WhatsApp – The King of Apps?

Talk business or technology, the quintessential question always remains – what next and where do we go from here? Develop an idea enabled by technology, build a viable business plan and get investors to fund the project is fast becoming the way to become an entrepreneur. In most cases, we have now become an app driven community and every person who aspires to come in with a billion dollar idea that can change the world look at apps. What is also means is one has to look back at the millions of apps and programs that already exist in the market to even identify an untapped need. The gap between a concept and an innovative concept is now just growing by the day.

Yes, the advent of a smart phone has actually expanded the horizons of consumer targeted technology and there might be almost every possible need of a common man that the entrepreneurs have been investing for through an app. Even a super niche function like identify the quality of printing on paper (which was something reserved for specialized equipment) is already present in the market and available for free on an app. Most phone applications have evolved from an internet based websites and services. While a few are specially created for the mobile space, there is one undisputed king which only resides on the mobile- WhatsApp.

Now to be fair, WhatsApp is not a complete innovation of sorts. Messaging and media capabilities existed via SMS and MMS for quite some time. The Blackberry Messenger was one thing that made the biggest buzz for buyers outside the corporate domain. The success of WhatsApp possibly came from being amongst the first and versatile data based messaging app that was not limited to any particular mobile operating system.  Its capabilities of sharing photos, videos and forming groups was something that gave rise to social communities through mobiles. In terms of convenience: a voice note just in case you are bored to type or have just one small thing to talk.

It might have taken people a fair amount of time to accept an email or an SMS as a formal form of communication. It has hardly much time to be taken WhatsApp to be taken serious.  To my experience, it has become a means to be at two places without actually being there. A film set is being erected, an event stall is being constructed or anything remote that might take for a person to travel to; it has now become a common practice to send across images or videos over WhatsApp to the approving authority and seek feedback instantly.

Another common practice, form a group on WhatsApp with people work

ing on a project and you have everyone on the same page as if an email update. Groups are a great way to spread information rapidly. The last I know is a short film being released exclusive content on WhatsApp. WhatsApp has also put up a strong fight to voice calling apps like Viber with its calling capabilities. So in a way, WhatsApp has so far had most bases covered in terms of voice based communication and file sharing abilities. So where does it go now?

I guess it might just take a few dips in the near past to believe that social platforms tend to die out the moment they stop evolving. The example of Orkut, Hotmail, Chat Messengers are all examples where they got beaten or replaced by others that had better functionality or enough excitement happening to keep people hooked on all day.  The areas where WhatApp still might lack is Video Calling facilities against, say Facetime. Or the fact that you can connect only by exchanging numbers and not a onetime connect that’s possible via Skype.

One thing that WhatsApp has achieved so far is forming communities within users. Ranging from friends, business circles or even a virtual classroom notice board, it has been adapted in many ways. But if WhatsApp could form communities for a social or a professional outfit, it can be the next stage of brand campaigns or even online PR initiatives. The way news and information (much of the times even improper information) travels via groups has an overwhelming viral effect.  

Having already seen how politicians used WhatsApp during the state elections in Maharashtra, it is already become a mass broadcast medium. If marketing via WhatsApp was an idea so far, what is interesting though is that women with their ever expanding social circles and gossip groups are one strong way that Tupperware ladies have already started taking advantage of. All Tupperware does is create short videos of their products and information previously that required demo is now going across through demo videos.

The final word from me, WhatsApp needs to make a good use of its penetration and evolve into different forms for people and their needs. It has already achieved success over smart phone users which might be at par if not above what Facebook has with the same group – but it is how it will grow and endear itself to the future users that will decide the way ahead. For now, I guess there will be little debate that possibly the most subscribes app makes WhatsApp the king of its domain for now. 

Mobi-Wars: The attack of the clones

The cycle of who gains supremacy in the mobile phone handset market has taken a fantastic turn and this time Samsung; the world leader in terms of market share, is on the receiving end this time. On terms of sheer numbers, China and India are the largest markets for mobile handsets and local companies from both countries: Xiaomi and Micromax, have taken control as market leaders respectively. While both markets are fast upgrading to smart phones, the erstwhile leaders: Samsung and Apple are headed towards choppy waters.

