THE STATE OF MOBILE 2013
A Yearly Report on Consumer Trends &
the State of Technology in the Mobile Space
EDITORIAL
“Mobile”. When In the Pocket launched early 2010, mobile
was smartphones. The iPad hadn’t been released yet, so
the tablet market was insignificant. Apps were nifty little
pieces of software, often designed to showcase the potential of smartphones with their GPS, motion detection, camera, etc.
When we founded In the Pocket we called ourselves a “mobile
agency” and were the first to do so in Belgium. Our company
was basically just 3 guys with a laptop (Pieterjan, Louis and
myself), convinced they were tapping into the most promising digital market for the next decade. It took us a couple of
months to reach a headcount of 7, operating from Louis’ living room. We felt the digital market shift in our advantage and
we are still feeling this today.
Mobile is overtaking what we used to call digital. The smartphone and the tablet have become pivotal objects in our
digital experience. Entertainment, news, social, utility: the
desktop is losing ground fast. Only for work and productivity
do we open our laptop, and that too is starting to crumble.
But mobile offers more: it connects with your TV, with your
domotica and with your car. It controls your smartwatch and
your Google Glass. You use mobile to make payments, to navigate and to take pictures.
2 THE STATE OF MOBILE
We’ve been going strong for 3 years now and have released
just over 250 apps. This report is meant to share the experience and knowledge we gained in these past 3 years. It should
be used as a reference document to help you with business
decisions. We want to give you the bottom lines to the question: “What is the state of mobile today?” We cherry-picked
from our rich portfolio of projects to dig into the statistics.
Many of our projects and apps reach wide audiences, which
are representative samples. We’re positive you will find the
results of our research compelling.
In a nutshell: mobile went mainstream and is still accelerating. If there is one take away we want to give you with this
document, it’s this: we will see businesses transform as mobile adoption and innovation continues – make sure you’re in
the driver’s seat.
Enjoy the read,
Jeroen Lemaire
Managing Partner In the Pocket
Editorial
p.2
Looking Ahead: Mobile in 2014
p.4
Why iOS is Better vs. Why Android is Better
p.10
5 Things You Should Know About Mobile Before You Start Making Apps
p.16
Disruption and Opportunity: How Mobile is Changing Your Business
p.22
LOOKING AHEAD: MOBILE IN 2014
Jeroen Lemaire
Jeroen is co-founder of In the Pocket, acting as Managing Partner. He keeps an
eye on the trends and innovations that drive the fast-paced world of mobile.
With CPU’s getting faster, sensors getting better and new
device-to-device communication technologies, we are about
to enter the “sci-fi” era of mobile. In terms of business opportunity it is clear that we are only seeing the tip of the iceberg.
But that tip has already brought entire businesses to its knees
and given rise to others. What can you expect in 2014?
Mobile and the Internet of Things
Mobile devices have already shown off their potential as remote controls for televisions and other connected devices.
But the rise of compatible software in cars, smart domotica
and so-called “wearables” will really bring mobile beyond the
smartphone and the tablet.
Google Glass, Samsung’s Smartwatch, Apple’s anticipated
television: they all have one thing in common: You need a
smartphone or tablet to control them. They will propel an
entirely new app niche, but will also expand the functionality
of many apps you already use. Any device with Bluetooth or
Wi-Fi becomes smart. The vast business potential of this evolution is almost completely untapped.
Location, Part Two
The built-in GPS in smartphones was a game changer.
Navigation, tracking, nearby search: many of the most
5 THE STATE OF MOBILE
successful apps rely on the location of the user. But, there’s
a “but”: GPS estimates your position with a 15 meter margin
for error. And, indoors it just won’t work. The iOS7 release quietly introduced the concept of “iBeacons”. iBeacons is an implementation of Bluetooth Low Energy (BLE), which enables
very precise micro-location triggers for events. BLE is already
integrated in iPhone 4S and 5 as well as iPads, Mac computers and many high-end Androids. It can communicate with
small and cheap physical units and with all other devices
that support BLE. We expect this to be a major driver for location-based applications in stores and venues. Microlocation
can also be exploited for domotica, security, gaming and
much more.
Invisible apps
“The vast business potential of connected devices
is almost completely untapped.”
