ICMB 2011, The 10th International Conference on Mobile Business June 20-22, 2011, Como, Italy
Mobile Service Platforms Comparing Nokia OVI and Apple App Store with the IISIⁿ model
Virpi Kristiina Tuunainen
Tuure Tuunanen
Jouni Piispanen
Aalto University School of Economics Helsinki, FINLAND
[email protected]
University of Oulu Oulu, FINLAND
[email protected]
Aalto University School of Economics Helsinki, FINLAND
[email protected]
Abstract— In this paper, we describe and analyze two of the most popular mobile services platforms, Nokia Ovi and Apple App Store. Analyses of these platforms are based on the IISIn model, that is, the model for ICT Intensive Service Innovations in many-sided markets. In addition to the actual mobile service platforms, we look at the networked market users of these platforms, focusing on the consumers and the application developers. We identify the key similarities and differences in the technologies used, the platform users, and business models. Based on our analyses, we discuss some possible rationalizations for the success and the challenges of these two competing mobile service platforms. Keywords - mobile service platform; ICT intensive service innovations model; Nokia Ovi Store; Apple App Store.
I.
INTRODUCTION
The recent industry events, such as Nokia disbanding their in-house development mobile operating system platforms and joining forces with Microsoft, exemplify how ICT (information and communication technology) enabled services [1], and services in general, are powering modern economic growth [2]. In mobile service platforms, this has been especially evident. Apple’s and Google’s mobile service platforms have changed the mobile industry from hardware driven feature development, for instance better cameras and such, to the value that consumers derive from the offerings. Theory of innovation in services [2] gives an interesting insight to the development of new markets by exploiting the powers of ICT to coordinate service production and delivery. The two-sided networks [3-6] concept, where platforms (typically supported by ICT) provide services to two or more distinct groups of users, is particularly interesting. It focuses on how different sides of the markets such as, consumers, 3rd party service developers, and service providers, are coupled with network externalities to form many-sided markets. Products and services that bring together groups of users in these many-sided networks are platforms, which provide infrastructure and rules that facilitate the groups’ transactions [4]. Examples of many-sided, platform mediated networks include, for instance, video games, where the users groups for the gaming console platform are consumers (gamers), the game developers, and game distributors; or multichannel TV
with consumers, advertisers, and programming networks as the user groups. In this paper, our interest is on one particular type of many-sided networked markets, namely mobile service platforms. More specifically, we look at the differences and similarities between Nokia Ovi and App Store as mobile service platforms. Our analyses are based on the IISIn model [7, 8], which helps us to understand the possible reasons for these differences and similarities, and to highlight the implications of these differences and similarities on manysided market based service platforms. The structure of this paper is as follows. Next, we review literature on mobile service platforms. This is followed by the description of the research model and methodology of the study. Then we present the analyses of the two service platforms, Nokia Ovi and Apple App Store, which are followed by a discussion of the findings and conclusions. II.
MOBILE SERVICE PLATFORMS
During the last two decades, mobile phones have diffused all over the western countries and become like commodities, with about 2.4 billion mobile phones in the world today [9]. Mobile devices have been the fastest adopted consumer products of all the times with more mobile phones shipped annually than automobiles and personal computers combined [10, 11]. Furthermore, mobile information and communication technology has long ago past the point where technologically it is a form of “telephone”. Instead, it has become a platform upon which many complementary innovations have been developed [12]. Conceptually, platforms are subsets of components and rules employed by users in most of their transactions. A platform can also be defined as a bundle of functions, which can serve as the basis of certain of certain services whose value changes over time [13]. In the context of mobile services, these platforms provide the basis for new service innovations that are being developed constantly. These platform-oriented services can include, for example, mobile Internet, e-mail and other personal productivity tools, buying, mobile micro-payments, a host of entertainment services, such as, electronic books downloading and reading, games, music, video downloading or streaming, mobile TV, and so on and so forth. These services are built upon
information systems that serve as platforms for these innovations. Mobile service platforms are therefore comprised of ICT and supporting software products, which are vital parts of the required subsets and rules employed by users in their transactions [13]. We have witnessed an industry-changing shift from mobile phones that are use primarily for voice communication to smartphones that users can customize with the particular services to obtain the desired features. The traditional voice features of the mobile device are now a mere feature of the device. The user value is more increasingly derived from the digital applications (or “apps”) that users can acquire and install themselves. These applications can be purchased irrespective of time and location, with no need for physical connection to a service provider. We are moving towards an era of global consumerism in mobile services, where also mobile services can be conceptualized as information systems for consumers [1]. Almost the whole world is now basically part of this global network of mobile services and it is increasingly difficult to separate the geographical or other market areas of digital world. Most people around the world can easily be connected with anyone else, and the services cannot only be created anywhere but they can also be consumed anywhere. All of the Internet based mobile applications stores, including Nokia Ovi and Apple App Store, can be viewed as mobile service platforms, as they are bringing together different groups of users. These groups are the mobile device users, content producers (application developers, writers, musicians, etc.), mobile phone operators and possibly also advertisers. Ovi and App Store platforms are designed to distribute mobile applications, as well as video and music content, but due to space limitations, in this paper we will only focus on the mobile applications. III.
