QuickView #2 - Mobile

MobileSonovate QuickView Series #2

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From the end-client, to developer, to advertising exec and consumer, the smartphone has irrevocably changed the world as we see it. Embedding itself into our everyday lives, the smartphone has reshaped the world as we know it - and in many ways is just getting started.

Already a key industry for recruiters - this QuickView highlights some of the lesser known and potentially more interesting stats about the state of the industry, details the top in-demand development skills and lists 300 companies involved in the development, design and delivery of mobile solutions you should be working with in 2015.

Contents10 Mobile StatsGlobal PerspectiveEuropean Market UK Developer MarketTop Skills Future Predictions300 creative agencies youshould be working with in 2015Top Independent Development Companies


1: The growth rate is staggering

Forecast to be in the hands of 4 billion people by 2020, the smartphone is one of the most influential pieces of technology to impact on daily life. In less than a decade, the world has gone from less than half a billion people online and zero smartphones to almost 3 billion people online with 2 million owning smartphones.

2: The market is growing year-on-yearThe worldwide smartphone market grew 29% year on year in the second quarter of 2014 in terms of shipments.

3: Mind the gap - it’s either luxury or rock bottom

A gap in the market is appearing and Apple is unfazed. By doing the seemingly impossible last quarter (Q4 - ‘14) by selling more phones at a higher average price, than in previous quarters, Apple has sufficiently differentiated itself from the mass of Android phones, charging consumers on average two to three times as much as they would pay for a com-parable Android device. By contrast Xiaomi - the world’s most valuable tech startup, worth $46 billion, is manufacturing Android phones at a much lower cost than its competitors, creating a gap in the market and leading a price war. The good news from the fight is that hundreds of millions of people gain access to the cheap but serviceable smart-phones and Apple retains its brand values.

Xiaomi$220

Andriod$254

Apple$687

Averageselling price forsmartphones without wirelessservice contacts

Two Tiers

100

200

300

400

500

600

$700

2013 ‘14

4Q 1Q 2Q 3Q 4Q

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2014 2020

Smartphones People

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Global Smartphone Vendor Marketshare (%)

Samsung 24.7%Others 47.3%

Apple 15.0%

Lenovo-Motorola 7.2%Huawei 5.8%

The worldwidesmartphone market

grew 29%year over year in the second quarter of

2014

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Source: International Data Corporation (IDC)


4: Downloads flow faster than water

As the price of Android phones continue to fall, mobile will impact on every part of the world. In Sub-Saharan Africa, by 2019 3G coverage will be more accessible than improved water and electricity, with mobile users reaching 30%.

5: Global growth will be fastest in developing countries

The Asia/Pacific and Latin American regions are expected to experience the highest growth rate between 2013-17, both with an annual growth rate of more than 20 percent.

6: Mobile dominates our attention

More time is spent in mobile apps than all of the web. A report in 2014 by Ofcom said UK adults spend an average of eight hours and 41 minutes a day on media devices, compared with the average night's sleep of eight hours and 21 minutes. Whilst TV continues to dominate the weekly exposure to devices, the UK’s 14 and 15 year olds are watching less live TV, and much less live radio than adults - and turning to YouTube and streaming music services for their entertainment. In addition the ‘techie teens’ are giving up on voice calls and email in favour of text-based communication, flitting from Instagram to WhatsApp to Snapchat in a constant search for what's new.

Source: Statista 5-year compound annual growth rate of smartphone shipments worldwide from 2013 - 2017 by region.

Global Growth

0%

5%

10%

15%

20%

25%

30%

Asia/Pacific

23.2%

Europe

11.1%

North America

7.8%

Latin America

23.7%

Middle East andAfrica

18.5%

Grow

th ra

te


7: App usage is increasing

8: Spending is upThe proportion of mobile internet users purchasing goods increased from 20% to 24%, between 2013 and 2014. And these shoppers, as well as growing in number, are also spending more each quarter.

So too is mobile advertisingMobile ad expenditure has doubled to more than £1bn in 2013. With 2014 also proving to be a big year for mobile ads, this level of increase may yet be maintained.

