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Current	
  &	
  Future	
  Mobile	
  Trends	
  of	
  South	
  East	
  Asia	
  
Innotech	
  Cambodia	
  
17th	
  &	
  18th	
  march	
  2016	
  
Athi	
  Selvanayagam	
  
Venture	
  Partner,	
  1337	
  Ventures	
  
nishky@1337.ventures	
  
	
  
Eric	
  Ku	
  
COO,	
  iTrain	
  Asia	
  
eric@itrainasia.com	
  
	
  
More	
  than	
  2,000	
  developers	
  in	
  Asia	
  has	
  taken	
  iTrain	
  
Asia	
  Mobile	
  Development	
  Course	
  and	
  CerEficaEon	
  
More	
  than	
  5,000	
  lecturers	
  &	
  students	
  in	
  Asia	
  has	
  been	
  
trained	
  with	
  iTrain	
  Asia	
  Mobile	
  Development	
  Content	
  
Indonesia	
   Thailand	
   Philippines	
  
Malaysia	
   Myanmar	
   Singapore	
  
Authorized Training Partners (ATP)
Certification
iOSs	
  and	
  Android	
  cerFficaFon	
  
SAMPLE	
  
SAMPLE	
  
Current	
  &	
  Future	
  Mobile	
  Trends	
  of	
  South	
  East	
  Asia	
  
Innotech	
  Cambodia	
  
17th	
  &	
  18th	
  march	
  2016	
  
Athi	
  Selvanayagam	
  
Venture	
  Partner,	
  1337	
  Ventures	
  
nishky@1337.ventures	
  
	
  
Eric	
  Ku	
  
COO,	
  iTrain	
  Asia	
  
eric@itrain.com.my	
  
	
  
SEA Population
Source:	
  World	
  Popula/on	
  Review	
  (2014)	
  	
  
China, 1392!
India, 1262!
EU, 741!
US, 319!
SEA, 627!
Population (in Millions)!
15!
254!
7!
30!
54!
101!
5!
68!
93!
Cambodia!
Indonesia!
Laos!
Malaysia!
Myanmar!
Philippines!
Singapore!
Thailand!
Vietnam!
Population (in Millions)!
Young: More Than 67% Are 

Under 35 Yrs!
Source:	
  UBS	
  report	
  “ASEAN	
  E-­‐commerce”	
  at	
  13	
  June	
  2014	
  /	
  Global	
  Demographics	
  
42%	
  
45%	
  
24%	
  
40%	
  
37%	
  
43%	
  
32%	
  
29%	
  
27%	
  
31%	
  
26%	
  
27%	
  
14%	
  
14%	
  
25%	
  
16%	
  
22%	
  
19%	
  
8%	
  
7%	
  
17%	
  
9%	
  
10%	
  
8%	
  
5%	
  
4%	
  
8%	
  
5%	
  
6%	
  
4%	
  
Vietnam
Thailand
Singapor
Philippine
Malaysia
Indonesia
Age	
  profile	
  of	
  ASEAN	
  neEzens	
  
15-­‐24	
  	
   25-­‐34	
   35-­‐44	
   45-­‐55	
   55+	
  
Greater	
  than	
  
51%	
  of	
  the	
  
populaEon	
  in	
  
Cambodia	
  are	
  
below	
  the	
  
age	
  30	
  
They are Becoming Richer
Source:	
  UBS	
  report	
  “ASEAN	
  E-­‐commerce”	
  at	
  13	
  June	
  2014	
  /	
  Global	
  Demographics	
  /	
  Macquarie	
  Research	
  2014	
  
Income	
  per	
  capita	
  is	
  growing	
  fast	
  enough	
  to	
  drive	
  rising	
  affluence,	
  much	
  
faster	
  than	
  global	
  average	
  
2.0%	
  
4.1%	
  
4.6%	
  
4.1%	
  
5.7%	
  
6.3%	
  
1.5%	
  
2.7%	
  
2.1%	
  
1.4%	
  
3.2%	
  
2.9%	
  
1.2%	
  
2.3%	
  
1.30%	
  
0.8%	
  
2.0%	
  
1.5%	
  
Global	
  Avg	
   Indonesia	
   Thailand	
   Philippines	
   Malaysia	
   Singapore	
  
