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May 23, 2018

Comments

BennyDover

I used the bank apps as an example. I do not care what the facebook does. More important are these Apps that do different important things like move money or me. I expect the company that I do business with has an App that does what it is supposed to do. If I am in the China and need AliPay I download it from the AppStore. I can actually do it right now if I want it because it exists there. This is the iPhone ecosystem Alipay can’t ignore the iPhone and Alipay is huge in China so Apple can’t ignore it either. People with iPhones have much more disposable income than those who uses Android phones and these banks that now own the Alipay are not stupid. So yes Alipay was first on Android, but not on Googles Android. Apple Pay is late on the market compared to these others, but you know already know what that means. Apple Pay will be huge success. It is more secure and more secure means that banks saves money. Banks loses lots of money because of credit or debit card frauds if they can do anything to get that down they will.

Per "wertigon" Ekström

@Jim:

Apps matter.

App revenue... Doesn't. Except for those five countries.

Imagine this. You are an app developer in Nigeria, developing indigenous apps. Let's say the cost of developing this app is $7500 with all expenses, salary, equipment etc.

If you rely on app revenue in Nigeria... You will make perhaps $400 or so.

Peanuts, not making it worth developing apps in Nigeria. So app revenue doesn't matter, it's too small.

Letting a bigger company pay for the development of the app as part of a marketing strategy, or as part of a service the company is offering though... Now we are talking sustainable work! Banks, Facebook, McDonalds, and so on.

The majority of countries are like Nigeria, not US. And the majority of the population too.

Jim gaa

Jim

What are you talking abot?
Forknight no playstore.
But forknight android income is an income to android ecosysten. No matter who got the money. It bring the money because of android.

Jim Glu

Hi Per,

The app money is there for all the developers. If you put up a game and it's successful....it doesn't matter to you if nobody in Ghana is buying it. It's not like you have to live in one of the top 5 countries to do iOS or Android development. It just means, due to 85% of the revenue coming from there...you are going to be sure to target those markets. Or, play the big fish in a small pond and develop something for your local market. Who cares if it doesn't outsell Clash of Clans if it makes enough money for the developer?

What the data shows is that it's ludicrous to think that the global unit sales numbers alone will guide developer support. Apple is a significant unit market share in those top markets, and huge portion of the dollar share.

Jim Glu

Hi "Jim gaa",

You are right, all of Fortnite's Android sales count for "Android's Ecosystem Economic Value". Just as Facebook, Uber, Lyft, Airbnb, Tencent, WeChat and line all count even though they give out their apps for free.

What we have is information from the makers of Fortnite as to WHY they made the decisions they did. They have no desire whatsoever to share revenue from there game with anybody they don't have to. They have to with iOS, XBox, Playstation and Nintendo. They don't have to with Windows, Mac, Linux and Android.

So why put out their iOS version first knowing that 30% of the revenue goes to Apple, along with not having any direct customer connection to those folks. Why? Because 70% of Apple's pie is still a lot more money than 100% of Android's. Keeping in mind that only a small percent of Android phones will even be able to run Fortnite. Apple is not only more lucrative per customer...it has a larger base of phones able to play this title.

All while Apple has a small unit market share of global sales. There is just far more to consider where to spend your development resources than global unit market share.

Per "wertigon" Ekström

@Jim:

If I develop an app in Hindi language it's pretty much restricted to India only. Same if I develop an app for an Indian-only store franchise.

App revenue does not matter for an Indian app developer. Localisation and reach does.

As for games... Hit and miss, and you need quite the advertising budget to make back the money you spend.

But sure, you can hit a homerun. And you can win the lottery. But to be honest, a lottery ticket would probably give more payoff than investing resources in an App...

Jim gaa

Hi Jim,

The reason of forkneight chose ios first because they want dual platform. ios is the tricky one, android is the flexible one. Support ios port to android is easier than the other way around.

