The Amazing iPhone: The opportunity for business owners

Jan 12, 2009 | Publisher: katie | Category: Technology |  | Collection: Migrated Docs

The Amazing iPhone A guide to the iPhone opportunity for developers and business owners Version 1.0 (05.12.08) This report was commissioned by ICDC and written by Kisky Netmedia Kisky Netmedia 2008 Some Rights Reserved 1 of 41 Summary The iPhone: its sleek design, always-on connectivity, enterprise support, application platform, quirky third party apps and the fact that it's made by Apple keep the iPhone in the headlines. Those who have one say they'd never go back, and the iPhone wins hands down in comparisons with other 'smart' phones. The iPhone is rapidly expanding in global markets; already in 58 countries, it's set to be in 70 countries soon. The iPhone 3G launched in the UK in July 2008 is even more popular than the original iPhone having already sold over 6m units (1 million in the first weekend it went on sale). The 'device' itself seems to transcend mobile phones; creating a new product genre; it sure is a smart phone, but it's a smart phone that appeals way beyond the traditional smart phone market. iPhone is first and foremost a phone (you can make phone calls with it); and whilst there's arguably relatively little innovation to be made in terms of voice, Apple has indeed innovated everywhere; including in voice, as you might expect. iPhone boasts a fully featured web browser via Safari, email via Mail, Events and Calendars via iCal as well as great Utility apps from a calculator, to Address Book, to Notes. Oh, and of course all of your mobile 'stuff' is synched to your computer via Mobile Me; even PC users get great synchronisation capabilities. When you're not at work there's YouTube to play with, and it's an iPod; so it holds all your music, and TV shows. Oh, and all of that just comes as standard in a super-easy-to-use interface. It seems you either love it, or you love it, unless you haven't actually held one yet, in which case you should, so you can make up your own mind. It's not just the iPhone device though that's being described as a 'game changer' heralding in Mobile 2.0; there's more to it than that. iPhone comes with its own marketplace; the App Store where third party developers can distribute their software. The App Store, controlled by Apple enables anyone the chance to either distribute an application for free, or to charge for each download. Whilst Apple takes 30% of sales revenues, the 70% revenue to the developer is appealing and previously unheard of in the mobile applications business. Whilst Apple moderates what goes into the App Store; essentially it is far more open that any other mobile ecosystem to date. Anyone can create an application and apply to become an official iPhone SDK developer, anyone can submit an application to the App Store and if successful, as most are, anyone can sell their application to a consumer base that is easy to target with one point of sale. Even niche services can reach their longtail audiences via the App Store. Apple has not only created a new breed of phone, and marketplace, but a new way of thinking about mobile content and what makes a good mobile service or application. Unlike any other previous mobile platform, Apple is enabling the consumer to decide. Whereas previously, application developers would need to do deals with either handset manufacturers or network operators to get their apps pre-installed on phones or accessible via a list of 'recommended apps', now, the field is well and truly open to all. The iPhone App Store is a groundbreaking strategy for a handset manufacturer; enabling third parties to create great content and applications for your device; building yet more appeal for consumers; and more revenue. The App Store launched in June 2008; it already boasts over 10,000 Apps and over 200 million downloads and is as diverse as the capabilities of the device itself. You'll find high quality games, addictive time-wasters, city guides, social networking and location aware apps, music recommendation apps, health and fitness aids and productivity tools. And unlike traditional mobile applications, the experience is in a class of its own. iPhone does things other phones don't do (yet); it comes with GPS location awareness built in delivering a new plethora of 'Location Based Services'. iPhone also has a touch screen meaning previous keypad restrictions on handsets are effortlessly Kisky Netmedia 2008 Some Rights Reserved 2 of 41 overcome; making for a much more intuitive user experience. It comes with an 'accelerometer' meaning you can make applications based on gestural input (such as motion, vibration and tilt) - enabling really fun games. The SDK (Software Development Kit) enables developers to access various parts of the device; for example the camera and the photo album and location based services, so it's possible to create feature rich integrated applications, (an app that takes pictures, geo-tags them with your location and allows you to see other photos taken 'nearby is just one example)'. Most iPhone owners have downloaded a range of applications; some for work, some just for fun, and the App Store is fast becoming a showcase of mobile application innovation. High-end games sell for 5.99 or more whereas other apps are selling for 59p; and many are free. The attraction for developers is clear; even at 59p (the 99 cent equivalent) the App Store offers a powerful way to reach your consumer base; just 10,000 downloads offers developers a healthy 'carrot' to develop new innovative applications. So is the iPhone platform creating an explosion of developer-entrepreneurs; all looking to make a fast buck? Well, yes and no. Like the web, developers have no, or low barrier to entry; in theory anyone can now make a mobile app, and there are plenty of ideas out there. Unlike the web however where you can develop web applications in a variety of programming languages, the skills required for iPhone development are more specific; and arguably harder to come by. Developing an application for iPhone requires skills in Objective-C programming; although other Mac development experience from Cocoa to WebObjects also comes in handy. There are plenty of PHP and Ruby on Rails programmers out there who would love to make the most of this platform but who don't (yet) have the skills. A quick search for iPhone developer positions vacant will confirm that the few developers who are skilled in this area are in serious demand. Hot on the heels of this new breed of mobile developers will doubtless come iPhone strategists and iPhone designers; the platform indeed requires a new way of thinking about mobile services. The iPhone opportunity is appealing across the board, and not just to independent developers; games companies are developing special versions of their games for iPhone, web services are going mobile on iPhone, brands want to be in your pocket (on iPhone); the possibilities seem endless. Corporations are building in-house development teams to create corporate applications, brands are commissioning independent developers, and web design agencies are branching out, adding iPhone development services to their offering. For small businesses too, iPhone offers a way to reach a new, content-hungry audience; for many, creating an iPhone App is the new way of looking at 'online and mobile marketing'. Whilst iPhone is redefining the mobile landscape and taking the world by storm, it is still very new; in its infancy. We've yet to see the market for apps saturated and there's still plenty of room for innovation. Everyone working in this area is indeed still learning: what makes a great app how to monetise an app, how to take web based services mobile. And iPhone represents a