The MEX Manifesto & Conference Agenda (May) 2009
Each year the MEX team produces a new Manifesto to challenge the industry on the key mobile user experience issues for the next 12 months. We design each Manifesto to inspire and provoke the most creative thinkers in the mobile business, using a combination of metrics and insights. When we come together for our annual conference, all the speakers and everyone in attendance works together to respond directly to the Manifesto issues.
If you'd like to suggest an issue for a future Manifesto, please contact us.
Shortcuts | Day One | Day Two | Timeline summary | Register for MEX | 2008 Manifesto | 2007 Manifesto
Day One, 19th May 2009
08:30:00
| Reception area and garden cafe
Registration and networking breakfast
09:00:00
| Garden cafe
Introduction to MEX
09:30:00
| Main conference room
Manifesto #3:
Customer research methodology must be enhanced to close the reality gap
Speakers
- Rachel
Hinman,
Experience Design Director,
Adaptive Path
(Profile)
Manifesto statement
We believe...the industry must enhance its methodology for understanding customer experience and translating that knowledge into better mobile products. The continuing disconnect between the lifestyle of real customers and the experiences they're offered points to an urgent need for new research methods and new ways of using that research within the product management structure. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
Research; Ethnography; Organisational structure; Lab testing; Observation; Methodology; Reality
The story
Focus groups, lab testing, surveys, research reports, real world observation, public betas... The mobile industry employs a wide range of methods to better understand its users, yet time and again products reach the market with major customer experience issues. There can be multiple reasons for this: choosing an inappropriate research method, targeting the wrong group of users or organisational failings, where the valuable insights gleaned from user experience studies are lost to poorly aligned management priorities. There is an argument most customer research is tainted before it is even commissioned, influenced more by a desire to support existing company strategy than trying to understand the reality of customer experience. The most valuable customer research reveals new behaviours for the first time or provides fresh insight into existing usage patterns. Smart companies gain competitive advantage from this intelligence by identifying trends ahead of the market and gaining insight to capitalise on the opportunity in a way which matches customer expectations first time.
To get you thinking...
- Is the way in which customer research is typically commissioned and budgeted for fundamentally incompatible with producing genuinely unexpected insights into user behaviour?
- How can customer research practitioners better illustrate the value of new methodology and ensure the insights are used to greatest effect by the client?
- What's happening at the cutting edge of customer research in other industries? What can the mobile business learn?
Further reading from the MEX archives
Stat Spots
- 90.00%: The overwhelming majority of users interviewed by mobile social network itsmy.com visited the site first whenever they've used the mobile web. 75% of these users also wanted to see a link to their operator's homepage from itsmy.com, allowing them to easily top-up their credit.
| (Source: itsmy.com)
- 0.33%: The official number of subscribers reported by Pakistan's mobile operators declined by 0.33% in Q4 2008, despite perceptions of it being one of the fastest growing markets in the world. The decline was driven by a change in reporting standards, which now require operators to remove inactive subscribers from their customer totals after 90 days.
| (Source: Wireless Intelligence)
- 50x: Customers of Verizon Wireless sent 50x as many text messages as multimedia messages in Q4 2008.
| (Source: Verizon)
- 108.00%: Complaints to PhonePayPlus (PPP), the UK premium services watchdog, more than doubled from 2007 to 2008. 8000 complaints were registered in a 12 month period, prompting PPP to introduce tougher measures to improve the quality of premium services.
| (Source: Mobile Entertainment)
- 45.00%: Almost half of UK and US consumers are hesitating to purchase a new mobile handset because they are concerned about the complexity of setting up a new device, according to a Coleman Parkes study of 4000 users on behalf of Mformation.
| (Source: Coleman Parkes / Mformation)
- 61.00%: 61% of UK and US users have stopped using services such as email, internet browsing, instant messaging and MMS because they couldn't solve the usability problems they encountered, according to a Coleman Parkes study of 4000 users on behalf of Mformation.
| (Source: Coleman Parkes / Mformation)
- 103.00%: Viewer numbers on Qualcomm's MediaFlo mobile TV service spiked 103% during the 2008 US Open golf play-off between Tiger Woods and Rocco Mediate. In contrast, viewer numbers during live coverage of the US Presidential election increased by only 22%.