Amazon, china android store, rusia android store also value to android ecoaystem

Jim Glu

Hi "Jim gaa" - apparently the Indian market does not YET mount to a hill of beans in terms of global app revenue. You know...either "global tells the whole story" or "we learn to look beyond global market share". So which is it?

It the iPhone irrelevant because of it's low global unit market share? Or it the iPhone very relevant because of the markets it serves and the amount of money available for others to earn supporting it's platform?

Where I an Indian mobile app developer, developing Indian Hindi apps....I'd for sure start with Android. Maybe stay with Android depending on my customer demographics.

As to the fate of the iPhone and it's ability to keep developers engaged and supportive of it's "niche" mobile operating system....I'd say the fate of the Hindi language Android apps don't really matter. Matter to the Hindi users and developers? Yes. Matter to other developers deciding what platform(s) to support? No.

If you aren't going for a local niche....if you are aiming to make money across the world....You wouldn't ignore the 85% of the revenue that comes from 5 countries. That's divided between iOS and Android and we weren't given any further break down. But we know that iOS installed base in those countries is far higher than it's global numbers. Ergo...reason # 5099 on why nobody with any sense believe iOS is going to lose developer support.

Winter

"The app economy is a LOT larger than just the numbers transacted via the app store. And iOS dominates it."

LVMH makes $43B revenues a year. That is much more than Apple or Google app store revenues. That does not make LVMH an important industry.

Jim Glu

Well...Apple is a Trillion dollar company. At some point...that really does count. It didn't become a trillion dollar company due to it's iPod or Mac business...but it's iPhone business.

But we don't talk stock stuff here. Here, Apple is the #2 smartphone maker and iOS is the #2 mobile platform. Seeing as smartphones are the largest and most influential market in the world....being #2 isn't so bad.

BennyDover

”The majority of countries are like Nigeria”

European Union, China and United States makes most of the trade in the world. Apple can do better with African Union. If you want start programming with the iOS, it will cost you less than a 30 euro cents per day.

BennyDover

Does anyone pay attention to what these ****s do?
Amazon, Google and Microsoft listening to you all the time!

Siri does not listen to you all the time. You have to record your way of saying “hi, siri” and after that M-series chip listens to that frase and when it hears that it wakes up the Siri. On the Mac side T-series security chip takes responsibility of that.

BennyDover

LVMH?

Apple Watch is bigger business than that.

BennyDover

And I just love my Hermès Apple Watch.

BennyDover

Okay. Siri ously. Did Tomi have a stroke and brain injury after that Orange Mob boss was elected to be impeached because this blog has gone more to the laa laa land or something after that.

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    Tomi Ahonen is a bestselling author whose twelve books on mobile have already been referenced in over 100 books by his peers. Rated the most influential expert in mobile by Forbes in December 2011, Tomi speaks regularly at conferences doing about 20 public speakerships annually. With over 250 public speaking engagements, Tomi been seen by a cumulative audience of over 100,000 people on all six inhabited continents. The former Nokia executive has run a consulting practise on digital convergence, interactive media, engagement marketing, high tech and next generation mobile. Tomi is currently based out of Helsinki but supports Fortune 500 sized companies across the globe. His reference client list includes Axiata, Bank of America, BBC, BNP Paribas, China Mobile, Emap, Ericsson, Google, Hewlett-Packard, HSBC, IBM, Intel, LG, MTS, Nokia, NTT DoCoMo, Ogilvy, Orange, RIM, Sanomamedia, Telenor, TeliaSonera, Three, Tigo, Vodafone, etc. To see his full bio and his books, visit www.tomiahonen.com Tomi Ahonen lectures at Oxford University's short courses on next generation mobile and digital convergence. Follow him on Twitter as @tomiahonen. Tomi also has a Facebook and Linked In page under his own name. He is available for consulting, speaking engagements and as expert witness, please write to tomi (at) tomiahonen (dot) com

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