1.
Sectoral Analysis : Mobile Application
Industry
Submitted By :
Sagar Deshmukh
Birla Institute of Management Technology (BIMTECH )

2.
Indian Mobile Users
 India has the second largest mobile base in the word , with a subscriber base of
nearly 933 million in FY14.
 India Stood third highest in terms of total number of internet user with 164.81
million internet subscription.
 Seven out of eight user uses internet from their mobile phone.
Urban teledensity stood at 145.78 per cent and rural teledensity at 43.96 per cent
as of March 2014, up from 87.1 per cent and 23 per cent, respectively, in March 2009.
Availability of affordable smartphones and lower rates are expected to drive growth
in the Indian telecom industry and mobile application sector.

3.
Telecom penetration in the nations rural market is expected to be 70 % by 2017
from 41% in march 2013.
Telecom infrastructure is expected to increase at a CAGR of 20 per cent to
571,000 towers during 2008–15.
The Indian Mobile Value-Added Services (MVAS) industry is expected to reach
USD9.5 billion by 2015 from USD4.9 billion in 2012
Indian Mobile Users

4.
Growth Drivers
Rising Income level fuels demand .
The IMF forecasts income to expand at a CAGR of 5.7 per cent to USD1,869.3 during
2013–18.
The emergence of an affluent middle class is triggering demand for the mobile and
internet segments .
A young, growing population is aiding this trend (especially demand for smartphones).
Increasing Internet Revenues and Subscriptions .

5.
1 3 7
12
25
29
35
40
32
50
26
15
0
20
40
60
80
100
120
1 2 3
Aspirers (1657-3682.5)
Aspirers (1657-3682.5)
Seekers (3682.5 - 9206.4)
Strivers (9206.4-18412.8)
Globals (>18412.8)
Indian residents shifting from low to high income groups (%)
Source: McKinsey Quarterly Report, Aranca Research

6.
Smart Phone User in India
Out of total Indian population 1 in every 120 are
smartphone user.
95 % of smartphone user search local
information through their phones.
91 % of smartphone users research their product
via their phone.
54 % of smartphone users made their purchase
vis their phone.

7.
Smart Phone Purchase in India
175
298
491
697.7
968
1200
0
200
400
600
800
1000
1200
1400
2009 2010 2011 2012 2013 2014
In Millions
Years

8.
0
100
200
300
400
500
600
700
800
2009 2010 2011 2012 2013 2014
Years
Android
iOS
RIM
Symbian
Microsoft
Bada
Others
Trend of Operating System

9.
1.8
2.1
1.9
2.2
0
0.5
1
1.5
2
2.5
2009 2010 2011 2012
Revenue (USD million )
year
Internet Revenues
Total internet service providers’ revenues expanded at a CAGR of 12.2 per cent to
USD2.2 billion over 2009–12 .

10.
Mobile 3G Subscription In India
2012 2013
2014 2015
2016
2 hours and 36 minutes is the average time that the mobile internet user
spend each day.

11.
1.1
1.7
1.9
3.2
4.2
4.9
6.2
7.8
9.5
2007 2008 2009 2010 2011 2012 2013 2014E 2015F
CAGR
30.9 %
MVAS revenues (in USD billion)
The Mobile Value Added Services (MVAS) industry is forecasted to expand at a CAGR
of 30.9 per cent to USD9.5 billion by 2015 from USD1.1 billion in 2007.
A decline in the prices of smartphones and data subscription rates is likely to drive
demand for MVAS
Source: Wipro Technologies, The Internet and Mobile Association of India, Aranca Research
Increasing Internet Revenues and Subscriptions

12.
2012 2013 2014 2015 2016 2017
Free Downloads
57,331 92,876 127,704 167,054 211,313 253,914
Paid-for Downloads
6,654 9,186 11,105 12,574 13,488 14,778
Total Downloads
63,985 102,062 138,809 179,628 224,801 268,692
Free Downloads %
89.6 91 92 93 94 94.5
Source: Gartner
Mobile App Store Downloads, Worldwide, 2010-2016 (Millions of Downloads)
Mobile Application Market
Free apps currently account for about 60 percent and 80 percent of the total
available apps in Apple's App Store and Google Play.
iOS and Android app stores combined are forecast to account for 90 percent of global
downloads in 2017

13.
It is been expect average monthly downloads per iOS device to decline from 4.9
in 2013 to 3.9 in 2017, while average monthly downloads per Android device will
decline from 6.2 in 2013 to 5.8 in 2017.
This relates back to the overall trend of users using the same apps more often
rather than downloading new ones.