| (Source: Qualcomm)
10:00:00
| Main conference room
Manifesto #7:
The delicate art of balancing commercial imperative and user experience
Speakers
- Priya Prakash, Creative Director, Consumer Experience, Nokia
(Profile)
Manifesto statement
We believe...mobile advertising is not the only way to monetise applications and services. A more sustainable revenue source can be found by identifying where and how customers perceive value, focusing on user experience and creating a revenue model which reflects the reality of user behaviour. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
Advertising; Monetisation; Revenue; Funnels; Virtual currency; Premium features; Business models
The story
It seems virtually every new mobile application or service which comes to market is relying on advertising revenue to fund its business model. While advertising will offer an important new source of revenue for some, it will be centred on a limited number of discovery mechanisms which help users shortcut to the information, services and offers important to them. Smart companies are waking up to new revenue opportunities by focusing on user experience, identifying the features which provide genuine value to customers and simplifying the process by which they can pay for them directly. The mobile application business models of the future will strike a delicate balance between free features to capture user attention, premium upgrades and rewards for user loyalty. The inherently personal nature of mobile devices makes them ideal tools for new payment mechanisms like virtual currency, barter and micro-transactions.
To get you thinking...
- Are great user experiences and the commercial imperative to make a profit from mobile services fundamentally incompatible? Can paying for a service actually enhance the users' perception of the experience?
- Is the funnel concept the most appropriate model for generating mobile application revenues, drawing in large numbers of users with free features and convincing incrementally smaller groups to pay for premium features?
- Will the tradition of distraction-based advertising ever work in the mobile environment, where users are more focused on particular missions?
- Which revenue models provide the best experience for the customer?
Further reading from the MEX archives
Stat Spots
- 90.00%: The overwhelming majority of users interviewed by mobile social network itsmy.com visited the site first whenever they've used the mobile web. 75% of these users also wanted to see a link to their operator's homepage from itsmy.com, allowing them to easily top-up their credit.
| (Source: itsmy.com)
- $5bn: Wagers made through mobile devices will rise to $5 billion in 2009 according to a report by Juniper Research.
| (Source: Juniper Research)
- $5.4bn: Global revenues from mobile gaming reached $5.4 billion in 2008, up 20% from 2007. Growth was slow in Western Europe and North America, but increased rapidly in China, India and Africa.
| (Source: Juniper Research)
- 7.00%: Juniper Research believes the annual growth rate of the mobile entertainment market will decline to 7% during 2009 and 2010 in a 'worst case' scenario of economic slowdown. However, its most optimistic forecast predicts annual growth of 19%, with global revenues reaching $36 billion in 2010.
| (Source: Juniper Research)
- 32.40%: Almost a third of US iPhone owners have downloaded a game, compared with 3.8% of the wider population downloading games during 2008.
| (Source: Rethink Wireless)
- 50m: Verizon Wireless customers downloaded 50m music and video clips in Q4 2008.
| (Source: Verizon)
- 108.00%: Complaints to PhonePayPlus (PPP), the UK premium services watchdog, more than doubled from 2007 to 2008. 8000 complaints were registered in a 12 month period, prompting PPP to introduce tougher measures to improve the quality of premium services.
| (Source: Mobile Entertainment)
- 61.00%: 61% of UK and US users have stopped using services such as email, internet browsing, instant messaging and MMS because they couldn't solve the usability problems they encountered, according to a Coleman Parkes study of 4000 users on behalf of Mformation.
| (Source: Coleman Parkes / Mformation)
- 340.00%: Electronic Arts, which makes games for iPhone platform, saw a 340% increase in sales over the 2008/9 holiday period, buoyed by a seasonal uptick in purchasing by Apple customers and a sales promotion where the company cut prices for its products by 50%.
| (Source: MocoNews)
- 20 mins: Subscribers to Qualcomm's MediaFlo mobile TV services in US are spending an average of 20 minutes per day watching content on their handset, equal to the number of minutes they spend making voice calls. Qualcomm is rolling out MediaFlo in 100 markets throughout the US during 2009, covering 200m potential users.
