Current Trends in

Mobile Applications

Prof Janet Wesson and Bradley van TonderDepartment of Computing Sciences16 March 2011

Overview

• Mobile applications• Location-Based Services• Augmented Reality• Mobile Web Apps• The Mobile Cloud• Near-Field Communication• Monetisation Strategies• Looking Forward

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Mobile Applications• Global mobile app industry worth approximately

$2.2 billion USD in 2010.• 8 billion mobile apps were downloaded in 2010:

• 5.6 billion for iPhone/iPad• Competitor app stores’ market shares dramatically

increasing

• Popular app types vary depending on platform:• E.g. Games represent 52% of iPhone market, but only

29% on Blackberry

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Store2009 2010

GrowthRevenue Share Revenue Share

Apple App Store $769 92.8% $1,782 82.7% 131.9%

BlackBerry App World $36 4.3% $165 7.7% 360.3%

Noka Ovi Store $13 1.5% $105 4.9% 719.4%

Google Android Market $11 1.3% $102 4.7% 861.5%

Total $828 100% $2,155 100% 160.2%

South Africa• There are more mobile phones than people in

South Africa.• In South Africa, 57% of mobile web users only

access the Internet on their phones.• South Africa still responsible for a tiny fraction of

mobile app buyers and developers.

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Location-Based Services• 79.9% of phones equipped with GPS by end of

20111.

• Time is just as important as location:• Streaming of real time content improves on static content• E.g. Current traffic conditions

• Location-based search:• Apps, tweets, multimedia and people near my current

location

• Personalisation:• Important to avoid information overload

• Other applications:• Social networking• Gaming 5

1 www.isuppli.com

Augmented Reality• Overlay virtual content on the real

world.• Enabled by improvements in mobile

sensor technology:• GPS positioning • Digital compasses • Accelerometers and gyroscopes

• Application examples:• POIs, restaurant reviews, advertising

• Augmented reality platforms allow for customisation and extension:• Wikitude• Layar 6

Fragmentation• Fragmentation across platforms:

• iPhone• Android• Windows Phone• Blackberry

• Fragmentation within platforms:• Handset maker modifications• Network operator modifications• Different firmware versions (e.g. Android 2.1, 2.2, 2.3…)• Different device hardware capabilities

• The result: a testing and development nightmare!• Web apps represent a partial solution.

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The Mobile Web• Native apps vs. mobile apps:

• Does your application require access to native data, hardware (e.g. sensors or camera) or multitasking?

• What monetisation strategy are you using?

• The Trojan Horse:• App is little more than a wrapper for mobile website• No need to download updates• Addresses fragmentation

• HTML 5:• Allows for improved integration of multimedia content• Driving improved mobile web applications

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The Mobile Cloud• Constant Internet connectivity• No more static content• Data storage in the cloud• Cross-platform solution• Applications:

• Email• Instant messaging• Multimedia• Document storage and sharing• Maps

• Problematic in South Africa where data costs are still high

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Near-Field Communication (NFC)• Very short-range wireless technology (< 4cm).• Initiator powers a passive target• NFC-equipped phones already shipping:

• Samsung Nexus S• Possibly iPhone 5

• Applications:• Peer to peer:

• Setup Bluetooth or Wi-Fi connection• Payment and ticketing:

• Payments via debit/credit card• Mobile ticketing (public transport, sports matches,

concerts)

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Monetisation Strategies• More than one way to make money from mobile

apps• Direct methods:

• App stores – pay to download• Credit card• Operator billing – deducts from airtime balance/debits

account• In app purchases• Advertising • Free demo – pay to upgrade• Subscription model (suited to digital content)

• Indirect methods:• Brand extension• Service provision (e.g. eBay app) 11

Mobile Advertising• Currently many apps use simple

banner ads in free versions:• Very low click-through rates

• Mobile advertising likely to become increasingly intrusive

• Increasing use of multimedia to attract attention

• Real-time bid advertising:• Mining of user activity data• Algorithms used to automatically target

specific types of customers• Advertising therefore (in theory) reaches

the target audience12

Mobile App Usage• Research shows that most

downloaded apps are deleted the same day:• Many more are only used the first few

days

• Improving user/customer retention:• Push notifications – apps are opened

228% more• Releasing updated versions

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Other Miscellaneous Trends• 3D Mobile Displays (without glasses)• App store changes:

• Operator/handset manufacturer app stores• 3rd party app stores (e.g. Amazon Android app store)• Cross-platform app stores (e.g. GetJar.com)

• Improvements in the mobile web:• Greater interactivity• Blurring of lines between native apps and web apps

• Mobile money transfer• Mobile banking

• Security

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Mobile Applications – The Future• Global mobile app industry predicted to be worth

$25 billion USD in 2014.• Android expected to challenge Apple app market

dominance in next few years.• South African smartphone market predicted to

grow:• Enabling greater demand for mobile apps• Greater need for locally relevant apps

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Any questions?• Email:

• Janet.wesson@nmmu.ac.za• Bradley.vantonder@nmmu.ac.za

• Thank you for your attention.

“1 in 10 [survey respondents] said they’d rather lose their mother-in-law than their cell phone.” -

Leger Marketing

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