Three Apps Define Apple's Mobile Platform
News Commentary. Last week, Apple announced that the App Store had 300 million downloads and 10,000 applications. Three apps matter more. |
It's not so much what they do but what they mean. These three applications define App Store, supported by iPhone and iPod Touch, as an emerging mobile platform. Right now, Apple has created the leading contender to replace the PC as the platform people use most.
The apps:
- Amazon Mobile
- Google Mobile App
- Obama `08
Number of applications does not a successful platform make. Volume is important, but the sticky quality of applications/services and the ability to make real money matter more.
All successful platforms share a few common traits:
- They have at least one killer application people really want
- They make available a breadth of useful applications
- Development tools and APIs make it easy to create good applications
- Third parties make lots of money
There is a fifth attribute not common to all successful platforms, but unique to some: They make customer engagement easier, a quality that some connected gaming devices/software and some Web 2.0 platforms imbue.
Models for App Store Success
Many early App Store developers have made the mistake of presuming the money is to be made directly selling applications, an approach I regard as shortsighted. The Amazon, Google and Obama apps are free, yet all three generate revenue in other ways (that's past tense for Obama `08; I provided no link as the app is no longer available). They're all very sticky, to the iPhone/iPod Touch platform, and to the supporting services. It's this stickiness, the broader revenue potential and customer engagement that set these three apps so much above the other 9,997 or so. They're the model for other developers to follow and show how App Store can succeed as a platform for Apple and its partners.
Amazon Mobile is simply the best application yet released through App Store, as viewed as a platform. The early Web was very informational, and like App Store, much of the content was free. But early dot-coms like Amazon, eBay and Yahoo showed how Web companies could make money through e-commerce. Amazon has brought e-commerce to iPhone/iPod Touch, by capitalizing on platform attributes and capabilities. Through the app, Amazon customers can shop for products and manage their purchases.
New experimental feature "Amazon Remembers" lets consumers comparison shop. They snap pictures of items with the iPhone camera. If Amazon sells the products, customers receive information about the goods and how much they cost. Of course, the items can be purchased directly from the phone. No PC required.
Amazon Mobile is highly sticky to the online retailer and its services, and the app generates revenue when consumers buy goods. The mobile app is a comparison shoppers' delight. Applications like this define what Apple's mobile platform can and should be to succeed.
Google Mobile App is something good that recently got a whole lot better. Like Amazon Mobile, Google's app is service sticky and generates revenue directly from customer interaction rather than by selling a mobile application directly to them. Google Mobile App was good because of the way it uses the searcher's location as starting point for finding movie theaters, restaurants and other local businesses. It's the new voice search feature that makes Google's goody a killer mobile app that people will frequently use.
Google's worldwide mobile search share is 60 percent, according to ComScore. But only a few percent of mobile users search from their cell phones. It's a big number off of a small base. Voice search taps the app into Google's broader search service, so the stickiness isn't just to iPhone/iPod Touch. Like Amazon, Google has meshed its services strengths to those on Apple's mobile platform.
Obama `08 is a fascinating case study in customer engagement. "Customers?" you ask. Yes, Obama supporters and new potential voters were the campaign's customers. Like the Amazon and Google apps, Obama `08 generated cash, as in donations. From a "Donate" button, potential contributors dialed the "Obama for America donation hotline." The application also provided tasks for people to call friends in battleground states, to get involved with the campaign and to participate in local campaign events.
Defining Attributes
Amazon Mobile, Google Mobile App and Obama `08 share several attributes in common. Reiterated:
- They're free to download
- They still make money for the application developers
- They mesh attributes of Apple's mobile platform with their own services
- Applications are sticky—they provide a killer feature people will repeatedly use
- They actively engage customers (something all three apps could do better through social networking features/services or cross-integration with other services provided by the developers)
There are many fun and useful App Store applications, and I wanted to add many of them to this list. But they all miss something, typically revenue generation.
Facebook is good example. It's hard for me to diss the Facebook app, because it does so much of what it needs to so well. But App Store and Apple partners won't succeed on free applications. Somebody has to make money, and I don't see it coming from Facebook. That's actually a problem with Facebook's larger business model, but it manifests in the mobile application. Why isn't there at least a way to gift iTunes Music, with some revenue sharing for Facebook?
Last week Apple posted lists of top paid and free applications. People are willing to pay for games (sorry Nintendo and Sony) but use free apps for getting information or to socially connect and interact. Very few of these apps tap into broader services or e-commerce, and they're not sticky enough.
Apple's mobile platform success is not assured. I presume—and it's mostly guesswork—that Apple's mobile customer base is at least 20 million, when combining sales of iPhone and iPod Touch. But that's still a small percentage of total mobile devices. App Store needs more applications that make money for the developers and which stickiness extends to e-commerce or other services. If not, Google, Nokia or some other motivated vendor will create a mobile platform that does.