| (Source: Qualcomm)
10:30:00
| Garden cafe and networking areas
Networking and morning refreshments
11:00:00
| Main conference room
Manifesto #2:
Achieving great tactile experience is a subtle art
Speakers
- Christophe
Ramstein,
Chief Technology Officer,
Immersion
(Profile)
Session details
| Time |
Activity |
Location |
| 11:00:00 |
Keynote presentation |
Main conference room |
| 11:30:00 |
Breakout sessions |
Team rooms |
| 12:30:00 |
Breakout teams report back for group debate |
Main conference room |
Manifesto statement
We believe...the tactile nuances of mobile products are of much greater importance to customers than the industry realises. Adding a touchscreen does not automatically equate to better user experience. The overall customer experience will be enhanced through a combination of touchscreens, additional touch-enabled surfaces, haptics and introducing new materials for device casings, buttons and accessories. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
Tactile; Touchscreens; Haptics; Touch-enabled surfaces; Materials; Buttons
The story
Touchscreen handsets are suddenly everywhere. Nokia sold over a million of the 5800, its first mainstream touch product, in the first two months of availability. LG shipped 5m Viewty touchscreen handsets in the 14 months to January 2009. Apple had sold 17.4m iPhones as of January 2009. However, unit shipments do not necessarily translate to great customer experience. RIM, which had one of the highest profile touchscreen launches of the last 12 months with the Blackberry Storm, has suffered negative sentiment from customers dissatisfied with the performance of the screen. A ChangeWave survey found 20% of Storm users citing the touchscreen as the factor they liked least about the device, while 21% bemoaned the lack of keyboard and a further 20% criticised 'ease of use'. There are a range of technologies emerging which can enhance the tactile experience of mobile products. These will allow touch sensitivity to extend from the screen to other surfaces, embedding advanced haptic feedback and combining physical materials to create a new sensory layer for the user. In the future, proximity sensing may enable 'touch' interfaces without the user even needing to make a physical connection with the surface.
To get you thinking...
- How can touch-enabling surfaces other the main screen enhance the tactile experience of mobile products?
- Which interface elements can be effectively abstracted into software using touchscreens and when does a dedicated hardware button provide value for the customer?
- Will the explosive growth of high-profile touchscreen handsets like the iPhone, Nokia 5800 and Blackberry Storm create customer expectations of touch features on every mobile device?
- Is there currently a missing link in the touch experience, with many handsets still unable to talk back to the user through haptic feedback? How can this channel of sensory communication enhance the customer experience?
Further reading from the MEX archives
Stat Spots
- 14.00%: 14% of BlackBerry Storm customers in the US were unsatisfied with their purchase after spending a month with the device. Only 33% claimed they were very satisfied, with most choosing a mediocre rating of 'Somewhat satisfied'. This contrasts with the results of a similar survey of iPhone users, which found 77% were very satisfied and just 5% unsatisfied. The primary reasons for the Storm's lacklustre appeal appeared to be the touchscreen interface, cited as a problem by 20%, the lack of a touchscreen keyboard (21%) and difficulty to use (20%).
| (Source: ChangeWave)
- 5m: LG sold 5 million of its touchscreen Viewty handsets in the 14 months to January 2009
| (Source: Mobile Entertainment Magazine)
- $144: The bill of materials cost (BoM) for the HTC G1, the first Android-powered handset, is approximately USD 144. This compares with USD 175 for the iPhone 3G. The biggest single cost component is the ARM baseband chip, costing USD 28.49, (19.8 percent of the G1's total BoM), followed by the display panel at USD 19.67 (13.7 percent of the BoM).
| (Source: iSuppli)
- 6000: Sales of the Blackberry Storm by Vodafone UK fell from 20000 per week after launch to just 6000 a week a month later after reports of widespread bugs and errors in the device hit sales.
| (Source: Mobile Today)
- 1m: In the first 2 months of availability, Nokia shipped 1m of its 5800 'Tube' handsets, the company's first mass-market touchscreen device. The first 500,000 were sold in just over a month, with the remainder selling out even faster as Nokia expanded availability to new markets.
