Android and iOS dominate the smartphone market in the US, holding a combined market share of over 90%. While Android has the largest worldwide market share, iOS devices are used more heavily. Both platforms have seen tremendous growth in users and apps over the past few years. Consumers now expect highly sophisticated interfaces and magical experiences from their mobile devices. Developers are responding by simplifying designs, adding motion controls and biometric features, and creating apps and services that analyze complex data. The mobile landscape continues to evolve rapidly, so companies must start leveraging mobile now to engage customers across all platforms and build for the future of connected devices.

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Mobile Trends
October 2013

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Contents
/ A quick history
/ The numbers: where we are now
/ Who’s winning?
/ More sophisticated devices & demanding consumers
/ Where do I start?

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A quick history...

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2007
Blackberry, Microsoft and
Palm dominated the
smartphone market in the U.S.
The U.S. significantly lagged Japan
and EMEA (Europe + Middle East +
Africa) in smartphone adoption.

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iPhone
The original iPhone was released
six years ago, on June 29,
2007.

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Android
The first Android phone, the
Google G1 (HTC Dream) was
released five years ago.

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Smart
These devices set the
standard for smartphones:
touch interface + fast connection
+ wifi + full browser + app stores.
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Image: 9to5HDWallpapers

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The Numbers:
Now

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billion
people in the
world
7.1 billion
mobile phone
subscriptions
6.8
Source: Mobithinking

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47%
Increase in sales
of smartphones
from 2012 to 2013
Source:(IDC
Source: Gartner

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2013
First year
smartphones
outsell feature
phones
worldwide
Source:(IDC
Source: Gartner

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Feature phones are being
replaced by smartphones

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2000 2002 2004 2008 2010 2012 20142006 2016
WE ARE
HERE
0.5B
1B
1.5B
2B
2.5B
Personal Computers
Smartphones
Tablets
Global Internet Device Sales
So, if you think
mobile is big
now, just wait...
Source: Business Insider

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64%of all U.S.mobile phone users
now have smartphones
(Sept. 2013).
we are here
Source: Nielsen

15. Wide Reach
Smartphones have reached critical mass among U.S. adults 25-54
Adults 25-54, M-Su 6A-Mid 85,000+ sample, 12 Month, Scarborough 2013
Adults 25-54, MobiLens, comScore, August 2013
TV Cable Radio Internet Smartphone
70%
85.1%
94.3%
82.5%85.1%

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notice mobile ads
90% have performed a
search after seeing
mobile ads
82%
Source: Digital Marketing Arts
Smartphone users

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8%
CHINA
28%
UNITED
STATES
9%
33%
26%
34%
13%
17%
24%
21%
Share of New iOS and Android Activations
% of Global Total
Jan.
2011
Mar. May Jul. Sep. Nov. Jan.
2012
China
outpaced U.S.
smartphone
adoption in
2012
Source: Flurry

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70%
59%57%
25%
22%
EgyptIndiaSouth
Africa
US
Percentage of Mobile-Only Internet Users
UK
Smartphones
are often a
person’s only
Internet
connection
Source: Mobithinking

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21%of all adult smartphone owners
60%of hispanic americans
50%of young adults (age 18-29)
Mobile First: Many in the
U.S. go online primarily with
their smartphone.
Source: Pew Internet

20. Always Connected
A typical day is increasingly connected: mobile peaks at lunch, tablets in evening
24hr
attached and engaged
everyday, all day
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Facebook: As time spent
on mobile increases,
revenue follows.
Source: International Business Times

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2.6
U.S. average
hours per day
spent on mobile
phones and
tablets
Source: Flurry

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Apps: 80% of our time
spent on Android and iOS
devices is spent in apps,
20% is spent on the mobile
web.
web
20%
apps
80%
Source: Flurry

24. Games, Entertainment, Social
Account for a majority of our time on our smartphones (Android & iOS)
Source: Flurry
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25. U.S. Smartphone Marketshare
June 2013, by OS
Android iOS Blackberry Microsoft Other
0.5%
3%4.3%
40.4%
51.8%
Source: Comscore

26. U.S. Smartphone Marketshare
Trend: Google and Apple together own over 90% of the market
0%
25.0%
50.0%
75.0%
1-Feb-11 1-May-11 1-Jun-11 1-Oct-11 1-Jan-12 1-Mar-12 1-Jun-12 1-Nov-12 1-Feb-13 1-May-13 1-Jul-13
Android Apple Blackberry Microsoft Other
Source: Comscore
51.8 %
40.4 %

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Previous Leaders Displaced
Apple iOS and Google Android Dominate

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So, who’s winning?

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or ?

30. Android leads marketshare...
In the U.S. and even more worldwide
Other
7.8%
iOS
40.4%
Android
51.8%
Other
6.8%
iOS
14.2%
Android
79.0%
US Smartphone OS, July 2013 Worldwide Smartphone OS, July 2013
Source: Comscore Gartner,
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31. iPhones are used more heavily...
Although there are fewer iOS devices, they are used more
iOS
62.0%
Android
38.0%
iOS vs Android Mobile Browser Use, June 2013
Source: Chitika
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32. Smartphone Profits, Worldwide
Apple and Samsung own the profits, and Samsung’s share is growing
-20.0%
5.0%
30.0%
55.0%
80.0%
2007 2008 2009 2010 2011 2012
Apple Samsung Blackberry Nokia
Source: Canaccord Genuity
69 %
34 %
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1,000,000+Google Play, July 2013
900,000+
Apple iOS App store, June 2013
Both Google Play and iOS
App store have a ridiculous
number of apps.
Source: Wikipedia