2009-­‐14	
   2014-­‐19	
   2019-­‐24	
  
SEA Internet Adoption 

Increasing Fast!
14M!
31M!
18M!
4M!
55M!
34M!
194M!
New internet
users!
360M!
Internet users!
2010! 2020!
62% !
Est. internet
penetration!
25% !
2010 internet
penetration!
2014!
33% !
2014 internet
penetration!
20M!
41M!
20M!
4M!
71M!
44M!
156M!
204M!
1/3	
  of	
  the	
  
populaEon	
  in	
  
Cambodia	
  
has	
  access	
  to	
  
the	
  internet	
  
Internet Has Surpassed TV!
Source:	
  Nielsen;	
  eMarketer	
  2014	
  
SEA Has Highest Mobile 

Penetration Rate!
Source:	
  Global	
  web	
  index,	
  March	
  2014	
  from	
  Ystats	
  
Cambodia	
  157%	
  
Singapore	
  152%	
  
Thailand	
  150%	
  
Vietnam	
  141%	
  
Malaysia	
  137%	
  
Indonesia	
  121%	
  
Philippines	
  114%	
  
	
  
SEA	
  Avg	
  119%	
  
Global	
  Avg	
  98%	
  
China	
  95%	
  
Country	
  |	
  PenetraEon	
  
All	
  major	
  SEA	
  countries	
  are	
  now	
  all	
  above	
  the	
  global	
  average	
  in	
  mobile	
  penetraFon	
  
Device Usage!
Rise of Affordable Smartphones!
Sub Dollar Pricing!
Sources: Meet the New Media Consumer 2014 - Malaysia Nielsen Review
ASIA New Media Consumer!
ASIA New Media Consumer!
WHAT WORKED WELL IN THE PAST…
MIGHT NO LONGER WORK !
TODAY!
APAC is the largest and fastest growing smartphone market in the world!
Global smartphone shipments, millions
Source: Canalys
Annualsmartphoneshipments(M)
Mobile usage is exploding in APAC - the average user
spends 2.5 hours / day on their
smartphone
APAC countries
Average time spent on smartphone/day, minutes
Source: Millward Brown
150 times a day
162 minutes a day
“The mobile war is
over and the app
has won”
venturebeat.com 2013/04/03
86%
14%
TIME
SPENT
ON SITES
TIME
SPENT
ON APPS
USER TIME SPENT
ON MOBILE DEVICES
APPS > SITES
66%
SITES
6%
APPS
28%
SITES &
APPS
PRIMARY CHANNEL FOR
COMMERCIAL TASKS
INDUSTRY	
  SNAPSHOT	
  
75%	
  OF	
  AUTOS	
  USERS	
  
60%	
  OF	
  FINANCE	
  USERS	
  
70%	
  OF	
  TRAVEL	
  USERS	
  
71%	
  OF	
  RETAIL	
  &	
  TECH	
  USERS	
  
64%	
  OF	
  LOCAL	
  SERVICES	
  USERS	
  
...	
  USE	
  SITES	
  MORE	
  OFTEN	
  FOR	
  
COMMERCIAL	
  TASKS	
  
86%
14%
TIME
SPENT
ON
SITES
TIME
SPENT
ON APPS
14%
40%
GAMIN
G &
ENT.
26%
SOCIAL
20%
OTHER
USER TIME SPENT
ON MOBILE DEVICES
Time spent Value for your business!
64%
62%
59%
51%
43%
56%
45%
38%
33%
32%
51%
42%
43%
38% 39%
44%
32%
21%
24%
20%
30%
19%
15% 14%
15%
22%
17%
13% 13% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Internet
Newspaper or magazine
In-store promotional display
TV
Outdoor ad
Radio
The Internet is the primary form of influence
at each stage of a consumer journey
Become
interested	

Begin
evaluating	

Compare
prices and
features	

Final decision
on which to
buy	

Final decision
on where to
buy	

Offline
sources
Source Use at Each Step
*	
  Source:	
  Malaysia	
  ROPO,	
  Netpop	
  Research,	
  LLC	
  
24	
  
This is not a distant global possibility but a local, near term opportunity
“Smartphones and tablet computers
are expected to boost online retail
sales in APAC to >$400B a year by
2018”
Euromonitor
Source: Euromonitor; Channel News Asia
X	
  2.3	
  
(c.20%	
  Y/Y)	
  
