Amazon, Microsoft and Apple are the Holiday Winners
In the first App Marketing Conversation of 2014, Ryan Morel of GameHouse, Robi Ganguly of Apptentive and Ian Sefferman of MobileDevHQ discuss who the winners of the 2013 holidays were. Watch the video, or read the transcript below!
Ryan: Good morning. Welcome to the first 2014 edition of App Marketing Conversations. As always, here with Ian Sefferman of MobileDevHQ, Robi Ganguly of Apptentive. How you guys doing?
Ian: Doing well.
Robi: Great. Happy new year.
Ryan: Happy New Year to everybody. First thing we’re going to talk about today is some of the numbers that came out as a result of the Christmas rush. We saw a bunch of people coming out saying, “We saw X, Y and Z happen over the specific time period.” We’re going to focus on first the [Tutika] numbers that came out yesterday saying two things.
Amazon and Microsoft were the winners in the tablet space with their percentage of traffic going up while Apple’s was actually going down. Oddly, Apple was the winner in the phone space with their percentage of traffic going up and everyone else kind of going down. I’m guessing you saw this or at least heard noise about it, so what’s your first reaction to that?
Robi: I’m kind of surprised that Windows tablet traffic has gone up. I wonder if that’s the Surface. We’ve been reading stories that the Surface is hard to keep in stock. They’re not keeping up with demand or not able to produce enough. I guess maybe that’s what’s going on, but are there other Windows tablets out there that are selling well too? Are we talking about the Dell tablets that are coming out?
Ian: Even in the wild a couple times now.
Ryan: Surface or the Dell ones?
Ian: The Dell.
Ryan: I don’t know. I mean, I think it’s interesting, because their market share was so small before. We have to assume that the market share grew. So they must have sold a bunch, but they were also being incredibly aggressive with the pricing. You probably saw all the ads for buy a phone and get a tablet for free. There was a variety of those. Probably the least surprising of which is Amazon increasing its tablet share.
Ian: Yeah. Anecdotally, that follows exactly what I actually saw on Christmas, where I saw two people open and one person had Kindle Fires.
Ian: It seems like now that tablets are getting mainstream, the people who want the lower cost tablets are coming out of the woodwork, and the lower cost tablets is giving Amazon an edge.
Robi: Yeah. I, on Christmas, we did a call with family and their three kids, and two of them had Android tablets. But they were not Kindles. But the Android tablet price point definitely seemed like a really good one for people in general this Christmas.
Robi: I’m actually kind of surprised that the data’s not saying, aside from Amazon, that Android tablet engagement is way up. It’s interesting, early times.
Ryan: Yeah. If you’re an app marketer, I think the lessons remain the same. The iPad’s still big for tablets, still big for phone. Amazon’s still an important channel and is going to be probably a more important channel. And wait and see with Microsoft, at least until they get their store issues figured out.
Ian: That’s right.
Robi: Although, for many app marketers this might actually be welcome news, right? Like, tablet devices in general probably display your website, your existing website, even if it’s not mobile optimized, better.
Robi: Maybe this is helpful for those who are sort of behind in terms of looking at their traffic breakdowns. If they’re seeing more tablets showing up, maybe they feel a little bit more comfortable with that experience.
Ryan: Yeah. That also is an interesting point, because it provides an opportunity for people, without doing too much work, to drive people directly to an app or not, versus, if they’re on a desktop or laptop, you can’t really send them to the app store and have them download. But you can now. Good point.
Second big thing we saw was Flurry saying device activations were up, not surprisingly. It’s what always happens, but I think it wasn’t done nearly as much as it has been in the past. My initial reaction to this is much ado about nothing, and it shouldn’t be surprising to anybody. There are just a lot of people already out there with phones and tablets.
Robi: Yeah. Yeah, I read a couple things where they’re like, “Growth it slowing. The heyday is gone.” I just think that the numbers are really, really big now.
Robi: Like, we have a lot of people using these devices, so that’s not too shabby.
Ian: To me, it’s almost saying, like, “Everybody has an internet connection, so therefore growth is slowing.” You’re like, “Well, actually look at Amazon.”
Ian: Growth is not actually slowing. This is where the opportunity actually comes from.
Ian: Maybe if you’re a handset manufacture, growth might be slowing for you, because there’s only a certain number of people in the world, but probably for everybody else, especially the app marketers out there, growth is really just beginning.
Robi: Yeah, yeah. It’s foundational to have enough devices in the hands of people.
Ryan: Okay. Any other big stats or topics that we should talk about in this segment?
Robi: Well, I guess the Flurry thing brings the same Amazon drumbeat, because the one thing they said was that it looks like tablet activations from their data on Kindle Fires is pretty explosive. It definitely feels like Amazon had a huge Christmas in lots of ways, aside from UPS and FedEx messing up all their deliveries.
Ryan: That was bad.
Ian: They’re definitely going to take that over soon. Don’t you think?
Ryan: Bold predictions for…
Ian: I, honestly, I think that’s…I know that they’ve talked about it very informally in the past.
Ian: Now it seems like they could actually pull it off. They’re starting to get that distribution network anyway with AmazonFresh. They’re paying sales tax in most places now so that they don’t really have a reason not to just put up fulfillment centers everywhere.
Ian: It seems like they want to.
Ryan: Yeah, all right. Maybe. I’m really tired this morning. Okay. Thanks very much, guys. Make sure to check out the other segments of App Marketing Conversations. We’re going to talk a little bit more about the holiday season from this year. Make sure to like this video, subscribe to our channel, and come back next week.