significant investment opportunity; US based venture firm KPCB announced iFund1, offering $100 million worth of investment. So what does this new platform represent to technology companies, developers, brands and business owners? The Amazing iPhone project is a report (and accompanying event in Liverpool) on the iPhone device, platform and opportunity for both using iPhone and for creating apps for it. In this report we will cover the basics from development and business perspectives. We have been watching the iPhone space, from the device, to the apps, to the developers, to industry reactions, and will share this insight alongside direct experience of developing an application for iPhone. Kisky Netmedia 2008 Some Rights Reserved 3 of 41 1 http://www.kpcb.com/initiatives/ifund/index.html "Coffee Buzz" is a new social tool for sharing and finding great coffee experiences; an idea we developed especially for the iPhone platform. We'll be sharing our experiences of developing the concept and the application itself via a separate report "The making of Coffee Buzz" which is also downloadable at www.theamazingiphone.com. More information on Coffee Buzz will be online at www.coffeebuzzapp.com. The Amazing iPhone report is aimed at business owners and strategists and at technologists and developers. The report aims to give an overview of the space for iPhone new-comers and useful guidance for those wishing to move into iPhone development. We'll point you at iPhone related events, iPhone news, iPhone development tools and training and iPhone developers themselves. The author of this report is Kisky Netmedia is a consultancy based in Liverpool, UK, which specialises in Social Mobile Strategy; advising businesses and public sector clients how to harness new and emerging technologies and platforms. This report was commissioned by the International Centre for Digital Content (ICDC) in Q3 2008. Liverpool John Moores University's International Centre for Digital Content is a centre of excellence for the research and commercial exploitation of digital content. ICDC is supported by both the European Regional Development Fund under Objective One for Merseyside, as well as the North West Development Agency. For further information, visit: www.icdc.org.uk and www.kisky.co.uk Kisky Netmedia 2008 Some Rights Reserved 4 of 41 iPhone Rocks! Before we get into the hard facts; the statistics and projections, we thought we'd start with explaining a little about the cult of iPhone. From the outlandish claims that the iPhone is indeed 'magic', or 'the Jesus Phone2' to the many 'homages to iPhone' videos on YouTube, it's clear iPhone owners are passionate. 3Marco Tempest's "iPhone Magic" Video on YouTube4, uploaded in June 2007 is not only funny, but eerily spot on. Apparently uploaded at the iPhone launch event, Marco manages to foretell a few future apps way ahead of the launch of the App Store. Marco pokes fun at the cult of iPhone - 'can it do no wrong?' whilst demonstrating just why iPhone is seen as cool by so many. Watched over 5 million times, Marco's iPhone Magic video is much better than a lot of them but it's not just Marco who's made an iPhone film. The less creative, (or magical), focus on the real features of iPhone; the apps, and of course why they 'just love it'! Taking an objective view can be hard in this sea of iPhone enthusiasm. The cult of iPhone seems to have permeated every corner of the world. Whilst the iPhone owner demographic was initially made up of high income households (due to the originally higher price tag) iPhone's appeal is spreading. We'll focus more on who's buying iPhones later, for now we want to focus on the iPhone passion; in an attempt to enthuse and inspire. After all, this is a marketeer's dream; Apple has harnessed a smart consumer willing to tell their friends; tell the world even of their iPhone love and devotion. And this is not just about the super geeks! (Right.) In the early days of iPhone, TUAW (The Unofficial Apple Weblog) put out a5 call for pictures of 'iPhone around Kisky Netmedia 2008 Some Rights Reserved 5 of 41 2 http://www.techcrunch.com/2007/06/08/3-weeks-until-the-iphone-goes-on-sale/ 3 Marco Tempest: http://www.marcotempest.com/ 4 iPhone Magic Video http://uk.youtube.com/watch?v=lcB8CKa73B0 5 http://www.tuaw.com/photos/iphones-around-the-world/626262/ Europe'. And obligingly you'll find a picture of your author demonstrating an iPhone in Amsterdam via the TUAW site! Whilst researching the enthusiasm for the iPhone via imagery, a trend emerged; 'iPhone portraits'. It seems the bold and the beautiful don't get their portrait taken without one! More iPhone Portraits are here on Flickr.com,6 a popular photo sharing website. One thing's for sure; they're all just so much better than the pictures you get if you search for 'another mobile handset' portrait! It's true to say that these images do not represent all iPhone users, but a large number of people for whom iPhone is indeed an icon. 7 So what sets these consumers aside from 'normal mobile phone users' (known in the mobile industry at least, as 'normobs')8? Are these really smart consumers? Who says so? Steve Jobs says so. In a recent Engadget article, Steve is quoted as 'calling Apple customers' "the smartest, more product- aware customers in the market."9 Being a "smart" consumer - seems like the perfect compliment; "Thanks for being clever enough to buy our products!" Whether these consumers who are willing to make films and portraits about their love for iPhone are indeed smart, is not the issue. They are pretty tech savvy, fashion conscious 'sneezers' (those early adopters who encourage friends to buy the 'new new thing'); importantly, Apple needs to have a broader appeal outside those that instantly (smartly or otherwise) adopted the cult of iPhone; if it's to do what it did with iPod and create an 'iPhone Generation'. But Apple needs not worry; iPhone has quickly transcended the niche and with the launch of iPhone 3G specifically, has gone mainstream. Kisky Netmedia 2008 Some Rights Reserved 6 of 41 6 http://www.flickr.com/search/?z=t&l=cc&w=all&q=+iphone+portrait&m=text 7 Images from: www.flickr.com/photos/robhardingii/2787936139/ www.flickr.com/photos/b3ni/2400859727/ and www.flickr.com/photos/minxlj/2741941255/in/set-72157594499965878/ 8 http://www.mobileindustryreview.com/2008/02/the_term_normob_hits_the_big_time.html 9 http://www.engadget.com/2008/10/21/apple-q408-results-out-6-9m-iphones-sold-record-mac-sales iPhone Sucks! Of course not everyone's a fan of iPhone and not everyone's a fan of Apple Inc. Traditionally Apple attracted a certain type of consumer. 