$186B	
  
2013	
   2018	
  
$428B	
  
VS	
  
Market Share
Smartphone Vendor, 2015
Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 27, 2016	
  
Vendor
2015	
  Shipment	
  
Volumes	
  
2015	
  Market	
  
Share
2014	
  Shipment	
  
Volumes
2014	
  Market	
  
Share
Year-­‐Over-­‐Year	
  
Growth
1.	
  Samsung 324.8 22.70% 318.2 24.40% 2.10%
2.	
  Apple 231.5 16.20% 192.7 14.80% 20.20%
3.	
  Huawei 106.6 7.40% 73.8 5.70% 44.30%
4.	
  Lenovo 74 5.20% 59.4 4.60% 24.50%
5.	
  Xiaomi 70.8 4.90% 57.7 4.40% 22.80%
Others 625.2 43.60% 599.9 46.10% 4.20%
Total 1,432.90 100.00% 1,301.70 100.00% 10.10%
(Units in Millions)	
  
Market Share
Smartphone OS, 2015
Source: IDC Worldwide Quarterly Mobile Phone Tracker, December 2, 2015	
  
Region
2015*	
  
Shipment	
  
Volumes
2015*	
  
Market	
  Share
2015*	
  YoY	
  
Growth
2019*	
  
Shipment	
  
Volumes
2019*	
  
Market	
  Share
2019*	
  YoY	
  
Growth
5	
  year	
  CAGR
Android 1,161.10 81.20% 9.50% 1,538.10 82.60% 4.80% 7.70%
iOS 226 15.80% 17.30% 263.4 14.10% 3.10% 6.50%
Windows	
  
Phone
31.3 2.20% -­‐10.20% 43.6 2.30% 11.40% 4.50%
Others 11.3 0.80% -­‐16.80% 17.1 0.90% 6.50% 4.70%
TOTAL 1,429.80 100.00% 9.80% 1,862.30 100.00% 4.70% 7.40%
* Forecast data	
  
Market Share, 2015
IDC	
  	
  Smartphone	
  OS	
  Market	
  Share,	
  2015	
  Q2	
  
Android,	
  
81.2	
  
IOS,	
  15.8	
  
Microsog,	
  
2.2	
  
Others,	
  0.8	
  
Android	
   IOS	
   Microsog	
   Others	
  
Android Distribution – 7th Mar 2016
Version	
   Codename	
   DistribuFon	
  
2.2	
   Froyo	
   0.1%	
  
2.3.3	
  -­‐	
  
2.3.7	
  
Gingerbread	
   2.6%	
  
4.0.3	
  -­‐	
  
4.0.4	
  
Ice	
  Cream	
  
Sandwich	
  
2.3%	
  
4.1.x	
   Jelly	
  Bean	
   8.1%	
  
4.2.x	
   11.0%	
  
4.3	
   3.2%	
  
4.4	
   KitKat	
   34.3%	
  
5.0	
   Lollipop	
   16.9%	
  
5.1	
   19.2%	
  
6.0	
   Marshmallow	
   2.3%	
  
iOS Distribution – 7th Mar 2016
iOS	
  9	
  
79%	
  
iOS	
  8	
  
16%	
  
Earlier	
  iOS	
  
5%	
  
Mobile Platforms: Both? All 3?
• 37%	
  of	
  all	
  mobile	
  dev	
  target	
  both	
  iOS	
  and	
  Android.	
  
• 7%	
  target	
  none	
  of	
  the	
  top	
  3	
  
App Categories
Games	
  
515,715	
  
23%	
  
EducaEon	
  
208,041	
  
9%	
  
Entertainment	
  
142,646	
  
6%	
  Lifestyle	
  
195,544	
  
9%	
  
Business	
  
231,658	
  
10%	
  
Books	
  
71,757	
  
3%	
  
UEliEes	
  
5%	
  
Travel	
  
4%	
  
Music	
  
3%	
  
Reference	
  
2%	
  
Sports	
  
2%	
  
ProducEvity	
  
3%	
  
Health	
  &	
  Fitness	
  
3%	
  
News	
  
2%	
  
Photo	
  &	
  Video	
  
2%	
  
Finance	
  
2%	
  
Medical	
  
2%	
  
Social	
  Networking	
  
2%	
  
Food	
  &	
  Drink	
  
3%	
  
NavigaEon	
  
1%	
  
Catalogs	
  
1%	
  
Weather	
  
0%	
  
Games	
  
EducaFon	
  
Entertainment	
  
Lifestyle	
  
Business	
  
Books	
  
UFliFes	
  
Travel	
  
Music	
  
Reference	
  
Sports	
  
Developers Have Conquered the Phone
with Apps
• >	
  9	
  Million	
  App	
  Developers	
  
