current & future mobile trends of south east asia @ innotech cambodia

Current & Future Mobile Trends of South East Asia Innotech Cambodia

17th & 18th march 2016

Athi Selvanayagam Venture Partner, 1337 Ventures

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Eric Ku COO, iTrain Asia

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More than 2,000 developers in Asia has taken iTrain Asia Mobile Development Course and CerEficaEon

More than 5,000 lecturers & students in Asia has been trained with iTrain Asia Mobile Development Content

Indonesia Thailand Philippines

Malaysia Myanmar Singapore

Authorized Training Partners (ATP)

Certification iOSs and Android cerFficaFon

SAMPLE SAMPLE




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SEA Population

Source: World Popula/on Review (2014)

China, 1392!

India, 1262!

EU, 741!

US, 319!

SEA, 627!

Population (in Millions)!

15!254!

7!30!

54!101!

5!68!

93!

Cambodia!

Indonesia!

Laos!

Malaysia!

Myanmar!

Philippines!

Singapore!

Thailand!

Vietnam!Population (in Millions)!

Young: More Than 67% Are Under 35 Yrs!

Source: UBS report “ASEAN E-‐commerce” at 13 June 2014 / Global Demographics

42%

45%

24%

40%

37%

43%

32%

29%

27%

31%

26%

27%

14%

14%

25%

16%

22%

19%

8%

7%

17%

9%

10%

8%

5%

4%

8%

5%

6%

4%

Vietnam

Thailand

Singapor

Philippine

Malaysia

Indonesia

Age profile of ASEAN neEzens

15-‐24 25-‐34 35-‐44 45-‐55 55+

Greater than 51% of the populaEon in Cambodia are below the age 30

They are Becoming Richer

Source: UBS report “ASEAN E-‐commerce” at 13 June 2014 / Global Demographics / Macquarie Research 2014

Income per capita is growing fast enough to drive rising affluence, much faster than global average

2.0%

4.1% 4.6%

4.1%

5.7% 6.3%

1.5%

2.7% 2.1%

1.4%

3.2% 2.9%

1.2%

2.3%

1.30% 0.8%

2.0% 1.5%

Global Avg Indonesia Thailand Philippines Malaysia Singapore

2009-‐14 2014-‐19 2019-‐24

SEA Internet Adoption Increasing Fast!

14M!

31M!

18M!

4M!

55M!

34M!

194M!New internet

users!

360M!Internet users!

2010! 2020!

62% !Est. internet penetration!

25% !2010 internet penetration!

2014!

33% !2014 internet penetration!

20M!

41M!

20M!

4M!

71M!

44M!156M!

204M!

1/3 of the populaEon in Cambodia has access to the internet

Internet Has Surpassed TV!

Source: Nielsen; eMarketer 2014

SEA Has Highest Mobile Penetration Rate!

Source: Global web index, March 2014 from Ystats

Cambodia 157% Singapore 152% Thailand 150% Vietnam 141% Malaysia 137% Indonesia 121% Philippines 114%

SEA Avg 119% Global Avg 98%

China 95%

Country | PenetraEon

All major SEA countries are now all above the global average in mobile penetraFon

Device Usage!

Rise of Affordable Smartphones!

Sub Dollar Pricing!

Sources: Meet the New Media Consumer 2014 - Malaysia Nielsen Review

ASIA New Media Consumer!

WHAT WORKED WELL IN THE PAST… MIGHT NO LONGER WORK !TODAY!

APAC is the largest and fastest growing smartphone market in the world!

Global smartphone shipments, millions

Source: Canalys

Ann

ual s

mar

tpho

ne s

hipm

ents

(M)

Mobile usage is exploding in APAC - the average user spends 2.5 hours / day on their smartphone

APAC countries Average time spent on smartphone/day, minutes

Source: Millward Brown

150 times a day 162 minutes a day

“The mobile war is over and the app has won”

venturebeat.com 2013/04/03

86%

14% TIME SPENT ON SITES

TIME SPENT ON APPS

USER TIME SPENT ON MOBILE DEVICES

APPS > SITES

66% SITES

6% APPS

28% SITES &

APPS

PRIMARY CHANNEL FOR COMMERCIAL TASKS

INDUSTRY SNAPSHOT

75% OF AUTOS USERS

60% OF FINANCE USERS

70% OF TRAVEL USERS

71% OF RETAIL & TECH USERS

64% OF LOCAL SERVICES USERS

... USE SITES MORE OFTEN FOR

COMMERCIAL TASKS

86%

14% TIME SPENT ON SITES

TIME SPENT ON APPS

14%

40% GAMIN

G & ENT.