'Smart' or not, they came from higher income households and were prepared to pay more for an Apple computer than a PC made by someone else. This consumer is interested in design and functionality over cost; and is extraordinarily loyal. The term 'Switching'10 in modern day computer terminology has been adopted by Apple to mean 'someone switching from a PC to a Mac'. There's no backwards application of the term; it's not also used to mean a Mac user who feels like a change so moves to a PC. Apple has its customers hooked; and perhaps it is this devotion which alienates some of those who are not Apple customers. Ads like 'I'm a PC and I'm a Mac (left)11, point a finger of fun at PCs. The ads portray PCs as 'a bit stupid' compared to Macs. It's not surprising then that amongst the army of consumers worldwide there are a few 'non believers', those that don't want to believe they're using inferior technology. Apple inspires passion; from customers who love their products to the people (who are often not Apple customers) who hate them. This inspires heated discussion on blogs and user communities; in which often neither side takes a particularly balanced view. It is often hard to know if what you're reading is balanced journalism, or biased or ill informed opinion. Offering insight into the technology platform, the mobile industry, or marketplace requires a significant amount of skill and experience, in considerably complex areas. iPhone has forced many parties to sit up and take notice; to weigh up pros and cons, to identify and quantify markets and opportunities. And as with anything online, in 2008 at least, you'll most probably be reading commentary from many authors in one space. Several voices, perhaps some are tech journalists, pro or amateur bloggers, some may be users and owners, some may even be competitor plants. What you can be sure of is that by launching such a game-changing device, backed up by a revolutionary business model, Apple has not only grabbed market share, but also considerably 'ruffled feathers'. Not everyone likes a success story, and occasionally this results in unbalanced reporting. Don't believe everything you read about iPhone! not everyone; even technology pundits get it right all of the time, or offer you a balanced article from which to make up your own mind. Daniel Eran Dilger is a blogger writing Roughly Drafted Magazine; Daniel gets to the bottom of the anti-iPhone commentary and tells you how it really is. Many of Daniel's articles explain the background behind the technologies and market conditions, even the personalities at the top of these corporations. His article 'The iPhone Monopoly Myth'12 offers a deep insight into the motivation of many who claim "iPhone sucks"! Kisky Netmedia 2008 Some Rights Reserved 7 of 41 10 http://www.apple.com/getamac/ 11 http://uk.youtube.com/watch?v=VEVjILqU3pU&feature=related 12 http://www.roughlydrafted.com/2008/09/18/the-iphone-monopoly-myth/ Before iPhone iPhone is emotive: both its supporters and naysayers are passionate and noisy, and many are relatively eloquent. All are gradually developing a deeper understanding of the importance of iPhone; just how it is changing mobile as we know it. Whilst iPhone has ramifications for the wider technology world, in order to fully understand the impact of the iPhone it is important to have at least a basic understanding of the mobile industry. An industry that some are relegating to 'Mobile 1.0', in the shadow of Apple as they charge straight into the mobile arena; rendering useless version 1.0 instead, seemingly effortlessly creating their own Mobile 2.0 platform and ecosystem. The mobile industry 'traditionally' in the 2000-2006 period (pre-iPhone) comprised: Network Operators (carriers); Handset Manufacturers; and Software providers (OS and apps on the handset or to download). In addition there were a host of: Mobile Payment Gateways; Software platforms: the "middlemen" between software developers and consumers; SMS Providers, Gateways, and Aggregators; and Content providers (think ringtones, 'wallpapers', and 'logos'). These interlinked providers all have the aim of taking a percentage share of transactions that occur over the mobile data network. This small village of providers was not open to outsiders; each aimed to protect their share of the mobile data 'pie'. The mobile industry was indeed a "walled garden"; and the industry itself not only accepted this description; but traded on it. As the industry matured, some sought to open mobile; authors Ajit Jaokar and Tony Fish were instrumental in documenting the industry and its future potential in their book 'Open Gardens'13. "While the mobile data industry holds considerable promise in future, the existing ecosystem is challenging for the 'grassroots entrepreneur." They acknowledge that the mobile data industry is a tough place for entrepreneurs; and indeed the incumbents want it to stay that way. But that for the industry (including its incumbents) to thrive, innovation must happen. Perhaps the best way to describe the industry is from the viewpoint of an independent developer. Let's imagine a developer has a great idea for a mobile application. Maybe it's for a specific handset / feature set, or maybe it's an app that can be made to work on many handsets (more likely). If, for example, the developer chose a platform such as Symbian, there's still a lot of work to do to ensure the application does indeed work on all Symbian phones. For the application to successfully run on a range of handsets the developer will have gone to significant lengths to test it in multiple environments. They may use a service like TestQuest14 or outsource testing to companies such as Photon InfoTech15 offering low cost off shore mobile testing services. Kisky Netmedia 2008 Some Rights Reserved 8 of 41 13 http://www.opengardens.futuretext.com/ 14 http://www.testquest.com/ 15 http://www.photoninfotech.com/ The next hurdle is the fact that even a great, well tested application has no audience. A developer has a choice: they can approach a handset manufacturer, or a carrier, or both, or they can opt to ignore the 'walled garden' of the mobile industry proper, and either sell it on the 'alternative applications' market, or promote it themselves. It's not just handset manufacturers who say what goes onto the phone; the network operator also has a say. They've done a deal with the handset guys which dictates what you get on your home screen. So doing a deal with either handset manufacturers, or carriers is difficult. Your application bundled on a new handset could indeed be lucrative, but it's rare. So most developers opt for an alternative platform such as mobile application portal Handango. But platforms like Handango take high percentage fees - currently now 40% plus tax16. The combination of: multiple development environments; all with different standards and conventions; complex and costly testing; inability to distribute on the handset via a manufacturer or operator; and low return from alternative distribution platforms has meant that the mobile applications market stagnated; certainly in terms of the customer experience. For consumers; there has been little choice or innovation in mobile content or applications. For years the industry has sought to drive consumption of mobile services; but without delivering anything new. That's not to say that customers won't try new things, but the reality has been that many mobile customers rarely try new services. The public has a distrust of mobile, perhaps due to reports of scam services over charging customers for 'reverse bill data'. Certain forms of mobile content have established themselves; ringtones and mobile games developers have done well in this environment. Because companies specialising in these areas cannot deal direct with manufacturers or operators, they have often created their own distribution platforms, web and mobile portals for example. Much of the effort involved in selling mobile content however has more to do with other non-mobile forms of marketing and so these developers, whilst they may turn profit, rarely innovate. A successful company dealing in ringtones operates by employing teams of staff to create TV adverts (in Flash for example), and then more teams to buy advertising space on cable channels. Mobile content 'the product' is a tiny part of the business. This situation favors throw-away content and ideas; and, in a space where many players require a cut, it favors over-priced and low quality user experiences. A successful strategy in this mobile marketplace is to run a low cost development shop which churns through many ideas; content, applications or games with a short shelf life. Mobile games and application developers can less easily follow the ringtone model, as the product itself needs a certain level of quality but many will develop many ideas at once; in the hope that one will be a big