| (Source: Nokia)
13:15:00
| Garden cafe and networking areas
Networking lunch
14:15:00
| Main conference room
Manifesto #6:
The next billion customers are already here
Speakers
- Robert
Fabricant,
Executive Creative Director,
Frog Design
(Profile)
- Haslina
Dawam,
General Manager of Messaging & Support,
Celcom Mobile Malaysia
(Profile)
- Sian
Townsend,
User Experience Researcher,
Google
(Profile)
Session details
| Time |
Activity |
Location |
| 14:15:00 |
1st speaker presentation |
Main conference room |
| 14:40:00 |
2nd speaker presentation |
Main conference room |
| 15:05:00 |
3rd speaker presentation |
Main conference room |
Manifesto statement
We believe...the industry's highly anticipated 'next billion customers' are already here, creating a wealth of new user experience requirements. While executives from established telecom markets continue talking about when opportunities may emerge in developing markets, innovative companies in these regions are already using their unique knowledge of local conditions to deliver what users want. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
Emerging markets; Innovation flow; Practical experiences; Connecting the disconnected
The story
The 4 billionth mobile subscriber arrived at the start of 2009, a milestone achieved less than 18 months after 3 billion connections were recorded in Q3 2007. According to Wireless Intelligence, Africa, Latin America and Eastern Europe now account for 31.84% of the world's mobile subscribers. Asia Pacific, driven by the growth of India and China, represents 42.75%. Western Europe and North America hold just 19.87% of the global subscriber base. Low-cost handsets and network expansion have brought mobile connectivity to the majority of the world's population, but how is the user experience evolving in a world where even the poorest customers may now be on their second or third mobile device? The flow of innovation is starting to turn. The first phase of emerging markets growth has been dominated by established, pre-dominantly Western companies selling their products into new areas. The next stage will see local initiatives putting mobile technology to use in ways which reflect the diversity of new user requirements. These projects may yield valuable lessons which can be transferred to other areas - including back to developed markets. The focus is shifting from basic voice and text services to a realisation that mobile devices are becoming the emerging markets' primary gateway to information, business applications, media and banking services. These territories have the potential to be at the forefront of defining a new set of mobile experiences.
To get you thinking...
- What is the practical reality of the mobile user experience in various developing markets? How are these experiences influenced by the incredible diversity of cultures and locales the mobile industry has hitherto lumped together under the homogenous title of 'emerging' economies?
- What does taking a customer-centric approach to the mobile experience look like from the perspectives of a local operator, a global web giant and a multi-disciplinary design agency?
- How can we shift the balance of knowledge in mobile user experience projects to better reflect the unique, but very different, values of local expertise and global experience? How can these two elements be combined to enable established companies and developing markets innovators to get the most from their partnerships?
Further reading from the MEX archives
Stat Spots
- 565.2m: There were over half a billion mobile subscribers in China at the end of February 2008. This compares with about 210m internet users.
| (Source: Bloomberg)
- $41bn: Wireless Intelligence estimates Chinese network operators will spend around USD 41 billion between 2009 and 2010 on building out 3G coverage after government authorities issued 3G licenses at the start of 2009. The mobile industry is pinning much of its hopes for revenue expansion on network construction deals in China over the next two years.
| (Source: Wireless Intelligence)
- 6bn: Number of worldwide mobile subscribers in 2013 - up from 3.3 billion at the end of 2007
| (Source: Portio Research)
- 239.1m: The Chinese handset market will total 239.1m handsets in 2009, growing by 7% year-on-year and accounting for more than a fifth of global handset industry shipments.
| (Source: iSuppli)
- 89.9m: There were 89.9m mobile subscribers in Pakistan at the end of 2008, with 6 operators competing for customers. The market leader is Mobilink, with 31.7%, while Instaphone, the country's only CDMA operator, had just 0.36% share.
| (Source: Wireless Intelligence)
- 117m: The number of Chinese accessing the web from their mobile handsets grew by 113% from 2007 to 2008, reaching 117m by the end of the year. The mobile phone is now the dominant method of internet access in China.
| (Source: China Internet Network Information Centre)
- 8.00%: The profits of fisherman in Kerala (India) have grown by 8% since mobile phones were introduced in 1997 and consumer prices have fallen by 4%. The fisherman have used the phones to call ahead and find the best prices for their catch at a wider range of markets on the coast, thereby eliminating in-efficiences in the market dynamics which were leading to wastage and large variations in income.
