Today The New York Times is reporting that Apple is changing its policy for allowing apps to deliver content that was paid for somewhere other than in the app where Apple would get a cut. This came to light when Sony was forced to explain why its iPhone and iPad apps were not being released as promised. This is important to illustrate clearly because this is not just about Sony. In fact, it is expected that Apple will apply this same policy to existing apps over the coming months. The most obvious target is Amazon.com's Kindle store, but we have no reason to believe it will stop with eBook retailers; instead, this policy should also affect magazines, newspapers, even videos and games.
This represents a shift for Apple. Going back to the iPod days, Apple only sold music because it helped sell iPods. When Apple added the iPhone app store, it allowed Amazon to add a Kindle app because it would only make iPhones more valuable to potential buyers. The same held true for the iPad. But now that the company has built such a powerful ecosystem of devices, content, and consumers, it appears Apple is eager to ensure it can collect any and all tolls along its proprietary highways. I note this with some irony because it was just three weeks ago that I praised Apple's surprising openness in a report explaining the iPad's rapid growth:
It’s a great pleasure to announce that Forrester has launched an online community for Market Insights Professionals today. This community will focus on the key business challenges that Market Insights Professionals face every day. The community is a place for Market Insights Professionals to exchange ideas, opinions, and real-world solutions with each other. Forrester analysts will be part of the community, helping facilitate the discussions and sharing their views, but it will be mainly your peers who post discussion topics and share their success stories, lessons learned, and best practices.
The community is open to all Market Insights Professionals, whether you’re a Forrester client or not. Join Market Insights professionals from companies like for example Verizon, Research in Motion, The Hearst Corp., Premera Blue Cross, and Tivo and see what your peers have to say on current discussion topics like:
The explosion of smartphones and tablet computers has companies frantic to build useful apps for serving their customers. Forrester agrees that companies should be building ways for customers to interact with them at the time and place that’s most relevant to them.
For eBusiness leaders, software app stores represent a new and disruptive distribution channel for PC and Mac software.
Three weeks ago, Apple launched its App Store for Macs, following in the footsteps of the hugely successful app store for the iPhone, iPad and iPod touch. With the new Mac app store, Apple is hoping to change the way Mac users discover, download and purchase software. At launch the store contained more than 1,000 apps, and Apple was keen to report an impressive 1 million downloads on the first day. For Mac users it’s a compelling story:
A convenient one-stop shop. Users can launch the app store right from the Mac dock, revealing a powerful set of discovery tools to browse and search the library of apps on offer. eCommerce best practices are employed throughout including search, faceted navigation, what’s hot, top sellers, favorites and customer reviews to create an intuitive discovery experience.
Frictionless purchase and install experience. Downloading and buying in the app store is a simple one-click process. By linking the checkout and payment process to users' iTunes accounts, Apple is able to streamline the buying process significantly versus a typical multipage checkout process common on software publishers' eCommerce sites. The apps in the Mac store have been packaged to comply with the Mac app install process, making the installation quick and seamless compared to the multistep install process common with most software.
With tablet sales projected to grow from 10.3 million in 2010 to 44 million in 2015, we wanted to understand what will be fueling this growth. Since 18- to 24-year-olds will be the ones growing up accustomed to this technology, we honed in on this demographic to see what it is about the tablets that excites them the most. Our Technographics® data shows that they want a tablet for a variety of reasons, but what they are most attracted to is its portability, and they are much more driven than US online consumers in general by its “fun factor.”
Nokia just published its fourth-quarter and annual results for 2010. I am not going to focus on the overall announcements and what they mean for Nokia’s device business in particular, but Nokia’s update on the Ovi Store is quite interesting.
Here are some of the key takeaways from a data perspective:
4 million-plus daily downloads on the Ovi Store.This is an increase of 200% from the 2 million daily downloads statistic shared at Nokia World in mid-September. If momentum continued and we assumed an average of 5 million-plus daily downloads throughout 2011, this would represent close to 2 billion downloads for 2011 alone. That’s not bad considering that Apple just announced 10 billion cumulative downloads since the launch of the Apple App Store in July 2008.
