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Who am I

- originally from Florence, Italy

- living for 28 years in Finland

- degree in Electronic Engineering

- degree in International Business and Marketing Management

- over 16 years of international business experience

- executive and professional in the Telecom industry,

- strategic and visionary thinker,

- believer in true Leadership,

- consumer and customer oriented,

- human being

more about me on www.linkedin.com/in/gianlucacioletti

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Why we are where we are?

What is changing in the apps market and how does it change?

What are the trends?

What would be the next “big thing”

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Everything started from the Business market

- The Business market is a “rich” market. Why?- The first mobile phones were for Business people the price was 24,000 Finnish Marks in 1987 (approximately EUR 4,560)

- The world’s first GSM call was made in 1991 and the first mobile “killer app / service” the SMS message was sent in 1992- The second mobile ”killer app /service” was the e-mail, in 2008 the market was estimated for $3,5 billion

- Why Black Berry succeed in the Enterprise business sector?

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…from the Business market to the mass market…

- The mass market is a “poor” market (and volume market), but…- In the emerging markets most of the mobile services are SMS based and to support the business- In 2008 the SMS market was $130 billion and expected to be $224 by 2013- In 2006 China Mobile made $100 million in 10 minutes when the Chinese year changed and Chinese sent over 1 billion SMS.

- Apple app store: over 190.000 apps, over 4 billion downloads average price ~ $2,5, but over 70% of the downloads are free apps

- Mobile9.com: 6,517,712 members, 1,039,848 free stuffs, 9,836,049,530 downloads

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The Convergence

- In Platforms, PC <=> mobile

- Apps <=> servicesWorldmate by Mobimate

World Traveler by Psiloc

Handy Shell by Epocware (Paragon)

Snaptu

Seesmic

- Social Network <=> Community

- Location based services

- The Cloud

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What iPhone, App Store and Facebook changed in the ecosystem and consumers behaviors

Everything!!!!

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From the developers point of view:

- a clear business model 70/30

- an operator independent channel for app distribution

- Facebook => connect the app / brand to the community- but the most important thing is the cycle of a company => in the past the death valley was 3-4 years and now 1-2 years

- also the “life” cycle of apps became shorter

time

growth

death valley

in the past

today

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- In the past operators “owned” the subscribers, the buz. model was based on calls and SMS, now is data traffic, they see only bits, how to differentiate themselves, how to keep loyalty in their subscribers?

- Operator started to build their own app stores and started to offer flat data rates

- They reduced the share from 85/15 to 50/50 or even more for developers.

- Roaming still a barrier for mobile apps and services usage.

From the operator point of view:

Voice ARPU Progression, 2004-2009 ($)

Non-Messaging Data ARPU Progression, 2004-2009 ($)

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From the handsets manufacturers point of view:

- All handsets manufacturers are now following iPhone

- User Interface and User Experience are the key issues

- Who will “own” the developers ecosystem

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From the VCs and investors point of view:

- Today developers companies are smaller even single developers

- Decision criteria for investments not based on revenues but on users / traction

- buz. model for apps in future will be based on ads (the most)

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Conclusions- Data packages => roaming, still an important and big issue => who will be

the first mover to offer global roaming tariff at a reasonable price

- Developers have to think “Global” and cross platform developing

- Content discovery => how do I (developer) ensure that people notice my app?

How do I (consumer) find new content?- Now nearly 200,000 apps on App Store, 50,000 in Android Market, ~10,000 in OVI

Store, ~6,000 in BB App World etc….

- Monetisation models:- Pay-Per-Download- freemium with in-app billing mechanism- Ads

- Apps as Marketing tool- Carling launched iPint app for the iPhone in July 2008: achieved 6 million downloads in four months

- Apps as Retail Mechanism- eBay launched its iPhone app in July 2008 integrated with PayPal Mobile as payment

system: 8.5 million downloads (around 15% of iPhone users) by April 2010

- Emerging / developing markets account for 79% of mobile subscribers but just

31% of all non-voice revenues

- In emerging / developing markets the first web experience through mobile

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Thanks!!!