Recent trends in the Android Ecosystem distributed by 4 chapters: 1- Android vs iOS 2- 3rd-party App Stores 3- Android Malware 4- A Crowded App World

1. Trends in the Android ecosystem Echelon - Jun 2016

2. ANDROID vs. iOS

3. 3
Mobile usage driven by APAC…
Source: Mary Meeker (http://www.kpcb.com/internet-trends)
Smartphone Users
2005 - 2015

4. 4
…and dominated by two key players
Source: Business Insider (http://www.businessinsider.sg/ios-and-android-dominate-marketshare-2016-2/)
WW smartphone OS market share
2009 - 2015

5. 5
Google leads in terms of downloads…
WW App Downloads
1Q2016. Indexed
Source: AppAnnie (http://blog.appannie.com/app-annie-index-market-q1-2016/)

6. 6
…but iOS continues to lead in terms of revenue
WW App Revenue
1Q2016
Source: AppAnnie (http://blog.appannie.com/app-annie-index-market-q1-2016/)

7. 7
Developers in emerging markets think about Android first…
Platform priority for Developers by country
2014
Source: VisionMobile (http://www.slideshare.net/andreasc/mobile-megatrends-2014-25-may-2014)

8. 8
…but they have to deal with the challenge of Android fragmentation
Source: Business Insider (http://www.businessinsider.sg/android-fragmentation-and-the-effect-on-samsung-sales-2015-8/)
Models by Android manufacturer (Aug 2015)
How to guarantee compatibility with 20k+ distinct Android devices using 10+ OS versions?

9. 3rd-PARTY ANDROID STORES

10. 10
3rd-party App Stores already represent half of Google Play downloads
2015 2016F 2020F
80
41
31
166
78
54
35
2724
Mobile App Downloads
Billions (2015 - 2020F)
…
3rd-party
android
Source: AppAnnie presentation at TiA SG 2016

11. 11
APAC will drive most of the future traffic growth
2015 2016F 2020F
162
80
58
64
36
28 58
3125 …
APAC
EMEA
AMERICAS
Mobile App Downloads
Billions (2015 - 2020F)
Source: AppAnnie presentation at TiA SG 2016

12. 12
Players building an independent Android experience on top of AOSP*
*Android Open Source Project
1 https://www.abiresearch.com/press/4q-2014-smartphone-os-results-android-smartphone-s
OEMs
OS
APP
STORES
APPs /
SERVICES
AOSP
The Android Open-Source Project is based on the open-source parts of Android and
allows anyone to build or customize an Android ROM

13. 13
Indus Android OS for 1st-time smartphone users in India
Source: TechCrunch (http://techcrunch.com/2016/01/18/indus-os-series-a-10-million/)
“If you want proof that
Android is the
operating system of
emerging markets,
look no further than
Indus OS.
The company is
tweaking the Google-
run operating system
to the unique
demands and culture
of India.
Indus OS believes that
one of the primary
problems is
complexity, and it is
retooling Android
accordingly.”

14. 14
App developers use 3rd-party App Stores as an additional channel
Source: MyChat (http://mychat.mysquar.com/)

15. ANDROID MALWARE

16. 16
Reports of infected Android Apps available in Google Play…
Source: The Register (http://www.theregister.co.uk/2016/04/26/android_malware_whack_a_mole/)
“Security researchers
have discovered a
strain of Android
malware that keeps
finding its way onto
Google Play – despite
the store supposedly
being scrubbed clean
of infiltrated apps..
The software nasty –
Android.Spy.277.origin
– is hidden in more
than 100 applications
on Google Play.”

17. 17
…and in 3rd-party App Stores hurt the reputation of Android
Source: PC World (http://www.pcworld.com/article/3032296/security/android-root-malware-widespread-in-third-party-app-stores.html)
“Four third-party app
stores for Android
have apps with a
malicious
component that seeks
root access to devices,
according to Trend
Micro.
The apps containing
the component were
downloaded across
169 countries between
Jan. 29 and Feb. 1
from marketplaces
called Aptoide,
Mobogenie, mobile9
and 9apps.”

18. 18
So it’s key to have anti-virus and anti-malware platforms…
Source: Aptoide Blog (http://blog.aptoide.com/evolution-of-aptoide-malware-detection-system/)

19. 19
…to block infected apps
Uploads submitted to Aptoide Percentage of infected uploads
Source: Aptoide Blog (http://blog.aptoide.com/evolution-of-aptoide-malware-detection-system/)

20. A CROWDED APP WORLD

21. 21
Apps dominate when compared to Web
Source: Statista (http://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/)
Monthly usage of Apps vs. Web
4Q2012 vs. 4Q2013

22. 22
But how to stand out within 2 Mn Apps?
Source: Statista (http://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/)
Apps available for download
June 2016

23. 23
And how to stay in the user’s phone?
Source: Business Insider (http://www.businessinsider.sg/average-number-of-apps-vs-time-spent-2016-5/) & Mary Meeker “Internet Trends”
Monthly App Usage
USA. 4Q2011 - 4Q2015
12 Apps used daily with 3 of them accounting for 80% of App usage

24. 24
Google is exploring streaming Apps into your phone…
Source: The Verge (http://www.theverge.com/2015/11/18/9755890/google-can-now-stream-apps-to-your-phone)

25. 25
…and messenger Apps are exploring bots to add value to the user
Source: Venture Beat (http://venturebeat.com/2016/04/27/zuckerberg-facebook-bots-will-help-businesses-respond-faster-than-with-messaging/)
“…a way to increase the speed and efficacy of
interactions between users and businesses …
…people already message businesses on Facebook, but
need to wait for a reply…
“…we can look at responses businesses give and
automate them [with bots] to help decrease latency.”

26. Thank you!
Tiago Costa Alves
VP Asia Pacific