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How to Choose the Right Ecosystem for
Your Mobile Application
White Paper
Phone: 020 71127100 | Email: contactus@apppli.com | www.apppli.com
‘How to Choose the Right Ecosystem for Your Mobile Application’ 1. EXECUTIVE SUMMARY ............................................................................................................................. 2 2. GENERAL KNOWLEDGE ............................................................................................................................ 2 A. Introduction ......................................................................................................................................... 2 B. Technology, Environments and Ecosystems ........................................................................................ 3 Operating Platforms ............................................................................................................................. 3 Apple iOS .............................................................................................................................................. 3 Google Android .................................................................................................................................... 3 RIM Blackberry ..................................................................................................................................... 4 Microsoft Windows Phone 7 ............................................................................................................... 4 C. Device Types ........................................................................................................................................ 5 Smartphones ........................................................................................................................................ 6 Tablets ................................................................................................................................................. 7 D. Delivery and Distribution ..................................................................................................................... 8 Apple iOS .............................................................................................................................................. 8 Google Android .................................................................................................................................... 8 RIM BlackBerry ..................................................................................................................................... 9 Microsoft Windows Phone 7 ............................................................................................................... 9 3. CHOOSING THE RIGHT ECOSYSTEM ....................................................................................................... 11 A. Functionality ...................................................................................................................................... 11 B. Target audience ................................................................................................................................. 12 C. Distribution and Monetisation Goals ................................................................................................. 12 4. CONCLUSIONS ........................................................................................................................................ 13 About Apppli .............................................................................................................................................. 14 Page | 1 ‘How to Choose the Right Ecosystem for Your Mobile Application’ 1. EXECUTIVE SUMMARY The exciting business opportunities created by the mobile app boom have encouraged many entrepreneurs and businesses to develop and distribute their own applications. Without the benefit of industry expertise, however, venturing into the world of mobile application development can seem like a daunting prospect. An effective strategy is dependent on several important factors, but none are as critical as the choice of ecosystem. Understood as a working combination of device, operating system and delivery environment, a mobile ecosystem determines the way an application is discovered and used. In recent times, ecosystem choice has been complicated by the increase in advanced mobile devices and the availability of new operating systems. Optimal delivery and usage of a mobile application always depends on the ecosystem for which it has been developed, thus making the right decisions in this regard is crucial to the success of your mobile application. This white paper is intended as a guide to help you identify the most suitable environment for your mobile application. 2. GENERAL KNOWLEDGE A. Introduction Over the last several years the growth in smartphone penetration has dramatically reshaped the computing landscape in favour of mobile computing applications. It is estimated that more than one billion people will own a smartphone by 2013, while worldwide tablet sales will reach 81.3 million units in 2012, up from 15.7 million in 2010. Worldwide app store downloads are forecast to reach 17.7 billion by the end of this year, which amounts to a 117% increase from an estimated 8.2 billion downloads in 2010. By the end of 2014, an estimated 185 billion applications will have been downloaded from mobile app stores, the first of which was launched in July 2008. Ecosystem diversity sustains the growth of the mobile application market by providing a wide range of choices for users and developers. It also makes it more challenging to devise an effective mobile application strategy, the success of which depends in part on choosing the right combination of mobile device, operating platform and delivery mechanism. By gaining a basic knowledge of the technological landscape and focusing on the most critical issues, however, you can make the right decision when it comes to choosing the most suitable ecosystem for