TEEMU KURPPAteemu@huikea.com

Mobile startupsWhy to focus on mobile?

1. Mobile apps

2. Mobile payments

3. Web

1. Mobile apps

2. Mobile payments

3. Web

Finally possible

1. Mobile apps

2. Mobile payments

3. Web

Finally possible

The gist

1. Mobile apps

2. Mobile payments

3. Web

Finally possible

The gist

New business models?

1. Mobile appsFinally possible

Mobile WebFocus shifted

Negotiating with operatorsis time not spentwith users

Really bad for a small startup

iPhone changedthe game

S60 140M

Sold units

Why iPhone matters?

S60 140M

20MiPhone

Sold units

Why iPhone matters?

S60 140M 0.20

20MiPhone

Sold units% flat-ratedata plan

×

Why iPhone matters?

S60 140M 0.20 28M

20MiPhone

Sold units% flat-ratedata plan

Potentialcustomers

=×

Why iPhone matters?

S60 140M 0.20 28M

20M 1.00iPhone

Sold units% flat-ratedata plan

Potentialcustomers

=×

×

Why iPhone matters?

S60 140M 0.20 28M

20M 1.00 20MiPhone

Sold units% flat-ratedata plan

Potentialcustomers

=

=

×

×

Why iPhone matters?

S60 140M 0.20 3M

20M 1.00 10MiPhone

Sold units% flat-ratedata plan

Educatedcustomers

=

=

x

x

x

x

Why iPhone matters?

% knowsabout apps

0.10

0.50

GetJar, 460M downloads since 2004

App Store,1B downloads since 2008

A distributionsolution

for both users and publishers

1000 million apps installed

1000 million apps installed 30 million devices

1000 million apps installed ÷ 30 million devices =33 apps in every device

40 000 apps published

2. Mobile paymentsThe gist

30-50% of price to operators

Stupid but not the real problem

Premium SMS

The problem is tens of operatorsmiddlemencountry-specific rulesmonthly fees

Premium SMS

Premium SMS

Really bad for a small startuptargeting global marketswith a yet unproven idea

A paymentsolution

for both users and publishers

Some money to be madeKoi Pond900k downloadsin 9 months0.99$

Blue Skies55k downloadsin 6 months2.99$

Zen Bound100k downloadsin 3 months3.99$

Hit-driven

Sustainable?Scalable?

iPhone OS 3.0

in-app purchases

buy books in e-book reader

buy a virtual birthday card

buy a subscription to a quality business podcast

buy a timetracking feature to your loved ToDo-app

buy a new level for a game

3. WebNew (old) business models?

URL is a superior distribution model

Web

Good payment solutions still missing

Web

What if?

Typical transactionin your web serviceis 0.99$?

JavaScript APIsto App Store payment system?

What if?

What if?

What if?

TEEMU KURPPAteemu@huikea.com

Q&A

slides soon: dirtyaura.org/blog