather a borrowed deodorant from Microsoft (more specifically the iPod killer called Zune) and that is app-sharing. Whilst this might be largely superfluous for the Zune (how often will you find a group where more than one person has one? – as the good folks from the Apple Blog mention), it would be upping the usability game again and, for iPhone and iPod users as well as for the quickly growing Android device-base, it would arguably impact the market a little more. This also since the iPhone has become so much of the benchmark every OEM tries to emulate.

So what is it? According to Business Week who have been speaking to someone “familiar with the technology”, the iPhone 3.0 software kit provides for a functionality that could “if activated by Apple” allow users to share apps between them (note to self: ask my contacts familiar with the technology if they came across this, too).

Technically, it’s compelling and simple, well, the latter at least in Apple’s case: It was a nightmare for an engineer (as much as a dream for every “guerilla” marketeer) in the face of a gazillion different handsets with a gazillion different screen sizes, heap sizes, soft key allocations, etc, etc. In Apple’s case: 1 device, 1 screen size… off to the races…

Now, the same thing is supposed to happen with Android devices, too. And there, this might actually be a little harder to achieve; different devices, etc – well you get the gist.

From a user perspective it is of course fantastic: you can try things out before you have to commit to buy (rather than relying on the voluntary “lite” versions). So rather than buying an app that a friend likes (which increases the likelihood you might to but does not necessarily give you certainty to part with your precious cash). So: try it out. You like it, you buy it… It also (as mentioned above) is a big one on the marketing side: the strongest sales people will be happy users. So if a happy user recommends it to their peers, it is so much more likely that they will give it a go. All good stuff.

Would someone from Apple please confirm this? 😉

Sony Ericsson & GetJar: jump-starting an App Store

By Volker

On 04/06/2009

In 1, OEM

Everyone is jumping on the app store bandwagon and, so far, Sony Ericsson had been a little behind. Some thought this might be related to its PlayNow Arena offering, which is already an app – or rather media – store of sorts. But it turns out that the handset maker was plotting a different strategy and one with an interesting result indeed.

It was reported today that Sony Ericsson will partner with GetJar on the creation of an app store. GetJar (the guys with the ugly logo) is a giant in the distribution of mobile content who had gone to clock up 200m downloads in only 2 years by last year (and now recording 6.5m+ downloads per week and more than 300m since launch)), which was, prior to the Apple App Store a very respectable number indeed. Now, GetJar has now something like 45,000 apps on their store. However, these are for free. The company appears to making their money with ad injection…

Sony Ericsson will apparently provide a mix of GetJar’s free applications and premium content. The solution will be using GetJar’s platform and will roll out in the 13 countries that currently support PlayNow Arena first. Compatibility is currently ensured with 38 of Sony Ericsson’s handsets but they intend to roll out to further markets and models over the year. It supports J2ME and Symbian on the outset but they plan to support other platforms in the course of the year. Android probably…

The deal allows Sony Ericsson to jump start its store though and that might be the most important piece of it: it can combine its own catalogue (through its current offerings) with GetJar’s huge catalogue of free apps, thus avoiding the fairly empty places that some of the other guys put together (Palm announced it will launch its Web Catalogue with “a dozen or so” apps, even Nokia’s Ovi Store had “only” 20,000 “items” in at start). GetJar’s platform is arguably fairly powerful since this is the only thing they do, so a quite smart move.

On GetJar’s side, I wonder if this is the one of the first steps into a new direction (Sony Ericsson was not the first app store deal they signed; 3 UK and Portuguese carrier Optimus apparently signed up with them, too, which I had overlooked; apologies). The company’s business model is/was based around ad infusion, it seems (see their CEO blog about it here). So this might be the next wave to monetizing platform and content on it…

Are you Smarter…?

By Volker

On 26/05/2009

In 1

The sales power of the Apple App Store is legendary with its 1bn+ downloads in record time. I have repeatedly held though that the other end of this ecosystem, i.e. the entry door to the app store (and related SDK and all) – and its relative ease of use – was an equally imporant contributor to Apple’s success. And now we have a beautiful example on how cool this really is: in Chicago, an 11-year old and his 9-year-old brother designed and programmed an application called “MathTime” that has just gone live on the app store. It provides random addition, subtraction, multiplication or division problems and their solutions.