Some apps are better when you spend little time with them.
You want to perform a task and the app should do nothing
else but enable you. Redundant features, screens and taps
should be removed. And why not remove the interface?
Siri is already halfway there and Google is experimenting
with screenless software, relying only on voice commands,
gestures and automatic processes.
The trend here is that in 2014 you will see more apps functioning via background processes and “automagically” performing tasks for you. As a user, you want the results and not
the work to achieve them.
Viruses and Malware
An average smartphone contains a treasure of information
about its owner. Hack one smartphone and you might have
some pictures, tons of personal information and a dozen of
private documents. Hack a million smartphones and you
get big data. The data are extremely valuable and sellable,
but they’re also useful for credit card fraud, phishing scams,
spamming and identity theft. The incentive is great enough
to predict a significant rise in mobile malware and viruses in
2014.
Payments
Payments, both big and small, can be handled perfectly by
mobile devices. In fact, this makes much more sense than
having a collection of plastic cards or using paper money. Mobile transactions have become an attention point for
banks and other financial institutions. Many promising startups are also betting on mobile payments going mainstream
6 THE STATE OF MOBILE
in the next few years. And when that happens, it will have impact on industries such as e-commerce, retail, entertainment
venues and the food service industry. Opportunities here are
deals, real-time bidding, group buying, gifting, loyalty, and
much more.
IT’S A SMALL STEP TO USE THE SMARTPHONE TO CONTROL OTHER DEVICES.
PEOPLE USE THE SMARTPHONE DURING MANY ACTIVITIES.
Listen to music
39 %
Read a book
6%
Watch TV
42%
78
%
Watch movies
27%
Use
smartphone
while...
Play video games
13%
Use internet
32%
Read magazines/
newspapers
17%
Things people regularly do while using
the internet on their smartphone (in Belgium)
Source: Our Mobile Planet (Google), May 2013
IN THE EVER-GROWING SMARTPHONE MARKET ANDROID IS LEADING WHEN IT COMES TO POTENTIAL USERS.
IOS IS LEADING WHEN IT COMES TO ENGAGEMENT.
Android
Android
iOS
iOS
Windows
RIM
Symbian
Other
Top smartphone operating systems, sales share in Europe Q3 2013
Source: Kantar, July 2013
iOS versus Android
Source: In the Pocket app downloads, Q3 2013
BUT WE SEE ANDROID GAINING GROUND...
75%
50%
25%
2011
Android
iOS
2012
2013
iOS versus Android downloads
Source: In the Pocket all published apps, Q2 2011-Q3 2013
APPLE IS BETTER AT SELLING TABLETS...
Smartphone usage with other devices in Belgium
Source: Our Mobile Planet (Google), May 2013
Android
iOS
Windows
Blackberry
Global tablet operating system, market share Q2 2013
Source: Strategy Analytics Tablets Service, July 2013
...BUT ANDROID IS FLOODING THE MARKET
WHY IOS IS BETTER
Lode Vanhove
“Apple wants to be first of the
class – not the entire class”
Read on page 14
WHY ANDROID IS BETTER
Cliff Ophalvens
“Android is about opportunity,
freedom and enablement.”
Read on page 15
WHY IOS IS BETTER
Lode is iOS Lead at In the Pocket. He loves to develop beautiful,
slick and snappy apps that do what they’re supposed to do. This
makes iOS the natural platform for him.
Philosophy
Apple believes in the simple, not the complex. Its primary
drive is to create products that are both simple and elegant.
Products that just work. They achieve this through focus and
perfection. This philosophy is the main reason why the iPhone became so popular so fast.
Apple’s perfection makes them want to “own” the hardware.
It is their firm belief that only an integrated approach of hardware and software can result in the best user experience, from
the physical to the virtual experience. Apple won’t design
for geeks, but for the mainstream user for whom traditional
computers have always been inaccessible, intimidating, and
stressful.
They also believe that they should only participate in markets where they can make a significant contribution. And last
but not least, they want to delight, surprise and connect with
the user. These strong values are reflected in every product
launch, not only through innovation, but also by perfecting
what is already there.