• 800,000	
  new	
  developers	
  every	
  year	
  
• >	
  1,900,000	
  Apps	
  on	
  Apple	
  App	
  Store	
  
• >	
  1,000,000,000	
  iOS	
  Devices	
  
• >	
  100	
  Billion	
  Downloads	
  
• >	
  $25	
  Billion	
  paid	
  out	
  
Developers are Conquering the Wrist
Apple	
  Watch	
  
10,000	
  apps	
  
Android	
  Wear	
  
4,000	
  apps	
  
Pebble	
  
7,000	
  apps	
  
Developers are Conquering the Car
Developers are Conquering the Home
Developers are Conquering the Sky
Raised	
  $75M	
  to	
  build	
  an	
  	
  
industrial	
  UAV	
  developer	
  	
  
plamorm	
  
	
  (May	
  2015)	
  	
  
hnp://dev.dji.com/	
  	
  
“Android	
  for	
  drones”	
  
	
  
	
  
	
  
	
  hnp://dronekit.io/	
  
OS	
  for	
  	
  
commercial	
  drones	
  	
  
	
  
	
  
hnp://www.airware.com/developers	
  
Developers are Conquering …
• …CiFes	
  
• …Healthcare	
  
• …Clothing	
  
• …Factories	
  
• …EVERYTHING	
  
ASIA vs US
Localized Content
Revenue by Country
Revenue Growth in Asia by Store
Top 10 Countries in Asia
– Both Stores
Japan	
  =	
  77x	
  Malaysia	
  	
  
Revenue Distribution
Revenue	
  distribuEon	
  by	
  Country	
  and	
  Pladorm	
  –	
  Dec	
  2013	
  
Download volume by Device on App
Store
Business Model per device –
Apple App Store
Business Model per category –
Apple App Store – iPhone (Feb ‘14)
Business Model per category –
Apple App Store – iPhone (Feb ‘14)
Business Model by Country
– Apple App Store
Can AppStore Alone Support
Developers?
•  Only	
  1	
  in	
  9	
  developers	
  that	
  rely	
  on	
  app	
  store	
  revenues	
  are	
  in	
  the	
  safe	
  
zone	
  
E-Commerce – The Winning
App Revenue Model
E-­‐Commerce	
  Sales	
  
$300	
  Bn	
  
App	
  	
  
Store	
  
Sales	
  
$40.
5Bn	
  
AdverEsing	
  
$34	
  Bn	
  
Model #1: Apps as a Channel
• Transact	
  through	
  the	
  App	
  
• Nearly	
  60	
  percent	
  of	
  Amazon.com	
  	
  
customers	
  shopped	
  using	
  a	
  	
  
mobile	
  device	
  during	
  the	
  	
  
2014	
  holiday	
  period	
  	
  
Model #2: Mobile-First Business
•  Offline	
  Services	
  that	
  couldn’t	
  exist	
  without	
  the	
  App	
  
Model #3: Apps as a Platform
•  Enable	
  others	
  to	
  build	
  e-­‐commerce	
  businesses	
  on	
  top	
  of	
  your	
  app	
  
SEA Has Very Low eCommerce 

Penetration !
E-­‐commerce	
  shopping	
  makes	
  up	
  just	
  1-­‐2%	
  of	
  total	
  retail	
  sales	
  in	
  SEA.	
  	