| (Source: Robert Jensen, Harvard)
- 67.00%: About 500m people or 67% of the population living in sub-Saharan Africa is estimated to be within mobile coverage. This will rise to 90% by 2012 as part of a $50bn investment programme by network operators.
| (Source: GSM Association)
- 300m: About 300m people in India survive on less than GBP 0.50 per day
| (Source: Neoncarrot)
- 0.44%: GDP is estimated to rise by 0.44 percentage points for every additional 10 phones per 100 people.
| (Source: Leonard Waverman, London Business School)
15:30:00
| Garden cafe and networking areas
Networking and afternoon tea
16:00:00
| Main conference room
Manifesto #1:
User interface design is key to leadership in application stores
Speakers
- Hampus
Jakobsson,
Co-founder and Vice President of Business Development,
TAT
(Profile)
Session details
| Time |
Activity |
Location |
| 16:00:00 |
Keynote presentation |
Main conference room |
| 16:30:00 |
Breakout sessions |
Team rooms |
| 17:30:00 |
Breakout teams report back for group debate |
Main conference room |
Manifesto statement
We believe...current app stores are little more than glorified lists. They are time consuming to browse and innovative applications are often buried by poor interface design. The opportunity is for a next generation provider to transcend the traditional scrolling list and establish market leadership through innovative UI design, an open approach to commercial partnerships and advanced customer understanding. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
iPhone; Apple; Application; Developers; Fragmentation; Market; Interface; Open; SDK; On Device Portal; ODP
The story
Between July 2008 and January 2009, users of the iPhone and iPod Touch downloaded 500m applications from the Apple App Store. The industry has rightly heralded the success of this distribution channel and developers are flocking to the platform to gain access to an active and motivated customer base. However, with more than 15,000 entries in the catalogue, getting your application noticed is becoming more and more difficult. Other platform providers, including network operators, handset manufacturers, independent distribution channels and operating system developers, are now seeking to emulate Apple's success with application stores of their own. Some differentiate by the terms they offer to developers, while others, such as Nokia, are planning to add a social dimension to the store experience, allowing users to easily share recommendations with like-minded customers. However, almost all existing application stores subscribe to the same visual formula first employed on the iPhone. No provider has yet been brave enough to break with precedent and experiment with new visual merchandising techniques. The industry has much to learn about the value of user interface and may find rich sources of inspiration in both traditional retailing and PC-based stores.
To get you thinking...
- Are categorised lists the only solution for application stores or is there a more innovative way to help users find the software they're most likely to buy?
- Is there are an upper limit on the number of applications current stores like the Android Market and Apple App Store can support before it becomes too difficult for new developers to get noticed?
- What is the role of PC-based stores and physical retail space in mobile application distribution? Can they add unique value to the user experience which cannot be delivered through the mobile environment alone?
Further reading from the MEX archives
Stat Spots
- 4.8m: There were 200m application downloads from the Apple App Store in the 42 days to 16th January, an average of 4.8m per day. This is more than double the daily average in the prior 45 day period, when 100m applications - or 2.2m per day - were downloaded. Apple attributed this to an increase over the holiday period. As of January 2009, the App Store had recorded 500m downloads in total and contained 15,000 applications.
| (Source: MocoNews)
- 340.00%: Electronic Arts, which makes games for iPhone platform, saw a 340% increase in sales over the 2008/9 holiday period, buoyed by a seasonal uptick in purchasing by Apple customers and a sales promotion where the company cut prices for its products by 50%.
| (Source: MocoNews)
- 61.00%: 61% of UK and US users have stopped using services such as email, internet browsing, instant messaging and MMS because they couldn't solve the usability problems they encountered, according to a Coleman Parkes study of 4000 users on behalf of Mformation.
| (Source: Coleman Parkes / Mformation)
- 25.00%: A quarter of applications in the iPhone App store were games as of February 2009, representing more than 1500 titles - more than the combined total for the Nintendo DS and PSP.
| (Source: Rethink Wireless)
- 14.00%: The iPhone accounts for 14% of mobile game downloads in the US as of February 2009.
| (Source: Rethink Wireless)
- 32.40%: Almost a third of US iPhone owners have downloaded a game, compared with 3.8% of the wider population downloading games during 2008.
