MUMBAI: As India moves ahead in the mobile market with a larger number of people possessing smartphones, app downloads have also steadily increased with nine billion mobile apps being downloaded in 2012. Inspite of that, around 90-95 per cent of the apps are deleted after one use which signals a long road ahead to develop India as the next app superpower.
Most applications in the country are relevant to the social media and do not see much innovation, so India lags behind in the global app race. However, with the country stated to have around 400-500mn data connected devices soon, less than 50 per cent of people under the age of 25 will use mobiles to play games or text.
Mobile devices are hence stated to be the game changer wherein India will be the biggest consumer and revenue generator of apps.
The session ‘Apps are Changing the World: Can India be the Next App Superpower?’ at Ficci Frames conference 2013 outlined various factors that could trigger growth in the sector. Moderated by NDTV Technology managing editor Rajiv Makhni, the panelists comprised of Disney UTV MD digital Vishal Gondal, Oovoo.com CEO Jay Alan Samit, celebrity chef Vikas Khanna and Nokia India director marketing Viral Oza.
Gondal kicked off the discussion by highlighting that it was an exciting time in India, as due to better technology there is an increased consumption where millions of apps are being downloaded everyday.
Presenting across some statistics, Oza said, “Today 50 per cent of all apps downloaded are from Nokia, which witnesses 80 million app downloads a month. 80 per cent of users visiting our store download an app therefore we have a high level of stickiness.”
Inspite of the positive picture being presented, one of the major challenges is app monetization in India. The current models are only ad based or marketing based. Also, most operators take away 60-70 per cent revenue generated from the apps which poses another problem.
“Vodafone changed this by taking only 30 per cent and giving the rest to the app developer,” Gondal said.
The panelists agreed that most apps had come from companies and places that have so far been unheard of and that there was a huge potential waiting to be tapped in India and other countries.
Samit stated that apps are viral by nature and people figure out the best ones for them through friends and more. He also mentioned that revenues are there in the segment as most of the apps are ad supported.
The popularity of the app is also determined by celebrity endorsements which may prove a bit difficult for smaller companies with tight budgets.
“The app market is huge. An average user spends around 250 minutes a month on apps,” Samit highlighted.
Around 80 per cent of apps are based on games and entertainment.
Oza said, “India has a developer base of 2.5 million and there are enough apps available for feature phones and smartphones alike. Apps are today becoming a high involvement category for consumers.”
Globally, apps have developed to reach a new level altogether. Samit stated that the next generation of apps in US includes device-to-device communication, where apps talk to various devices. In order to reach the same stage, India needs a new level of interface designing.
Gondal retorted, “There are lots of UI developers in India and we are designing apps for the common man. India has different needs as compared to the rest of the world and utility apps do well here. We are very focused on what the Indian consumers want.”
The session culminated with the view that India still has to emerge in the space as the app downloads is not fast. Due to poor net connection, only 9-16MB apps are better downloaded in the country. But things are changing now as brands are also integrating into apps.