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The iPhone Effect: The LBS industry before and after.
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Introducing PTOLEMUS
Presentation
August 2009 - Confidential
Strategies for Mobile Companies
The iPhone Effect - The LBS industry before and after.
Location Based Services Evolution 2010
Marcus Evans Conference - Berlin, 19 January 2010
PTOLEMUS is named after Ptolemy, the geographer who created the first map of the world
We define a moving object as any individual, vehicle or thing that can move and be equipped with wireless connectivity
We define a moving network as any transportation network
Our expertise lies at the core of networks, content and devices and moving objects
Moving objects
Content & Devices
Networks
Geo-located devices Wireless connectivity
Travel / transportation
Geolocated devices Localized content & servicesContent aggregators and suppliersVertical application providers
Network operatorsTelecom vendorsRegulators
Builders of moving objectsBuilders of moving networksOperators of moving networks
The Mobility Ecosystem
PTOLEMUS assists its clients from strategy definition to business development
Our services
Strategy definition
Licence application
Board coaching & support
Business plan development
Due diligence
Product & services development
Product & services launch
Business development
Response to RFPs
Our areas of expertise
Positioning / Location enablement
Navigation
Location-based content & services, e.g.
maps, traffic, fuel prices, speed cameras, weather,
parking, etc.
Telematics, e.g. connected car, fleet management, PAYD,
road charging, e-call
Intelligent transport systems
Mobile content and social networking, e.g. application stores, content sourcing, crowd-sourcing
M2M
Connectivity (sourcing, MVNO, ESP, etc.)
Actually, he was right!
"Today, Apple is going to reinvent the phone"Steve Jobs
Mobile is becoming located
and location is becoming mobile
In 3 years, Apple has conquered 20% of the smarphone market
Sources: PTOLEMUS, OS owners, Gartner
Evolution of worldwide smartphone market share in Q3 2009 vs Q3 2008
LBS capabilities
High
Low
iPhone OS
100 000
Symbian5500
Android10 000
Windows Mobile 20 000
RIM3 000
LIMO
Palm OS
• Circle size is proportional to number of applications available today on OS' app. store
• Arrows indicate trend in 2009
10% 20% 30% 40% 50%
Why has Steve Jobs succeeded
• In our view, he has learned the lessons of the Apple Macintosh defeat against Microsoft
• Creating an ecosystem is stronger than creating an environment however excellent it is
• With the iPhone, he has actually built an environment and an ecosystem
Why the iPhone LBS revolution has taken place
Location completely integrated in iPhone's API and user
interface
Positioning data free from Google
Map provided for free by Google
Availability of Skyhook hybrid location data
•Extremely easy implementation for developers
•Strong level of acceptance by end-users
No variable usage costs for application developers
No fixed costs for developers, encouraging the launch of free LBS
applications
•High level of accuracy, notably in cities where 90% of usage takes place
•Very fast fix, essential for mobile use
Apple has kept improving its location technology
Skyhook's WiFi positioning system
Cellular tower triangulation (Google)
GPS
Compass
Skyhook's WiFi positioning system
Cellular tower triangulation (Google)
Skyhook's WiFi positioning system
Cellular tower triangulation (Google)
Skyhook's WiFi positioning system
GPS
• Fix in less than 1 second• Indoor location possible
• Almost universal coverage
• Universal coverage• High accuracy outside
cities
• A sense of direction!
~
Apple has also revolutionized the user experience and business model of location
• In 2007, the user experience of most mobile services that required location was complex:- Needing formal
acceptance for location request
- Requiring generally at least 2/ clicks
- Each location request costs something to the developer
- Written in legal language
• Therefore, server-based LBS were very rarely used, which prevents a larger range of services
Default settings for location
• Apple solves all these problems with the iPhone- Location agreement request is sent as a message- Agreement requires only 1 click and question is always the same,
for all applications- Agreement is asked in simple language- Location requests are free
Uniform, 1-click location request
across all applications
As a result, location-based applications now represent to 6% of all apps
Source: Skyhook, January 2010
What is location used for?
Source: Skyhook, March 2009
PTOLEMUS
After location, Apple wants to control the map
• In July 2009, Apple acquired Placebase.
• Placebase is a white-label mapping business. It competes with Google free maps.
• Is Apple looking to integrate the technology into the iPhone?
• Is Apple looking to replace Google Maps (launched for free in 2006) on the iPhone, it’s certainly a threat to Google. At least if Apple can make beautiful maps that are also easy for both users and developers.
• PlaceBase competes with Google and other free mapping services by doing two things:
- Offer deep customizations and multiple features that integrate private and public data sets in many diverse ways.
- Offer a way to layer commercial and other data sets (such as demographics) onto the maps using an easy-to-use application programming interface (API). The product is called PushPin.
• Being used for real estate, fleet tracking and traffic.
15
Apple has won its iPhone bet
• Nokia, which had more assets, thanks to Navteq, has not delivered ground-breaking solutions to the market
• A large part of the industry is now backing what is seen as the only alternative to the IPhone, Android
Android is getting tremendous support
Source: AdMob, January 2010
...but still does not deliver well enough in our view
Source: Skyhook, January 2010
This still represents only a 6th of iPhone LBS applications
The ecosystem does not work
well for developers
So will Android defeat the iPhone?
• All weak smartphone vendors are now backing Android
• Most operators are backing Android
• Google can use its search engine to sell its phones
YES NO
• Android's market place is not structured to be a success
• The iPhone ecosystem protects the iPhone
• Apple masters both hardware and software and does not depend on external suppliers
• Google is sometimes too dogmatic about the Cloud...
Thank you
Strategies for Mobile Companies
Frederic Bruneteau
France +33 6 69 60 42 31 Belgium +32 4 87 96 19 02 Netherlands +31 6 44 46 53 85