hit. This risk model is not necessarily a bad one and some argue that this is an emerging model on the iPhone platform too. What made this particularly unexciting in the traditional mobile market however, is that the handset capabilities were also poor, so that even conceptually sound applications and games made for lackluster customer experiences. Kisky Netmedia 2008 Some Rights Reserved 9 of 41 16 http://developer.handango.com/ Towards "Open Mobile" People have for a long time been speculating about what a more open mobile environment may look like. And 'open mobile' needs large scale thinking - across handsets, operators, software and distribution. The aim for a more open mobile ecosystem is that developers would more freely be able to create and distribute content and applications; driving use - which would in turn mean that the whole value chain benefits. In recent years, handset manufacturers and network operators are offering more support, for example Orange Partner17 programme is active in supporting developers via a range of initiatives. New forms of mobile testing may gather momentum; for example Mob4Hire18 is a service which offers 'Crowd Sourced Mobile Testing', asking remote individuals to test software; and rewarding them for doing so. A core opportunity is distribution; enabling developers to reach their audiences and to make a fair profit from each download. Another core opportunity is to open the device itself, and that's where Android19 lead by Google and the Open Handset Alliance20 comes in. "Android is a software stack for mobile devices that includes an operating system, middleware and key applications. The Android SDK provides the tools and APIs necessary to begin developing applications on the Android platform using the Java programming language."21 Developers can create applications that run on Android; and handset manufacturers can take the core Android code (developed by Google) and customise it to run on their handsets. Android is new; and with very few devices available its success is still to be determined. The open principle however will attract many new developers. If the theory is correct, the openness both of Android and of iPhone although different approaches; should mean that more developers are attracted to develop (and design) for mobile. As development (and associated testing and distribution) across mobile in general gets easier, the opportunity and profit margins in mobile application development increase. In turn, as handsets become ever more capable, the outlook for mobile is positive; for the newcomers and to some extent for the incumbents. If developers with fresh ideas can invigorate a stagnant market everyone benefits; including consumers. For further reading, a great mobile industry blog which charts the rise of new and emerging mobile services, businesses and platforms is Rudy De Waele's m-trends blog at http://m-trends.org. Kisky Netmedia 2008 Some Rights Reserved 10 of 41 17 http://www.orangepartner.com/ 18 http://www.mob4hire.com/ 19 http://en.wikipedia.org/wiki/Google_Android 20 http://www.openhandsetalliance.com/ 21 http://code.google.com/android/what-is-android.html Key Dates The iPhone has only been available to buy anywhere since June 2007; but in less than a year and a half it has established itself as a game-changer. In truth, anticipation of the iPhone started long before the summer of 2007, with speculation on what an Apple phone might 'look like' going back way earlier. The earliest mention if iPhone is from 1999 when Apple registered the iphone.org domain name. Inspired by "iPhone timeline" at iPhone Gold22 the following timeline shows key dates for iPhone. August 1993 Apple introduces its first handheld device the Newton23 February 1998 Steve Jobs returns to Apple and kills the Newton along with various other products. 14th December 1999 Apple acquires the domain name iphone.org, which to this day directs visitors to apple.com/iphone. 9th January 2007 Steve Jobs announces the iPhone at the MacWorld conference. 29th June 2007 The iPhone is launched in the USA 5th September 2007 The iPod Touch is launched. The iPhone is reduced in price by $200 and the 4GB model is discontinued. 9th November 2007 iPhone is released in the UK on the o2 network. iPhone is released in Germany on the T-Mobile network. 29th November 2007 iPhone is released in France on the Orange network. 5th February 2008 Apple releases the 16GB iPhone. 6th March 2008 Apple releases the SDK (Software Development Kit) enabling developers to create applications for iPhone. 9th June 2008 Apple announces the 3G iPhone and the App Store at WWDC (Worldwide Developer Conference) in San Francisco. 11th July 2008 iPhone 3G is available in shops in 22 countries. Kisky Netmedia 2008 Some Rights Reserved 11 of 41 22 http://www.iphonegold.org/iphone-timeline.html 23 http://en.wikipedia.org/wiki/Apple_Newton At time of writing (November 2008) iPhone 3G is available in Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Colombia, Czech Republic, Denmark, Finland, France, Ecuador, El Salvador, Estonia, Germany, Greece, Guatemala, Honduras, Hong Kong, Hungary, India, Ireland, Italy, Jamaica, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macau, Malta, Mexico, Moldova, Netherlands, New Zealand, Nicaragua, Norway, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Romania, Russia, Singapore, South Africa, Spain, Slovakia, Sweden, Switzerland, Turkey, UK, Uruguay, USA, US Virgin Islands. (58 countries). Future iPhone 3G will soon be coming to Botswana, Cameroon, Central African Republic, Croatia, Dominican Republic, Egypt, Equatorial Guinea, Guinea, Guinea Bissau, Ivory Coast, Jordan, Kenya, Madagascar, Mali, Mauritius, Niger, Panama, Qatar, Senegal and Venezuela. (A further 20 countries). iPhone Availability Map: Now iPhone Availability Map: Soon Kisky Netmedia 2008 Some Rights Reserved 12 of 41 iPhone Sales Figures It's true that since the announcement of the fourth quarter 2008 sales figures, iPhone is looking pretty healthy. Indeed Apple got off to a great start with sales of 1.38 million in the few short months of 2007. iPhone launched 29th June '07 giving it till end of September to reach that figure. (Apple's financial year runs from the end of September). The sales figures are identified below - and you might notice some anomalies; growth, then a dip, then a bigger dip, then 'insanely great24' figures in the last quarter. It is also true that the iPhone 3G has already outsold the original iPhone (unofficially now referred to as iPhone 2G); and that latest sales figures represent a much larger global market than in the iPhone's first year in just a handful of territories. We've untangled the reports, predictions and analysis to bring you hard facts - checked against Apple's own quarterly reports. Quarter 4 2008: Headline Snapshot Total iPhones sold in 2008: 13 million 3G iPhones: 1 million sold in 1st weekend Apple's sold more 3G iPhones than original iPhones25 3G iPhones in Q4 2008 across 51 countries: 6.9 million Techcrunch estimates Apple is on target to sell 40 million iPhones in 2009 iPhone now outsells Blackberry26 In revenue terms Apple is the No3 handset manufacturer worldwide The following figures are for iPhone (2G and 3G versions). For 3G figures only, take figures from Q4 08. iPhone Sales by Quarter Since Launch Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Units sold in Quarter 270,000 1,119,000 2,315,000 1,703,000 717,000 6,892,000 Cumulative iPhone Sales Since Launch Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Cumulative Sales Year 270,000 1,389,000 3,704,000 5,407,000 6,124,000 13,016,000 1,389,000 13,016,000 Kisky Netmedia 2008 Some Rights Reserved 13 of 41 24 (A favourite Steve Jobs expression) 25 