that there can be a number of different stakeholders, for instance, a content developer, an advertiser, a mobile operator and a content user. All of these different user groups represent a different side of the networked market, and have different preferences as to the number of platforms used and the number of members on the same side, as well as on the others sides of the market. These preferences must be also reflected on the pricing strategies for the different user groups [3]. Due to network effects, successful platforms enjoy increasing returns to scale [6]. Users will pay more for access to a bigger network, so margins improve as user bases grow. [5]. Furthermore, a many-sided model has the advantage of suggesting new approaches for estimating network effects [4]. Network externalities are those positive or negative effects that one economic agent’s actions have on another’s welfare that are not regulated by the system of prices [15]. In other words, when the value of membership to one user is positively affected when another user joins and enlarges the network, such markets are said to exhibit “network effects” or “network externalities [16]. Figure 1.
IISIn model , modified from [7, 8]
RESEARCH MODEL
ICT intensive service innovations are often based on platforms, that is, products and services that bring together groups of users in two- or many-sided, networks [3-6]. These platforms provide infrastructure and rules that facilitate the groups’ transactions [5, 6]. According to the IISIn model [7, 8], a service innovation platform can be viewed in terms of organizational, technological and market innovation factors (see Figure 1). Organizational factors include the organization and management of the company, as well as it financial structure, including the cost structure and profit potential [14] of the service. Technology factors define the type of ICT used, while market environment includes the demand (i.e. the customers), as well as the competition (both the direct competitors offering similar services, and the companies offering substitute services). In two- or many-sided markets, the dimensions of service innovation – the service concept, the client interface, and the delivery system – are most often different for the different sides of users, and must hence be designed separately for all different groups [7, 8]. In a mobile service platform, we see
With many-sided network effects, the platform’s value to any given user largely depends on the number of users on the network’s other side(s), and the value grows as the platform matches demand from different sides [3, 5]. Even though they are not directly designable by the platform provider, it is crucial to understand and take into account both the same-side (i.e., how valuable is the growth of the network for the users in the same side of the market) and the cross-side network effects (i.e, how valuable is the growth of the network on the other side). In addition, there are
different types of costs related to adoption and use of the platform for users on both sides that need to be considered by the platform provider. Furthermore, what is also imperative to understand is the users’ preferences and possibilities to be affiliated with one or more different platforms, also referred to as “homing”. The related homing costs comprise all the expenses the users incur, including adoption, operation, and the opportunity cost of time, in order to establish and maintain their platform affiliation [5]. In the context of mobile service platforms, we can expect most consumers to prefer mono-homing, that is, have one particular mobile device and, consequently, to acquire applications for it from only one mobile service platform. The application developers, on the other hand, are more likely to prefer multi-homing, that is, the ability to offer applications for different platforms. Whether this is possible or not, depends on, among other things, the policies of the platform providers, Nokia and Apple in our case. An additional design issues to be considered by the platform provider, that is, the service innovation provided, is the pricing strategy [4]. For two-sided - and even more so for many-sided networks - pricing is complicated, as the platform providers have to choose a price or a price range for each side, factoring in the impact of the other side’s growth and willingness to pay [5]. The platform incurs costs in serving both groups of users and can collect revenue from each, although one side is often subsidized [5]. A key issue in many-sided networks is to determine which side receives a discount, and different firms choose different beneficiaries [3, 4]. Often, either distinct user network can be a candidate for discounting or even free distribution. With video streaming service, for example, the industry norm is to subsidize the content consumers and to charge the content developers. Deciding which market side to subsidize depends on the relative network externality benefits: at a high level of externality benefits, the market side that contribute more to demand for its complement is the side to provide with a free goods. At lower levels, firms may charge positive process in both market sides but keep one price artificially low [3, 4, 6]. Also, price sensitivity of the user groups must guide the subsidizing decisions. For example, in the case of video games, the gamers (typically teenagers with limited paying capacity) are subsidized, whereas the game developers are charged the full price. IV.
