1. APPS 4 CARS
GENIVI All Members Meeting
April 25, 2012
Ludovic Privat
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2. Automotive
Wireless Consumer
Electronics
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3. Automotive
Automotive
Apps
Wireless
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4. Topics of the day
• App Store economics
• What App Strategy for Car Makers?
• Should you build an app store?
• If not what to do?
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5. App Store Economics
•Choice
• Volume
• Price (low)
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6. Choice
NB
of
downloads
NB of
Apps
550,000+ Applications on Apple App Store
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7. Volume
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8. Low price
• Current average app price: $2.02
• Current average game price: $1.02
• Current average overall price: $1.88
Apple App store - April 2012
Source: 148apps.biz
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9. Low price
Free $0.99 $1.99 $2.99 $3.99 $4.99 $5.99 & up
46.43% 25.77 %10.73 % 5.15 % 2.59 % 2.93 % 6.4 %
Percentage of app in each price category
Apple App Store (April 2011)
Source: 148apps.biz
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10. Low price
• U.S. consumers who have never
paid more than $1 for an app:
• iPhone owners: 45%
• Android owners: 62%
• Blackberry owners: 63%
TeleNav survey - 1,000 respondents (Aug 2011)
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11. Auto apps
How much would they pay (US)?
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12. Auto apps
How much would they pay (UK)?
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13. Auto apps
How much would they pay (Ger)?
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14. App Stores Revenue
• Apple app store
• 550,00 Apps available, 25 Billion Apps downloaded until March 2012
• $4 Billion paid to developers (to date); $2.1Billion paid in 2011
• Average revenue: $0.16 / app
• Google app store
• 400,000 Apps available, 10 Billion Apps downloaded (Dec. 2011)
• Google Play (Android Market) is said to be 23% of iOS revenue per
active user.
• In-app advertising
• Estimated at around $200-$300 million in 2011
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15. App Stores Revenue
2011
$4B
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16. App Store failures
Handset Maker Operator
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17. Long term model?
• One closed garden replaces another
• From wireless operator’s lock-up
to Apple/Google Lock-up
• New forces:
• Competing stores on Android
(Amazon, GetJar & others)
• HTML 5 apps, mobile payment
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18. In-car Apps
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19. In-car App flavours
Built-in Beamed-in Brought-in
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20. Are Car Manufacturer’s
App stores sustainable?
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21. Mobile industry
480 Million smartphones sold in 2011
2 dominant platforms: iOS & Android
Large addressable market
Consumer interest developer interest
Choice
Developers are21 the real currency

22. Car industry
60 Million passenger cars sold in 2011
large fragmentation per brand
Small addressable market
Little developer
No consumer interest
interest
Little Choice
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23. Wireless innovation
speed
• Smartphone & tablets are becoming
powerhouses: CPU, GPU, Sensors
• Product & innovation cycles are extremely
fast, driven by intense market competition
• In contrast car life cycle remains pretty
stable
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24. Consumer interest for
in-dash app stores?
• Likely to be seen as duplication of their
smartphone apps
• High cost of ownership (connectivity cost)
• limited success of connected PND (25-30%
of subscription renewal) demonstrates
driver’s unwillingness to pay for another
subscription
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25. Built-in app store?
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26. App opportunities for
car makers
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27. Which apps?
• Lifestyle apps: Internet radio, Twitter,
Facebook, etc.?
• Driver apps: navigation, traffic, weather,
etc.?
• Vehicle apps: eco-driving, remote door
opening, tracking, monitoring, etc.?
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28. Key opportunities
• Focus on core competency: vehicle centric value-added
services
• Piggyback on driver data plan when possible
• Big data opportunity about car knowledge (parts, etc...)
• Big data opportunity on driver knowledge (driver
behaviour analytics)
• Extended customer relationship over the full lifecycle
of the car
• B2B monetization opportunities with third parties:
insurance companies, car part suppliers, etc...
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29. Key takeaways
• App market is tough business
• Don’t fight a lost battle against wireless
industry giants
• Monetize opportunities based on vehicle-
centric core competencies
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30. Thank you!
ludovic.privat@gpsbusinessnews.com
+33 6 22 05 61 38
Twitter: @gpsbusinessnews
http://www.gpsbusinessnews.com
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