| (Source: Rethink Wireless)
- 80.00%: 4 out of every 5 customers choose to pay via operator billing rather than credit card when using Nokia N-Gage gaming service.
| (Source: Nokia)
18:15:00
| Garden cafe
The 2009 MEX Mobile User Experience Awards Party
Day Two, 20th May 2009
09:00:00
| Reception area and garden cafe
Registration and networking breakfast
09:30:00
| Main conference room
Manifesto #5:
Investment in input and display modalities must increase
Speakers
- Philippe
Jeanrenaud,
Marketing Director, EMEA,
Nuance
(Profile)
- Steve
Martin,
Vice President of Engineering,
Monotype Imaging
(Profile)
Session details
| Time |
Activity |
Location |
| 09:30:00 |
1st speaker presentation |
Main conference room |
| 10:00:00 |
2nd speaker presentation |
Main conference room |
| 10:30:00 |
Breakout sessions |
Team rooms |
| 11:30:00 |
Breakout teams report back for group debate |
Main conference room |
Manifesto statement
We believe...enhanced input methods and font handling are key foundation technologies for revenue growth in mobile services. Combining these elements will allow customers to create, manipulate and share rich data more easily. With data-driven services now accounting for 20% of global mobile revenues and rising, investment in input and display modalities must increase to a similar percentage of R&D budgets. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
Input; Fonts; Display; QWERTY; Touchscreens; Handwriting recognition; Predictive; Multi-modal
The story
Around 20% of global mobile service revenues come directly from features reliant on text input: SMS, email, web browsing and social networking applications. With the price of voice minutes continuing to fall, the proportion of revenue derived from data is growing daily. For many market segments, voice calling is no longer the dominant application, bringing into question the design fundamentals which have governed mobile product development since the industry began. However, while the amount of text input to mobile devices is exploding, the mechanisms remain comparatively crude. The industry continues to develop products built around legacy formats like the 12 button keypad, QWERTY layout or handwriting recognition. Text is still displayed in standard system fonts, with little choice for the user over how they consume their visual data. One solution is to increase the range of modalities available on each device, combining input methods like voice, predictive text, QWERTY and handwriting in a single product. However, this risks a negative impact on the customer experience as users find themselves delayed by sub-conscious latency periods as they evaluate the correct method for their current task.
To get you thinking...
- How can we combine an increasing number of input modalities in a single device without damaging the user experience through increased latency?
- How can we enhance familiar input methods, like the QWERTY keyboard, to drive mobile service revenue?
- What role will font technology play in enriching data services? How do fonts need to evolve to provide a reading experience conducive to increased data consumption?
Further reading from the MEX archives
Stat Spots
- 1742: The typical US teen mobile subscriber (ages 13 to 17) sends or receives 1742 text messages per month, compared to making or receiving 231 mobile phone calls. Data from Q2 2008.
| (Source: Nielsen)
- 217m: 217 million P2P text messages were sent per day in the UK during Q3 2008. This was up by 38% compared to the same period in 2007. This adds up to over 1.5 billion messages a week, or on average 6.5 billion text messages sent per month. In 1999 the total was 1.1 billion for the whole year.
| (Source: MDA)
- $347bn: Global mobile data revenues will grow from $148bn in 2007 to $347bn by 2013, representing around one third of the mobile industry's 1 trillion dollar revenue stream.
| (Source: Informa)
- 14.00%: 14% of BlackBerry Storm customers in the US were unsatisfied with their purchase after spending a month with the device. Only 33% claimed they were very satisfied, with most choosing a mediocre rating of 'Somewhat satisfied'. This contrasts with the results of a similar survey of iPhone users, which found 77% were very satisfied and just 5% unsatisfied. The primary reasons for the Storm's lacklustre appeal appeared to be the touchscreen interface, cited as a problem by 20%, the lack of a physical keyboard (21%) and difficulty to use (20%).
| (Source: ChangeWave)
- 10.00%: Only 10% of US subscribers pay for additional calls outside of their monthly plans following the rise of high volume 'bucket' packages and unlimited deals.
| (Source: Lowenstein's Lens)
- 50x: Customers of Verizon Wireless sent 50x as many text messages as multimedia messages in Q4 2008.