  
This	
  compares	
  with	
  16%	
  in	
  Korea,	
  10%	
  in	
  Japan	
  and	
  8%	
  global	
  average	
  
Source:	
  Euromonitor,	
  BofA	
  Merrill	
  Lynch’s	
  eCommerce	
  Report	
  as	
  of	
  May	
  2015	
  and	
  SingPost	
  Report	
  as	
  of	
  Jan	
  2015	
  
US:	
  8.4%	
  
Korea:	
  16.3%	
  
Japan:	
  10.4%	
  
Australia:	
  
8.2%	
  
Global:	
  7.9%	
  
China:	
  8.5%	
  
SEA:	
  1-­‐2%	
  
E-­‐Commerce	
  as	
  %	
  of	
  Total	
  Retail	
  Sales	
  (2014)	
  
Apps in the Enterprise
Enterprise
60% OF INFORMATION
WORKERS WILL
INTERACT WITH CONTENT
APPLICATIONS VIA A
MOBILE DEVICE BY 2015
Gartner	
  
ANOTHER WAY TO DODGE THE
POVERTY TRAP: TARGET
ENTERPRISES
Is Making the Enterpise Jump Easy?
Is Making the Enterpise Jump Easy?
Consumer	
   Enterprise	
  
IOT has similar distribution
Apply Consumer IOT Tech to
Enterprise Problems
Apps - moving out of Mobile devices
Yesterday: The Traditional App
• The	
  value	
  is	
  delivered	
  by	
  the	
  app	
  itself	
  
Today: The Companion App
• The	
  value	
  is	
  delivered	
  by	
  the	
  device/service	
  
• The	
  app	
  is	
  just	
  a	
  remote	
  control	
  
Tomorrow: The Data App
• The	
  value	
  comes	
  from	
  combining	
  all	
  sorts	
  of	
  data	
  the	
  app	
  
processes	
  across	
  devices,	
  sensors	
  and	
  APIs.	
  
Focus on Innovation shifts to
making sense of data
From Device to Data Platforms
Whats the future of
Mobile Platforms?
• With	
  the	
  current	
  stalemate	
  in	
  the	
  plamorm	
  wars…	
  	
  
• With	
  the	
  evoluFon	
  to	
  data-­‐centric	
  apps,	
  moving	
  the	
  
focus	
  away	
  from	
  operaFng	
  systems	
  and	
  into	
  the	
  cloud	
  	
  
Future of Mobile is in IOT
Mobile Runner Ups copying…
E-Commerce Players too
IOT Solutions still Looking for
Problems
Multi Device, Integrated Experiences
Current	
  &	
  Future	
  Mobile	
  Trends	
  of	
  South	
  East	
  Asia	
  
Innotech	
  Cambodia	
  
17th	
  &	
  18th	
  march	
  2016	
  
Athi	
  Selvanayagam	
  
Venture	
  Partner,	
  1337	
  Ventures	
  
nishky@1337.ventures	
  
	
  
Eric	
  Ku	
  
COO,	
  iTrain	
  Asia	
  
eric@itrainasia.com	
  
	
  

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Current & future mobile trends of south east asia @ innotech cambodia

