VisionMobile-Developer_Economics_XXXX

©VisionMobile2011|www.DeveloperEconomics.com1©VisionMobile2011|www.DeveloperEconomics.com2ContentsKeytakeaways3Chapter1:DeveloperMindshare:winnersandlosersintheplatformrace11Chapter2:Takingapplicationstomarket26Chapter3:Thebuildingblocksofmobileapps43Chapter4:Brandsgomobile51AlsobyVisionMobileMobileIndustryAtlas|4thEditionThecompletemapofthemobileindustrylandscape,mapping1,350+companiesacross85+marketsectors.AvailableinwallchartandPDFformat.www.visionmobile.com/mapsAboutVisionMobileVisionMobileisaleadingmarketanalysisandstrategyfirm,forallthethingsconnected.Weoffercompetitiveanalysis,marketduediligence,industrymaps,executivetrainingandstrategy,rangingfromtheindustry'shottesttrendstoundertheradarmarketsectors.Ourmantra:distillingmarketnoiseintomarketsense.VisionMobileLtd.90LongAcre,CoventGarden,LondonWC2E9RZ+448450038742www.visionmobile.com/blogFollowus:@visionmobileAboutBlueViaBlueViaisthenewglobaldeveloperplatformfromTelefonicathathelpsdeveloperstakeapps,webservices,andideastomarket.BlueViaisbuiltonfourFoundingprinciples:Scale,Tools,BusinessModels,andPathtoMarket.BlueViaoffersgroundbreaking,zerorisk,businessmodelsfordevelopers,alongwith'mix&match'modelstocreatemultiplerevenuestreams.LicenseLicensedunderaCreativeCommonsAttribution3.0License.AnyreuseorremixingoftheworkshouldbeattributedtotheDeveloperEconomics2011report.Copyright©VisionMobile2011DisclaimerVisionMobilebelievesthestatementscontainedinthispublicationtobebaseduponinformationthatweconsiderreliable,butwedonotrepresentthatitisaccurateorcompleteanditshouldnotberelieduponassuch.Opinionsexpressedarecurrentopinionsasofthedateappearingonthispublicationonlyandtheinformation,includingtheopinionscontainedherein,aresubjecttochangewithoutnotice.Useofthispublicationbyanythirdpartyforwhateverpurposeshouldnotanddoesnotabsolvesuchthirdpartyfromusingduediligenceinverifyingthepublication’scontents.VisionMobiledisclaimsallimpliedwarranties,including,withoutlimitation,warrantiesofmerchantabilityorfitnessforaparticularpurpose.VisionMobile,itsaffiliatesandrepresentativesshallhavenoliabilityforanydirect,incidental,special,orconsequentialdamagesorlostprofits,ifany,sufferedbyanythirdpartyasaresultofdecisionsmade,ornotmade,oractionstaken,ornottaken,basedonthispublication.©VisionMobile2011|www.DeveloperEconomics.com3KeymessagesTheracefordevelopermindshareUseofmobilewebaccelerates.Thelastyearhasseenmanytwistsandturnsintheraceofmobileplatformstocapturedevelopermindshare.Mobilewebasaplatformhasseenanimpressiveupturninusage,andisnowinthirdpositioninourDeveloperMindshareIndex.AndroidandiOScontinuetoleadwith67%ofdeveloperscurrentlyusingAndroidand59%usingiOS.Windowsisnotyetthethirdhorseinthethree-horsemobilerace.UseofWindowsMobilehasdroppedamongdevelopersinthelastyear,whileWindowsPhoneisnotyetseenbydevelopersasacommerciallyviableplatform.YetWindowsPhone7hasmanagedtoestablishitselfinthenumbertwospotafterAndroidinourDeveloperIntentshareIndex,amongplatformswheredevelopersplantoinvest.Microsoft’sadvantagecomesfromtheinfluxofPCandXboxdevelopers,Microsoft’sbest-in-classtoolsandthepromiseofasubstantialuserbasewiththeNokiadeal.Symbian,Javaabandoned.SymbianandJavaMEarethetwoplatformswiththehighestdeveloperabandonmentrates;nearly40%ofdeveloperscurrentlyusingSymbianand35%ofdeveloperscurrentlyusingJavaMEareplanningtodroptheplatforms.JavaMEissufferingfromnegativehypedespitehavingbeenembeddedonmorethanthreebillionhandsets.Symbianisnowofficiallyaplatformwithanexpirydate,withtheNokiaSymbianhandsetline-upsettobediscontinued.Experimentationontherise.Developersareincreasinglyexperimentingwithmoreandmoreplatformsandtransitioningtonewones.Developersuseonaverage3.2platformsconcurrentlybasedonoursampleof850+onlinerespondents,representinga15%increasefromlastyear’sfigure.ShowmethemoneyMoneycan'tbuyyoulove,butuserscan!Largemarketpenetration(theabilitytoreachusers)isthemostcrucialfactorforplatformselection,importantfornearlyhalfoftherespondentsacrossallplatforms.Meanwhile,theabilitytomakemoneywasdeemedimportantinplatformselectionbyjustaquarterofrespondents,alongsidethelowcostdevelopmenttoolsandtheabilitytoquicklycodeandprototype.Losingmoney.Inthegoldrushtotheapplicationseconomy,noteveryoneismakingmoney.Aboutathirdofrespondentsmakelessthan$1,000USDperapplicationintotal,whichisloss-makinggiventhatanapplicationoftentakesmonthstodevelop.Commissionedvs.directmonetisation.Approximately50%ofappdevelopersinoursurveymakemoneythroughasalaryorcommission,confirmingthatcorporatemonetisationisbecomingasimportantasmakingmoneydirectlythroughapplications.Fordevelopersmakingmoneydirectly,thetoprevenuemodelispay-per-download,followedbyadvertisingandfreemium(freedownload,thenpaytoupgrade).Platformrevenuepotential.Notallplatformsarebornwithequalrevenuepotential.Ourresearchrevealedlargediscrepanciesacrossplatformsintermsoftherevenuesapplicationsarebringingtodevelopers.iOStoppedthechart,making3.3x©VisionMobile2011|www.DeveloperEconomics.com4moremoneyperappthanSymbiandevelopersfollowedbyJavaME(2.7x)andBlackBerry(2.4x).Android(1.7x