Mary Meeker’s 2013 Internet Trends Report was presented at the D11 conference in California yesterday, and with it came a slew of interesting statistics about worldwide technology trends. After sifting through the presentation’s 117 slides (and seeing a picture of our front entrance on slide 90!), we picked out a few of the points we feel are the most relevant. They include:
There are 2.4 Billion Internet users around the world, growing at a rate of 8% year over year.
Meeker sees a $20 Billion opportunity for ad spend in the US, noting that overall time spent on the Internet is 4% higher than ad spend, and overall time spent on mobile is 9% higher than ad spend.
80% of the top 10 global Internet properties are based in the US, but 81% of users are outside of the US.
500 Million photos are uploaded and shared every day — over 300 Million of them from Facebook.
The global average of users who say they share everything or “most things” online is 24%.
Mobile traffic as a percentage of total traffic is growing by 1.5x every year, currently sitting at 15%.
There are 1.5 Billion smartphone subscribers worldwide, with 31% growth, 21% overall penetration expected for 2013.
Although there are 1.5 Billion smartphone users, there are 5 Billion global mobile phone users — signaling that smartphones are still in early stage growth.
Wearable technology such as Google Glass and Pebble Watches are coming to market quicker than technology cycles of the past half-century have lasted. The duration of each cycle, including mainframe computing, mini computing, personal computing, desktop Internet computing, and mobile internet computing, has lasted roughly 10 years. Wearable tech is appearing 4-5 years earlier than this pattern.
The total number of iOS and Android users in China surpassed the total number of US iOS and Android users earlier this year, at around 225 Million. China also now leads the US in time spent on mobile and the Internet — 55% to 38% (as percentages of total time spent on media).
US government policy makes it easy for foreign high-skilled workers to go back home, but makes it very hard for skilled workers to come here. High skilled immigrants with Science, Tech, Engineering, or Mathematics degrees, are 1% of the total US population. Global competition for STEM workers is about to be very high.
Quixey on slide 90! “Street View from Silicon Valley”
Consumer confidence is at a 5 year high, but still well below the 30 year avg of 91.5 on the Consumer Confidence Index (CC1).
So what does this all mean?
Growth. Lots and Lots of Growth.
As demonstrated in Meeker’s report, the number of Internet users around the world continues to increase. What may be most intriguing about the growth seen recently in Internet and mobile is that much of it is still early stage — witness the fact that there are only 1.5 Billion smartphone users compared to 5 Billion overall mobile phone users. Dependent on this growth are the opportunities for advertising and monetization, which are even behind what’s currently possible. This is clearly only the beginning of a massive economic shift, affecting not only the technology industry but indeed many of the industries it touches.
Acceleration of Technology/Innovation Cycles
What may be even more shocking still from this growth is the acceleration we’re seeing. The appearance of Google Glass and similar wearable tech in the earlier part of this decade points to an increasing turnover rate of technology. It remains to be seen whether or not Glass becomes a mainstream device capable of unseating smartphones and tablets, but even if it doesn’t, the path has already been opened for technology to integrate closer and closer with the human body. If innovation picks up this quickly, the Singularity may come around sooner than we think.
The US is still the technology capital of the world, but developing markets are progressing quickly, and China has already begun to pass the US in key Internet and mobile statistics. Of course, in areas such as China and India, where the potential userbases are significantly larger than that of the US, this trend is inevitable. The skilled employer-sought talent dispersed around the world, however, is what will truly define dominance within the technology industry. Pay attention to legislation surrounding US immigration reform — it could have massive repercussions for the global tech landscape.
Are there any other takeaways you found from Meeker’s report? If so, we’d love to hear your thoughts! Send them to firstname.lastname@example.org.
As Mobile World Congress (MWC) in Barcelona winds down to a close today, let’s take a look at some highlights of the event. Our BD team has been over there taking in all that the world’s biggest mobile trade show has to offer, and what an event it’s been.
Phablet Mania Continues
At this year’s MWC, second-tier manufacturers proved that the phablet phad is not yet done. Huawei’s Ascend Mate was the clear winner in size, boasting a six-inch screen, while ZTE and LG weren’t far behind with 5.7-inch and 5.5-inch screens on the new Grand Memo and Optimus Pro, respectively. This trend comes just as tablets are shrinking as well—Samsung also revealed its new Galaxy Note 8, which has an eight-inch screen to compete head to head with the iPad Mini. As phones grow, tablets shrink, and phablets continue to stick around, soon there really will be a wireless device for every size hand(s).
Firefox debuted its new mobile OS at MWC this week, stating the initial goal is to power mobile phones in the developing world at no cost to manufacturers. At first glance, the web-based OS has proved to be rough around the edges, but it seems to be gaining acceptance from carriers Telefónica and Deutsche Telekom, and manufacturers such as LG, ZTE, and Huawei. Here Firefox is attempting to make the web a standard for mobile app development, potentially stacking up against free standing operating systems such as Apple’s iOS and Google’s Android down the road. Brendan Eich, CTO of Mozilla, even said the company’s goal is to “tear down the walls between apps and the web.”
GSMA Connected City
This year, the organizers of MWC put together an entire city street exhibit to demonstrate emerging technologies that will enhance our every day lives in the home, car, town, and beyond. Among the showcased products were AT&T’s Connected Home, Deutsche Telekom’s connected mobile services (public transport, energy, security, and more), and GSMA’s Aston Martin One-77 road bike with speed, atmospheric pressure, and power sensors connected to its on-board computer. One of the first exhibits of its kind, The Connected City is a great peek into how intelligent wireless connections are driving economic growth, product innovation, and more convenient lifestyles in an ever-evolving world.