34. App Download & Sales
Android leads in number of downloads, iOS brings in significantly more revenue
Other
9.0%
iOS
40.0%
Android
51.0%
Other
6.0%
iOS
74.0%
Android
20.0%
Percent of App Downloads, Q1 2013 Percent of App Revenue, Q1 2013
Source: Time
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35. Both Face Similar Challenges
The high-end of the market is becoming saturated, continued growth will come at scale
Source: New York Times
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36. Interbrand Best Global Brands
Apple and Google are #1 and #2, Samsung moved up to #8
“Brands like Apple and
Google and Samsung are
changing our behavior:
how we buy, how we
communicate with each
other, even whether we
speak with each other,”
Mr. Frampton said. “They
have literally changed the
way we live our lives.”
Source: Interbrand, New York Times

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So, again, who’s winning?

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It’s complicated.

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Hard to say who’s in first, but
Apple, Google and Samsung are
winning big.
Everyone else is fighting for
what’s left.

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More sophisticated devices &
demanding consumers

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Motion
The Nintendo Wii and Microsoft
Kinect introduced a wide new
audience to motion control,
preparing us for new and unique
ways to interact with our digital
devices.
Image Sources: Microsoft, Nintendo
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Magic
Advances in technology and
software have exposed
consumers and popular media to
magical experiences that set
increasingly high expectations.
Image Sources: space150, Red Bull
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iOS 7
The biggest update to iOS
since its launch in 2007. New
visual design and experience,
new features, built for the future
and optimized for how we use
mobile devices.
Image Source: Apple
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Android
With Android 4.0, Google focused
on the experience and visuals
with three guiding principles for
app creators:
/ enchant me
/ simplify my life
/ make me amazing
Image Source: Google
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Windows
A new design and interaction
language across all devices:
desktop, tablet, phone, and
xbox.
Image Source: Microsoft
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46. Evolving Visual Design
Simpler and flatter visual design, less clutter and visual chrome
Source: Techland
iOS 6 User Interface Components iOS 7 User Interface Components
Image Sources: Apple, Bryon Clark, Taps + Apps
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47. Evolving Visual Design
We’re moving beyond metaphors and skeuomorphism
Google G1 + Android 1.x
2008
HTC One + Android 4.x + HTC Sense
2013
Image Sources: Google, HTC
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Touchless
Samsung’s Galaxy S4 allows you
to answer by waving your hand,
pauses video when you look
away, and tries to integrate with
more of your home than ever
before.
Image Source: Samsung
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Touch ID
Apple’s new iPhone 5S introduces
biometric security to the masses,
allowing you to unlock your phone
and purchase items with a simple
touch of your finger.
Image Source: Apple
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Glass
Google is working to bring the
power of mobile devices to the
world in a new way, and asking
for help from the community to
unleash it’s potential.
Image Source: Google
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Wearable
Smart Devices like the Fuelband,
Fitbit Flex, Jawbone UP are
poised to grow rapidly and
provide us with unprecedented
types of information about
ourselves.
Image Sources: Nike, Fitbit, Jawbone
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Connected
The “internet of things” is a new
generation of devices that are
built to be connected to the
Internet and our devices, paving
the way for new experiences and
possibilities.
Image Sources: Dropcam, Tile, Nest
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53. Simplifying Complexity
Software and services analyze complex data and create simple, useful results
Google Now Mobile App Dark Sky Weather App
Image Sources: Google, Dark Sky
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Where do I start?

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FutureMobile is changing and growing
quickly, build for the future.
MediaMobile media outperforms
desktop, and is a deal.
StartIf you aren’t leveraging mobile
yet, you need to.
Mobile is an increasingly
important part of our lives.
Three takeaways:

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Build for the Future
Image Source: Starbucks
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Future
The mobile landscape is evolving
quickly. Startups like Uber and
existing brands like Starbucks
have aggressively leveraged
mobile and are seeing impressive
results. Use what you’ve
learned from the past, but
don’t be weighed down by it.
Image Sources: Uber, Starbucks
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Use Mobile Media
Image Source: Apple
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Ads
Mobile ads are a great deal
right now: Low demand,
good inventory, strong
targeting capabilities, and cost
is comparable to desktop.
Image Sources: Google, Yahoo!
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Mobile beats desktop averages
for click through, interaction,
awareness and purchase intent.
When mobile specific features are
used, these rates are even higher.
CTR (Click Through Rate)1
0.08% 0.35%
Interaction Rate2
1.94% 15.6%
Awareness Lift3
2.00% 5.0%
Purchase Intent Lift3
1.00% 4.0%
desktop mobile
1 Doubleclick, September 2013; “The State of Mobile Advertising,” Opera MediaWorks, July 2013
2 Doubleclick, September 2013; “Quarterly Benchmark Report,” Celtra, August 2013
3 Ad Effectiveness, Dynamic Logic, 2010-2012
Additional Sources: Adweek,WebProNews

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GoStart Now
Image Source: Google
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Start Now
76% of consumers won’t
bother with a non-mobile
optimized site, or will turn to a
competitor instead. Start with the
basics, learn, and grow.
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Image Sources: Visual Trends, Google

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Thank you.
Marc Jensen, Managing Parter / CTO
marc.jensen@space150.com
http://www.space150.com
With help from our mobile, experience,
engineering, media, creative and strategy teams.