Mobile Applications: Apps and the Mobile Internet

• Publication date: January 2012

Mobile Internet is here and geared for growth, despite the global recession. For 2016 the worldwide penetration rate of Mobile Internet will reach 34.7% - or 2.89 billion users - generating service revenues (apps and advertising) of 43.3 billion EUR. This report provides detailed information about market's structure, data & forecasts 2008-2016, player profiles and strategies. It also spotlights the current and upcoming trends and the different ki...

Mobile Internet is here and geared for growth, despite the global recession. For 2016 the worldwide penetration rate of Mobile Internet will reach 34.7% - or 2.89 billion users - generating service revenues (apps and advertising) of 43.3 billion EUR. This report provides detailed information about market's structure, data & forecasts 2008-2016, player profiles and strategies. It also spotlights the current and upcoming trends and the different kinds of mobile Internet usages.

• What are the key figures in the main European, American and Asian markets for mobile Internet?
• Which of the device or content will be more important for platform players?
• Who will control the user data? What conflicts between interoperating platforms can be observed?
• What role for HTML5? Can it be an attractive alternative to the native apps and are there already hybrid solutions?
• Which will be the main revenue source for mobile Internet?
• What are the key drivers for this market?


>This report ships with a database
• Market data & Forecasts 2008-2016 by zone & by country
• Market volume & market value

Online Advertising Industry in South Korea

Content

This report is part of a study also including an Excel database and a PowerPoint
presentation.

1 Executive Summary . 8
2 Methodology . 12
3 Market structure and key factors .. 14
3.1 Market overview .... 14
3.1.1 Market segmentation .... 14
3.1.2 Product / service trends 18
3.2 Current market estimates 21
3.2.1 Shipments and subscription numbers of smartphones ... 21
3.2.2 Shipments and subscriber numbers of tablets . 22
3.2.3 Mobile Internet penetration 24
3.2.4 Mobile Internet advertising revenues 25
3.2.5 Mobile app revenues 26
3.3 Key drivers ... 27
3.3.1 Network technologies .... 27
3.3.2 Smartphone and tablet technologies . 30
3.3.3 Web apps and native apps: the HTML5 debate .... 34
3.3.4 NFC, Open data, LBS and Cloud services .. 36
3.3.5 Traffic management and Net Neutrality . 40
3.3.6 Mobile Internet usage trends ... 45
3.3.7 Major categories of services ... 49
4 Market structure and player strategies ... 54
4.1 Industry structure and Value chain . 54
4.2 Competition structure / landscape / environment .... 60
4.2.1 The mobile devices market 60
4.2.2 The tablet market 65
4.2.3 Mobile OS and ecosystems .... 66
4.2.4 Mobile app storefront strategies ... 69
4.3 The developer perspective ... 75
4.3.1 Origins of developers .... 75
4.3.2 Developers must get their satisfaction ... 76
4.3.3 Future direction for developers .... 81
4.4 Business models ... 83
4.4.1 Mobile advertising .... 83
4.4.2 Revenues from app sales .. 91
4.4.3 M-commerce .. 98
Apps and the Mobile Internet
www.idate-research.com © IDATE 2012 4
4.5 Company profiles . 104
4.5.1 Device vendors . 104
4.5.2 Internet giants ... 108
4.5.3 Mobile network operators . 112
4.6 Strategic analysis 115
4.6.1 The dust settles on the mobile OS battlefield . 115
4.6.2 The reality of app stores and the developer perspective .... 115
4.6.3 The way forward for mobile operators .. 116
4.6.4 Native apps, Web apps and hybrids will and already co-exist 116
4.6.5 Platforms to fight for data control over mobile Internet .. 118
5 Markets and forecasts ... 121
5.1 Market development factors .... 121
5.1.1 Mobile assets .... 121
5.1.2 Analysis of growth drivers 121
5.1.3 Forecast hypotheses ... 122
5.2 Market forecasts .. 123
5.2.1 Smartphone shipments and subscribers, in numbers ... 123
5.2.2 Shipments and sub numbers for tablets .... 125
5.2.3 Mobile Internet penetration ... 126
5.2.4 Mobile Internet advertising revenues ... 127
5.2.5 Mobile apps .. 128

Tables

Table 1: Trends with mobile Internet services compared to fixed services 15
Table 2: Type of services 17
Table 3: LTE deployments worldwide . 27
Table 4: LTE devices shipments forecast (thousands) 29
Table 5: Verizon Wireless tariffs .... 29
Table 6: Examples of LBS apps for mobile handsets .. 39
Table 7: Traffic management by MNOs in various countries . 41
Table 8: Consultations and regulation status regarding traffic management .. 44
Table 9: Preferred device (Mobile, PC or Tablet) in terms of activities, by world areas . 45
Table 10: Mobile Web service usage in terms of reach in the EU5 ... 48
Table 11: App storefronts segmentation .... 70
Table 12: Comparison of major app storefront features . 70
Table 13: Detailed examples of mobile network operator app storefronts ... 71
Table 14: Platform hardware and software fragmentation .. 78
Table 15: App storefront payment methods .... 80
Table 16: Gross CPM rates of banners on the Orange Mobile portal 86
Table 17: Examples of mobile apps offering location-based services 90
Table 18: Support for in-app purchase . 93
Table 19: Comparison of air travel apps by Mobiata . 97
Table 20: Commonly-used mobile payment solutions by transaction type 102
Table 21: Estimated transaction costs 103


