310KM Mobile Commerce
Applications
Lab/Tutorial 1
Presentation
Leung Cheuk Lun
Lui Ka Yuen
Fong Kwan Ngai
LG Electronics
LG Electronics
• a global leader and technology innovator
• employing more than Eighty thousand and Four
thousand people
Type
•
•
•
•
•
Home Entertainment
Mobile Communications
Home Appliance
Air Conditioning
Business Solutions.
LG Electronics has focused on developing four core
design capabilities in its bid to become purveyors of
great design:
"Concept“
"Style"
"Interface"
"Finish"
LG KM900
• Mobile Phone with 3” WVGA Screen, 5 MP Camera,
Dolby® Mobile Music, 8 GB Storage
• Take high-resolution pictures with the 5 MP digital
camera. Browse the Internet.
• Everything is just a touch away.
SmarTone &
iPhone
SmarTone offer a variety of
price plans for iPhone 4S
Apple Background
• Apple is an American multinational corporation that
designs and sells consumer electronics, computer
software, and personal computers. The company's
best-known hardware products are the Macintosh
line of computers, the iPod, the iPhone and the iPad.
SmarTone Background
• SmarTone was launched by Sun Hung Kai Properties
and ABC Communications in 1992, and it started
operations in March 1993. The new branding
SmarTone-Vodafone was officially launched in April
2005 following a partnership agreement with
Vodafone in December 2004.
Business associations
between SmarTone & Apple
 Apple provides the iPhone to the SmarTone store to
sell. SmarTone can also sell the product with their
network service.
 SmarTone provides wireless network service. If the
service quality is good, it will get more users to use it.
 The network technology of SmarTone is using 3G
networks.
Apple Strategy
• The presence of Network Effects
o In economics and business, a network effect is the effect that one user of
a good or service has on the value of that product to other people.
• Customer concentration
o Concentrated customers have “market power” that can result in pricing,
feature, service demands over time.
Apple Strategy
 Provide App Store allow customers to discover and
download applications.
 Apple leverages its unique ability to design and
develop its own operating systems, hardware,
application software, and services to provide its
customers new products and solutions with superior
ease-of-use, seamless integration, and innovative
design.
SmarTone Strategy
 Provide consistent access speeds at rates around
40 times higher than 3G speeds for over one million
subscribers
 Proliferation of smart devices continues to provide
opportunities for showing up material differences in
networks’ user experience
 The service plans (contract) provided by SmarTone
is one of the business strategies
The annual report of
SmarTone
• Increasing
adoption of smart
devices
• Smart devices
accounted for
89% of all units
sold in 2011
Mobile Internet Focus
Traditional Strategy of
business association
Traditional Strategy
But why the plan provide airtime include wireless network services?
Sell IPhone
IPhone + Plan/ Contract
Cooperation +
Delivery
Apple
IPhone + Plan/ Contract
Cooperation + Delivery
.
.
.
Customers
Passive relationship
Wireless network operators
Need to use the network
Contract / plan include
•
Application
Phone manufactures
Paid in Apps. Transaction Fees
Apple: 30% (earn)
Developer: 70% (income)
---------------------------------------Software development
Standard Program costs:
$99 (US) per year
Enterprise Program costs:
$299 (US) per year
Build up a business association between of mobile phone
manufactures and wireless network operators by using mobile
internet.
Passive relationship
Phone manufactures
Application
Wireless
network
operators
Assume
10 days
, 100 million download $0.99(US) an application
Need
to use the xnetwork
1,000,000
0.99$
= $990,000 (US)
Contract / plan include
Developer = 70%
Apple
= 30%
•
Paid in Apps. Transaction Fees
Apple: 30% (earn)
Developer: 70% (income)
---------------------------------------Software development
Standard Program costs:
$99 (US) per year
Enterprise Program costs:
$299 (US) per year
Build up a business association between of mobile phone
Developer = $693,000(US) income
manufactures and wireless network operators by using mobile
Apple
= $297,000(US) earn
internet.
Reference
Transaction Fees of Android Market for Developer
http://support.google.com/androidmarket/developer/bin/answer.py?hl=en&topi
c=15867&hlrm=zh-Hant&ctx=topic&answer=112622
Transaction Fees of Apple store for Developer
http://www.apple.com/pr/library/2008/03/06Apple-Announces-iPhone-2-0Software-Beta.html
Three contracts / plan
http://iphone.three.com.hk/website/chi/tariff/iphone4s_monthlyplan.html
Smartone iPhone plan support
http://www.smartone.com/jsp/tchinese/index.jsp?s=1326829460000
Android market research
https://market.android.com/details?id=radiotime.player&feature=apps_topsellin
g_paid
Reference
 http://jitendermiglani.wordpress.com/2011/08/11/a
pple-business-model-score-10-out-of-10/
 http://www.mobilein.com/Perspectives/Efficiency_
Directive_Mobile_Broadband.htm
 http://www.smartoneholdings.com/about/investor/
results/english/1011annual_present.pdf
 http://investor.apple.com/secfiling.cfm?filingID=119
3125-11-282113&CIK=320193