RESEARCH METHODOLOGY
The primary objective of this study is to analyze two mobile service platforms using IISIn model (see Figure 1) as an analysis lenses. We take an interpretive, but at the same time critical approach [17]. We followed the guidelines of Klein and Myers [18] and adapted qualitative research as a means of trying to understand this complex IS research topic. We turned to the interpretive case study approach that Wynn [19] has advocated as the most appropriate qualitative method in studying social processes, which many-sided markets eventually are.
We selected two of the most popular competing Internet based mobile applications stores, Nokia Ovi and Apple App Store. The two case organizations, Nokia and Apple, are clearly rivals. They have both been leaders in distinct business areas, Nokia in the manufacturing and sales of mobile and smart phones, and Apple in comprehensive solutions to personal computing (Mac computers and more recently iPads), music consumption (iPods) and lately also smart phones (iPhone). These two companies offer fairly similar mobile service platforms practically in the same global environment, but have distinctive differences in their approach to these platforms, making them an interesting pair to compare. Despite its long history with mobile technology (i.e. the mobile devices) Nokia Ovi is a relatively young service platform, much younger than App Store. We will first analyze the two platforms separately with the help of the IISIn model, and then compare them. The purpose of the cross-comparison is to identify the differences between them, and then to discuss the possible reasons and implications of these differences. For both platforms, we will look at the service concept, client interface and delivery system as ways to differentiate the various sides of the platform users. Side 1 in the IISIn model represents the mobile service consumers, who buy the application for their smartphones. Side 2, in turn, consists of the content providers, who develop the applications and provide them to the consumers either directly or through the platform of Nokia Ovi or Apple App Store. The additional sides (“n”) can consist of different third parties, for instance, a telecom operator or an advertising company. In this paper, we will, however, focus only on the two primary users groups (or market sides), that is, the consumers and the application providers. The data for this study is collected from publicly available sources on the Internet. The material consists of written texts and statistical data, released by both the case organizations and by communities outside the case organizations. We acknowledge the fact that this data must be interpreted with a caution. We are, nevertheless, confident that it will serve its purpose with this study, as our analyses of the two mobile service platforms do not necessitate exact customer, developer, application or sales figures. V.
ANALYSIS OF NOKIA OVI STORE
Nokia´s Ovi Store is a global application and content marketplace, even though some localization in different geographical market areas is offered. Developers and content producers submit applications and content with a self-service tool providing them a method of distributing their content and collecting revenue. Buyers can download free or priced applications and content directly from Ovi, or through the web links they are provided in Ovi Store. A. Service innovation platform Organization. Nokia Corporation (Plc.) was established in Finland in 1865, has headquarters in Finland and is listed in NYSE, OMXH and FWB. In the year 2009 the Nokia had a turnover of 40,984 billion Euros, and the revenue 1,197 billion Euros. [20] The number of the employees was
131 553 in September the 30th 2010 [20]. The case company is mainly known of its long history as one of the pioneering developers in the mobile business establishing and defining a mobile phone and mobile phone network. Nokia Mobile Solutions division is responsible for the high-end line of smartphones and OVI platform. Technology. Nokia Ovi technology is based mainly on Nokia owned Symbian operating system and on Nokia mobile devices like mobile phones or more sophisticated units, so called smartphones. These mobile device definitions seem to be reasonably vague, since definitions change and new definitions appear constantly and the manufacturers use different definitions and names. The modern handheld mobile devices usually seem to include phone function, Internet, data communication, utilization and data storage, or combinations of these, so definitions vary. The latest Nokia platform is called Symbian3, but some older platforms are still sold, supported and in use. Nokia owns Symbian and controls its policy via the Symbian Foundation. Nokia bought Symbian in 2008 and the foundation was established the same moment. At the time of writing this paper, the Nokia Symbian R&D and services is going through downsizing process and Nokia’s CEO has announced that the platform will be disregarded in near future and replaced with Microsoft’s Windows Phone platform. When added together all the previous Symbian generations together with Symbian 3, it was ruling the market the most widely spread mobile operating system in the world until recently when Google Android platform overpasses it recently [21]. There was also a lot of debate about Nokia´s possible decreasing investments on Symbian OS, and instead putting much more effort, quietly on its recently introduced Linux based Meego platform jointly developed with Intel [22]. However, all this speculation reveals that platform choice of a modern platform provider can be in a constant transformation, which does not make the consumers decisions any easier, when choosing a suitable mobile service provider and mobile device for personal use. Market Environment. The traditional major rivals of Nokia have been Sony Ericsson, Samsung, Motorola, LG and Siemens, but after Apple launched the iPhone, it has joined the competitors of Nokia with already four generations of iPhone, challenging Nokia with fast increasing market share. Mobile service business is expanding continuously, but it is not obvious where the revenues are generated. Strategy setting is not simple, and even a slight change in strategy may dramatically change the nature of the business. There are just few operating systems at the top of the market, and all their sponsors are major players in ICT field. Nokia´s Symbian, Apple´s iOS, open source Google Android, Palm App, Windows Marketplace and RIM Blackberry seem to be the major competitors at the moment. The field is constantly changing and an open source platforms like a Linux based, Intel supported Meego for example, could be the next one to enter the market. Although Meego’s own future is uncertain due recent announcement by Nokia that they will focus on Windows Phone operating system platform instead of Symbian/Meego. Meego will remain a research project