With an estimated attendance of 72,000 and over 1,700 exhibitors, the above highlights really only scratch the surface of what Mobile World Congress brought to the table this year. Moving forward, we’ll be monitoring emerging stories from the aftermath of the event—if you attended and want to share something amazing that you saw, send it to us at email@example.com. We’d love to hear about it!
This post was written by Julia Lipton, Quixey’s Director of Marketing and Communications.
A few weeks ago, I visited China with my family. I’ve always been fascinated by China, so I was eager to geek out in the tech world outside of Silicon Valley. While I was there, I stopped by TechCrunch Disrupt Beijing, spent some time with our Chinese VC (WI Harper – a truly incredible firm), chatted with hundreds of consumers and spoke with lots of VCs.
During my trip, it became blatantly clear that China is a market that developers should pay attention to. It’s the largest mobile market in the world, with the most apps and the most usage. Yet it’s still an emerging market with plenty of time left to get in the game.
But developers in China have to be careful. It isn’t always easy to develop apps there due to competition, copycatting and market fragmentation.
The Market Basics
- The sheer size of China’s mobile market makes it impossible to ignore. There are over 850 million mobile users in China. Moreover, mobile internet usage is surpassing PC internet usage.
- Android is currently the dominant mobile platform in China. But the majority of consumers say they their next device will be an iPhone, which is relatively new to China. And iOS developers are in high demand.
- The market for Android apps is highly fragmented. Unlike the US, where almost everyone uses Google’s Android Market, China has over 70 separate Android marketplaces, seventeen of which have significant user traction. Of those seventeen, nearly all are third-party players. Fun fact: You won’t see China Unicom, Baidu or Google in the top seventeen Chinese app marketplaces. Amazingly, almost every Android smartphone user I spoke to uses at least two marketplaces regularly.
- The Chinese are heavy app users. While most countries have increased their app usage (defined as the time spent using apps) by anywhere from 300% to 500% on average over the past year, China has jumped ahead by a tremendous 870%. So what are they using all these apps for? The Chinese are obsessed with local, mobile social and gaming apps (even more than US consumers).
Consumer vs Enterprise Apps
- The consumer app market is tough for developers because copycats often publish successful knockoffs overnight. Not to mention, stealing source code is considered a legitimate business model.
- If you don’t have defensible technology — and even if you do — you’re running for your money in China. Developers are cheap, and if they can create it overnight, they will.
For example, a knock-off company owns Groupon.cn and operates it exactly like the American company. There are actually 2,000 companies in China running various Groupon clones for the aggregate buying market.
- The market for apps is so large that developers only need a small slice of the pie to be successful – that’s why they keep entering this fiercely competitive market.
- The Chinese market is hot right now, and app companies are getting sky high valuations. When I stopped by TechCrunch Disrupt Beijing, multiple VCs told me the same thing: Valuations are high, and a $50+ million series A is not uncommon for an app development company. Protip: If you’re a US developer, consider raising money in China. These VCs seem to think you’re worth a ridiculous amount of money.
Tips for Developers
Everywhere I went, people were eager to give me pointers about developing apps in China. So I thought I’d share them with you here.
- The Chinese language is difficult and it can’t be ignored. If you want to enter the Chinese market, you need to support Mandarin.
- Not all of China is the same. China is a big country with over 1.3 billion people. Know your target market and have a launch strategy so you can start building a critical mass within key communities.
- You have to move fast. If you don’t move fast, someone else will move faster.
- Valuations are higher in China. In the past quarter, VC funding in the Chinese market increased by 84%, up to $1.3 billion. According to VCs, many pre-launch companies start with valuations in the tens of millions.
- Chinese app developers rarely innovate. Rather, they look at what succeeds in the US market and recreate it locally. Everyone is “the [blank] of China”. (After walking through the Battlefield at TechCrunch Disrupt Beijing, where developers were launching new apps, I can confirm this is definitely true.)
The Chinese market has a lot to offer developers – most importantly, lots of users. Although the competition can be fierce, savvy developers will realize the importance of the Chinese app space as it continues to grow.
Mobile apps are taking over. In a recent analysis, Flurry Analytics found that mobile app use now exceeds desktop and mobile web browsing combined. Take a look at this data:
The change was extraordinarily fast. In minutes per day, mobile app use nearly doubled in the past year.
Flurry’s data illuminates a change the web is undergoing: mobile apps are becoming the preferred way to access the web. You depend on your mobile phone for the tools you need and the apps you love, increasing the importance of finding apps quickly and painlessly.
GigaOM recently found corroborating data provided by cloud networking provider Meraki. Meraki’s data looks at Wi-Fi use across different devices.
The results are clear. Mobile web use (the green, blue, red, and yellow chunk of the bar on the graphic above) rose 25% in the last year. That doesn’t even include network data like 3G, which would widen the gap in total web use further.
Our growing reliance on mobile apps and mobile devices is a piece of the puzzle the tech world is putting together. App developers, network carriers, software companies, and device manufacturers need to anticipate the specific nature of this shift if they want to own the future.
Flurry and Meraki’s data is yet another sign of the rise of the functional web – the web, broadly defined, that allows us to do things in the digital world. The functional web is finding its way into the homes, cars, and offices of people for whom it was once accessible only on a desktop.
VentureBeat today released an article about the top 10 technology trends of 2011.
Takahashi predicts apps will spread everywhere and across platforms. With this growth, Takahashi argues that “we will need something to manage them. Discovering the right app is still going to be a tough problem, as no one has come up with the equivalent of search, which solved the problem of navigating through millions of web sites”.
What do you think is one of the toughest challenges in connecting people with apps?