[Please send your tips or rumors to watchtips at live.com].
Related Posts:
- RIM Puts Apple in Its Place—Third, Apple Watch, Dec. 4, 2008
- N97: Nokia Strikes Back, Apple Watch, Dec. 2, 2008
- Has Apple Sold 10 Million iPhones?, Apple Watch, Oct. 6, 2008
- Apple's Arrogant App Store Developer Policies, Apple Watch, Sept. 14, 2008
- iPhone Storms Smart-Phone OS Market, Apple Watch, Sept. 11, 2008
- iPhone 3G: Software + Hardware + Services, Apple Watch, July 22, 2008
- Windows 95, Only Better, Apple Watch, July 14, 2008
- Is This Any Way to Launch a Platform?, Apple Watch, July 14, 2008
Comments (16)
obama08 ?
joe, you are a wanker
Posted by wak | December 8, 2008 3:51 PM
seriously, who can take this seriouslyafter obama '08. sheesh, i see you're already chugging the kool-aod, now put on these black nikes.
Posted by duggi | December 8, 2008 4:33 PM
seriously, who can take this seriously after obama '08. sheesh, i see you're already chugging the kool-aod, now put on these black nikes.
Posted by duggi | December 8, 2008 4:34 PM
Obama '08? What a fricking i-d-i-o-t! Revenue generation? Wait until you get your next tax bill.
Posted by kurt | December 8, 2008 5:47 PM
Seriously? Obama08 as an 'meaningful app'? Dude, the election was over a month ago, you won, get over it. The sad thing is, the only thing that's changed so far is the color of the President's skin. See Hilary Clinton-Secretary-of-State appointment for an example.
Posted by akd0765 | December 8, 2008 5:50 PM
thats right we won, suck it...
Posted by arh1200 | December 8, 2008 5:59 PM
What a frickin pile of crap!!!!! What a liberal f-up. Go get an editorial column if you want to promote politics!
Posted by earl | December 8, 2008 6:01 PM
What a frickin pile of crap!!!!! What a liberal f-up. Go get an editorial column if you want to promote politics!
Posted by earl | December 8, 2008 6:01 PM
What a frickin pile of crap!!!!! What a liberal f-up. Go get an editorial column if you want to promote politics!
Posted by earl | December 8, 2008 6:02 PM
What a frickin pile of crap!!!!! What a liberal f-up. Go get an editorial column if you want to promote politics!
Posted by earl | December 8, 2008 6:03 PM
I see the right wing fanatics are out in full force today. Poor losers I guess. What ever happened to love thy neighbor? You are churchees aren't you?
Hey Kurt, what happens when Obama's tax relief package gets passed and your tax bill is less next year? Will you shut up then?
Don't you just love the right wing ignorance?
Posted by Sean | December 8, 2008 6:41 PM
Obama generated more in campaign contributions -- a lot more -- than anyone in history. That's the point, cement heads.
Posted by SkateNY | December 8, 2008 7:05 PM
While I might quibble a bit with selecting Obama '08 as a shining example of an *ecommerce* app, there can be little doubt that it was one of the most successful of *all* types of iPhone apps. It enabled Obama supporters to stay fully engaged with the campaign and with other supporters throughout the primary and general elections. The user experience design was superb by any standard. You always knew where you were in the app, what you could do next, and had a general sense at least of how what you were doing was helping the campaign.
I haven't seen any numbers reflecting how much of the contribution stream came from iPhone and other portable apps vs. the rest of the Net, but to the extent that it made use of the portable market at all, the campaign broke important and interesting new ground.
Posted by Dan | December 8, 2008 7:10 PM
Would you believe that I was able to install Obama 08 but not Amazon or Google Mobile? I'm in Manila, the Philippines, which isn't part of the American body politic, but is certainly part of the American commercial orbit.
Posted by Maya | December 9, 2008 4:12 AM
To all the "Obama 08" haters. He's talking about it as an application that engages people, and motivates (profitable) action.
Where I disagree with the post is that the other two (I didn't use the Obama app) are just web pages.
I'm finding that most of my favorite iPhone apps are really just web pages formatted for the iPhone.
Or, they are a local form that queries a web based database.
The Score, Amazon, Google, Evernote, Save Benjis, Yahoo OneConnect, Jott and Vitalist are all really just web interfaces ported to the iPhone.
That iPhone makes this easy, and looks so seamless doing it is where it's a winner.
Looking over localized iPhone apps on my phone, the only ones that are local are toys like: Cowbell, Rimshot, KoiPond, iBeer, or Utility programs: calculators for general math, measurement converters, IP utilities.
Posted by eric | December 12, 2008 3:24 PM
In the sentence of the article above:
"Last week Apple posted lists of top paid and free applications."
Both links go to iTunes! RIP-OFF!
http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewRoom?fcId=295538117&id=1
Posted by Barry Williams | December 12, 2008 10:36 PM