your mobile application. Page | 2 ‘How to Choose the Right Ecosystem for Your Mobile Application’ B. Technology, Environments and Ecosystems The main components of a mobile ecosystem are the operating platform, the device type and the distribution environment. Operating Platforms The most widely-‐used operating platforms are Apple’s iOS, Google’s Android, Research in Motion’s (RIM) BlackBerry, and Microsoft’s Windows Phone 7. Apple iOS Considered by many to be the leading operating system for mobile applications, Apple iOS is a proprietary platform best characterized by a tightly controlled development environment, a wide selection of high quality applications and a rewarding app store experience. The closed development environment means that iOS only supports devices manufactured by Apple, such as the iPhone and the iPad. Since Apple controls the manufacturing of all iOS devices, it can ensure uniformity of design and function while allowing developers to build applications that are compatible with all its products. The high quality of iOS applications is further guaranteed by a stringent testing and verification process that filters the applications before they are released. While Apple’s tough standards ensure the production of high quality applications, they also raise the cost of entry for developers and thus lead to higher costs of development within its ecosystem. Furthermore, Apple tries to force developers to use their in-‐app billing system, which can negatively impact the ROI for applications that have been designed to sell digital content. Google Android Developed and maintained by industry giant Google since 2005, Android is an open source mobile application ecosystem that can be run on a wide variety of devices made by different manufacturers. The low cost of entry and Google’s strong brand have resulted in the rapid uptake of the platform by developers in recent years, making Android the most popular platform for smartphones and second in the tablet market only to Apple’s iOS. Android’s open nature is a double-‐edged sword, however, when it comes to the ease of developing applications, since developers have to make their apps compatible with a wide range of devices with different screen sizes and hardware specifications. Page | 3 ‘How to Choose the Right Ecosystem for Your Mobile Application’ Although the low cost of entry has led to the creation of a loyal and expanding developer community, the lack of proper testing before distribution has affected the overall quality of Android apps. Critics argue that the overall quality of the Android user interface (UI) is considerably lower than iOS and the lack of control has led to a deluge of poorly designed applications. The unrestrained flow of applications into the Android market, coupled with device fragmentation and Google’s reluctance to actively market the platform, have also led to problems with discoverability and the availability and ease of purchase of paid applications. RIM Blackberry RIM has long been regarded as a pioneer in mobile computing and its Blackberry operating system has been widely used since the late 1990s. As a proprietary platform, Blackberry OS supports specialized communication protocols such as BBM (instant messenger) and Blackberry mail that can only be run on RIM smartphones and tablets. Perhaps best known for its native support for corporate email, it has been the platform of choice for the corporate community for many years. However the variety of sizes and form factors of Blackberry phones manufactured by RIM alone make it difficult for developers to support all devices. The Blackberry UI ,especially on the touchscreen devices, has been widely criticized for being unintuitive and sluggish. However, its high developer pay outs have led to a strong and growing developer community. Despite this, Blackberry’s smartphone market share has slipped to third behind Android and iOS. Microsoft Windows Phone 7 The global leader in operating systems for personal computers, Microsoft Windows recently launched the Windows Phone 7 mobile operating system. Designed for consumer instead of enterprise usage, Windows Phone 7 is a proprietary platform that can be run on and will soon replace the Symbian system used on Nokia phones, thus giving it access to Nokia’s large customer base. Thanks to a large existing base of developers for the Windows platform and a massive marketing push from Microsoft, the operating system has also built a healthy developer community. This has in turn led to a strong increase in the number of available applications in a relatively short time, thereby establishing Windows Phone 7 as a future player in the mobile application market. The Windows Phone 7 UI was widely praised by most in the industry for introducing a refreshing new layout. Page | 4 ‘How to Choose the Right Ecosystem for Your Mobile Application’ However the overall usability of the OS, which initially lacked many advanced capabilities of iOS and Android, has lately been catching up to deliver a complete smartphone OS. Microsoft has adopted a sort of hybrid open-‐closed system where it licences WinPhone7 to a multitude of hardware manufacturers while still tightly controlling the quality of applications released on its marketplace. Table 1. Operating Systems, Feature Summary Operating Market Share Development Cost of Entry Device System All Devices Environment Compatibility Apple iOS 16.2% Closed High Native Google Android 10.2% Open Low Non-‐Native RIM Blackberry Closed High Native Windows Phone Hybrid High Non-‐Native 7 Table 2. Apple iOS and Google Android Market Share, All Mobile Devices Apple iOS vs. Android OS Across Media Devices Total Installed Share (%) of 3 Mo. Avg. Ending February 2011 Base (000) Mobile Total U.S. Mobile Subscribers, Age 13+ Subscribers Source: comScore MobiLens Total Subscribers 234,000 100.0% Apple iOS 37,868 16.2% Android OS 23,763 10.2% C. Device Types The two most popular device types used to run mobile applications are smartphones and tablets. Smartphones offer advanced computing capabilities, enhanced web