| (Source: Verizon)
- $10.7bn: Verizon Wireless generated USD 10.7 billion in data revenues during 2008, a 41.4% increase on 2007. Data now represents approximately 23.4% of Verizon's total wireless revenues.
| (Source: Verizon)
- x2: Google's mobile search traffic is doubling each quarter in China according to comments made by the company's China President Lee Kai-Fu. He believes mobile search traffic may exceed PC traffic in China within 3 years.
| (Source: Bloomberg)
- 76.00%: More than three quarters of teenagers between the ages of 11 and 13 use instant messaging, according to a 2008 survey of 58,000 young customers in 31 countries.
| (Source: Sulake)
- 43.00%: Instant messaging is predicted to grow at CAGR of 43% between 2008 and 2011 to reach USD 5 billion worldwide, while email will grow 17% to USD 14 billion.
| (Source: Portio Research)
12:15:00
| Garden cafe and networking areas
Networking lunch
13:15:00
| Main conference room
Manifesto #4:
Changing economics will facilitate increased diversity in handset portfolios
Speakers
- Andrew
Muir Wood,
Doctoral Researcher,
Institute for Manufacturing, University of Cambridge
(Profile)
- John Forsyth, Leadership Team, Technology, Symbian Foundation
(Profile)
Session details
| Time |
Activity |
Location |
| 13:15:00 |
1st speaker presentation |
Main conference room |
| 13:45:00 |
2nd speaker presentation |
Main conference room |
| 14:15:00 |
Breakout sessions |
Team rooms |
| 15:15:00 |
Breakout teams report back for group debate |
Main conference room |
Manifesto statement
We believe...too many manufacturers are trying to copy Apple by focusing their resources on developing a single 'blockbuster' handset. Greater long-term success will be achieved by creating a unifying software platform and using it to deliver a wide range of devices, differentiated by the user experience factors which really matter to customers: form factor, colour, price, usability and applications. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
Standardisation; Diversity; Colours; Form factor; Software platforms; Economics; Blockbuster devices
The story
Faced with a slowing economy and the emergence of a new category of 'blockbuster' devices from the likes of Apple, RIM and HTC, traditional manufacturers are reducing the number of handsets in development or re-directing resources to individual products in the hope of achieving a one-off success. Motorola, once the second largest manufacturer in the world, selling more than 65m units a quarter at its peak, has cut its handset division by half and scaled back its device portfolio to a fraction of previous levels. Sony Ericsson is taking a similar approach, moving away from its previous strategy of expanding sales into the mid- and low-range markets, choosing instead to retrench to the top tier. While almost every other growth industry moves towards greater product diversity and wider consumer choice, the mobile business appears to be shifting in the opposite direction, with product managers under pressure to deliver a single 'iPhone-killer'. The result is advanced, but highly generic handsets. Mobiles companies must work towards making diversity more economic and relevant to the customer experience. Manufacturers are currently producing multiple regional variations of a single handset simply to accommodate differing wireless standards around the world. By expediting standardisation efforts in areas such as wireless network technology, chipsets and software platforms, manufacturers will free up resources which can be employed in delivering the personalisation users truly value: more varied form factors, a wider range of colour options, a choice of premium materials and pricepoints, accessories and a wide choice of additional software and services.
To get you thinking...
- How can we make it economic to develop a portfolio of handsets which reflects the incredible diversity of customer requirements? Where are are the major costs in differentiation today and how can we refocus them on the differences which actually matter to customers?
- What are the most important elements of the user experience for the customer? Is a person more likely to buy a device because it has a camera with more megapixels or because it comes in a colour they love?
- Is it possible to combine the benefits of a standardised software platform and an effective distribution channel for third party developers with truly personalised devices? How can we overcome the challenges of running similar services across different combinations of screen size and input mechanism?