12 THE STATE OF MOBILE
Execution
It should be clear from the above that Apple takes great care
in crafting the best user experiences. By continuously iterating on 1 smartphone and 1 tablet model, and because of the
integrated hardware-software approach, they are able to create the best possible experience.
Quality
When you submit an app to the App Store, Apple will carefully review your product before it’s launched. It can take days,
even weeks, before your app gets approved (or rejected). This
can be tough when you’re fighting a deadline. And since the
App Store is the only way you can get your app out there, you
have no alternative.
People will sometimes complain about this and about the infamous “App Review Guidelines”, but they have ensured the
quality and security of the +/- 900.000 apps for iOS.
Market share
In contrast with the Android market saturation strategy,
Apple wants to be first of the class – not the entire class. As
a result, they get incredibly high user satisfaction scores, a
flourishing mobile eco-system and the profit margins to go
with that.
Apple refuses to compromise when it comes to quality. Yes,
iDevices are expensive and yes, the ecosystem is closed. But
that’s what it takes to be the best.
WHY ANDROID IS BETTER
Cliff is the Android Lead at In the Pocket and actually the first
mobile developer we had on our payroll. He is passionate about
Google’s mobile platform and has good reason to claim that iOS
gets too much credit for pushing the mobile space forward.
Philosophy
It took a while before Google had a good vision for Android,
but everything changed with the arrival of Android Ice Cream
Sandwich. The 4.0 version of the mobile OS showed Google’s
engineering muscles and a will to push the market forward.
While Apple wants total control over hard- and software,
Google mostly concentrates on software. By leaving smartphone and tablet manufacturers almost completely free
to adjust their software, there’s a huge range of devices
available on the market. That’s why we have an enormous
choice of Android smartphones and tablets in all price categories, which makes Android accessible for truly anyone.
Google stands for innovation and progress while Apple holds
on to the principle of “If it ain’t broke, don’t fix it.” Android
evolves quickly, often including new and state-of-the-art
technology in updates.
But wasn’t the iPhone the most innovative smartphone ever?
Yes, it was revolutionary at its time but look at it today…
The control centre, the notification centre, the multi-tasking,
13 THE STATE OF MOBILE
automatic updates and even the new “flat” design of iOS 7:
all of these were introduced by Android.
Google apps
Ask iPhone users which apps they use and most likely you’ll
hear apps like Google Maps, YouTube, Hangouts, Chrome,
etc… Indeed, maybe Google should be considered the best
iOS developer out there. But in Android, these apps are integrated with the system, making them much more powerful.
Android is open
Google has always preached openness and Android is probably the best example of that. For a developer, Android is
about opportunity, freedom and enablement. Create what
you like, how you prefer it and if it’s not illegal you can publish your app in a matter of minutes. True, in the early Android
days this meant that every amateur could release low-quality
apps in the former Android Market. But today, Google offers a
great environment for developing and works hard on pushing
its design guidelines. This effort has brought the best of both
worlds to Google Play: great apps and an open ecosystem.
The bottomline is: if you want to be in the driver’s seat of mobile innovation, experience true freedom and join the world’s
largest mobile platform, Android is the way to go.
THERE ARE MORE THAN A BILLION ANDROID DEVICES AND ABOUT 12000 DIFFERENT MODELS.
Top 10 Android smartphones
Source: In the Pocket app visits, Q3 2013
Duration per app visit
Source: In the Pocket app visits, Q3 2013
TABLET USERS PREFER TO HOLD THEIR TABLET IN LANDSCAPE MODE.
Tablet orientation
Source: In the Pocket app visits, Q3 2013
5 THINGS YOU SHOULD KNOW ABOUT MOBILE BEFORE
YOU START MAKING APPS
Christophe Rosseel
Christophe is In the Pocket’s Operations Manager. He has led the creation of
dozens of cream of the crop applications. When a company asks an agency to
develop an application, a process unfolds that requires input and engagement
from many people. A smooth cooperation will control the complexity, speed up
the delivery and get a product from good to great.
A high-quality, multi-platform mobile project requires
input and collaboration from at least 7 specialists.
Introducing the team:
An interaction design expert
People are unforgiving when it comes to interacting with
apps or sites on their smartphone. If a user can’t immediately
figure out how to use your product, he or she will move on
without blinking.