  • 1. Current  &  Future  Mobile  Trends  of  South  East  Asia   Innotech  Cambodia   17th  &  18th  march  2016   Athi  Selvanayagam   Venture  Partner,  1337  Ventures   nishky@1337.ventures     Eric  Ku   COO,  iTrain  Asia   eric@itrainasia.com    
  • 2. More  than  2,000  developers  in  Asia  has  taken  iTrain   Asia  Mobile  Development  Course  and  CerEficaEon   More  than  5,000  lecturers  &  students  in  Asia  has  been   trained  with  iTrain  Asia  Mobile  Development  Content   Indonesia   Thailand   Philippines   Malaysia   Myanmar   Singapore  
  • 4. Certification iOSs  and  Android  cerFficaFon   SAMPLE   SAMPLE  
  • 5.
  • 6. Current  &  Future  Mobile  Trends  of  South  East  Asia   Innotech  Cambodia   17th  &  18th  march  2016   Athi  Selvanayagam   Venture  Partner,  1337  Ventures   nishky@1337.ventures     Eric  Ku   COO,  iTrain  Asia   eric@itrain.com.my    
  • 7. SEA Population Source:  World  Popula/on  Review  (2014)     China, 1392! India, 1262! EU, 741! US, 319! SEA, 627! Population (in Millions)! 15! 254! 7! 30! 54! 101! 5! 68! 93! Cambodia! Indonesia! Laos! Malaysia! Myanmar! Philippines! Singapore! Thailand! Vietnam! Population (in Millions)!
  • 8. Young: More Than 67% Are 
 Under 35 Yrs! Source:  UBS  report  “ASEAN  E-­‐commerce”  at  13  June  2014  /  Global  Demographics   42%   45%   24%   40%   37%   43%   32%   29%   27%   31%   26%   27%   14%   14%   25%   16%   22%   19%   8%   7%   17%   9%   10%   8%   5%   4%   8%   5%   6%   4%   Vietnam Thailand Singapor Philippine Malaysia Indonesia Age  profile  of  ASEAN  neEzens   15-­‐24     25-­‐34   35-­‐44   45-­‐55   55+   Greater  than   51%  of  the   populaEon  in   Cambodia  are   below  the   age  30  
  • 9. They are Becoming Richer Source:  UBS  report  “ASEAN  E-­‐commerce”  at  13  June  2014  /  Global  Demographics  /  Macquarie  Research  2014   Income  per  capita  is  growing  fast  enough  to  drive  rising  affluence,  much   faster  than  global  average   2.0%   4.1%   4.6%   4.1%   5.7%   6.3%   1.5%   2.7%   2.1%   1.4%   3.2%   2.9%   1.2%   2.3%   1.30%   0.8%   2.0%   1.5%   Global  Avg   Indonesia   Thailand   Philippines   Malaysia   Singapore   2009-­‐14   2014-­‐19   2019-­‐24  
  • 10. SEA Internet Adoption 
 Increasing Fast! 14M! 31M! 18M! 4M! 55M! 34M! 194M! New internet users! 360M! Internet users! 2010! 2020! 62% ! Est. internet penetration! 25% ! 2010 internet penetration! 2014! 33% ! 2014 internet penetration! 20M! 41M! 20M! 4M! 71M! 44M! 156M! 204M! 1/3  of  the   populaEon  in   Cambodia   has  access  to   the  internet  
  • 11. Internet Has Surpassed TV! Source:  Nielsen;  eMarketer  2014  
  • 12. SEA Has Highest Mobile 
 Penetration Rate! Source:  Global  web  index,  March  2014  from  Ystats   Cambodia  157%   Singapore  152%   Thailand  150%   Vietnam  141%   Malaysia  137%   Indonesia  121%   Philippines  114%     SEA  Avg  119%   Global  Avg  98%   China  95%   Country  |  PenetraEon   All  major  SEA  countries  are  now  all  above  the  global  average  in  mobile  penetraFon  
  • 14. Rise of Affordable Smartphones!
  • 16. Sources: Meet the New Media Consumer 2014 - Malaysia Nielsen Review ASIA New Media Consumer!
  • 17. ASIA New Media Consumer!
  • 18. WHAT WORKED WELL IN THE PAST… MIGHT NO LONGER WORK ! TODAY!
  • 19. APAC is the largest and fastest growing smartphone market in the world! Global smartphone shipments, millions Source: Canalys Annualsmartphoneshipments(M)
  • 20. Mobile usage is exploding in APAC - the average user spends 2.5 hours / day on their smartphone APAC countries Average time spent on smartphone/day, minutes Source: Millward Brown
  • 21. 150 times a day 162 minutes a day
  • 22. “The mobile war is over and the app has won” venturebeat.com 2013/04/03 86% 14% TIME SPENT ON SITES TIME SPENT ON APPS USER TIME SPENT ON MOBILE DEVICES APPS > SITES