9: UK leads Europe in app developmentResearch from VisionMobile predicts that the app economy will be worth nearly £31bn to Britain by 2025. Over a third of the revenues generated by all 28 European member states come from the UK. In addition, the UK leads the way in smartphone ownership and spending on mobile shopping and entertainment, downloading more than 250m apps a month, equivalent to four per British citizen per month.

10: And finally… It’s bigger than HollywoodApple paid $10 billion to developers in 2014. Put another way, in 2014 iOS app developers earned more than Hollywood did from the box office in the US. The app economy also sustains more jobs (627,000 iOS jobs in the US vs. 374,000 in Hollywood) is easier to enter and has a wider reach.

Source: Flurry Analytics

Apps Dominate the Mobile Web

Mobile Advertising Expenditure and Mobile Internet Takeup

0

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800

1000

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20

40

60

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100

2008 2009 2010 2011 2012 2013

Mobile advertising expenditure

Internet on mobile phone takeup0%

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Expenditure ( £ Millions ) / UK adult take-up ( % )


Global PerspectiveThe global smartphone market is expected to reach $698 billion by 2020, with a compound annual growth rate of 11.2%. The global smartphone market is dominated by Asia-Pacific region with 40.7% market share, followed by Europe with 32.2% market share. Global smartphone shipments are expected to reach 3bn units by 2020.

So far, increasing usage of mobile internet and services in major European and Asian countries such as UK, Germany, India, China, Indonesia and South Korea is driving the growth of the global smartphone market. In addition, a fall in average selling price of smartphones is expected to fuel the growth of the market over the forecast period.

European MarketThe European smartphone market continues to expand, growing by nearly 14 percent in 2014 to achieve 200 million shipments, despite the saturation of many Western European markets, according to research from Futuresource Consulting.

The European tablet market also continues to grow, but major markets have reached saturation point earlier than the industry expected. Although percentage growth equaled that of smartphones, Western Europe tablet sales will slow further in 2015, with consumer shipments moving into decline by 2017.

App MarketAn important contributor to the growth of the smartphone market is the App. With over 2.5m apps available to download from Google Play and the App Store and over 85 billion downloads in 2014 from the App Store alone, the global demand for mobile applications is playing a pivotal role in how value is created, delivered and distributed.

According to Flurry Analytics overall app usage grew by 76% in 2014. Interestingly, the report confirmed how our phones and tablets have become indispensable devices that help us work and keep our lives organ-ised with shopping, utilities and productivi-ty apps experiencing triple-digit growth.

Notably, gaming dropped 31% in session usage to occupy bottom place. Having dominated the top spots, the fall in 2014 is symptomatic of the growth of lifestyle orientated apps. However, despite the drop the gaming market is forecast to be worth over $35bn and account for one third of the total gaming market by 2017.

2013-2014 Year-Over-YearGrowth RateSource: Flurry Analytics

Lifestyle &shopping

Utilities &productivity

Messagingsocial

Health &fitness

Travel Sports News &magazines

Music media& entertainment

Games0

50%

100%

150%

200%

AVERAGE 76%


UK App Developer MarketAccording to research from Google, the UK is the largest app developer market in Europe and accounts for more than a third of revenues generated from mobile software across the region.

Estimated to be growing at approximately 27% each year and be worth in excess of £5.5 billion by end of 2015, the UK app market is driven by an increase in enterprise and B2B apps, strong growth in startups, rise of mCommerce & monetising apps and the broader appification of services.

More than half of UK app companies are based in Greater London (31%) and the South East (24%), although outside London & SE there are several app startup hubs located in Brighton, Cambridge, Birmingham, Bristol and Edinburgh.

Data from VisionMobile's UK App Economy 2014 report estimates that around 75,000 people are employed as professional app developers & designers in the UK with around 305,000 people employed in other roles (sales, marketing, finance etc) by app companies.

UK app companies are expected to increase their developer team size by 7% in the next 12 months, based on the UK App Developer survey of 300+ developers that VisionMobile conducted in May 2014. This translates to a demand for 5,250 new developer jobs among app companies.

With a healthy app development market there is demand for non-technical roles such as sales, marketing and project man-agement. As companies mature, they seek to add entrepreneurial and commercial skills. Approximately 30,000 new jobs will be created in the UK in the next 12 months because of app companies.