Xiaomi; the new king of the market in China is just 4 years old and direct entrant with Android based smart phones. Its MIUI firmware was dubbed to be an aping of Samsung and Apple, but its flagship Mi series has definitely caught the frenzy of people. With over 10Mn Mi-2 models sold in 11 months leading up to September ’13, Xiaomi has captured the Chinese and East Asian markets in a serious and rapid. The company is unknown in Europe or the Americas- but its sales from Chinese mainland and parts of East Asia are good enough to make it the 5^th largest smart phone vendor in the world.

Xiaomi is a case study in itself of how a goal oriented approach of a company which began with no manufacturing or sourcing avenues has risen to take up a gigantic shape. To gauge why this is something worth knowing, just put in perspective the following; Made in China: Cheap and unreliable. Though 90% of electronics vendors are from China but have contracts with bigger players who invest in their facilities and so the manufacturing is closed door and customised to their needs. As many as 85% vendors rejected the offer to associate with Xiaomi. So how do you win against such odds?

Founder Lei Jun, who was an already established entrepreneur and billionaire from his previous ventures in the 1990’s, hired a set of executives from Google, Motorola and Microsoft. Their efforts in developing the MIUI Android platform ensured newer capabilities every week. A strong feedback loop from beta users and other customers helped them evolve faster and at lower cost. A tie up for touchscreens with Sharp Japan in 2011 was a boost at a time when business with post Fukushima Japan was at its lowest. The faith by Qualcomm in the MIUI platform and the assembler of Apple; Foxconn agreed to set up assembly for Xiaomi.

Someone might argue that you can capture a market if you have a product at an affordable price; in Xiaomi’s case- roughly half of what an Apple or Samsung sells. But unless there is a decent level of quality offered, no one can succeed in a mature market where consumers are informed. From the launch of its first phone in August 2011, Xiaomi surged past Apple by end of 2013 and had Samsung under its heel by August 2014- yes, just 3 years.

The story in neighbouring India with Micromax is equally enthralling though. It started off as a software company in 2000 and got into mobile phones only by 2010, much the same as Xiaomi. While the urban Indian was spoilt for choice with Samsung, Nokia, LG and Blackberry, Micromax went after the bottom of the pyramid. Its co-founder, Rahul Sharma was inspired to counteract the power outages in rural India. Micromax X1 was the first phone launched with a battery capacity of 30 days.

This was a time when some 26 mobile phone brands came into India in a span of 12 months with a similar model of manufacturing hubs in China and aim to capture the low spending-high volume end of Indian market. But Micromax made a distinction for itself by offering Indians not a low end Nokia or Samsung look alike sporting a T9 keypad but the experience of a QWERTY and dual SIM options. While rural was a focus, Bling- a swivel QWERTY phone with Swarovski crystals and a mirror became an instant hit with urban women. Bling was one of Micromax's highest selling models. It was also high on experimenting with the Android platform and came up with the Canvas phablet range in 2011.

Micromax did everything right when it came to marketing itself and can be a great example of the bottom-to-top approach. Hiring Akshay Kumar as its brand ambassador, sponsoring cricket tournaments etc. built awareness for the brand across consumer bands, while a slow and steady build-up of ground network of retailers and service centres built market visibility. The carrot they offered; better margins than anyone else. If the Apple and Samsung’s of the world were out of the pocket range and the Nokia and Blackberry empires was crumbling under the Android wave, Micromax was one of the better known so called low end look- alike and do-alike in the market which enjoyed the retailer push and cost a third of a Samsung of the same specifications.  

When Canvas was launched, the advertising was one with an international look which was boasted then by Samsung and LG. This was a stage when the brand built an image suggesting that it could offer the functionality of a bigger brand at a smaller price tag. But the use of international star like Huge Jackman in its ads gave a sign that Micromax meant business and washed away its me-too perception in the market. With the launch of their assembly unit at Uttarakhand in 2013, the ‘Made in China’ tag is also soon to be cleared off its phones.

The two Asian giants are likely to encounter each other head on very soon. Micromax has gone global with Russia and SAARC, while Xiaomi after East Asia has entered India. Xiaomi’s launch on Flipkart saw its sticks wiped off the shelf in under a minute- which kind of talks of its level of awareness in India already. But one thing is for sure; even if Samsung might refute the survey figures and claims to have not lost its market share, the brands once termed the clones have attacked and the ground is set for them to assume clear leadership soon. 