http://www.techcrunch.com/2008/08/26/iphone-3gs-now-outnumber-first-generation-iphones/ 26 http://www.dmwmedia.com/news/2008/10/22/apple-iphone-outsells-blackberry-last-quarter Growth in iPhone Sales The previous tables and graphs below demonstrate the sales curve. In terms of quarter on quarter results, the launch of iPhone 3G heralds a positive future; but it wasn't always like that; Apple struggled to deliver exponential growth in early 2008. Sales figures for the third quarter 2008 showed a slowdown in sales; but this was due to the fact that consumers were awaiting the iPhone 3G; in fact Apple stopped production of iPhone 2G almost 2 months before the introduction of the iPhone 3G. In terms of cumulative and quarter by quarter sales, the curve is now 'up and to the right'; indicating that since the launch of iPhone 3G in currently 58 countries, iPhone is set to be a big success. Market Share As an indicator of success, market share is often quoted in relation to iPhone; both by analysts claiming Apple is doing well, and doing badly. The smartphone market is the market in question; although some may argue that 'mobile phone handset' market share may be a better indicator of the rate of market penetration. The latest comprehensive statistics available are from Q3 2008 27, and as such, do not include Apple's significant growth spurt since the launch of iPhone 3G. The figures below therefore are outdated and it is anticipated that newer figures will show iPhone taking a much larger share of the smartphone market. Smartphone % Market Share (Q3 2008) Symbian iPhone Blackberry Windows Mobile Linux Other 46.6 17.3 15.2 13.6 5.1 2.2 0 1750000 3500000 5250000 7000000 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 iPhone Sales by Quarter 0 3,750,000 7,500,000 11,250,000 15,000,000 Q3 07Q4 07Q1 08 Q2 08 Q3 08 Q4 08 Cumulative iPhone Sales Kisky Netmedia 2008 Some Rights Reserved 14 of 41 27 http://en.wikipedia.org/wiki/Smartphone The following chart shows the same data. A key issue in these figures is speed. The 'Other' category includes data (or rather a lack of ) from Palm, Brew, and Android. Android is newer than the iPhone platform; and with no devices yet - is set for growth, but apart from Android, all the other players in this market have been around a long time. In a very short space of time iPhone has taken a significant bite out of the smartphone market - (actually a much larger bite than these figures show). What this also shows is that 'Symbian' smart phones held 47% market share, actually the Symbian OS (Operating System) is used by multiple manufacturers and therefore the data that grabbed bigger headlines is that which compares device manufacturers (and not OS providers). At the end of Q3 2008, Apple's iPhone outsold RIM's Blackberry, and as Blackberry had been the leader in the smartphone device market, this came as a shock. Blackberry has long been a favorite for smartphone users; with its enterprise integration, always on connectivity and the 'Push Email' that initially made it famous and popular. As many tech bloggers and analysts speculate, iPhone will continue to grow further and Android will soon see a larger chunk of the pie; most analysts commentate that it will be a fairly close fight between those at the top. Whilst many within the mobile industry benchmark iPhone against smart phones; research shows it's not just smart phones that iPhone is displacing. A survey from March 2008 by Rubicon Consulting28 indicates iPhone is taking market share elsewhere. The survey details: "About half the iPhone users surveyed said that it replaced a conventional mobile phone. About 40% replaced a smartphone. About ten percent didn't replace anything, meaning either that the iPhone is their first phone, or that they carry it in addition to a second phone." The curve is similar to the iPod market growth of a similar time. It may be sensible to assume Apple will execute a similar 'gameplan' as for iPod; grow slowly at the outset then reach a mass market. 47% 17% 15% 14% 5%2% Symbian iPhone Blackberry Windows Mobile Linux Other Kisky Netmedia 2008 Some Rights Reserved 15 of 41 28 The Apple iPhone: Successes and Challenges for the Mobile Industry: http://rubiconconsulting.com/downloads/whitepapers/Rubicon-iPhone_User_Survey.pdf Who's Using iPhone? Our own not-so-scientific polls would indicate that in the UK and Europe; early on, there was a rather typical iPhone early adopter 'type'29, but that as time has worn on, it's not just the geeks that have iPhones. No, not geeks, and no, not just the fashion conscious gadget freak, or the rich 'lifestyler'. Not just the city worker, with all the latest business perks, and no, not just the rich kids. UK figures are hard to come by but US demographic data shows that whilst originally iPhones were mainly owned by those with a higher than average income; things are changing as Apple is seeing broader appeal. Certainly as 2008 draws to a close, we've seen a broader mix of people out and about with iPhones. What's more, it's often young women30 who are to be overheard in cafs amazed as they have a play with a friend's iPhone for the first time. This also echoes the growth of the iPod which was initially a niche product but with Windows, compatibility soon exploded as it achieved a mass market appeal. According to a new comScore31 report, "All about iPhone," iPhone adoption since June rose 48% among those earning between $25,000 and $50,000 per year and by 46% among those earning between $25,000 and $75,000. These growth rates are three times that of those earning more than $100,000 per year. Overall, iPhone penetration grew 21%. "As an additional household budget item, a $200 device plus at least $70 per month for phone service seems a bit extravagant for those with lower disposable income," said Jen Wu, senior analyst, comScore, the report's author. "However, one actually realizes cost savings when the device is used in lieu of multiple digital devices and services, transforming the iPhone from a luxury item to a practical communication and entertainment tool."32 Kisky Netmedia 2008 Some Rights Reserved 16 of 41 29 Nathan Borror on Flickr. http://www.flickr.com/photos/sketch22/2045151206/ 30 Image of Woman and her new iPhone is from Mickipedia on Flickr: http://flickr.com/photos/redcarpet/2069646878/ 31 http://www.comscore.com/iphone/ 32 Via http://www.tmcnet.com/usubmit/2008/11/04/3757144.htm Competitors, what competitors? You may have heard of a term 'iPhone Killer"; which is so far an oxymoron. Back in 2007 the iPhone competitor list was pretty short. The handset industry had been given a wake up call: make a better product or lose market share. Some handset manufacturers took note and launched 'iPhone alternatives'. Well, they upgraded how their handsets looked and worked. A bit. Many just made devices which looked a bit (or a lot) like iPhone in the hope of attracting consumers who wanted something that looked cool, but didn't really care what the device did. Some competitors focussed on the smartphone model; implementing 'smarter' capabilities, others focused on looks. The Mobile Whack Blog ran an article in February 2007 listing the top ten iPhone competitors33. It offers a strange selection of devices; mainly on the list due to their bizarre looks rather than anything else; indeed time has told that none were iPhone 'killers'. (The image to the left is the Nokia Aeon concept phone.) Just what is a 'concept phone' by the way? A more recent Mashable article "There are no iPhone Killers"34 by Stan Schroeder says it better: . "... even on its most basic level, the user interface, the iPhone is a supreme product compared to everything else I've seen on the market; in fact, it's not only better, it feels like the original one, which is the position everyone wants to