connectivity and great portability, but they have small screens and many popular applications are only available with limited functionality. Tablet computers are larger than smartphones, but they interact with the user in much the same way, employing a larger touchscreen as a primary input device. They are designed to run like notebook computers and are thus more adept at running more than one program or application at any one time. Since the launch of Apple’s iPad, a whole host of tablets have been released into the market, signalling a new trend towards portable computing. There are many device manufacturers, but only a few of them have been able to capture a big chunk of the market in each device category. Page | 5 ‘How to Choose the Right Ecosystem for Your Mobile Application’ Smartphones Until recently, Nokia was the worldwide leader in the smartphone market, producing phones that ran the Symbian operating system. Following the discontinuation of Symbian in favor of the Windows Phone 7 platform, however, Nokia has fallen to third behind Apple and Samsung. Apple has now assumed pole position with its universally popular iPhone, which was launched only four years ago, while Samsung comes in at a close second, thanks to its arsenal of Android-‐supported Galaxy phones. Nokia does expect to revive its fortunes by the end of 2011, when it plans to release a series of Windows-‐based phones. As for RIM, while its Blackberry phones remain highly popular in the enterprise market, it is losing ground in the consumer market to phones that support Android and iOS systems. Other manufacturers such as HTC, Motorolla and Sony Ericsson, initially experienced rapid growth with their Android offerings, but that growth has more or less disappeared due to increasing competition in the Android environment. Finally, there are regional manufacturers in developing countries such as India and white-‐labelled manufacturers, mostly based in China, which have been able to produce Android phones with comparable quality at lower prices. These smartphones have been getting a firm foothold in the lower-‐end of the market. At the higher end of market, it is safe to say that vertically integrated manufacturers such as Apple and Samsung will be able to bring innovations to market much faster than their competitors, thus maintaining their superiority over other original equipment manufacturers (OEM). Table 3. Smartphone Market Share, 2nd Quarter, 2011 (Source: Nielsen) Page | 6 ‘How to Choose the Right Ecosystem for Your Mobile Application’ Tablets When it comes to tablets, Apple is the unquestionable market leader both in terms of sales and innovation. Having played a pioneering role in the tablet-‐computing segment of the market with its iPad in 2010, Apple still maintains a hefty share of the tablet market with the faster and slimmer iPad 2. Android tablets, while holding a much smaller share of the market, have surged in popularity in the second quarter of 2011, following the launch of Android’s tablet-‐specific operating system called Honeycomb. Some of the new tablets that run this platform include the Motorola Xoom, the Asus Eee Pad, the LG Optimus pad and Samsung’s series of Galaxy tablets. RIM launched the Blackberry Playbook earlier this year in a smaller 7” form factor compared to the larger 10” standard set by the iPad and followed by most Android tablets. RIM also adopted a new QNX based operating system which is completely different from the Blackberry OS it runs on its phones. This means that the Playbook will not support any of the applications designed for Blackberry phones. Also developers have to learn to use a completely new toolkit specific to the Playbook which is not the case for the iPad and Android tablets. Another contender in the tablet space is the HP Touchpad which runs on the proprietary webOS system. HP devices based on webOS have not been able to gain much traction mainly because of the lack of applications. Though there has been an influx of new players in the tablet space, Apple’s iPad is expected to hold its grip on the market with its extremely competitive pricing and growing arsenal of tablet specific apps. However, this may change with the widely anticipated entry of Amazon later this year with an Android based Kindle tablet. Amazon, not unlike Apple, has room to sell its tablets at an extremely competitive price and then make up for the margin by selling content through its own Kindle and App Store platforms. When it comes to tablets, however, Apple iOS has a much larger market share than all of the other operating systems. Although Android is quickly catching up with Apple, RIM and HP currently hold relatively negligible shares of the market. Page | 7 ‘How to Choose the Right Ecosystem for Your Mobile Application’ Table 4. Tablet Market Share, (Thousands of Units) Source: Gartner, April 2011 Operating System 2010 2011 2012 2015 Apple iOS 14,766 47,964 68,670 138,497 Market Share (%) 83.9 68.7 63.5 47.1 Google Android 2,502 13,898 26,382 113,457 Market Share (%) 14.2 19.9 24.4 38.6 Blackberry QNX 0 3,901 7,134 29,496 Market Share (%) 0.0 5.6 6.6 10.0 Other (including 341 4,016 6,026 12,643 WebOS) Market Share (%) 5.6 5.7 5.6 4.2 D. Delivery and Distribution Mobile applications are delivered via their respective platform’s online store as well as third-‐