  • 23. 66% SITES 6% APPS 28% SITES & APPS PRIMARY CHANNEL FOR COMMERCIAL TASKS INDUSTRY  SNAPSHOT   75%  OF  AUTOS  USERS   60%  OF  FINANCE  USERS   70%  OF  TRAVEL  USERS   71%  OF  RETAIL  &  TECH  USERS   64%  OF  LOCAL  SERVICES  USERS   ...  USE  SITES  MORE  OFTEN  FOR   COMMERCIAL  TASKS   86% 14% TIME SPENT ON SITES TIME SPENT ON APPS 14% 40% GAMIN G & ENT. 26% SOCIAL 20% OTHER USER TIME SPENT ON MOBILE DEVICES Time spent Value for your business!
  • 24. 64% 62% 59% 51% 43% 56% 45% 38% 33% 32% 51% 42% 43% 38% 39% 44% 32% 21% 24% 20% 30% 19% 15% 14% 15% 22% 17% 13% 13% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Internet Newspaper or magazine In-store promotional display TV Outdoor ad Radio The Internet is the primary form of influence at each stage of a consumer journey Become interested Begin evaluating Compare prices and features Final decision on which to buy Final decision on where to buy Offline sources Source Use at Each Step *  Source:  Malaysia  ROPO,  Netpop  Research,  LLC   24  
  • 25. This is not a distant global possibility but a local, near term opportunity “Smartphones and tablet computers are expected to boost online retail sales in APAC to >$400B a year by 2018” Euromonitor Source: Euromonitor; Channel News Asia X  2.3   (c.20%  Y/Y)   $186B   2013   2018   $428B  
  • 26. VS  
  • 27. Market Share Smartphone Vendor, 2015 Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 27, 2016   Vendor 2015  Shipment   Volumes   2015  Market   Share 2014  Shipment   Volumes 2014  Market   Share Year-­‐Over-­‐Year   Growth 1.  Samsung 324.8 22.70% 318.2 24.40% 2.10% 2.  Apple 231.5 16.20% 192.7 14.80% 20.20% 3.  Huawei 106.6 7.40% 73.8 5.70% 44.30% 4.  Lenovo 74 5.20% 59.4 4.60% 24.50% 5.  Xiaomi 70.8 4.90% 57.7 4.40% 22.80% Others 625.2 43.60% 599.9 46.10% 4.20% Total 1,432.90 100.00% 1,301.70 100.00% 10.10% (Units in Millions)  
  • 28. Market Share Smartphone OS, 2015 Source: IDC Worldwide Quarterly Mobile Phone Tracker, December 2, 2015   Region 2015*   Shipment   Volumes 2015*   Market  Share 2015*  YoY   Growth 2019*   Shipment   Volumes 2019*   Market  Share 2019*  YoY   Growth 5  year  CAGR Android 1,161.10 81.20% 9.50% 1,538.10 82.60% 4.80% 7.70% iOS 226 15.80% 17.30% 263.4 14.10% 3.10% 6.50% Windows   Phone 31.3 2.20% -­‐10.20% 43.6 2.30% 11.40% 4.50% Others 11.3 0.80% -­‐16.80% 17.1 0.90% 6.50% 4.70% TOTAL 1,429.80 100.00% 9.80% 1,862.30 100.00% 4.70% 7.40% * Forecast data  
  • 29. Market Share, 2015 IDC    Smartphone  OS  Market  Share,  2015  Q2   Android,   81.2   IOS,  15.8   Microsog,   2.2   Others,  0.8   Android   IOS   Microsog   Others  
  • 30. Android Distribution – 7th Mar 2016 Version   Codename   DistribuFon   2.2   Froyo   0.1%   2.3.3  -­‐   2.3.7   Gingerbread   2.6%   4.0.3  -­‐   4.0.4   Ice  Cream   Sandwich   2.3%   4.1.x   Jelly  Bean   8.1%   4.2.x   11.0%   4.3   3.2%   4.4   KitKat   34.3%   5.0   Lollipop   16.9%   5.1   19.2%   6.0   Marshmallow   2.3%  
  • 31. iOS Distribution – 7th Mar 2016 iOS  9   79%   iOS  8   16%   Earlier  iOS   5%  
  • 32. Mobile Platforms: Both? All 3? • 37%  of  all  mobile  dev  target  both  iOS  and  Android.   • 7%  target  none  of  the  top  3  
  • 33. App Categories Games   515,715   23%   EducaEon   208,041   9%   Entertainment   142,646   6%  Lifestyle   195,544   9%   Business   231,658   10%   Books   71,757   3%   UEliEes   5%   Travel   4%   Music   3%   Reference   2%   Sports   2%   ProducEvity   3%   Health  &  Fitness   3%   News   2%   Photo  &  Video   2%   Finance   2%   Medical   2%   Social  Networking   2%   Food  &  Drink   3%   NavigaEon   1%   Catalogs   1%   Weather   0%   Games   EducaFon   Entertainment   Lifestyle   Business   Books   UFliFes   Travel   Music   Reference   Sports  
  • 34. Developers Have Conquered the Phone with Apps • >  9  Million  App  Developers   • 800,000  new  developers  every  year   • >  1,900,000  Apps  on  Apple  App  Store   • >  1,000,000,000  iOS  Devices   • >  100  Billion  Downloads   • >  $25  Billion  paid  out  
