mobile apps: where are you in the value chain?
TRANSCRIPT
“We Accelerate Growth”
MOBILE APPS – WHERE ARE YOU IN VALUE-
CHAIN?
MOBILE MONDAY PRESENTATION
August 8, 2011Frost and Sullivan
ICT Practice
“We Accelerate Growth”2
Mobile Applications
Source: Frost & Sullivan analysis
“Mobile App Market: $25 Billion by 2015”- World Mobile Applications Market 2011 -
“Android To Surpass Apple's App Store In Size By
August 2011”-TechCrunch 2011 -
“More than 15 billion apps have been downloaded
from the revolutionary App Store and more than
425,000 apps are available”- Apple 2011-
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Mobile Broadband Market – Where are we?
Source: Frost & Sullivan analysis
• One of the lowest fixed line voice &
fixed broadband penetration rates
in the region – this limits the avenues
through which the general population
can connect to the internet
Subscriber Numbers Forecast
Indonesia (% of population)
2.3%
• At the end of 2009, Indonesia already
had more wireless broadband users
compared to fixed users, with 24.8
million wireless broadband users
and 1.4 million fixed broadband
users
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Mobile Broadband Market – What are the Key Drivers?
Source: Frost & Sullivan analysis
• Very high mobile penetration rate ~59% – leading to an increasing user base
who has the basic capability to access data services
• Low voice ARPUs – forcing operators to look for new revenue opportunities
• Low cost feature & smart phones – the availability of low-cost phones along
with creative smart-phone promotions making it possible for majority
Indonesians to get connected online
• Introduction of low cost tablets – new low-cost tablets backed by good
internet connectivity can help revive & provide momentum to schemes like „One
Laptop per child‟
• Social Networking Trend – Indonesia has the second biggest Facebook user
in the world with more than 36 Mn users and it is also one of the largest Twitter
Global Markets with an estimated 19% of internet population utilizing the service
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Mobile Broadband Market – How far are we?
As of 2010, the Indonesian market had a wireless broadband penetration rate of approx.
2.3% and is expected to reach around 23% by 2015
3.8 6.2 8.2 9.7 10.5 10.8 1.4 3.8
8.1
15.6
27.5
45.7
0.1
0.2
0.2
0.2
0.2
0.2
2010 2011 2012 2013 2014 2015
Large screen Small screen Multi screen
Mobile Broadband
Subscribers - Indonesia (Mn)
Total data revenues in 2010 represented approximately 33% of total wireless
revenues. This share is expected to reach around 54% by 2015
Source: Frost & Sullivan analysis
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Regional Smartphone Sales – Outlook
1.20.3 0.7 0.7 0.2
18.7
4.7
6.6
2.6
11.2
Indonesia Malaysia Thailand Singapore Philippines
2009
2015
Smartphone sales (Mn)
2009 & 2015
60.44%
46.41%
89.81%
24.99%
58.06%CAGR 2009-2015
Indonesia shows the highest growth in the ASEAN Region for both total
mobile device & smartphone sales with 7.6% and 58.1% respectively
Indonesia’s smartphone market leads growth in ASEAN with expected
18.7 sales Mn by 2015
Source: Frost & Sullivan analysis
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43%
11%
15%
6%
25%
Indonesia
Malaysia
Thailand
Singapore
Philippines
7
Smartphone Market – Indonesia is leading in ASEAN Region
Smartphone sales – 2009 Est. Smartphone sales – 2015
39%
9%22%
22%
8%
Indonesia
Malaysia
Thailand
Singapore
Philippines
By 2009 Indonesia has 1.2 Mn smartphone sales and projected
to reach 18 Mn by 2015 or ~43% of ASEAN market
Source: Frost & Sullivan analysis
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Mobile OS share – Symbian & BlackBerry are head to head
• Blackberry & Symbian OS
are on top two places in
Indonesia with market share
around 38% by Jun 2011
• While in Asia market
Symbian still sits on top with
52% share
52.99%
10.70%
9.64%
7.62%
6.20%
4.55%
38.38%
3.90%
38.64%
2.25%
0.62%
7.50%
SymbianOS
Android
BlackBerry OS
Samsung
iOS
Sony Ericsson
Source: StatCounter.com 2011; Frost & Sullivan analysis
Asia
Indonesia
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Why Smartphone? – Push your content & ads’ “eyeballs”
Traditional Media… …More “eyeballs”….. …Higher revenues
Source: Frost & Sullivan analysis, various sources
1internetworldstat.com 2011
2 facebook.com 2011
Content matters little if potential consumers have no idea it exists…
Internet: 2.1 Bn1
Facebook: 350 Mn2
Twitter: 75 Mn2
LinkedIn: 50 Mn2
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The value chain: Before the rise of “smartphones”
Mobile
platform
Applicati
on dev.
Transacti
on mgt.
Handset/
device
providers
Mobile devices
Source: Frost & Sullivan analysis, various sources
Consumers
Network
element
Customer
careBilling Marketing
Service provision
Key access to consumers
AdvertiserContent
providerAggregator
Telco
operator
Service delivery
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The rise of “smartphones” & changes in the ecosystem
Advertiser Agency Aggregator
Content pools:
Media, Apps,
Games
Content delivery
Mobile
platformApps
Stores
Mobile
Webs
Source: Frost & Sullivan analysis, various sources
Handset/device
providers
Telco
operator
Handset & Operator
Key access to
consumers
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Where YOU will be NEXT?
Source: Frost & Sullivan analysis, various sources
Mobile
platform
Apps
Stores
Mobile
Webs
Advertiser
Agency Aggregator
Handset/device
providers
Telco
operator
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Understand your market: Social Network – Indonesia
Indonesia is the 2nd largest “facebook” user after the United States
United States 155,388,440
Indonesia 36,493,440
United Kingdom 29,729,640
Turkey 28,455,820
India 25,726,380
Mexico 24,336,060
Philippines 23,458,980
France 21,981,740
Italy 19,205,260
Germany 18,487,320
Top 10 Facebook Users
1
3
5
4
6
7
9
8
2
10
Top 10 Sites
Source: Frost & Sullivan analysis, various sources
Google.co.id
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Understand your market: Where smartphones are used?
Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT , Apr 2011
5,013 smartphone users
Frost & Sullivan analysis
29%
32%
50%
53%
54%
66%
72%
73%
77%
87%
93%
School
Library
Airport
At doctors
At café
Social gathering
Work
Restaurant
In a store
Commuting
Home
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Understand your market: Most frequent activities
81%
77%
68%
48%
Browsed the internet
Used a search engine
Used an App
Watch videos
Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT , Apr 2011
5,013 smartphone users
Frost & Sullivan analysis
“We Accelerate Growth”16
Understand your market: The most visited sites
77%
65%
46%
43%
38%
Search engine
Social networking
Retail websites
Video sharing
General consumer website
Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT , Apr 2011
5,013 smartphone users
Frost & Sullivan analysis
“We Accelerate Growth”17
“Understand your market, know
where you are in value chain, then
monetize your apps”
“We Accelerate Growth”
About Frost & Sullivan
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Dewi Nuraini
Corporate Communications, Frost & Sullivan
Phone : (+6221) 571.0838 / 571.3246
Email : [email protected]
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