within Nokia according to the chief executive officers of Nokia and Microsoft [22]. B. Service concept Consumer side. Nokia Ovi is an application and contents market, where smartphone users can download, or get links to download applications and content. The pricing for different applications and content varies. Some of the material is free of charge, but this free material is often only a trial version of the full size application for a limited period. Usually prices vary from 1€ to 15€ per application [23]. At the time of the analysis, the estimate of the number of the active applications available in Ovi Store was between 15 – 20 000, depending on which definitions for an application are set [23]. Nokia has a wide range of mobile phone models and the same applications customized to different device models or market areas (e.g. language versions), the multitude of different ringtones, and so on, can be counted as different applications. That increases the number of available active applications quantity in statistical sense. Some Ovi applications are actually only links to a developer´s website, where the buyer can download the application. This is the case with most of the free applications. Content provider side. Registration as an applications publisher has a fixed one time 1€ fee. The application developers are offered a variety of supporting tools, like Qt SDK Software Development Kit for Symbian, Meego software platforms. Also the developers are encouraged to be interactive with Qt community to foster mobile application variety [24]. With the applications sold, either directly through Ovi or through the links provided there, the billing always goes through Nokia´s system and the revenue is forwarded to a contents developer with some delay. Nokia collects the credit card and phone operator payments, and forwards the payments to publishers (application developers) after a minimum of 100€ worth of sales of a given publisher has been reached. The first payments were forwarded to Ovi Store publishers in 2009 [25]. Nokia charges, similar to Apple, 30% of the application price, while 70% of the net revenue after payment-method costs is the content developers’ share. When the mobile phone operator billing is used, as the operator receives a 10% slice of app purchase price, is the developer’s share smaller compared to Apple. This must have some implications on the revenue of at least the biggest application publishers, and must be handled as an extra cost for publisher attached to Ovi as a sales channel [24, 26]. C. Client interface Consumer side. The client interface in this context means the innovation in the interface between the service provider and the customers. In this context this is the mobile phone´s, or the smartphone´s user interface, which in case of Nokia may have some different versions, but has so far mainly been the S60 graphic user interface (GUI). Nokia Ovi is designed to work with not only most of the company´s modern more advanced phones but also with some older devices, so exceptionally wide variety of phone models are
supported. This creates much extra challenge to the user interface and contents providers. Content provider side. Nokia provides the developers with the Qt SDK (Software Development Kit) programming platform, which is shared (almost) free by Nokia in order to enhance the applications development activity. The app development community is provided with a website dedicated only to contents development worldwide. Still, Nokia seems to be somehow slow with applications development, as developers may be slightly reluctant to develop applications to Nokia partly due to an unstable policy of software platform decisions, when compared to Apple. D. Delivery system Consumer side. Regional cellular phone network is used as the delivery method mostly, but also the WLAN (Wireless Local Area Network) can be used. The speed of data transfer depends heavily on local network providers. The WLAN usually can be available free of charge, so this method can be expected to increase. The mobile device platform can be any of the latest lines of Nokia phones or smartphones. The support to older platforms is becoming limited. A mobile phone operator (mobile communication transmission service and network provider) could represent one side of this many-sided market. It links the consumer and the platform together. The operators support the mobile platforms by promoting the phone sales of a particular phone manufacturer, often several of manufacturers and models. Usually a mobile device itself is tied to a fixed period deal with the operator, bringing together the user, the operator, the content provider, and the platform provider for a longer period, making the platform changing more difficult for the user. However, “multihoming”, use of more than one platform is becoming more popular among the consumers. But after all, the operators are common regional ones for the both, Nokia and Apple. Content provider side. Nokia Ovi platform is merely a linking service between the content provider and the consumer, when it comes to applications. The consumer goes to OVI website and decides to purchase an app. The free Nokia applications often contain a web link which directs the consumer to content provider´s website, where the actual download of the app happens. In paid applications the payment is done via the mobile network billing system, or with credit card, so the app is usually downloaded from Nokia OVI site. VI.