be in. Back when the first iPhone was announced, I was sure that Nokia and other mobile giants will be able to come up with an answer fast, but it seems as if they're still stumbling in the dark." Stan compares the new entrants in what appears to be an "iPhone Look-A- Like Competition". These iPhone imitations remind us of a time when MP3 player manufacturers attempted to disguise their products as iPods once iPod became the personal music player of choice. iPhone has been classed by many reviewers and writers as a Smart Phone but this analogy simplifies iPhone too much. iPhone is a desirable item, a sought after device, a fully functional Swiss Army Knife of a mobile device. It effortlessly 'does business' enabling mobile workforces to communicate on the move. That's where the smart phone similarities end as iPhone does more than any other smart phone, most importantly it appeals to a broader range of consumers as a handset in its own right - 'smart' device it may be; iPhone is certainly not limited to the smart phone market. Whilst interesting new handsets may come soon; there's certainly nothing else now that offers a desirable, feature rich device, which synchs with your personal and professional digital lifestyles, is hooked into a platform which offers great content and applications; with an endless supply of upgrades and new applications. Kisky Netmedia 2008 Some Rights Reserved 17 of 41 33 http://www.mobilewhack.com/top-ten-list-of-iphone-competitors/ 34 http://mashable.com/2008/06/25/iphone-killers/ iPhone The 'Device' Some readers will naturally not already own an iPhone and so for those readers, here's a run down of the 'device' itself. Of course the best way to find out more is to try one at your nearest Apple Retail Store35 or o2 shop36. "Introducing iPhone 3G. With fast 3G wireless technology, GPS mapping, support for enterprise features like Microsoft Exchange, and the new App Store, iPhone 3G puts even more features at your fingertips. And like the original iPhone, it combines three products in one a revolutionary phone, a widescreen iPod, and a breakthrough Internet device with rich HTML email and a desktop-class web browser. iPhone 3G. It redefines what a mobile phone can do again." But of course iPhone does indeed do more than "Phone, iPod, Internet". Here's is a list of its other inbuilt features: Mail - HTML email integrating with your computer based email accounts SMS - for text messaging Maps with GPS iTunes - so you can buy music App Store - so you can buy applications Calendar YouTube Photos + Camera Stocks, Weather and Notes Calculator And to find out about what's new on iPhone 3G we suggest you hear it from Steve Jobs by watching him unveil iPhone 3G and its capabilities at WWDC (Apple's Worldwide Developer Conference) in January 2008. Follow this link to view the video on YouTube or here via Apple's website. Kisky Netmedia 2008 Some Rights Reserved 18 of 41 35 http://www.apple.com/uk/retail/storelist/ 36 http://www.o2.co.uk/ Data: Setting iPhone apart iPhone looks and works like no previous 'mobile phone', or even 'smart phone', but there is another key reason why iPhone is a world-beater; Apple's deals with mobile operators. Traditionally, mobile operators have not shared any revenue with handset manufacturers but it is rumored that those that won the prized iPhone deal had to give up 10% of subscriber revenue to Apple. When iPhone finally launched in the USA it was exclusively with AT&T37. In the UK iPhone is available exclusive on the o2 network. In some countries (including Australia) multiple operators have attracted Apple; but it is fair to say in countries where only one operator carries iPhone, other operators feel they have lost out. Even if the operator that carries iPhone is sharing revenue with Apple; they still got a good deal in terms of attracting new users and being around the most important mobile development for many years. Perhaps ever. Apple negotiated hard with operators not just on percentage revenue share but on user services. Perhaps one of the single best features of iPhone is not a feature of iPhone at all but a feature of the iPhone / Operator deal: unlimited data. Most previous mobile plans offered a certain amount of data but data over and above a small fixed amount was costly. Before iPhone, unlimited data (in the UK at least) was the luxury for the top business tariff subscribers and used only by those who 'really needed it'. This of course had a stifling effect on the development of innovative user services. Any new service which relied on users being able to do anything (access content or communicate) over a data connection suffered big time. A case in point was an early release of Jaiku's 38 mobile client39 for Series 60 phones. Jaiku fans downloaded the app and ran it on their phones; it enabled them to see the activity and availability of other friends on the Jaiku social microblogging network. The app sent updates periodically over the phone's data connection; and unless the app was disabled, it also did this if users roamed across country boarders. Now if you have an unlimited data plan, this is all fine. But if you had a limited data bundle, what this meant was instead of limiting your use of such an application, you probably wouldn't bother downloading it at all. Such is the fear amongst some users about data charges (how do I know when I've used a Megabyte?) many mobile subscribers with limited data plans would not use any data services at all. And it's not just new social apps that suffered, imagine mobile applications for the travel industry. There are many mobile application developers who would love to create applications for travelers: imagine translation services for when you're on holiday. These apps just simply won't work until data is unlimited and until international 'roaming' data is very cheap. So some may argue that data charges are holding back innovation, so how did Apple innovate? In what seems like a miracle, Apple managed to get network operators to agree to offer unlimited data on all iPhone plans and they conceded that iPhone users should also have pretty good (near unlimited) wifi access. Before iPhone, mobile handsets didn't have wifi capabilities; the operators wanted users to do everything over the potentially more profitable GRPS (2G), EDGE (2.5G), or UMTS (3G) data networks. Kisky Netmedia 2008 Some Rights Reserved 19 of 41 37 http://www.att.com/ 38 http://www.jaiku.com/ 39 http://jaiku.com/mobile You might imagine that no operator would be prepared to concede to Apple's wishes and not only enable web access via wifi capability but to enable unlimited data plans. However this may not be so hard to imagine if customers really were just not using any data to speak of. Further more, offering wifi in addition to expensive data means that wifi takes the strain away from the mobile data networks. The wifi access through partners in the UK such as The Cloud means that the data network is not so stretched with iPhone customers browsing the web and receiving (Push) email over wifi when in a wifi zone. But when iPhone users move outside a wifi zone, then any data they send and receive is all covered in their plan. And with a feature rich device like iPhone, with videos, photos, web pages and applications being downloaded, that could be a lot of data. iPhone is the first device to really come with data 'as standard'; rather than data being seen as an add on service, an upgrade; only for business. Unlimited data is what makes iPhone as successful as it is; without it iPhone would be rather crippled (like many other mobile devices). What is making iPhone truly unique is the range of applications available. No two iPhone users will use iPhone in the same way and there's already something for all (well, most) tastes. Successful applications are often ones which make the most of mobility. Many are also social applications. A next generation version of a social mobile microblog application is Twinkle for iPhone. Twinkle shows you who's saying what in the popular social network Twitter; but not from your friends and followers, but from people near to you, wherever you are. It lets you update your status via the app and shows you who's nearby. There's no way that these applications, (and the businesses that create them) could be successful if iPhone users had to worry about how much 'data' they were using. Unlimited Data then could actually be what was holding Mobile 1.0 back. With always- on and 'worry-free' access, being mobile becomes interesting. Whilst many plans for other mobile phones have not yet caught up; we envisage they will soon as iPhone and the success of iPhone applications will mean other mobile consumers becoming more demanding. Perhaps data is not so useless to 'normal mobile users' after all. Kisky Netmedia 2008 Some Rights Reserved 20 of 41 iPhone for Enterprise iPhone is also appealing to businesses small and large. As we showed, Apple has achieved a 17% market share over its nearest rival RIM's 15% in the smartphone market. At the January 2008 WWDC Steve Jobs began his introduction to iPhone 3G by discussing how iPhone was being adopted by enterprise. From Disney to the US Army, iPhone was offering a robust business communications to many of the Fortune 50040 companies. So what makes iPhone a great business phone? "Simple. The same features that make iPhone a revolutionary mobile device. With fast 3G wireless technology, maps with GPS and the new App Store, iPhone 3G puts even more amazing features in your hands. And with rich HTML email, full web browsing and support for Microsoft Exchange ActiveSync* it delivers push email, calendar and contacts*. All new emails, calendar invites and contacts are sent directly to the iPhone 3G with no need to log on to an email account each time. And it gives mobile users secure access to corporate resources with Cisco IPSec VPN and network services with WPA2 Enterprise and 802.1X authentication."41 According to o2: "corporate customers can also easily build their own in-house applications to meet distinct business needs utilising iPhone Multi-Touch technology, the accelerometer, wireless connectivity and GPS. Or users can simply download commercial applications directly to iPhone from the App Store." There's a custom App Store for Enterprise and capabilities to deploy an application to multiple devices. Apple's Enterprise deployment guide42 offers detailed information. iPhone's doing well in the enterprise; with some pretty big recommendations. According to Apple Insider43: "The senior VP of IT at Disney also endorsed Apple's enterprise strategy on the iPhone, stating "Apple has really done their homework, addressing issues of security, manageability, and integration. We currently have hundreds of iPhone users and expect the demand to grow significantly with this release." The fact that large corporations are taking to the platform indicates a massive opportunity for developers to create bespoke business applications 44. There's also extraordinary potential for many businesses who could switch to much more intelligent mobile working via iPhone. Kisky Netmedia 2008 Some Rights Reserved 21 of 41 40 http://en.wikipedia.org/wiki/Fortune_500 41 http://www.apple.com/iphone 42 http://manuals.info.apple.com/en_US/Enterprise_Deployment_Guide.pdf 43 http://www.appleinsider.com/articles/08/03/06/apples_iphone_takes_on_the_enterprise.html 44 http://www.intelligententerprise.com/channels/enterprise_applications/crm/showArticle.jhtml?articleID=209000059 iPhone Apps With any new mobile device you might buy as a productivity tool, a fashion item, status symbol, or gift, you will spend some time getting to know it, customising it, and then purchasing add-ons, plugins, and accessories. And now Apps. Apps (Applications) set iPhone apart from most other phones. Whilst it is possible to run third party applications on plenty of other mobile devices, Apple have made it very easy to run third party apps on iPhone. Why? Well they're (nearly) all in one place for a start. Developers can submit their application to the App Store45 meaning consumers have just one destination to go to for a growing range of new applications. In turn, because the App Store is accessed via iTunes, it's on everyone computer (Mac or PC) as well as accessible via every iPhone. This means that developers have a ready made audience for their applications. And they have a sales channel, a marketplace. Whereas in a Mobile 1.0 world, a developer struggles to find an audience in an environment where most people do not install new applications on their mobile devices; iPhone developers have their audience right there, hungry for new applications to try and buy. Apple claims that iPhone apps are "unlike anything you've seen on a phone before" and "Applications designed for iPhone are nothing short of amazing. That's because they leverage the groundbreaking technology in iPhone like the Multi-Touch interface, the accelerometer, GPS, real-time 3D graphics, and 3D positional audio". Certainly finding an easily accessible store full of beautifully made applications that enhance the iPhone experience is new - and yes these apps are often in a class of their own. Apple has published a guide to applications that help you with all areas of your life at: http://www.apple.com/iphone/iphone-your-life/. Key App Stats The key stats are: 60 million apps downloaded in first month since launching the App Store Over 2m apps downloaded per day 10,00046 apps in the App Store 200 million app downloads Kisky Netmedia 2008 Some Rights Reserved 22 of 41 45 http://www.apple.com/iphone/appstore/ 46 http://www.techcrunch.com/2008/11/29/10000-iphone-apps/ Some speculate47 that Apple could hit the 1 billion apps downloaded mark by the end of the store's first year of availability, (sometime in 2009). To put some context to this; that would be quicker than iTunes took to reach its billionth song download48. Web Apps Before we launch straight into what are known as 'Native Apps' we should also consider another form of iPhone App: the web app. A web app is simply a specially optimised version of a web app web service or website that runs via the iPhone's web browser: Safari. When an iPhone user visits a web app, its just a URL to a site like any other but when the site notices they're using an iPhone it serves them a special 'for iPhone' version of the site. It's not that native apps are 'better than' web apps, but that they are used in different situations. If you have a web service and want to offer an optimal experience for iPhone users a web app may well be the most appropriate option. Some developers may create web apps because of the technology choice. They can create slick looking experiences on the iPhone but without needing to learn Objective-C enabling them to develop in a more familiar web technology. For a comprehensive discussion on the pros and cons of iPhone web app development see Andrew Reutter & Andrew Trent's article "iPhone Development: Go Web, Young Programmer"49. Favorite iPhone Web Apps Two iPhone web apps that demonstrate excellent design, implementation and grasp of why making the web experience special for iPhone users, are Facebook and xero. Everyone knows Facebook; and their web app50 is well, just a cut down, simple version of Facebook that makes it easy to use Facebook on your iPhone. xero is an online accounts service used by small and medium businesses the world over. The xero web app51 offers a simple view on your accounts data and enables users to easily perform key actions