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updated: 14 December 2007 licensed under a Creative Commons Attribution 3.0 license.
15 Mobile Megatrends
From mega-portals to me-portals. Content is aging;
Content communication is king. The internet is reaching
into the phone. The war of the application environments.
Value in mobile software is bubbling up. OEMs go for
services and vertical propositions. Brand as the new form
of equity in handsets. Network operator strategies are
shifting. Browsing is out; engaging experiences are in.
Browser proxies bring the internet to the masses. Open
source is disrupting the status quo. Nokia is now a tier-0
OEM. Mobile is transforming to a FMCG business.
Channel ARPU: a new source of revenue.
VisionMobile
:a research & market intelligence firm
On-Device Portals: The New Age of MDM Case Study: Five Defining Traits
Beyond WAP Handset Motorola of Open Source
(ARCchart) Customisation: (Ovum) (Informa)
2006-2011
(ARCchart)
selected clients
Mobile Megatrends 2008
1 From mega-portals to me-portals.
1 From mega-portals to me-portals.
From all-in-one mega-portals (e.g AOL), to vertical portals (vortals, e.g.
music, sports, healthcare), to personalised my-portals (e.g. iGoogle), to
user-centric me-portals (e.g. Facebook)
The history of web portals and mobile portals Mega-portals are aging:
Source: eMarketeer,
company reports
(via NY Times)
Coming next: community OSes, COMOs (e.g. Open Social)
2 Content is aging; Content communication is king
2 Content is aging; Content communication is king
The sale value of content is decreasing and DRM walls are falling
% of subs buying a ringtone fell consistently over 12 months in GB, FR, DE, IT, ES (M:Metrics, 4Q07)
see also Amazon mp3, Y! Music, Virgin Digital, Nokia Comes With Music (subscribe, but own)
”up to 25% of the entertainment being consumed in five years will be what we call 'Circular’.. people will
have a genuine desire not only to create and share their own content, but also to remix it, mash it up and
pass it on within their peer groups”. Mark Selby, VP Multimedia, Nokia, Dec 07
3 The internet is reaching into the phone
3 The Internet is reaching into the phone
2001+: the phone reached out to the internet through WAP and web.
But the phone was only open to the short head of 10s of 2nd parties (OEM partners) and 100s of
3rd parties with strong funding.
The mobile software business is like the Hollywood business; you ‘re either big or you’re out.
5 Value in mobile software is bubbling up
The sale value line (line of commoditisation) is moving up the stack
value line
$0.1 $5m Embedded apps
- Software vendors without unique IPR
are not viable
$0.1 $10m Middleware
extra-device value
Tools & platforms Delivery
for building content, Browse, buy, create,
UIs, and services view, share content,
UIs, services
pre-sales post-sales
extra-device value
Tools & platforms Delivery
for building content, Browse, buy, create,
UIs, and services view, share content,
UIs, services
pre-sales post-sales
NRE,
per unit free or
bundled
5 Value in mobile software is bubbling up
..but device software is an essential enabler
NRE, per-developer seat
extra-device value
Tools & platforms Delivery
for building content, Browse, buy, create,
UIs, and services view, share content,
UIs, services
pre-sales post-sales
NRE,
per unit
6 OEMs go for services and vertical propositions
6 OEMs go for services and vertical propositions
in order to increase ailing profit margins.
Vertical propositions:
- Sony Ericsson Walkman & Cybershot, Nokia E-Series, N-Series.
7 Brands as the new form of equity in handsets
7 Brands as the new form of equity in handsets
- service-pipes
enabler strategies focusing on device-based service delivery (e.g. Vodafone, Three, DoCoMo)
Mobile operators, handset OEMs and media brands are deploying on-
device portals as the evolution of web/WAP.
e.g. Orange Downloads, Vodafone ODP, Nokia Content Discoverer,
Nokia Download!, Three ODP, Refresh Mobile
Open source Web Kit -based browsers used by KDE, Apple, Nokia, Android and Motorola
12 Open-source disrupting the industry status quo
.. continuing with handset operating systems.
+
39.20%
37.10%
3Q07 operating margins: Nokia 22.2% SEMC 12.4%, Samsung 12.3%, LG 8.4%, Moto -3.1% (Reuters)
14 Mobile is transforming to a FMCG business
14 Mobile is transforming to a FMCG business
Making phones has tiny margins and no consumer value.
As in the fast moving consumer goods (FMCG) business, value is in:
a) defining the right niche segment & proposition,
b) last mile customisation, retailing and placement,
c) in-life experience; delivering compelling services across the user journey
product industrial assembly & certification channel sale service
definition design manufact. & QA distribution delivery
market brand hardware software last mile retailing & customer
research licensing design integration customisation placement support
value
opps
15 Channel ARPU: a new source of revenue
15 Channel ARPU: a new source of revenue
Beyond voice and data ARPU, there is a new source of revenue
revenue from delivering 3rd party services/products through the last mile to the end user.
Further reading:
Mobile Operating Systems: The New Generation
Five Defining Traits of Mobile Open Source
www.visionmobile.com/whitepapers