14.
Mobile App Store Revenue , Worldwide , 2012-2017
7139
15375
20240
24314
26990 27664
28935
712
2111
4591
7856
14001
23771
36887
0
5000
10000
15000
20000
25000
30000
35000
40000
2011 2012 2013 2014 2015 2016 2017
Millions of
Dollars
Years
Paid For
In-App
Purchases
Advertising
Source: Gartner

15.
Mobile Application Market in India
The mobile application (app) market is expected
to expand at a CAGR* of 70.4 per cent to USD100
billion during 2012–15 .
The mobile app market is estimated to increase
9.4 per cent to USD22.1 billion in 2013 from
USD20.2 billion in 2012 .
The segment’s growth is expected to be driven
by increasing mobile connections and availability
of low-range smartphones.
Over 100 million apps are downloaded every
month across different platforms such as iOS,
Blackberry, Nokia, and Android
20.2
100
2012 2015 F
CAGR
70.4 %

16.
Mobile OS Market Share in India
According to IDC ,
 Google mobile operating system Android has 91 %
market share in the country.
 Windows has 6 % market share in the country .
 Apple iOS has 2 % market share in the country .

17.
Breakthrough In Indian App Industry
Indian Government has started rolling out a set of “ m-
governance “application for android and java based phones
through its own Apps Store.
Flipkart ,Amazon and Snapdeal launched their
respective mobile shopping applications.
Mobile Payments Break-through
Cab services like Savaari , TaxiforSure ,Meri cab ,Red bus and
Uber have launched their mobile apps.

18.
Uber, Starbucks, Amazon, Flipkart ,Booking.com and others have shown
that it’s possible to shake up an entire industry by providing a
differentiating and winning mobile experience. These organizations
are driven by user experience more than anything else.
This goes for Enterprise apps as well. Forrester reports that 90% of
businesses will have corporate apps by 2014. Enabling employees
with business applications give enterprises the opportunity to reduce
operational costs, as well as improve profitability and competitive
edge.

19.
Numbers of Apps - Google Play Vs Apple Store
0
200000
400000
600000
800000
1000000
1200000
2009 2010 2011 2012 2013
In Billions
Years
Google Play
iOS2
Google Play iOS2
2009 16000 100000
2010 100000 400000
2011 380297 500000
2012 700000 700000
2013 1000000 1000000

20.
Top Categories of App being Download
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
2011-2012 2012-2013
GROWTHINPERCENTAGE
Year
Messaging and
Social
Utility and
Productivity
Music, Media
and
Entertainment
Lifestyle and
Shopping
Games
Source: Flurry

21.
Top Categories on Google Play
2958
3113
14106
11204
2789
7003
34699
2574
740
1930
13537
0 10000 20000 30000 40000
Business
Communication
Entertainment
Lifestyle
Media& Video
Music & Audio
Personalization
Photography
Shopping
Social
Travel & local
In Millions
Category
Paid Apps
Free Apps

22.
Why the Mobile App is Needed
When you have mobile app , your customers are just a
swipe away from reaching your brand .
90 % Of Mobile searches carried out lead to actions.
50 % Of mobile searches leads to purchase .

23.
 Time to market is less.
Ease of development .
User friendly and simple application are available .
Availability of skilled developers.
Faster and easy access to markets.
Favorable revenue sharing terms.
Fragmented market : Thousands of application developers .
 Lacks of focus on single platform.
Developers need time to relearn as new operating system , new
user interface ,new functionalities and capabilities are coming .

24.
 Growing market : High demand
 New Applications
1) M- banking
2) M- health
3) M- shopping
Sales of virtual good and redemption of the coupons and promotions.
 Mobile web browsers (eliminate need to download different apps )
 Fierce competition
 Average selling price decreasing
 Carriers have control over the distribution of mobile games (will
changes as economics shift ,off-deck providers become stronger and
to a lesser extent ,ad-supported games emerge.)