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Why mobile is an interesting opportunity for startups: AppStore and it's rivals are offering both distribution and small payment solutions. Simple solutions for small payments do not exists in web, thus mobile can offer an interesting possibility to test new (old) business models.
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Mobile startupsWhy to focus on mobile?
1. Mobile apps
2. Mobile payments
3. Web
1. Mobile apps
2. Mobile payments
3. Web
Finally possible
1. Mobile apps
2. Mobile payments
3. Web
Finally possible
The gist
1. Mobile apps
2. Mobile payments
3. Web
Finally possible
The gist
New business models?
1. Mobile appsFinally possible
Mobile WebFocus shifted
Negotiating with operatorsis time not spentwith users
Really bad for a small startup
iPhone changedthe game
S60 140M
Sold units
Why iPhone matters?
S60 140M
20MiPhone
Sold units
Why iPhone matters?
S60 140M 0.20
20MiPhone
Sold units% flat-ratedata plan
×
Why iPhone matters?
S60 140M 0.20 28M
20MiPhone
Sold units% flat-ratedata plan
Potentialcustomers
=×
Why iPhone matters?
S60 140M 0.20 28M
20M 1.00iPhone
Sold units% flat-ratedata plan
Potentialcustomers
=×
×
Why iPhone matters?
S60 140M 0.20 28M
20M 1.00 20MiPhone
Sold units% flat-ratedata plan
Potentialcustomers
=
=
×
×
Why iPhone matters?
S60 140M 0.20 3M
20M 1.00 10MiPhone
Sold units% flat-ratedata plan
Educatedcustomers
=
=
x
x
x
x
Why iPhone matters?
% knowsabout apps
0.10
0.50
GetJar, 460M downloads since 2004
App Store,1B downloads since 2008
A distributionsolution
for both users and publishers
1000 million apps installed
1000 million apps installed 30 million devices
1000 million apps installed ÷ 30 million devices =33 apps in every device
40 000 apps published
2. Mobile paymentsThe gist
30-50% of price to operators
Stupid but not the real problem
Premium SMS
The problem is tens of operatorsmiddlemencountry-specific rulesmonthly fees
Premium SMS
Premium SMS
Really bad for a small startuptargeting global marketswith a yet unproven idea
A paymentsolution
for both users and publishers
Some money to be madeKoi Pond900k downloadsin 9 months0.99$
Blue Skies55k downloadsin 6 months2.99$
Zen Bound100k downloadsin 3 months3.99$
Hit-driven
Sustainable?Scalable?
iPhone OS 3.0
in-app purchases
buy books in e-book reader
buy a virtual birthday card
buy a subscription to a quality business podcast
buy a timetracking feature to your loved ToDo-app
buy a new level for a game
3. WebNew (old) business models?
URL is a superior distribution model
Web
Good payment solutions still missing
Web
What if?
Typical transactionin your web serviceis 0.99$?
JavaScript APIsto App Store payment system?
What if?
What if?
What if?
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