The creators, Owen and Finn Voorhees, worked on it for 9 months and it is now live on the app store, which means available for sale in every country the iPhone is currently available – on deck so to speak! Try this with a J2ME app…

Now, I do not want to belittle Owen’s efforts (it is spectacularly awesome for any 11-year-old!) but this would arguably not have been possible on any other (mobile) software platform. Even if some smart kid might be able to write such a programme. To get it into live distribution on official on-device app stores (or operator portals) would be just utterly unthinkable. Try close those deals with all them operators. Good luck.

I have not seen the MathTime in action but since Apple approved it to go live, it must have passed at least certain thresholds. The whole ecosystem on any of the “classic” carrier channels would have thwarted any attempt to do the same. Would it have worked on Android Market? On the Blackberry App World? Nokia Ovi? I don’t know but it does not really matter since they are basically only further iterations of the model that Apple came out with first: a cr0ss-carrier, multi-territory, single-SKU deployment channel with a fairly regulated development environment. Fragmentation? Hah! Multi-channel distribution? What?

It is here where we should sing Apple’s praise: to make it possible that 5th graders can not only write but publish an application is truly stunning! That their dad needs to front it as the seller for being the only adult involved in the process is then only a touching and even more pronounced little detail, isn’t it?

Qualcomm slowly admitting defeat?

By Volker

On 18/05/2009

In OEM

I know this is a contentious headline but one could interpret the news that Qualcomm is opening its very own app store (which is probably the oldest one!) to any device on any platform on any carrier this way. The provider will open its Plaza service to non-BREW devices (BREW is proprietary to Qualcomm). This could be seen as an admission of defeat in the platform war, which it appears to be losing against GSM platforms.

However, I plead to see the bright side of this: it is a remarkable move to highlight and capitalize on a piece in its arsenal that has long been industry-leading: Qualcomm has long been offering merchandising solutions that do not have to shy away of the cutting-edge app stores of today. The new Plaza Retail will now bring to Java, BREW, Blackberry and Flash (Android , Windows Mobile, Palm, Symbian and Linux Mobile are apparently to follow) what BREW users have had for a while: a storefront, great device integration and flexible billing (micro-billing, subscriptions, etc). It also allows personalization and a recommendation engine (courtesy of last year’s acquisition of Xiam Technologies). And it is a very proven platform that has showed its worth on many a bill to developers (the content-lock is much better than Apples; which may anger some users but will be welcomed by developers) This is quite cool!

Vodafone's App Store: Bigger than Apple?

By Volker

On 18/05/2009

In OEM

It was only a question of time before the first carriers would release themselves from the iPhone-imposed stare and come out all action, and the biggest of them all (by sales), Vodafone, has now raised the curtains on its very own app store. It is the biggest app store to date: Vodafone has more than 289m customers who will – eventually – all be able to access the store (which makes it a cool 8x or so larger than Apple’s). Unlike on Apple’s App Store, you also do not need a credit card (which, however, you are likely to have anyway when you can afford an iPhone) whereas Vodafone, being a carrier, will bill to their customer’s phone bills directly. Very, very cool, huh?

So imagine the power of an app that would go live on Vodafone’s carriers all at once. But before we get carried away, let’s have a look at the numbers:

Orange UK (in its recently released Digital Media Index; see here) suggested that 4.87% of its users downloaded one game in 2008 (770,000 downloads p.a./ 15.8m users) but this is without an app store but with the traditional catalogue-style offerings.

For Vodafone Group, this would equate to 38,500 downloads per day (289m x 4.87% / 365). If (or when) it includes this offering beyond its own 27 local carriers to its 40 network partners (including Verizon Wireless!), one would be looking at North of 1bn users and, hence, 100,000+ downloads per day. Now, with an app store, this should – theoretically – be further boosted, let’s say doubled, arriving at 200,000 downloads per day.

How does this compare with everyone’s darling/nemesis (delete as appropriate), the iPhone: I had previously calculated that Apple’s app store sees some 4,000 per minute or 5.7m per day… This however includes all those free downloads (about 22% of all apps are for free), so let’s say the ratio is 1 paid: for 40 free (which is on the high end of assumptions) or 1:15. This would equate to 144,000 to 380,000 paid downloads per day. So Vodafone’s 200,000 wouldn’t look completely out of order, would it?

