should automakers build app stores?
Post on 24-Jan-2015
2.226 Views
Preview:
DESCRIPTION
TRANSCRIPT
APPS 4 CARSGENIVI All Members Meeting
April 25, 2012Ludovic Privat
1
Automotive
Wireless ConsumerElectronics
2
Automotive
Wireless
AutomotiveApps
3
• App Store economics
•What App Strategy for Car Makers?
• Should you build an app store?
• If not what to do?
Topics of the day
4
App Store Economics
•Choice
•Volume
•Price (low)
5
Choice
550,000+ Applications on Apple App Store
NB of Apps
NB of
downloads
6
Volume
7
Low price
• Current average app price: $2.02
• Current average game price: $1.02
• Current average overall price: $1.88
Apple App store - April 2012 Source: 148apps.biz
8
Low price
Free $0.99 $1.99 $2.99 $3.99 $4.99 $5.99 & up
46.43% 25.77 %10.73 % 5.15 % 2.59 %2.93 % 6.4 %
Percentage of app in each price categoryApple App Store (April 2011)
Source: 148apps.biz 9
Low price
•U.S. consumers who have never paid more than $1 for an app:
• iPhone owners: 45%
• Android owners: 62%
• Blackberry owners: 63%
TeleNav survey - 1,000 respondents (Aug 2011)10
Auto appsHow much would they pay (US)?
11
Auto appsHow much would they pay (UK)?
12
Auto appsHow much would they pay (Ger)?
13
• Apple app store• 550,00 Apps available, 25 Billion Apps downloaded until March 2012
• $4 Billion paid to developers (to date); $2.1Billion paid in 2011
• Average revenue: $0.16 / app
• Google app store• 400,000 Apps available, 10 Billion Apps downloaded (Dec. 2011)
• Google Play (Android Market) is said to be 23% of iOS revenue per active user.
• In-app advertising• Estimated at around $200-$300 million in 2011
App Stores Revenue
14
App Stores Revenue
2011$4B
15
App Store failures
OperatorHandset Maker
16
• One closed garden replaces another
• From wireless operator’s lock-up to Apple/Google Lock-up
• New forces:
• Competing stores on Android (Amazon, GetJar & others)
• HTML 5 apps, mobile payment
Long term model?
17
In-car Apps
18
In-car App flavours
Built-in Beamed-in Brought-in
19
Are Car Manufacturer’s App stores sustainable?
20
Mobile industry
Developers are the real currency
Large addressable market
developer interestConsumer interest
Choice
480 Million smartphones sold in 20112 dominant platforms: iOS & Android
21
Car industry
Small addressable market
Little developer interestNo consumer interest
Little Choice
60 Million passenger cars sold in 2011large fragmentation per brand
22
Wireless innovation speed
• Smartphone & tablets are becoming powerhouses: CPU, GPU, Sensors
• Product & innovation cycles are extremely fast, driven by intense market competition
• In contrast car life cycle remains pretty stable
23
Consumer interest for in-dash app stores?• Likely to be seen as duplication of their
smartphone apps
• High cost of ownership (connectivity cost)
• limited success of connected PND (25-30% of subscription renewal) demonstrates driver’s unwillingness to pay for another subscription
24
Built-in app store?
25
App opportunities for car makers
26
Which apps?
• Lifestyle apps: Internet radio, Twitter, Facebook, etc.?
• Driver apps: navigation, traffic, weather, etc.?
• Vehicle apps: eco-driving, remote door opening, tracking, monitoring, etc.?
27
Key opportunities• Focus on core competency: vehicle centric value-added
services
• Piggyback on driver data plan when possible
• Big data opportunity about car knowledge (parts, etc...)
• Big data opportunity on driver knowledge (driver behaviour analytics)
• Extended customer relationship over the full lifecycle of the car
• B2B monetization opportunities with third parties: insurance companies, car part suppliers, etc...
28
• App market is tough business
• Don’t fight a lost battle against wireless industry giants
• Monetize opportunities based on vehicle-centric core competencies
Key takeaways
29
Thank you!
ludovic.privat@gpsbusinessnews.com+33 6 22 05 61 38
Twitter: @gpsbusinessnewshttp://www.gpsbusinessnews.com
30
top related