26% SOCIAL

20% OTHER

USER TIME SPENT ON MOBILE DEVICES

Time spent Value for your business!

64%62%

59%

51%

43%

56%

45%

38%

33%32%

51%

42%

43%38% 39%

44%

32%

21% 24%

20%

30%

19%15% 14%

15%

22%

17%13% 13% 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Internet Newspaper or magazine

In-store promotional display

TV

Outdoor ad

Radio

The Internet is the primary form of influence at each stage of a consumer journey

Become interested

Begin evaluating

Compare prices and features

Final decision on which to

buy

Final decision on where to

buy

Offline sources

Source Use at Each Step

* Source: Malaysia ROPO, Netpop Research, LLC 24

This is not a distant global possibility but a local, near term opportunity

“Smartphones and tablet computers are expected to boost online retail sales in APAC to >$400B a year by 2018” Euromonitor

Source: Euromonitor; Channel News Asia

X 2.3 (c.20% Y/Y)

$186B

2013 2018

$428B

Market Share Smartphone Vendor, 2015

Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 27, 2016

Vendor 2015 Shipment Volumes

2015 Market Share

2014 Shipment Volumes

2014 Market Share

Year-‐Over-‐Year Growth

1. Samsung 324.8 22.70% 318.2 24.40% 2.10%

2. Apple 231.5 16.20% 192.7 14.80% 20.20%

3. Huawei 106.6 7.40% 73.8 5.70% 44.30%

4. Lenovo 74 5.20% 59.4 4.60% 24.50%

5. Xiaomi 70.8 4.90% 57.7 4.40% 22.80%

Others 625.2 43.60% 599.9 46.10% 4.20%

Total 1,432.90 100.00% 1,301.70 100.00% 10.10%

(Units in Millions)

Market Share Smartphone OS, 2015

Source: IDC Worldwide Quarterly Mobile Phone Tracker, December 2, 2015

Region 2015* Shipment Volumes

2015* Market Share

2015* YoY Growth

2019* Shipment Volumes

2019* Market Share

2019* YoY Growth 5 year CAGR

Android 1,161.10 81.20% 9.50% 1,538.10 82.60% 4.80% 7.70%

iOS 226 15.80% 17.30% 263.4 14.10% 3.10% 6.50%

Windows Phone 31.3 2.20% -‐10.20% 43.6 2.30% 11.40% 4.50%

Others 11.3 0.80% -‐16.80% 17.1 0.90% 6.50% 4.70%

TOTAL 1,429.80 100.00% 9.80% 1,862.30 100.00% 4.70% 7.40%

* Forecast data

Market Share, 2015

IDC Smartphone OS Market Share, 2015 Q2

Android, 81.2

IOS, 15.8

Microsog, 2.2

Others, 0.8

Android IOS Microsog Others

Android Distribution – 7th Mar 2016 Version Codename DistribuFon 2.2 Froyo 0.1% 2.3.3 -‐ 2.3.7

Gingerbread 2.6%

4.0.3 -‐ 4.0.4

Ice Cream Sandwich

2.3%

4.1.x Jelly Bean 8.1% 4.2.x 11.0% 4.3 3.2% 4.4 KitKat 34.3% 5.0 Lollipop 16.9% 5.1 19.2% 6.0 Marshmallow 2.3%

iOS Distribution – 7th Mar 2016

iOS 9 79%

iOS 8 16%

Earlier iOS 5%

Mobile Platforms: Both? All 3?