31%24%

5%

8%

9%

10% 5%

5%

2%

1%

Distribution of app companiesacross UK

Data based on companies house data


App Development Market Employment FiguresFor the 6 months to 1st February 2015, IT jobs within the UK that cited ‘Mobile Developer’ in their job title mentioned the following IT skills in order of popularity. The figures indicate the number of jobs and their proportion against the total number of IT job ads sampled with Mobile Developer in their job title.

Top 10 Related IT Skills

1 Apple iOS2 Android3 Mobile App4 iOS Development5 Android Development6 Agile Software Development7 Objective-C8 HTML9 JavaScript10 Java

Top 10 Sectors

1 Finance2 Retail3 Games4 Back Office5 Marketing6 Financial Institution7 Automotive8 Automotive9 Publishing10 Multimedia

Top 10 ProgrammingLanguages

1 Objective-C2 JavaScript3 Java4 C#5 SQL6 C++7 PHP8 ActionScript9 ActionScript 3.010 XAML

Top 10 DevelopmentApplications

1 Git (software)2 Xcode3 Subversion4 Appcelerator Titanium5 Ant6 Eclipse7 JIRA8 Jenkins9 Maven10 Cucumber

Source: IT Jobs Watch


The next wave of tech to connect with and rival your Smartphone

WearablesOnly 9 percent of adult Internet users own a smartwatch and just 7 percent have a smart wristband, TechCrunch reported. At the moment, wearables haven’t broken out of a fairly narrow niche — typically a young, expensive niche. They’re more popular with men than with women, with those age 25 to 34, with affluent users and with those in the Asia-Pacific region acording to GlobalWebIndex.

Fitness TrackersExpect several more wearable hybrid devices that combine activity tracking with smartphone notifications. Companies like Sensoria are making everything from socks and sports bras to fitness shirts that can monitor your heart rate and other data. However Fitness trackers, such as the Fitbit or Jawbone days may be numbered. Many next-generation smartphones are shipping with the ability to track steps, calories, heart rate and more, which industry experts say could make fitness trackers obsolete.

Augmented Reality (AR)Four years have passed since augmented reality (AR) apps for smartphones started appearing in app stores for consumer use. Conde Nast Traveler was one of the first to use a simple version of AR with its app guides for four popular tourist cities, expect more of such apps to be made available in the market in the years to come.

In-Built Projector

Future smartphones will be turned into an interactive gaming consoles without a need for a TV screen; all you’ll need is a flat surface. The technology already exists with Samsung Galaxy Beam, but with ever-im-proving technology, issues such as the amount of the light emitting from the the projects will be reduced, making projectors a part of a new smartphone experience.

Connected CarsThe IoT-enabled “connected car” turns the vehicle itself into a hub for an entire eco-system of connected services that offer consumers a wealth of benefits from mobile hotspot, over the air updates, greater infotainment, safety and security and usage based insurance options. What’s more, a new report claiming that Google has plans to integrate its operating system directly into vehicles in 2015 makes it very likely that the next big platform war is going to take place behind the wheel.

The Future for Businesses:Final Thoughts

Each wave of technology creates new businesses. Life magazine was created out of photography in the same way that Buzzfeed was created from the internet and social media. As the growth of mobile is not constrained to one vertical, in this instance the media industry, mobile is remaking industries with Uber (transport) and AirBnB (travel) as two of the biggest innovators in the “sharing economy”.

With increasing numbers of products being offered with an app - from toothbrushes to tour guides, businesses are using mobile as a platform to extend their brand reach and engagement. Forecast to contribute £31bn to the UK economy by 2025, the app development market alone offers recruiters a wealth of opportunities to make a valuable contribution.


Reference Shelf:

Apple Press ReleaseAsymcoBenedict EvanscomScore MobiLensFuturesource ConsultingGartnerGlobalWebIndexGlobalWebIndexhealth.usnews.comHongkiatIAB / PwCIT Jobs WatchITU, a16zRecombuSamsung Galaxy BeamSensoriaSmart InsightsSmartphone MarketStatistaTechcrunchThe GuardianVisionMobilWall Street Journal



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300 creative agencies you should be working with in 2015


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300 creative agencies you should be working with in 2015

Version 1© Sonovate 2015

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QuickView #2 - Mobile