App Economy Market analysis for Economic Development
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1 App Economy Market analysis for Economic Development Mustapha Hamza, ISET Com Director ITU Arab Forum on Future Networks: "Broadband Networks in the Era of App Economy", Tunis - Tunisia, Feb. 2017
2 App Economy The sum of all economic activity, products and services, required to deliver app functionality to end users via mobile broadband services Global Local Personal
3 App Economy Potential: exportable Opportunities for economic development Growth for a local area by writing a mobile application that is nationally or even globally successful. local universities, an educated workforce, desirable amenities such as quality of life and ease of recreation.
4 App economy value chain Investment, development in app startups Smartphone production App developers and app stores IT & backbone infrastructure Telco services, broadband
5 Context statistics Subscribers 6, 5, Global unique mobile subscribers Number of unique mobile subscribers worldwide from 2010 to 2020 (in billions) The number of mobile subscribers will continue to growth slowly but to reach more people even in developing countries 4, 3, 2, 1, 0, Platforms Sales continue to growth Two dominant players (IOS and Android) Innovation and new functionalities evolution 350, 300, 250, 200, 150, 100, 50, 0, Global smartphone sales to end users from 1st quarter 2009 to 3rd quarter 2016, by operating system (in million units) Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4' Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 13 '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 Android ios Microsoft RIM Bada* Symbian* Others
6 Context statistics Trafic Services delivered through the mobile telecommunications network, has led to strong growth in consumer demand for fixed and mobile bandwidth. Government policy concerning infrastructure investment, communications regulation and a range of related issues has played critical roles in the development of these services. The price and quality of these services remains a key political issue for many, if not most, governments around the world Global mobile data traffic from 2016 to 2021 (in exabytes per month) * 2018* 2019* 2020* 2021* 0 Mobile data traffic in Middle East and Africa from 2016 to 2021 (in terabytes per month) * 2018* 2019* 2020* 2021*
7 Context statistics Jul '08 Sep '08 Jul '08 Sep '08 Apr '09 Jul '09 Nov '09 Mar '10 Jun '10 Oct '10 Jan '11 Jun '11 Oct '11 Mar '12 Jun '12 Sep '12 Jan '13 May '13 Jun '13 Oct '13 Jun '14 Sep '14 Jan '15 Jun '15 Jun '16 Jan '17 Apr '09 Jul '09 Jan '10 Apr '10 Jun '10 Sep '10 Oct '10 Jan '11 Jun '11 Jul '11 Oct '11 Mar '12 Jun '12 Sep '12 Jan '13 May '13 Oct '13 Jun '14 Oct '14 Jun '15 Jun '16 Sep '16 Dec '09 Mar '10 Apr '10 Jul '10 Oct '10 Apr '11 Jul '11 Aug '11 Dec '11 Feb '12 May '12 Jun '12 Sep '12 Oct '12 Apr '13 Jul '13 Jul '14 Feb '15 Jul '15 Nov '15 Feb '16 Sep '16 Dec ' Number of available apps in the Apple App Store from July 2008 to January Number of available apps in the Google Play Store from December 2009 to December , 140, 120, 100, 80, 60, 40, 20, 0, Cumulative number of apps downloaded from the Apple App Store as of Sept 2016 (in billions) Cumulative number of apps downloaded from the Google Play as of May 2016 (in billions) Aug '10 May '11 Jul '11 Dec '11 May '12 Jun '12 Sep '12 Jan '13 May '13 Jul '13 May '16
8 Business models Premium Freemium Charging money for an app The app away for free Making money via in-app purchases (IAP) Ad supported Potential: exportable Hybrid Apps are supported by advertising. freemium with ad-supported premium with in-app purchases (IAP)
9 App economy for operators Contributed to the app economy growth: pricing models Benefited from app economy: users have consumed much larger amounts of data They are a pipe Picking majority of the revenues from core service A free ride to OTT players Deploy skills, partnerships and integration capabilities across the value chain
10 Operator API contribution Operator s initiative to be more involved in the chain value Objective: make money beyond connectivity Usage universally low Limited technical integration Lack of commercial models and incentives Difficulty to find and grow the markets of developers
11 Conclusion Application economy allows great opportunity for in developing countries Need a stable, secured and managed IT platform Various business models Need of developers in terms of number and qualification
12 Thank you for your presence
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