Roti, Kapda aur Mobile

If I wanted to sum up the changing fabric of India over the last 20-25 years, this is what I would say.  While roti and kapda have been popular political slogans right from the 60’s as basic and essential needs for a population, mobiles have become a key requirement for people. And why not; calling rates in India are cheaper than in comparison to any place in the world, handsets and even smartphones are available within budget and tower penetration has been improving. One big reason for this is the advantage of a large population base; the numbers compensate for operating revenues.

Mobile phones have changed the way India has functioned over the last 20 years of its existence in India. It started off as a luxury which only the super-rich could afford. No ordinary Indian could afford a handset resembling a brick costing above Rs 5000 and paying Rs 16 the moment they said hello. But this was an era when number of networks were few and competition had not set in yet. Orange

The first winds of change came in from Reliance which came in with its captive low cost handsets and lowest calling rates for the day. They targeted corporates and roped in the biggest names with their massive employee strengths to come through with corporate offers that gave them scale as well as steady clientele.

The next boom came around early 2000s when Airtel was launched and came in with a sweeping offer of free SMS every month. This was revolutionary in terms that mobile phones unlike fixed lines were no longer for voice alone and SMS was the choice of communication which was most analogous to an internet messenger. And as always, even at times when a call would cost Rs 1, an SMS was free.

This coinciding with cheaper handsets entering the market which set the trend for mobile phone rising higher in the must have list. Finally, when TRAI scrapped the free SMS schemes and limited discounting, some felt was there scope to innovate beyond calls and SMS at 50p. Enter Tata Docomo and its game changer per second billing. In reality, this is not discounting at all… in fact this is expensive that what other players offered; but the perception of value won the game.

Running parallel to this was the handset market with Indian market flooded with low cost options through joint ventures with East Asian companies. Between 2008 and 2010; there were a total of 26 handset companies which entered India. Everyone had a phone; the maid, the watchman. The neighbourhood vegetable vendor now took orders on the mobile phone and delivered on the door step. You could now call a taxi cab as the driver had a phone. STD calls were now dropping as migrants could call their relatives in rural India at places where power and water may be a problem, but telephone networks were always present.

During this time, I used to avidly follow the blog of an ex-Nokia guy; Tomi Ahonen. In my view, he was among the first guys who had predicted how the mobile phone screen would be the next big thing. At first, the idea seemed a distant dream considering India was still in the WAP days with abysmal subscriptions. But how right he was. In the next few years, the personal space of the telephone screen was doubling faster than the traditional computers and with the advent of smart phones is almost looking to replace takeover the market completely. Mobile based internet access has been increasing ever since. Today there is more revenue being generated through mobile based internet services as compared SMS. Just a few numbers- 185Mn mobile internet users in India alone. It kind of justifies the reason why an internet platform like facebook has bought a small mobile social App like Whatsapp. 

Blackberry was considered a serious business phone until BBM became a college hangout. It was now a scenario where a business person carried a top of the line Blackberry and a collegian had a low end model with almost every functionality as the top end. Dedicated widgets for applications were a rage when launched. But all this was just a phase as we see it today.

The rules of the game have changed and the biggest game changer has been Android. The open software platform and Apps for android rendered Symbian as an ancient relic and Android, Windows and iOS became the mobile softwares by choice. Today, it is not surprising for me to find people from modest backgrounds flaunt a high end phone as a combined effort of low tariffs, cheaper handsets and a host of free Apps to cater to everyone. It is astonishing to find that globally, 24% of all internet access is through Android (phones and tablets), 18% is iOS (all devices including PC) and Windows is only 9% (all devices including PC).

Where will we go next is anyone’s guess. But one thing is for sure, what is the ordered of the day, will be a page in history soon. What Motorola and Nokia were once; Samsung and iPhone are today. Mobile technology is changing so rapidly that the jump from iPhone 4 to iPhone 5 has been about 6 months. Mobile phones are now a need and it won’t be long when nomophobia (phobia of having no mobile connectivity) will be as prevalent as common cold.