A mobile designer
Designing for mobile is a specialty in its own right. Of course
mobile designers need a keen eye for what works on small
screens. But they also need to know about the platforms that
will carry their designs. They need to know about ninepatching (a scaling gimmick needed for Android’s fluid design) and
about dealing with retina screens for example.
An iOS developer
Don’t believe the stereotypes. Not all iOS developers are turtleneck-wearing, sneaker-sporting college dropouts. Some of
them did finish college but the iOS development crowd has 1
thing in common: a passion for products that are both beautiful and technically excellent.
17 THE STATE OF MOBILE
An Android developer
Some people say developing for Android is easy. This is false,
it’s just that there is a low threshold to call yourself an Android
developer. Any middle-aged computer teacher with a notion
of Java can publish an Android app but it takes a rarer breed
to make an app that works great on all (11.868) Android device models.
A web/backend developer
The web is everywhere and very few projects can go without
the services of a web developer. The performance of almost
every mobile app hinges on a well-thought-out, smooth operating and scalable backend and API.
“Not all iOS developers are turtleneck-wearing,
sneaker-sporting college dropouts.”
A project manager
Pragmatic, emphatic and thick-skinned, this is the all-rounder of the team. They filter, dispatch and push a project forward. Above all they are great communicators. They speak in
the same way as they write; clearly and concisely.
A test engineer
Owning the quality aspect of a digital product is easier said
than done. It takes a special kind of personality to root out
bugs by ploughing through test scripts on dozens of devices.
They are worth their weight in gold however since these are
the guys (unfortunately girls are rare in this particular field)
that keep your app store page free of 1-star reviews.
matter to you); the point is that there’s more than one way to
skin a cat.
“A lot of ink has been spilled over
the web vs. native debate.
This debate is often too simplistic.”
“Web or native?” is the wrong question.
A lot of ink has been spilled over the web vs. native debate.
This debate is often too simplistic. Of course it depends on
the project but there are a lot more options to choose from.
A native app (software, created for specific devices) doesn’t
have to be a 100% native. You’ll want a native navigation
model for that snappy feel, but nothing is to keep you from
using web technology in certain views. If it’s done right, your
users won’t be able to tell the difference.
Even when there are reasons not to go native, you can’t
simply choose web. Building a mobile optimized site and
building a responsive site are two very different things.
A responsive website changes its layout depending on the
viewer’s screen size and provides all your website’s content
on all platforms, while a mobile website is context specific - it
focuses on supporting core tasks relevant in a mobile context. You might even consider a cross-platform technology
like Phonegap (that is if robustness and user experience don’t
18 THE STATE OF MOBILE
Too many cooks spoil the soup.
In one mobile project many companies can get involved.
Branding agencies, content creators, ad networks, backend
developers,… However, the end result should always be one
great app that’s easy and fun to use. Apps are not like websites: you can’t change or update them on the fly and users
will actually rate your product. So you need to get it right from
the start.
It is crucial to clearly define deliverables, timings and responsibilities. Once everyone’s involvement is discussed, the
project should move to creation, headed by a small team
focusing only on making a great app.
Apple works in mysterious ways. Android just works.
Mobile moves fast. So should you.
To protect its closed ecosystem, Apple has a mind of its own.
If you submit an application you have to wait for approval.
This can take days, but also weeks. If your app is rejected, you
will have to adapt. Apple has guidelines, but they hold the
right to change and interpret these guidelines to their advantage. There are absolutely no guarantees on Apple’s part and
that can be frustrating.
The only reason that the companies producing consumer
goods got to coin the term “fast-moving”, is because the mobile industry didn’t exist at the time.
The bright side of this story is that this controlling attitude
does safeguard the quality and the security of iOS applications which in its turn makes it easier to distribute and monetize your mobile apps.
Android is open and free. Upload your app and see it go live
for more than a billion devices. This freedom makes Google
Play a bit like the internet: you’ll find some of the most innovative and compelling stuff on there, but also thousands
of products that were made by amateurs for no apparent
reason.
“To protect its closed ecosystem,
Apple has a mind of its own.”