• 37% of all mobile dev target both iOS and Android. • 7% target none of the top 3

App Categories

Games 515,715 23%

EducaEon 208,041

9% Entertainment

142,646 6% Lifestyle

195,544 9%

Business 231,658 10%

Books 71,757 3%

UEliEes 5%

Travel 4%

Music 3%

Reference 2%

Sports 2%

ProducEvity 3%

Health & Fitness 3%

News 2%

Photo & Video 2%

Finance 2%

Medical 2%

Social Networking 2%

Food & Drink 3% NavigaEon

1% Catalogs

1% Weather

0%

Games

EducaFon

Entertainment

Lifestyle

Business

Books

UFliFes

Travel

Music

Reference

Sports

Developers Have Conquered the Phone with Apps

• > 9 Million App Developers • 800,000 new developers every year

• > 1,900,000 Apps on Apple App Store • > 1,000,000,000 iOS Devices • > 100 Billion Downloads • > $25 Billion paid out

Developers are Conquering the Wrist

Apple Watch 10,000 apps

Android Wear 4,000 apps

Pebble 7,000 apps

Developers are Conquering the Car

Developers are Conquering the Home

Developers are Conquering the Sky

Raised $75M to build an industrial UAV developer

plamorm (May 2015)

hnp://dev.dji.com/

“Android for drones”

hnp://dronekit.io/

OS for commercial drones

hnp://www.airware.com/developers

Developers are Conquering …

• …CiFes • …Healthcare • …Clothing • …Factories

• …EVERYTHING

ASIA vs US

Localized Content

Revenue by Country

Revenue Growth in Asia by Store

Top 10 Countries in Asia – Both Stores

Japan = 77x Malaysia

Revenue Distribution

Revenue distribuEon by Country and Pladorm – Dec 2013

Download volume by Device on App Store

Business Model per device – Apple App Store

Business Model per category – Apple App Store – iPhone (Feb ‘14)

Business Model by Country – Apple App Store

Can AppStore Alone Support Developers? • Only 1 in 9 developers that rely on app store revenues are in the safe zone

E-Commerce – The Winning App Revenue Model

E-‐Commerce Sales $300 Bn

App Store Sales $40.5Bn

AdverEsing $34 Bn

Model #1: Apps as a Channel

• Transact through the App • Nearly 60 percent of Amazon.com customers shopped using a mobile device during the 2014 holiday period

Model #2: Mobile-First Business

• Offline Services that couldn’t exist without the App

Model #3: Apps as a Platform

•  Enable others to build e-‐commerce businesses on top of your app

SEA Has Very Low eCommerce Penetration !E-‐commerce shopping makes up just 1-‐2% of total retail sales in SEA. This compares with 16% in Korea, 10% in Japan and 8% global average

Source: Euromonitor, BofA Merrill Lynch’s eCommerce Report as of May 2015 and SingPost Report as of Jan 2015

US: 8.4%

Korea: 16.3%

Japan: 10.4%

Australia: 8.2%

Global: 7.9% China: 8.5%

SEA: 1-‐2%

E-‐Commerce as % of Total Retail Sales (2014)

Apps in the Enterprise

Enterprise

60% OF INFORMATION WORKERS WILL INTERACT WITH CONTENT APPLICATIONS VIA A MOBILE DEVICE BY 2015

Gartner

ANOTHER WAY TO DODGE THE POVERTY TRAP: TARGET ENTERPRISES

Is Making the Enterpise Jump Easy?

Is Making the Enterpise Jump Easy?

Consumer Enterprise

IOT has similar distribution

Apply Consumer IOT Tech to Enterprise Problems

Apps - moving out of Mobile devices

Yesterday: The Traditional App

• The value is delivered by the app itself

Today: The Companion App

• The value is delivered by the device/service • The app is just a remote control

Tomorrow: The Data App

• The value comes from combining all sorts of data the app processes across devices, sensors and APIs.

Focus on Innovation shifts to making sense of data

From Device to Data Platforms

Whats the future of Mobile Platforms?

• With the current stalemate in the plamorm wars…

• With the evoluFon to data-‐centric apps, moving the focus away from operaFng systems and into the cloud

Future of Mobile is in IOT

Mobile Runner Ups copying…

E-Commerce Players too

IOT Solutions still Looking for Problems

Multi Device, Integrated Experiences




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