Mobile Application Analytics

The Localytics Blog

Notes - MassMobile Software Devs’ Meetup (4/21/09)

Thanks to everyone who came out to last week’s MassMobile Software Developers meetup; we had nearly 30 people attend and had a very strong technology-focused discussion.  Here are our notes from the meeting:

iPhone SDK 3.0 - Overview and Implications

  • Many user-focused features in iPhone OS 3.0, including video capture, copy/paste and system-wide search
  • SDK 3.0 allows developers to sell in-app content
    • Still subject to 30% fee to Apple
    • Free apps will not be allowed to sell in-app content; Apple (and Android) trying to maintain barrier between free and paid apps
  • Push Notification Services announced (ability to send notifications directly to iPhone)

    • Very easy to use - you set up a server, it talks to Apple’s server, Apple’s server talks to the device. You should only use the original owner account which you first created with Apple to administer the server settings!
    • Push notifications appear quickly, you can customize the message and the sound. Users can be given option to launch the app once they receive notification
  • Background processes are still not allowed

Cupcake update for Android - Overview and Implications

  • Cupcake is the nickname for latest version of Google’s stack for Android (SDK 1.5), which will launch in May; it will be available on the G2 (HTC Magic) and via OTA for existing G1 users.
  • Cupcake includes a new version of the OS, which includes features such as
    • Touch screen keyboard
    • Accelerometer based orientation switching
    • Stereo Bluetooth plus raw video and audio support
  • It also provides updates to built-in apps such as:

    • “Camcorder” with ability to upload directly to YouTube
    • Updated webkit (for improved web browser)
    • Faster GPS
  • New developer tools are provided, including:

    • SDK targeting (picking which version your app targets)
    • AVDs (ability to create hardware profiles in the emulator)
    • Activity Task Framework (manages handling of background threads)
    • Ability to create home screen widgets
  • Voice recognition API also available (potentially enabling user to interact with app via voice)
  • However, Google has been arrogant about Cupcake, blames crashes on the applications
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  • Using undocumented APIs is bad because when they changed them in cupcake it completely breaks apps.
  • The official Changelist for Cupcake has not yet been released

Coding on Apple vs. Android

  • Android is managed, iPhone is native
  • Anything which can be done on iPhone can be done on Android; vice-a-versa is not true
  • It is easier to make pretty apps on Apple because they have better widgets and a clear style guide
  • Google provides very few style guidelines
  • Similar to PC vs Mac shareware scene; PC has more apps because its easier to make them, but Mac has prettier apps

BlackBerry: Which OS to develop for

  • App World, and most apps, support a lowest common denominator of BlackBerry OS version 4.2.1
  • Different screen sizes and versions make testing a nightmare
  • 4.5 is MUCH better to develop for than 4.2.1, but many app world users are on 4.2.1
  • BB has support for using preprocessor directives to get around some application version nightmares
  • There are approximately 1000 apps on the BB AppWorld, but much less are viewable on a Curve or older BlackBerry

Delivering updates to end-users

  • Users tend not to update their apps unless they are forced to; web analytics suggest that 30% of people are not using latest versions of mobile Operating Systems
  • Some apps force update; on Android they show a dialog saying “you must update”, which then takes you to the App Market for downloading
  • Updating firmware on Apple is more of a pain (requires docking)
  • Backwards compatibility is an issue on both platforms
  • Apple is good about convincing users to update; they will put must-have features in version 3.0 such that users will update the OS
  • Applications on Android which update very frequently cause users to complain

Copyright / Protection

  • Android
    • One solution to pirated apps is to rely on a web service to push mandatory updates causing it to download their content from a new URL. When a version gets pirated the webservice can disallow that version from getting updates and require the users udpate to a new (not yet cracked) version. This works particularly well on Android because it is easy to push updates.
    • Copy protection feature on Android is completely broken and must be avoided at all costs (often results in app not showing up in search results)
  • iPhone

    • Any successful iPhone app will get knocked off
    • Often times, people will open the bundle and steal the graphics directly for use elsewhere; difficult to determine and standard recourse is to complain to Apple
    • iBeer was able to get Coors to remove their copycat iPint app by filing a lawsuit

App Stores/Markets/Worlds

  • The level of control over distribution that app stores require differs by platform:
    • iPhone does not let you use anything but the App store to distribute apps
    • Android lets you distribute outside of the market, but the user must enable a feature on their phone to enable these downloads
    • BlackBerry’s “Vendor Guidelines” do not appear to prevent developers from selling apps listed on App World elsewhere
  • App Market Fees

    • Opposing opinions on whether Apple’s 30% cut on was reasonable given 3% fees for credit card processing, but better than before when the carrier took 50-75%
    • Google does not make any money off the market, it all goes to the carrier; this is probably why they are not moving quickly to fix market problems.

     

  • Free vs. paid apps

    • Abandon rate for free apps very high on Android, paid app download rate is still low; one attendee had a free apps with 42,000 downloads, but only 800 for the Pro version
    • Having a free and pro app can cause issues when customers uninstall the free version after buying the Pro version, because that has a negative impact on ranking

Other platforms/devices

  • Nokia’s Ovi Store coming in the next month - SDK available
  • Palm Pre - timing is bad as Apple will likely have a new device out by the time the Pre launches
  • Netbooks are a growing market and the need for low-cost OS may provide an opportunity for Android to capture market share
  • Set-top box market is another opportunity; Flash is coming to set-top boxes and Android could also play here;  Apple’s approach doesn’t work here because their platform is too restrictive
  • Microsoft has tried for many years to own the set-top box space (Media Center); finally finding some success here with XBOX 360

Turning a popular app into a successful business

  • The majority of app companies that have been funded are game makers
    • Game model is good because it engages users, which also makes ads more effective
    • In-app monetization opportunities also (e.g. selling levels, sequels, etc.)
    • Games have a shorter release cycle and a game maker can therefore generate many games
  •  

  • Still very few examples of profitable app businesses

    • Ad model isn’t working yet, rates still extremely low
    • There are a few success stories, but they are the exception, even if they are the examples that are trumpeted in the media and elsewhere
  • Advice for app developers

    • Apps constantly need to be upselling to be profitable
    • If possible, engage users outside of mobile (e.g. website, etc.) and build a community
    • App store should be looked at as a distribution network, and not a money maker
    • Unlikely someone would buy a company just for the mobile app, since they are easy to recreate; instead they are buying the users or community
    • Individual developers may also want to consider doing contract work to mitigate risk while continuing to improve their skills

 

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