There’s even more: Vodafone’s decision to bill to the phone bill is only one potential booster since it minimizes friction for the user (Apple: credit card/iTunes account, Blackberry: PayPal, Nokia Ovi: a mix?, etc). The other – and longer-term potentially even bigger one – is geo-awareness: since Vodafone owns the network, it knows where any of “its” users’ mobile is at any given time. Now link app usage with geographical location and you could be on to something fairly unique. There is little in the market so far but then: had Apple run its campaign of “bettering life’s little problems” in June 2008, it would have looked fairly bleak, too!

So: huge potential but where are the pitfalls?

There’s UI and handset fragmentation, if I dare say so. Even though it probably hurts by now, let me repeat: Apple has one model and one deployment method and it nailed content discovery (not perfectly but better than anyone else). Job done. Vodafone has hundreds of handsets on its “to be supported” list. Some are like the Porsche’s of their trade (“first available on s60 devices“; ooooh), others are the equivalent to a pedal-powered toy car. The costs for developers to support all these is significant, the cost of management is arguably, too.

Most importantly though, it takes the simplicity and thus ease of use out of the game. And I would posit that this is a big contributor to the (Apple) app store’s success: simplicity from entry (ingest an app into the store), management (price, etc) to consumption (download and active use). This will be a tough one for Vodafone to overcome, and it is indeed the one point where OEMs have much better opportunities to “get it right”. That the relationship between carriers and OEMs is not always without strain has only recently been proven again, sooooo: the jury is probably still out on that one.

Having said this, Vodafone is better positioned than most carriers though because of its sheer size and footprint. Smaller carriers might struggle to offer developers similar incentives to support their respective offering because they don’t scale as well.

For Vodafone, I am concerned that the multi-level complexities they have to deal with (number of handsets x number of operating companies x number of languages x all additional info [geographical and otherwise]) might pose a strain on its ability to roll out quickly and decisively. It might not be as huge and life-changing as Apple’s app store but it would certainly lift the “mainstream” of app downloads to whole new level. I am an optimist, so, come on, Voda!

Android to grow 900% in 2009

By Volker

On 14/05/2009

In OEM

There are reports and there are reports. From the latter category, we are being enlightened with the latest growth predictions for Android and they come out at a whopping 900% for 2009, compared to “only” 79% for the iPhone. The report does not hide the fact that the calculatory basis may not be fully comparable as it is expanding from a low base.

Moreover though, when looking at the models applied by Apple and the Google-led Open Handset Alliance, these are quite different and it is therefore to be fully expected that Android-powered handsets will overtake iPhone numbers sooner rather than later. Would they not, it would simply reflect on extremely poor performance: Apple has always applied a model that combined hardware and OS: both came from the same mould and from one hand. This is a huge contributor to its superior usability: it can be woven in a seamless way.

However, on the other hand, this is also what arguably cost Apple the war over the desktop: Microsoft-powered systems grew exponentially, last but not least because the OS was available on hardware from any number of manufacturers whereas Apple’s OS was only available on, well, Macs. The same applies now to the iPhone. Apple’s one product that bucked that trend was the iPod, which commands an impressive share around 70%. This however is the exception rather than the norm. And it is unsurprising, too: it is extremely unlikely that one manufacturer and the limited number of models it can bring out will be able to cater to the needs and tastes of any number of people and demands equally.

The above does of course not mean that Apple did much wrong: the model seems to be working beautifully. The app store might only have contributed $20-45m or so in profit (or revenue?) to Apple (which is not that much considering that this is the harvest from more than 1 bn apps) but it also sold 13.7m iPhones and 22.7m iPods in 2008 alone, and this will have contributed nicely. Now, take this together with the Mac boom (which still only equates to c. 10% market share), which arguably is partly to “blame” on the popularity of iPhones and iPods (many users will experience the legendary UI only on one of these devices), and you have a good company.