party vendors. Apple iOS and Google Android have the largest app store environments with Windows Phone 7 growing the fastest. Apple iOS Apple iOS applications are distributed solely through Apple's App Store, which has the largest collection of apps available for download. There are currently more than 500,000 iOS applications that have collectively been downloaded more than 15 billion times. The majority of the App Store’s applications are paid, but Apple make it very easy for users to purchase apps using their iTunes accounts where they can be downloaded anytime directly onto iOS devices or PCs. The high number of available apps is especially impressive when one considers the stringent testing procedures put in place by Apple before they approve any app and make it available to download. The most popular types of apps are books and games, with the latter accounting for more than half of cheap/free apps. The number of iPad apps has risen 13-‐fold since the launch of the device in 2010 and almost half of these apps have been games. Google Android The Android market grew exponentially in 2010, with there currently being over 250,000 apps available which have been downloaded over 2.5 billion times. Page | 8 ‘How to Choose the Right Ecosystem for Your Mobile Application’ This number is growing fast and will soon surpass that of Apple, with the number of available apps on the Android market increasing by 18% between January and February 2011. Android applications are distributed through the Google Android Market and other third-‐party vendors, such as Amazon, GetJar and Handango, where they do not require Google’s approval to be listed. The vast majority of Android apps fit under the Entertainment category, with most being available for free, but the average price of apps has been increasing in recent months. Furthermore, a small number of free apps dominate the total number of downloads, with less than 50 apps accounting for 43% of total downloads. It should also be noted that the 43% of all available apps are rated as low quality. RIM BlackBerry Blackberry applications are distributed through BlackBerry App World and third-‐party vendors such as MobiHand. At the current time there are only about 20,000 apps available on App World, but they have been downloaded at rate of 2 million per day and have increased by 10% from January to February 2011. All apps submitted to App World require approval from Blackberry before they are made available for downloading. Unlike Apple iOS and Android, users can purchase applications via Paypal, credit cards and phone operator billing, making purchases easier. Meanwhile, app discoverability has been facilitated by strong marketing as well as the attractive and user-‐friendly features of BlackBerry App World. Even though the number of applications available at the Blackberry app store has been increasing over the last year, the Blackberry app market still pales in comparison to those of Apple and Android. Moreover, the relatively high price of applications for sale and the lack of gaming and entertainment apps have deterred non-‐business users from using the platform. Microsoft Windows Phone 7 Windows mobile applications are distributed on Windows Marketplace, which was launched in October 2009. Despite there being only slightly more than 20,000 apps currently available, this number has seen a 30% increase between January and February 2011. All apps submitted to Windows Marketplace require approval from Microsoft before they are made available for downloading. Page | 9 ‘How to Choose the Right Ecosystem for Your Mobile Application’ The Windows Marketplace also gives users the option of a trial period where the developer can grant free access to the app for a limited time. However, since the marketplace is limited to only the most successful apps, there is not a wide range to choose from. Furthermore, the lack of HTML5 and multi-‐tasking support has hindered the adoption of the platform among consumers. Table 5. Ecosystem Feature Summary Operating Devices Store Apps Strengths Weaknesses System Apple iOS iPhone, iPad, App >500k Large collection of Stringent app iPod Store high quality apps; ease approval process; of purchase; strong restricted developer community development tool availability; limitations on in-‐
app purchases and subscriptions. Google Numerous, Android >250k Open ecosystem and Lower quality UI Android e.g. Google, Market access to all mobile and functionality; HTC, LG, capabilities similar to poor app Motorola, native applications, discoverability, Samsung, attracts developers, difficult to Sony Ericsson growing fast, Google purchase paid brand. applications; Google’s lack of marketing push RIM BlackBerry App 35k Paypal, credit Limited number of BlackBerry phones, World cards & operator apps; lack of PlayBook billing for apps; consumer apps; highest developer pay high price of apps. out. Microsoft Dell, HTC, LG, Windows 23k Marketing push by Marketplace limited Windows Samsung, HP, Phone Microsoft; large to most successful Phone 7 Nokia, phones Market-‐
existing developer apps, lack of HTML5 and tablets place community; trial support, no multi-‐
period for paid apps. tasking support Page | 10 ‘How to Choose the Right Ecosystem for Your Mobile Application’ 3. CHOOSING THE RIGHT ECOSYSTEM Having gained a basic knowledge of the ecosystem landscape, you can approach ecosystem choice with an informed perspective. Keeping in mind the overall goal of reaching the largest number of users possible, there are several important factors that you should consider in making your choice. These include the functionality requirements of the application, the usage patterns of the target audience, and the distribution/monetisation goals behind application development. A. Functionality Whilst your approach to choosing the right ecosystem will naturally differ according to your original concept, the first question is always the same: what will the application do? Deciding on the application’s primary functions will prove crucial in determining the required technical capabilities and narrowing down the target audience. App stores generally feature more than a dozen mobile application categories such as news, entertainment, sports, and business, but it is more helpful to define your application by functionality, as follows: ·∙ Content-‐Oriented applications that deliver high-‐quality content. (Games, Music, Books, Photos, Videos) ·∙ Information-‐Oriented applications that deliver content updated on a regular basis. (News, Search Tools, Directories) ·∙ Location-‐Oriented applications that deliver simple content based on the user’s location. (Maps, Guides) ·∙ Utility-‐Oriented applications that enhance productivity and improve user experience (Organization Tools) ·∙ Social applications that support interactions between users in real time (Social