ANALYSIS OF APPLE APPSTORE
Apple´s global App Store is a global application and content market, and it is one of the leading application platforms at the moment. Similar to Nokia’s Ovi, with Apple App Store the developers and content producers submit applications and other content with a self-service tool providing them a method of distributing their content and collecting revenue. Buyers can download free or priced applications and content directly from the App Store. There are several categories of both free and priced applications available These categories cover, for example, application
area, such as electronic books, games, music, navigation, photography, social networking, travelling, weather, cooking, sports, remote controlling or user groups, such as, students and business users. Applications can be updated semi-automatically and new applications can be searched based on several criteria, such as best sellers recommended or based on the ones the user´s recent download history. A. Service innovation platform Organization. Apple Inc. (formerly known as Apple Computer) is listed in NASDAC and established in 1976. Apple´s Turnover in 3rd. quarter 2010 was 15.7 billion. Generally Apple is known for non-compromised products that carry a strong, clear and simple visual design status, and concentrate around a more humane user interface compared to its rivals. Apple brand is said to be among the most valuable brands globally, and the company one of the most appreciated one. Technology. The platform is Apple Operating system, iOS. It is relatively closed system compared to most of its rivals. The user can transfer own pictures and videos without major limitations, but the music download for example requires Apple´s own iTunes software. All the application downloading is centralized to the App Store, hence the statistical data and revenue collection information is relatively easy to find. Unlike Nokia, Apple sells only high-end smartphones (basically just one model, the iPhone) and tablet computers. Prices of the devices are higher than Nokia´s, even when the technical performance may partly be lower than Nokia has. The iOS kernel is based on open source code, but there is still very little operating system development going on outside Apple. Otherwise closed system architecture keeps the outsiders away. Implications of this are difficult to estimate, but in theory it could restrict the expansion of a platform. Market environment. This is same global market environment as Nokia has, though both have partly regional customization in applications contents and also regional variations in applications pricing strategies. The cost typical structure of a mobile service platform supports universal applications and device selection, independent of the particular market´s regional characteristic features. Based on that, we may see the mobile devices and applications to be developed ever increasingly to the whole global marketplace, with less regional customization. Apple has a long tradition in supporting applications generating for its, now the 4th generation iPhone, which must be the main reason for its dominant role at the moment. The rivals will be following close behind though as this business is found to be a profitable one. B. Service concept Consumer side. Apple is charging its mobile devices a premium price, and is still able to succeed. Apple manages to sell high-end smartphones and tablets well, and it doesn´t even have any modestly priced models available. This strategy clearly diverges from Nokia that is, having a wide variety of lower and medium priced phones available. Apple
products have high-end status and the company seemingly wants to keep it that way. Also the prices of mobile applications have lately been slightly higher than Nokia has. App prices in Europe have been clearly higher than in US, which shows than in US the consumers are more price sensitive. Content provider side. The application developer gets 70% of the price of the app sales and Apple charges the remaining 30% of the application price. Apple charges nothing for the free applications and also charges no credit card fees, hosting fees or marketing fees which is different compared with Nokia, and may work for Apple´s good. Applications are downloaded directly from App Store, unlike some Nokia Ovi Store applications, which often only contain a link to developers/sellers site. Apple is the leader in the market when it comes to the number of applications available for downloading. Figure 2 reveals six months period of Apple applications submission by the contents developers to App Store, illustrated on a monthly basis. The number is circa 20 000 applications submitted monthly, and a rising trend can be seen (dashed line in Figure 2). This tells that the application selection grows fast and probably more developers join the platform.