The Android model is the opposite of this: here, a large number of companies get together to build an OS, which can then go (and be customized) on a myriad of devices from a myriad of manufacturers. At the start of the initiative, it was Google and 34 others, including China Mobile, KDDI, Sprint, TIM, T-Mobile, Motorola, Samsung, HTC, Intel and eBay (cf. here). Today, the alliance boasts (if I counted correctly) 47 members. As per the above equation, it would be very surprising if the numbers from this model would not exceed the ones from Apple’s. In 2009, we will be seeing Android devices from HTC (the front runners on this with the G1 and the Magic) as well as from Samsung, LG, Sony Ericsson and probably dozens more. Can they sell more? Yes. Will they sell more Android devices than iPhones in 2009? I don’t know. Maybe not. Will they still grow by 900%? Yes, of course, as we are still looking at small numbers at this time: if I make $100 turnover in year 1 and $900 in year 2, I still cannot live of that but I will have grown 900%… Will they be able to grow by 900% in 2010? That will be more difficult as their starting point will be different. Very wise insights, huh? 😉

Nokia Ovi's 20,000+

By Volker

On 09/05/2009

In OEM

Nokia’s interpretation of an app store will be Ovi, and it will launch later this month. This is a biggie since Nokia (according to its own numbers) still commands an imposing market share of – globally – 37%. True to its huge self, it now said it’ll come out with all its guns blazing and kick its app store off with no less than 20,000 “items”! This is being compared to Apple’s “few hundred” upon launch.

However, that contains of course quite a bit of a PR spin: Nokia does not only include applications in its count but also videos and “mobisodes”, and on this definition, one would need to count in the 40,000 or so videos, 3,000 TV shows, etc that the iPhone had on offer via iTunes (numbers via Wikipedia).

So where does Nokia truly stand in May 2009? The company, once famed for cool design (7110 – also known as the “Matrix” phone anyone?) and intuitive UI (yes, really: in the pre-Java age, Nokia’s were second to none when it came to usability and interface) seems to have lost a little of its gloss. Its devices still boast technical excellence (the N96 technically outsmarts every iPhone or Android device easily) but the sex-appeal is considerably lower. Nokia anno 2009 has a little more of a Siemens-like flavour: very well engineered but a bit dull and maybe, well, a little over-engineered. At a time when content finally seems to go mainstream, this is more than only unfortunate: Nokia’s often announced push into the US (where it holds an uncharacteristically small market share) has faltered (again) but the company also seems to lose market share in regions where it previously was unassailable. Moreover, its incremental products, such as the Navteq business, appear to struggle, too (Navteq recorded net sales of only €132m in Q1/2009; compare that to a purchase price of $8.1bn!), as it is arguably being challenged by the – free – Google Maps (which most people I know prefer over the – paid-for – Navteq services).

Nokia’s competition comes less from its traditional foes, Sony Ericsson (struggling itself), Samsung, LG or Motorola but from the newbies like Apple, RIM or HTC, all of which focus on the upper end of the market and leverage this with smart phones that comes – app store or not – with a vastly expanded range of apps and services. Apple has leveraged this in breathtaking ways but one must not forget the gains Blackberry-maker RIM has realized. And while this was not on the back of its app store (Blackberry App World launched only recently), Blackberry devices had always been used for more than only voice and SMS – data services were always at the core of the product.

So where will Ovi sit? Will it revolutionize the mobile phone mass market on the content side, too? Nokia’s attempts so far were something of a mixed bag: Preminet must probably considered a failure, its successor NCD (Nokia Content Discoverer) was always a little bit in the shadows, too. N-Gage is a distinctly high-end service (with – anecdotally – 1m or so subscribers, which is small when you look at Nokia’s overall market footprint), the P2P service Mosh was known (to the people who actually did know of it) for the piracy taking place on the platform rather than for commercial success. In short: Nokia’s moves into content have not been an overwhelming success so far. Ovi has the opportunity to change this. Due to its massive market footprint, Nokia has the opportunity to turn more than 1bn devices into shop windows for content, and this outmuscles anything Apple could even dream of achieving by large margins.

However, the success of an app store is not being defined by the sheer number of content available on or through it but but at least equally by the functionality, the usability and discovery. This is where Apple has been doing so well: the combination and seamless integration of hardware and software and its content strategy out of one mould (with no carrier intervention at all) has lifted the bar for an interface significantly. It might look easy to copy this but it is not. Nokia has also been very (!) late to the game (bear in mind they first announced Ovi in 2007!), and it acknowledges this itself. It will therefore be very interesting to see how Nokia manages to execute it. Be not mistaken: if it succeeds, the content revolution on mobile has truly begun!