Figures

Figure 1: User data and revenue flow between Apple and Le Monde .... 11
Figure 2: Type of services 17
Figure 3: Cloud computing .... 18
Figure 4: Share of smartphones in mobile shipments, 2009 – 2011 . 21
Figure 5: Number of subscribers of smartphones, 2009 – 2011 .. 22
Figure 6: Number of tablets shipments, 2009 – 2011 ... 22
Figure 7: Number of subscribers of tablets shipments, 2009 – 2011 23
Figure 8: Mobile Internet penetration, 2009-2011 .... 24
Figure 9: Mobile Internet advertising revenues for the EU5 countries, 2009-2011 .... 25
Figure 10: Mobile Internet advertising revenues for USA, Japan, South Korea, EU27 and China,
2009-2011 .... 25
Figure 11: Mobile app revenues for USA, Asia-Pacific and EU27, 2009-2011 .. 26
Figure 12: Mobile app revenues by zone, 2009-2011 26
Figure 13: The future of the mobile devices: How it will look in five years from now .... 30
Figure 14: Software layers in mobile phones ... 35
Figure 15: Using a NFC phone for a mobile transaction . 37
Figure 16: VoIP access prohibited in a Orange UK data browsing offer .. 42
Figure 17: Free Skype-to-Skype calls authorised on the « 3 » UK network - advertisement . 42
Figure 18: Year on growth of global mobile Internet activities, 2010 vs. 2011 ... 46
Figure 19: Download rate of most popular apps, by category, in the USA .... 47
Figure 20: Percentage of users preferring browser or app ... 47
Figure 21: Frequency of recalling seeing a Web/app Ad 49
Figure 22: Age of mobile owners who recall seeing a Web/app ad .... 49
Figure 23: The mobile Internet value chain . 57
Figure 24: Smartphone market shares ... 61
Figure 25: Mobile handset market shares by vendor in volume, 2007- 2011 64
Figure 26: Worldwide tablet sales ('000) 65
Figure 27: Smartphone OS market share as of the first three quarters of 2011 . 66
Figure 28: App Distribution Business Model .... 72
Figure 29: iPhone developer's heritage, all App categories . 75
Figure 30: The path to concentration 76
Figure 31: Comparison of number of devices installed base and number of apps available,
as of end Q1 2011 . 77
Figure 32: Rate of developers planning to abandon a given platform as of June 2011 78
Figure 33: Payment methods supported by app stores ... 80
Figure 34: Percentage of developers using mobile platforms ... 81
Figure 35: Cross-platform revenue comparison: iOS vs Android ... 81
Figure 36: Examples of mobile advertising . 84
Figure 37: Different banner formats advertised by Orange mobile portal . 86
Figure 38: Google AdWords sponsored links ... 87
Figure 39: Google AdWords targeting and tracking options . 87
Figure 40: Details of Qype premium SEO ... 88
Figure 41: Optimisation of iPhone technical features for Nissan ad campaign .. 89
Figure 42: Google AdWords click-to-call function . 89
Figure 43: Mobile coupon combined with geolocation .... 90
Figure 44: Guitar Hero paid app for iPhone and iPod Touch .... 92
Figure 45: The 10 most downloaded paid apps on the App Store in April 2011 (USD) 93
Figure 46: Free Adventure Bay app, published by Ngmoco . 94
Figure 47: iCoyote subscription-based app . 95
Figure 48 : Netflix app suggesting to the user to sign up on its Website ... 95
Figure 49 : Amazon Kindle app maintaining direct access to the Kindle Store online ... 95
Figure 50: Free app of the Pays de Fougères tourist office . 96
Figure 51: Free application from Société Générale .... 97
Figure 52: Revenues of m-commerce, 2010 and 2015 ... 98
Figure 53: Share of m-commerce revenues in total online sales by country, 2010 and 2015 99
Figure 54: Example of mobile payments via NFC technology . 100
Figure 55: Starbucks Card Mobile App 101
Figure 56: Cityzi Orange promotion 102
Figure 57: Orange multimedia ... 113
Figure 58: The Financial Times Web app, encouraging users to switch from the native app ... 119
Figure 59: Share of smartphones in mobile shipments, 2011-2016 forecast ... 123
Figure 60: Number of subscribers of smartphones, 2011-2016 forecast .... 124
Figure 61: Number of tablets shipments, 2011-2016 forecast 125
Figure 62: Number of subscribers of tablets, 2011-2016 forecast 125
Figure 63: Mobile Internet penetration, 2011-2016 forecasts .. 126
Figure 64: Mobile Internet advertising revenues for EU27, Asia-Pacific, USA, Japan and China,
2011-2016 forecasts . 127
Figure 65: Mobile Internet advertising revenues for EU5, South Korea and China, 2011-2016
forecasts .... 127
Figure 66: Mobile app revenues by zone, 2011-2016 ... 128