Figure 2. Apple iOS application submissions by months, data source http://148apps.biz
C. Client interface Consumer side. The iPhone mobile user interface in is a graphic user interface (GUI) running on Apple´s own iOS operating system. When purchasing the applications from App Store website, the client has to download Apple´s iTunes software which is a vital part of the client interface on iPhone, and also on iPod media player, iPad tablet computer, or any PC. This way any client willing to utilize Apple applications is tied to Apple based infrastructure. Content provider side. The content developers are offered some tools for designing applications for IPhone operating system. SDK and XCode are the tools provided by Apple for all developers. Objective-C is the only basic programming language supported. Generally, a short survey through developer blogs and discussion forums reveals that the Apple application development infrastructure is considered easier compared to Nokia´s multiple infrastructure environments.
D. Delivery system Consumer side. Just as with Nokia, the local cellular phone network is used as the delivery method and also WLAN network can be used. The mobile unit platform can be any of the four iPhone smartphone generations, iPod Touch music player or iPad tablet computer, but the support for the older product generations may be limited. The mobile operators are vital part of the delivery system but as mentioned, they are same for both platforms, with the exception that some operators tend to make deals with phone manufacturers to promote particular manufacturers or device models. This could twist the pricing policy of the mobile devices. Since Nokia´s Symbian is the major platform in use globally (when all versions are taken into account), it maybe surprising that it is strongly overrun by Apple in regards of amount of applications and developers. It is partly understandable, partly strange. Strange it is, when facing the fact that Apple iOS is a pretty closed system and Apple wants to control all the downloading by providing its own exclusive download channels, like iTunes. Probably due to that, there are several private websites for downloading arising outside App Store, and it will be interesting to see whether these sites are becoming popular. However, this would presumably require some Apple software platform “cracking” and therefore the legal issues here are somewhat controversial. Content provider side. Apple controls App Store platform so that a linking service between the content provider and the consumer is not enabled. The consumer must go to App Store website and purchase the applications there. The free and paid applications are both downloaded from store. The developers deliver their products to App Store and Apple takes care of the delivery to the users. The payment procedure flows through Apple to the developers. Developers need to log in the developer resources page with Apple ID, after registering as a developer, so it is easy for Apple to control the activity. VII. CROSS-COMPARISON OF NOKIA OVI AND APPLE APP STORE MOBILE SERVICE PLATFORMS We will next highlight some of the most central similarities as well as differences between the two mobile service platforms. We will first focus on the technology related similarities and differences, then on platform user issues, and lastly on business related issues. A. Tehnology related issues Both Nokia Ovi and Apple App Store target the same global markets of mobile service platform users. They face the same challenges, but also the same opportunities. They rely partly on different technologies, particularly with the operating systems. Nokia seems to have had some problems in deciding which technology (or technologies) and software architecture (or architectures) to support. Apple has made the technology decisions early and has adhered to these decisions, bringing stability for both sides of the networked market: the consumers and the content providers.
Nokia is known and appreciated for its great variety of different mobile device, ranging from cheap low-end models to high-end smart phones, which is quite the opposite to Apple´s single model approach. This is one of the clearest differences between Nokia and Apple, and this has had direct implications particularly for the developers. With only one operating system and architecture to design for, the applications development activities have been more expeditious with Apple App Store than with Nokia Ovi. Because Nokia’s strategy has been to support so many different models and variations, operating on partly different platforms, the application developers have been forced to write slightly different code for different devices. To add to the complexity, Nokia has also differentiated its range of available device types and models in different countries and regions. Also this may have slowed down the growth of the application selection at Ovi. Apple’s strategy has been distinctly different. In addition to its traditional offering of Mac computers, Apple now offers three different technical platforms, namely iPhone (smart phone), iPod (music) and iPad (tablet computer) that vary in terms of hardware specifications, but share the same operating system and similar user interface. The data in Table 1 illustrates some of the most noteworthy differences between Ovi and App Store. The amount of applications available is much bigger with Apple, as well as number of downloads per day. With Nokia, the multitude of mobile device models to be supported globally is notable. Then again, the average price of all the priced applications is lower Ovi than at App Store. Table 1 Statistics for Nokia Ovi and Apple Apps Store (from publically available sources, May-November 2010) Number of active apps, total Distribution: free/paid apps Number of downloads /day Number of developers Cost for a developer Platform provider commission App average retail price, all paid apps Device models supported Developer support website
Nokia Ovi Appr. 15-20.000 26/74 Appr. 2,7 million Not available 1€ one time registration 30% of the app price 2,89 USD (US)
Apple App Store Appr. 300.000 23/77 Appr. 10 million Appr. 60.000 (US) none
>244 yes