Networks, Social Directories) Even though a mobile application usually offers a combination of these functionalities, employing these categories will help pinpoint the application’s main technical requirements as well as its level of complexity. This information can then be used to determine which operating systems and device types can best support the functional needs of your application. Not all platforms are able to run Flash, for instance, and only some offer support for HTML5. To take one example, if your application is a game with complex graphics, it will be better suited towards a larger screen and thus better suited for a tablet. Furthermore, since Apple devices generally offer better resolution than their competitors, releasing the game on this platform will maximize its appeal. However, if your application also requires Flash animation then Apple iOS would not be a good choice as it does not support Flash. Page | 11 ‘How to Choose the Right Ecosystem for Your Mobile Application’ Once you have determined which operating platforms and devices will best support the functional requirements of your application, you can further narrow down ecosystem choice by taking into account the application’s intended audience. B. Target audience Although the functional aims of the application will predetermine its target audience to a certain extent, it would be unwise to choose an ecosystem without also considering the established usage patterns of mobile device owners. These patterns vary based on demographics, psychographics, geographics, and firmagraphics, which can be described in more simple terms as the age, income, location, lifestyle and employment attributes of the intended audience. At a very high level, these are some of the things you need to consider: is it for business users? General consumers? High income or low income? If you are targeting the non-‐business market and the mass market, the iPhone and the Android are the best platform for you. If you are looking to target the business community, who would like constant Internet access and other features on their phones, the RIM BlackBerry platform will be your most sensible choice. If the application is intended for consumers in a specific industry, then one must consider that industry’s characteristics as well as the habits of the already existing user base, i.e., what devices are most popular within each industry. For corporations and large companies it must be determined whether the application is intended for internal (enterprise) or external (marketplace) usage, or both. One must also consider whether the application is intended for business to business interactions or business to client interactions. C. Distribution and Monetisation Goals Having determined the functionality and the target audience of your mobile application, you must now consider the distribution and monetisation goals behind development. The first distinction to be made is whether or not the app is intended to generate revenue. Even though a large number of apps currently on the market are available for free, it must be remembered that apps can be monetised both directly, via revenue generated from app sales, and indirectly, as a free app, in the following ways: Page | 12 ‘How to Choose the Right Ecosystem for Your Mobile Application’ -‐ In-‐app sales, e.g., free apps through which products and services can be purchased. -‐ In-‐app advertising, e.g., free apps that feature advertisements within their interface. -‐ Freemium versions, e.g., free version of an app that entices users to purchase a more complete version. -‐ Brand building, e.g., free apps that promote a company and generate business down the line. If you are looking to generate revenue by selling your app, then you need to figure out the right price point, given the cost of development and distribution. You also need to have an effective marketing strategy in place that ensures that users can easily find and download your app. For further information on this, please refer to Apppli’s marketing White Paper-‐ ‘The Essentials of Mobile App Marketing.’ Each mobile platform offers different income opportunities. If the goal of the application is to generate steady revenue, then target the mass market with a large audience for your product. However, when targeting the high end business user with more disposable income, then higher end products would be more successful. 4. CONCLUSIONS Formulating an effective strategy for mobile application development requires a thorough understanding of the current ecosystem landscape. In order to maximize return on investment, you must be able to identify the ecosystem that will give the end user the best possible experience, including how the app is discovered, downloaded and used. While ecosystem diversity provides a plethora of options when it comes to application development, it can also lead to confusion and, in turn, poor choices that can spell disaster for your application campaign. By carefully considering the functional requirements of your application, realistically determining its target audience and deliberately weighing the various distribution/monetisation options, you can go a long way in narrowing down ecosystem choice. Remember that while the size of sales is important, the end user always needs to be given priority over everything else. Page | 13 ‘How to Choose the Right Ecosystem for Your Mobile Application’ About Apppli Apppli is a full service app development and app marketing firm based in London. We design, develop and promote market-‐leading mobile and web apps and software solutions for clients across industries. We work closely with our clients to help them build their brand, increase productivity and improve ROI. Combining a rapid go-‐to-‐market model with extensive industry knowledge, we tailor solutions to any scope or budget. Our app development team has solid experience within the mobile application market; having successfully reached 100,000s of downloads for our past clients. www.apppli.com UK (+44) 20 71127100 US (+1) 800 282 0149 (Toll free) Page | 14