Further reading from the MEX archives
Stat Spots
- 162m: 162m smartphones were sold in 2008, a figure which is predicted to rise 30% to 211.2m units in 2009, despite a wider contraction in the handset market of around 10%.
| (Source: Informa)
- 13.50%: 13.5% of the handset market will be smartphones in 2009, rising to 38% by 2013.
| (Source: Informa)
- $144: The bill of materials cost (BoM) for the HTC G1, the first Android-powered handset, is approximately USD 144. This compares with USD 175 for the iPhone 3G. The biggest single cost component is the ARM baseband chip, costing USD 28.49, (19.8 percent of the G1's total BoM), followed by the display panel at USD 19.67 (13.7 percent of the BoM).
| (Source: iSuppli)
- 37.00%: 37% of handsets shipped by Verizon Wireless during Q4 2008 were classified as smartphones.
| (Source: Verizon)
- 5.00%: A 6 to 8 month increase in the average length of the handset replacement cycle would lead to a 5% year-on-year decline in handset sales during 2009. A 12 month increase would see handset sales falling by 10%.
| (Source: Informa)
- 20m: 20m handsets running Windows Mobile were shipped by Microsoft's hardware partners during 2008. This included 30+ different models, 11 of which sold over 1m units each
| (Source: Microsoft)
- 15m: Nokia has sold 15m N95 handsets since launching the product in 2007
| (Source: Mobile Entertainment Magazine)
- x2: Apple's share of the US smartphone market doubled from 11.5% to 23% in the 6 months following the July 2008 launch of the iPhone 3G. However, at the start of 2009, it still lagged RIM's 41% share of the market.
| (Source: ChangeWave)
16:00:00
| Garden cafe and networking areas
Networking and afternoon tea
16:30:00
| Main conference room
Manifesto #8:
Location data forms an integral part of user experience
Speakers
- Sandy
Fershee,
Founding Partner,
Frank First
(Profile)
- Gareth
Smith,
The Wombile Project
(Profile)
Session details
| Time |
Activity |
Location |
| 16:30:00 |
1st speaker presentation |
Main conference room |
| 17:00:00 |
2nd speaker presentation |
Main conference room |
Manifesto statement
We believe...the potential for location to enrich the mobile user experience increases exponentially as the number of location-aware objects grows. Showing users where they are on a map or personalising data according to location is just the start. The ebb and flow of location data can itself form an integral part of the user experience. Agree or disagree? Make your opinion count and join the debate by posting your comment on the MEX Blog.
Tags
Location; Mapping; Crowdsourcing; Trust; Layer of enchantment; Geo-tagging
The story
240m GPS-enabled handsets will ship in 2009 according to ABI Research. A further wave of users is also starting to experience location-aware services through initiatives like Google's cellular location API, which brings positioning to legacy devices without integrated GPS. Users around the world are becoming increasingly familiar with seeing their position on a map, accessing driving directions and finding nearby shops and services. The latest mobile phones can even track sporting activities and share geo-tagged photos with social networking communities. The potential richness of these services grows exponentially as the number of location-aware devices increases to saturation point. Game developers are experimenting with location abstraction techniques which allow the location of unknown objects and people to become an integral part of the virtual environment. Mapping is become open and local through crowd sourcing initiatives which put communities in charge of of their own cartography. Location is shifting from a contextual informant of the mobile experience to an experience in itself.
To get you thinking...
- How do we simplify the process of embedding location aware features in the user experience?
- Is location awareness best employed as a contextual informant to personalise the user experience or does it have greater potential to create a new category of data around which experiences can be built?
- Will a generational shift be required before customers feel comfortable sharing their location as part of their mobile user experience or can trust issues be resolved by providing sufficiently compelling services?
Stat Spots
- 21.20%: Shipments of GPS chipsets will grow at a CAGR of 21.2% in the 5 year period 2008 - 2013. 2009 will see 25% growth, despite predictions of a downturn in the wider semiconductor market. Demand is being driven by the growing popularity of location-based services on mobile devices.
| (Source: IMS)
- 240m: Approximately 240m GPS-enabled mobile phones will ship in 2009, up 6.4% from 2008.
| (Source: ABI Research)
- 90.00%: 9 out of 10 smartphones will have embedded GPS functionality by 2014, up from 3 in 10 in 2008.
| (Source: ABI Research)
- 1 in 2: 50% of Nokia handsets will have integrated GPS by 2010 - 2012 according to statements made by the Michael Halbherr, head of location-based activities at Nokia in a Reuters interview.
| (Source: Reuters)
17:30:00
Conference closes. See you at MEX 2010!
|