from iPhone. Whilst it is mainly web applications (such as Facebook the giant social network, xero, the comprehensive web based accounts environment, or ebay - the auction service) that have invested in making their web apps useful on iPhone; this points at a key issue for all web services. Whether you have a web application or a 'website' that delivers information or promotes your product or company, a growing Kisky Netmedia 2008 Some Rights Reserved 23 of 41 47 http://www.techcrunch.com/2008/09/14/iphone-apps-downloaded-twice-as-often-as-songs/ 48 http://www.roughlydrafted.com/2008/09/12/iphone-apps-store-growing-twice-as-fast-as-itunes-music/ 49 http://www.gantthead.com/content/articles/241801.cfm 50 http://m.facebook.com 51 https://m.xero.com number of people will access your website via their iPhone. It needs to work on Safari on iPhone. Beware Flash designers; iPhone currently does not support Flash so you may want to consider making an information based site that can reach your (iPhone) customers. With over 10,000 apps in the App Store, there's a lot of choice and a lot of different types of application. From apps for business, to utilities, to personal lifestyle apps, to games, to social network apps, to apps for social and political change - it's all there! Having tested out many of these apps we will discuss some of our favorites. iPhone Games iPhone is great for games. Whilst it's certainly not a games device - a Nintendo DS, or Sony PSP, playing games on iPhone is a lot of fun. There are the top quality App Store favorites like Super Monkey Ball, obviously a smash on Gamecube, then Wii before iPhone. Super Monkey Ball works on iPhone because of iPhone's accelerometer. Kisky Netmedia 2008 Some Rights Reserved 24 of 41 The accelerometer detects movement - so the game relies on you tilting the iPhone to guide the monkey around the game. Of course it's not that simple, Sega's unique gameplay, rich graphical environments and characterisations also help to ensure this is so much fun, but it's possibly true to say that nothing this good has ever been played before on a phone. So games developers are making the most of the touchy feely nature of iPhone, of the touch interface - and the gestural input made possible by the accelerometer to create games that delight and entertain. For many, this is the first experience they have of playing a game (other than Snake52) on a mobile phone; it certainly is a great user experience and sets the bar very, very high. It's not just the superstar games developers who have found success in the App Store. Pop Cap53 has been developing simple, tactile online games for several years and has enjoyed considerable success with games like Bejeweled 2. Bejeweled 2 is "the phenomenal sequel to the classic gem swapping puzzler!" Take our word for it; it is addictive. These games both follow the format of games we know and love on other devices - games consoles and online games. iPhone has also attracted some fresh thinking in terms of multiplayer gaming on personal devices. Multi player games? Really? Touch Hockey is air hockey for your iPhone but of course as any air hockey fan knows, you need a formidable opponent to make it fun. Touch Hockey by flipside554 is perhaps the best air hockey game on iPhone (there are several). It demonstrates that you can develop much loved games for iPhone by designing specifically for the built in features of the device. Touch Hockey makes use of the touch screen to enable two players to compete. Super Monkey Ball and Bejeweled are games you'll play on your own, perhaps whist traveling. As well as being great games, they are good 'time waters' - something the mobile device should long time have delivered but only now is coming into its own. Touch Hockey is a social game - get your iPhone out in the pub for a game of Touch Hockey and you'll probably leave with more friends than when you started. Kisky Netmedia 2008 Some Rights Reserved 25 of 41 52 http://www.nokia.com/A4303014 53 http://www.popcap.com/ 54 http://www.flipside5.com/ More Fun Stuff Rather than running through a list of apps by type we'll focus on a few of our favourite apps of note in the App Store. One that caught our eye is Benjamin Bunny a delightful book for iPhone created by LoL Software55. It's one in a series of 'Talkie' books featuring the original gorgeous artwork and 'heartwarming narration'. This points to a trend in the iPhone as a 'parenting tool'. "Your children can listen to the story narrated by Geva Patts whilst enjoying the illustrations - or if they prefer - scroll across the page and read along with the text." Parents seem happy to hand their iPhones over to their kids; who it seems find the tactile, natural touch interface a breeze - for entertainment and for learning. Hairstyle (and Hairstyle Light - which is free) offer hours of fun. The app lets you visualise all the hairstyles you've ever wished you'd had with hilarious results. It's another demonstration of the variety of definitions of the term 'application'. Is it a utility? A lifestyle app? A game? A toy? Whatever it is it is something that's really appealing to a lot of people; it's social and fun and works so well on iPhone. Koi Pond is the #1 paid App - and it's well, "fish swimming around in your iPhone". You can watch them swim around, splash the water about and you can even feed them with a shake of your iPhone. There's no point to it other than it's lovely and really therapeutic. And well worth the 59p. Useful Apps Of course there's also a lot out there by way of business, productivity and utility apps. Many utility applications that were in the App Store early on seemed to take their lead from utility apps we had been used to seeing on phones. Simple alerts, trackers, measurement and conversion tools. Nothing very unique to iPhone. Here's a selection of applications which are doing well in the App store and certainly do offer more than a traditional mobile app: Evernote - as it looks so good on the iPhone. (Apps like this and "Remember the Milk" will vastly outsell similar apps where less attention has been paid to design); Kisky Netmedia 2008 Some Rights Reserved 26 of 41 55 http://www.lolsoftware.com/ Remember the Milk - for being one of the original (and also spectacularly designed) web apps with great iPhone integration; Salesforce - the ultimate app for enterprise. If you need proof that iPhone is a business phone; here it is; LinkedIn - Lets you do the LinkedIn thing via an iPhone App; Stagehand by Woojijuice56- for controlling Keynote presentations from your iPhone; and Remote - an app actually made by Apple - Remote lets you control the music on your computer or Apple TV via your iPhone. Brands in the App Store The App Store is full of apps but not yet full of brands; but it won't be long before we see more branded "brought to you by..." style applications as brands realise a desire to be in the pockets of millions of iPhone users. But how can brands harness iPhone? This is no doubt a question asked by many interactive agencies - how can they add value for their clients by offering an iPhone app? How can that iPhone app promote a brand whist offering a great user experience in an iPhone-natural way? We took at look at a couple of apps with brands behind them; of one sort or another. There's a dr

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isrimajam4ever Says:

Great report. Keep up!

mcknut Says:

I found this a really interesting report. It's certainly true that business are showing a real interest in developing applications for it. The fact that consumers are really interested in downloading apps is such a diversion from any existing mobile software market. As an iPhone developer myself I'm seeing more and more interest in my development skills.