  • 35. Developers are Conquering the Wrist Apple  Watch   10,000  apps   Android  Wear   4,000  apps   Pebble   7,000  apps  
  • 38. Developers are Conquering the Sky Raised  $75M  to  build  an     industrial  UAV  developer     plamorm    (May  2015)     hnp://dev.dji.com/     “Android  for  drones”          hnp://dronekit.io/   OS  for     commercial  drones         hnp://www.airware.com/developers  
  • 39. Developers are Conquering … • …CiFes   • …Healthcare   • …Clothing   • …Factories   • …EVERYTHING  
  • 43. Revenue Growth in Asia by Store
  • 44. Top 10 Countries in Asia – Both Stores Japan  =  77x  Malaysia    
  • 45. Revenue Distribution Revenue  distribuEon  by  Country  and  Pladorm  –  Dec  2013  
  • 46. Download volume by Device on App Store
  • 47. Business Model per device – Apple App Store
  • 48. Business Model per category – Apple App Store – iPhone (Feb ‘14)
  • 49. Business Model per category – Apple App Store – iPhone (Feb ‘14)
  • 50. Business Model by Country – Apple App Store
  • 51. Can AppStore Alone Support Developers? •  Only  1  in  9  developers  that  rely  on  app  store  revenues  are  in  the  safe   zone  
  • 52. E-Commerce – The Winning App Revenue Model E-­‐Commerce  Sales   $300  Bn   App     Store   Sales   $40. 5Bn   AdverEsing   $34  Bn  
  • 53. Model #1: Apps as a Channel • Transact  through  the  App   • Nearly  60  percent  of  Amazon.com     customers  shopped  using  a     mobile  device  during  the     2014  holiday  period    
  • 54. Model #2: Mobile-First Business •  Offline  Services  that  couldn’t  exist  without  the  App  
  • 55. Model #3: Apps as a Platform •  Enable  others  to  build  e-­‐commerce  businesses  on  top  of  your  app  
  • 56. SEA Has Very Low eCommerce 
 Penetration ! E-­‐commerce  shopping  makes  up  just  1-­‐2%  of  total  retail  sales  in  SEA.     This  compares  with  16%  in  Korea,  10%  in  Japan  and  8%  global  average   Source:  Euromonitor,  BofA  Merrill  Lynch’s  eCommerce  Report  as  of  May  2015  and  SingPost  Report  as  of  Jan  2015   US:  8.4%   Korea:  16.3%   Japan:  10.4%   Australia:   8.2%   Global:  7.9%   China:  8.5%   SEA:  1-­‐2%   E-­‐Commerce  as  %  of  Total  Retail  Sales  (2014)  
  • 57. Apps in the Enterprise
  • 58.
  • 60. 60% OF INFORMATION WORKERS WILL INTERACT WITH CONTENT APPLICATIONS VIA A MOBILE DEVICE BY 2015 Gartner  
  • 61. ANOTHER WAY TO DODGE THE POVERTY TRAP: TARGET ENTERPRISES
  • 62. Is Making the Enterpise Jump Easy?
  • 63. Is Making the Enterpise Jump Easy? Consumer   Enterprise  
  • 64. IOT has similar distribution
  • 65. Apply Consumer IOT Tech to Enterprise Problems
  • 66. Apps - moving out of Mobile devices
  • 67. Yesterday: The Traditional App • The  value  is  delivered  by  the  app  itself  
  • 68. Today: The Companion App • The  value  is  delivered  by  the  device/service   • The  app  is  just  a  remote  control  
  • 69. Tomorrow: The Data App • The  value  comes  from  combining  all  sorts  of  data  the  app   processes  across  devices,  sensors  and  APIs.  
  • 70. Focus on Innovation shifts to making sense of data
  • 71. From Device to Data Platforms
  • 72. Whats the future of Mobile Platforms? • With  the  current  stalemate  in  the  plamorm  wars…     • With  the  evoluFon  to  data-­‐centric  apps,  moving  the   focus  away  from  operaFng  systems  and  into  the  cloud    
  • 73. Future of Mobile is in IOT
  • 74. Mobile Runner Ups copying…
  • 76. IOT Solutions still Looking for Problems
  • 78. Current  &  Future  Mobile  Trends  of  South  East  Asia   Innotech  Cambodia   17th  &  18th  march  2016   Athi  Selvanayagam   Venture  Partner,  1337  Ventures   nishky@1337.ventures     Eric  Ku   COO,  iTrain  Asia   eric@itrainasia.com