The mobile app industry has become a $100 billion industry due to several factors:
1) Mobile app revenue has skyrocketed from $0.25 billion in 2008 to an estimated $25 billion in 2012 as smartphone adoption increased.
2) Smartphone sales have risen dramatically while PC sales have dropped, with over 700 million smartphones shipped globally in 2012.
3) China has emerged as the largest mobile internet user base and smartphone market, with 245 million smartphones used in 2012.
4) Apps now command 80% of consumers' time spent on mobile devices, driven by social, games, and entertainment apps.
FDO for Camera, Sensor and Networking Device – Commercial Solutions from VinC...
Richard Lim: "Mobile Apps: The Next $100+ Billion Market?""
1. Why is Mobile a $100 Billion
Dollar Industry?
April 12, 2013
Managing
Director
Richard Lim
CEO
David Liu
General
Manager
Amy Gu
Vice President
Junde Yu
2. - Confidential -
2
$.25 $1
$4
$9
$12
$25
Mobile Applications Revenue Set to Skyrocket
Mobile App Revenue
(USD $Billions)
Source: Mary Meeker, Kleiner Perkins, and BI Intelligence estimates
3. - Confidential -
3
PC Sales Dropping While Smartphones Continue to Rise
269
295 304
347 356 352
124
157 174
305
494
713
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011 2012
PC Smartphone
Global Smart Device Annual Unit Shipments,
2007–2012
(Global Shipments in Million)
Source: IDC
4. - Confidential -
4
Largest Mobile Internet User Base Emerged in China
China Internet and Mobile Internet Users Growth
(Million)
Source: CNNIC and Youmeng
298
384
457
513 564
118
233
303 356
420
-
200
400
600
800
2008 2009 2010 2011 2012
Internet Users Mobile Internet Users
Largest Smartphone Market
245M Smartphones in 2012
Active iOS & Android Devices,
U.S. versus China (Millions)
85 Million
160 Million
5. - Confidential -
5
Apps Command 80% of Consumers’ Time
Source: Flurry Analytics, comScore, NetMarketShare
Time Spent on iOS & Android Connected Devices
Opera Mini, 2%
Android Native, 4%
Safari, 12%
BROWSER
20%
APP 80%
Other Apps, 6%
Productivity, 2%
News, 2%
Utility, 8%
Entertainment, 8%
Games, 32%
Social Networking, 24%
Other Browsers, 1%
7. - Confidential -
7
Revenue Shifted from Ads to In-app Purchases
0.5
1 2
4
6
0.2 1
4
9
13
0
5
10
15
20
25
2008 2009 2010 2011 2012E
Ads Revenue App Revenue
Worldwide iOS & Android App Revenue by Source,
2008–2012
(USD $Billion)
Source: Mary Meeker, Kleiner Perkins, and BI Intelligence estimates
8. - Confidential -
8
Application Publisher
Puzzle & Dragons GungHo
윈드러너 for Kakao WeMade
다함께 차차차 for Kakao CJ E&M
Candy Crush Saga King.com
밀리언아서
Actoz
Games Dominated App Store Revenue
Source: Distimo
Top 5 Grossing Apps,
(Globally Aggregated over 2013 March)
Application Publisher
Clash of Clans Supercell
Candy Crush Saga King.com
Hay Day Supercell
Kingdoms of Camoelot Kabam
Minecraft Mojang
Top 5 Grossing Apps,
(Globally Aggregated over 2013 March)
9. - Confidential -
9
Publishers in China Challenged by Distribution Fragmentation
Mobile System Operator
• App Store
• Google Play
• Windows Phone
Handset Manufacturer
• Samsung Apps
• OVI (Nokia)
• Shop4Apps (Motorola)
• Hispace Store (Lenovo)
Telco
• Mobile Market (CM)
• 189store (Tianyi–CT)
• WO Store (CU)
3rd Party App Store
• QQ Apps Center
• Baidu Apps Center
• AnZhi, 91zs, Jifeng
• AppChina, HiMarket
APP