The Mobile Ecosystem's Evolution Benefits and impact on mobile industry competition of Android and iOS Have mobile OS helped create a mature and more open mobile ecosystem? The study, commissioned by Google, illustrates the paradigm shift in the mobile industry introduced by iOS and Android, due to decreased fragmentation. It analyses the clear benefits that new OS bring to the digital economy, with more affordable and more powerful devices, and providing access to a host of applications and services more information on www.idate.org & http://blog.idate.fr

1. Mobile Ecosystem Evolution
White Paper
September 2016
Chef de projet / Project leader
Vincent BONNEAU
+33 (0)4 67 14 44 53
v.bonneau@idate.org
Commissioned by Google

2. www.idate.org
Introduction

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Introduction : iOS and Android have initiated a paradigm shift for the mobile
industry in Europe
Mostly a situation of failure of market development before 2007
Walled gardens, WAP, etc…
Timeline of mobile ecosystem
Source: IDATE DigiWorld

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Mobile ecosystems : Very quick to appear as game changers
Fast attraction of developers within 3 years of launch
Due to less fragmentation
A comparison of installed base and number of available apps
from major mobile platforms as of H1 2010
Level of fragmentation of major mobile platforms as of mid-2011
Source: Vision mobile, Developer Economics

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Mobile ecosystems: Recomposition of ecosystems thanks to application stores
More attractive for developers
More revenues, more flexibility
Mobile industry simplified value chain
Source: IDATE
The evolution to a simpler disintermediated value chain
Source: IDATE DigiWorld

6. www.idate.org
Benefits

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Benefits of iOS and Android : Devices markets
Smartphone expansion
Fast uptake after 2009
Android devices becoming more affordable
Main reason for smartphone becoming mainstream
Worldwide smartphone market expansion starts in 2009 (‘000 device shipments)
Source: IDATE DigiWorld
Comparison between iOS and Android average selling price worldwide (USD)
Source: IDATE DigiWorfld based on Morgan Stanley and KPCB

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Benefits of iOS and Android : Mobile Internet markets
Impact in intensity of usage more than on
number of users
Traffic per user has been multiplied by 50 in 4 years
A real impact of smartphones for mobile web
and apps
Effect of Android and iOS
on mobile Internet traffic in Europe
Source: IDATE DigiWorld
Impact of iPhone on mobile browsing in USA, March 2008
Q: "I do a lot more browsing on the iPhone than I did with my previous
mobile phone"
Source: Rubicon

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Benefits of iOS and Android : Mobile app economy
Mobile web and applications representing
already huge revenues in Europe
Europe a real contender on mobile services (more
than on other Internet/digital services)
Bringing in numerous jobs
Already more than 1.64 million jobs overall
Corresponds to roughly 547,000 core App
Economy jobs. Roughly 9 percent of ICT jobs in
Europe are associated with the App Economy.
Plenty of room for the number of App Economy
jobs to continue to rise as apps take a central role
in the Internet of Things.
The mobile applications market in Europe, 2010-2020 (million EUR)
Source: IDATE DigiWorld, "World OTT Markets" Report, 2016
The European App Economy, January 2016
Source: Progressive Policy Institute, Indeed, Public job postings

10. www.idate.org
Competition impacts

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Competition impacts : End-user choices essentially independent from OS
Top applications not linked to Google or Apple
Youtube is the only exception in the top 10 list
Top applications per platform are the same
A lot of Google apps downloaded on iOS
The most popular apps by download,
May 2016
Source: Statista
Top free downloads in UK on a day in June for Google Play,
App Store and WP Store
Source: IDATE DigiWorld, based on AppAnnie

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Competition impacts : Developers have choices
Not just iOS and Android anymore
HTML5 as a real alternative
Windows to a lesser extent
New platforms emerging : Firefox, Tizen, Kindle
Developers looking for multiple platforms
Enabled more and more by cross-platform tools like
Xamarin or PhoneGap (close to 40% of developers)
HTML5 leading development language
Evolution of interest for platforms by developers
Source: IDC/Appcelerator survey (2015)
Overlap between developer choices for platforms
Source: Vision Mobile (Developer Economics, State of Developer Nation, 2016)
Above –games developers build apps not builds apps.

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Competition impacts : room for success stories independent from platforms
Success stories from social
networks and communication tools
Transformation of their activities with
mobile
Facebook now neck and neck with Google
on mobile advertising
Numerous success stories in the
mobile gaming industry
Pokemon Go as the most recent example
But numerous examples, including from
European players (Rovio’s Angry Birds)
Number of photos shared daily on selected platforms globally, 2005-2015
Source: KPMG
Revenue of select mobile game companies
Source: The Wall Street Journal

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Competition impacts : Device markets
Oligopolistic markets
But nothing new compared to 2008
and before
Reshuffle of leading players in
favour or Samsung and at the
expense of Nokia
More newcomers (especially from
China), including new players like
Wiko capturing significant market
shares (17% in France)
Dynamics also favorable for
MNOs : Android-based lower
ASP allowing to
Propose signature devices
Offer SIM-only plans
Evolution of smartphone market share of worldwide smartphone unit sales
Source: IDATE
Wiko has successfully invested in the French market and expanded its market
Source: IDATE DigiWorld based on public figures Above 30 countries of operation NOT country

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