19 THE STATE OF MOBILE
The iPhone is barely 6 years old. In its wake, companies have
come and gone (Nokia and Blackberry seem to be on their
way out while Rovio and Instagram have made mobile history). Entire industries have already been disrupted by mobile
(gaming, media, publishing) while others are about to be rattled (education, health, payments...).
At a lower level, things move equally fast. Look under the
hood of all mobile software and you will find complex machinery comprising third-party APIs, SDKs, libraries and other
components, ever-updating according to their own development life cycle. With all these technologies evolving at a
breakneck pace, it is necessary to follow suit.
Even during the creation of an application, mobile is changing. Take a pragmatic approach and allow the product to pivot and adapt when new opportunity presents itself.
APP USAGE IS UBIQUITOUS.
Smartphone users have 25 apps installed on
average. 4 of those are paid apps. They used
10 of these apps in the last 30 days.
App usage on smartphones in Belgium
Source: Our Mobile Planet (Google), May 2013
SMARTPHONES ARE USED CONTINUOUSLY, TABLET USAGE PEAKS IN THE EVENING.
SOME APPS HAVE VISITOR PEAKS DURING THE DAY.
Visit hours per app category
Source: In the Pocket app visits, Q3 2013
DISRUPTION AND OPPORTUNITY: HOW MOBILE IS
CHANGING YOUR BUSINESS
Jan Deruyck
Jan is In the Pocket’s Business Development Manager. He meets with clients
in multiple industries and helps them to define a mobile strategy, gather
requirements and create mobile concepts.
When In the Pocket was founded, the first ideas and concepts
that we created had a strong focus on marketing & branding.
Mobile was the new platform, a new channel to reach an audience and gain attention for products and services. A lot of
branded apps saw the light, designed to be “one-offs”, part
of a short-cycled campaign. The campaign was serviced, the
user not always that much.
In many ways, the mobile landscape is similar to that of the
Internet in the late nineties: explosive growth, constant innovation, and an intuitive understanding of the value potential.
Specific business cases are now just beginning to emerge.
Mobile is being driven by a number of trends that will continue to accelerate its growth. But unlike web development,
mobile software development requires specialized teams
and processes. The necessary investments are significant.
To provide a good return on investment more is needed than
a gimmick application. An application needs to fulfil needs,
offer utility or be fun and (sustainably) engaging.
Disruption you say?
Mobile is a game changer for almost every industry. Several
big companies underestimated this evolution and have been
or will be taken by surprise by smaller, lean and mean startups. Traditional media are under pressure to come up with
new multi-screen formats and advertising models that generate audiences and revenues. Meanwhile media start-ups are
23 THE STATE OF MOBILE
introducing disruptive products at a fast paced rate, quickly
winning the hearts of a new generation. Take ‘Medium’ for
example. This long-form content platform created by the
founders of Blogger and Twitter is using intelligent algorithms
that suggest stories, primarily based on how long users spend
reading certain articles.
Telco’s are seeing the cost of network infrastructure go up
as people are using more data (3G, 4G), but VoIP and digital
messaging are undermining their core activities of calling and
SMS. WhatsApp was founded by two guys in 2009 and is now
servicing 300 million users with over 20 billion messages per
day. At a mere cost for the end consumer of 0,99$ per year.
“In many ways, the mobile landscape is similar
to that of the Internet in the late nineties.”
Even the internal operations of the enterprise are about to be
disrupted. People use great apps when they’re at home, so
why not at work? This phenomenon is called the “consumerization of enterprise” and is about people craving for more
mobile and user-friendly software to do their work.
Companies will follow, because it means less administration
and more efficiency. But introducing new vertically integrated software and mobile apps is not a trivial process.
Opportunity
Here’s a thought. If you were to start a company today, in the
same business you are currently active in: what would your
business model look like? Would you try to recreate your
company as it is? Chances are, you would notice how people
are increasingly turning to their mobile devices to purchase
your products, to be productive, to stay informed, to have fun
or to interact with friends.
Chances are, you are not the only one noticing this. The startup or company that identifies this opportunity and is able to
execute and create a good product or service will probably
become one of your important competitors in the coming
years. Although these are disruptive times posing many challenges for any business, remember that the opportunity for
those who embrace change and dare to innovate is huge.
24 THE STATE OF MOBILE