Good performance in BRIC and emerging countries.Seven of the top 10 most active countries are in the BRIC region or are emerging countries. These include: China, where Nokia claims to be the No. 1 store with 65% share (based on independent research); India; Indonesia; Russia, which sees more than 1 million downloads per week; Saudi Arabia, Turkey, with 1.6 million downloads per week; and Vietnam. One should not forget that growth and volumes will increasingly come from these regions. As a result, developers may increasingly be open to Nokia’s pitch that it offers local reach and global scale. One of the main advantages of the Ovi Store is its ability to provide operator billing (currently available in 32 markets), which makes a lot of sense in unbanked or underbanked countries where credit card penetration is low. Interestingly, 27% of the current downloads come from low-end devices (e.g, Nokia’s S40 proprietary platform) — meaning that apps are not just for “smartphones.”
It is January, 2015, and technology sales reps Reg, Xerxes, Francis, and Loretta have been to the movies to watch a rerun of Monty Python’s Life of Brian, probably one of the best film comedies of any time. At dinner afterward, they are reliving the scene where the commandos discuss “what did the Romans ever do for us” when one of their marketing colleagues stops by to say hello. After the marketing manager leaves, they continue their discussion.
Now there’s another point. Those people in marketing. What have they ever done for us?!
Well, they give us much better leads now.
Yes. Compared to before, they’re really qualified. I can certainly close my deals much quicker than I used to. To be honest, I didn’t even look at leads five years ago — they were a waste of my time.
Oh. Yeah, yeah. They did give us that. Uh, that's true. Yeah.
And those contact profiles.
Oh, yeah, the contact profiles. Remember what it used to be like? We’d have no idea who we were visiting. Had to ask all those questions about family and hobbies. Now, before I see someone, marketing give me a full profile — I see their Facebook, I know how LinkedIn they are. I even see their last 20 tweets.
Yeah. All right. I'll grant you: Leads and the contact profiles are two things that marketing has done for us.
In a recent post, my colleague Julie Ask and I examined what happened in the mobile space in 2010. In a new report, we are highlighting what we expect the key trends to be in 2011. While we believe that most of the trends identified last year will continue throughout the year ahead, here’s a snapshot of more specific trends that will shape the market in 2011.
• The mobile/social/local combo will explode in usage but generate little revenue.
• 2011 will be the year of the “dumb” smartphone user. Thanks to handset subsidies, smartphones will be available to the masses. Expect new smartphone users to be less engaged and active than the first cohorts of Android and iPhone early adopters. The good news is that thanks to customer education and the convenience that these devices offer, even “dumb” smartphone users will consume more mobile media than ever before and will have incremental usage of mobile data!
• The mobile fragmentation problem will continue in 2011. Prioritizing mobile developments will still be a challenge, and cross-platform development has not yet been achieved successfully.
Lately it’s become en vogue to talk about how to “surprise and delight” your customers. And why not? If companies are competing on experience, they need to find ways to impress and engage their customers. Figuring out how to do this is difficult but doable.
I recently had the pleasure of editing a report that Vidya Drego wrote that outlined three categories of customer research techniques: exploratory, evolutionary, and evaluative (read or download the report here). That process led me to think about my own research on Emotional Experience Design, which asserts that in order to engage their customers, companies have to craft interactions that address real goals, craft a cohesive personality, and deliver the right sensory experience. It’s this first principle of addressing real goals that I’ve looked into more deeply in a new report called, “Mastering Emotional Experience Design: Address Customers’ Real Goals.” Here are a few examples of companies that address real goals by extending value beyond the functional needs of a single interaction:
There are rare moments in technology when everything changes. When the entire framework defining how we interact with machines (and consequently, each other) shifts perceptibly. That happened when the TV was invented, it happened when the computer mouse was made available commercially. These kinds of changes forever alter our economics, our social life, and our individual experiences.
It's now about to happen again. Only this time, the shift that is coming is on such a large scale that not only will it change things dramatically, it will usher in a new era in human economics (and therefore, everything else).
We call the new era the Era of Experience. I'm working furiously to complete a report detailing all the specifics so you'll understand what this era entails and, importantly, what you can do to anticipate this era rather than follow it.
In fact, at our Customer Experience Forum in New York City during the last two days in June, I gave an exclusive preview to the 600+ attendees of what the Era of Experience was. In my speech, I gave a live demo of the PrimeSense technology that the people at Xbox built on to create the Kinect for Xbox 360 platform. This platform incorporates a full-body gesture control interface, voice control, and face recognition. It's as if all the science fiction we've been reading for decades was really just a how-to manual for Kinect. Oh, and this future-defining platform costs all of $149.99 at Amazon.