Apple has done it yet again. According to the Q1 2010 results (source), consumers snapped up 8.7 Million iPhone devices this past quarter. While a few mobile market analysts feel that Apple missed their sales target (BTW, some expected sales to reach the 9 Million to 11 Million units mark), the growth of the iPhone still represents a healthy 100% increase in sales in comparison to the same quarter last year.

In my discussions with Marketers, I’m regularly asked whether iPhone app development or iPhone mobile campaigns make sense considering the dominance of rival smartphone devices such as RIM’s BlackBerry. There’s valid concern if you consider only the number of mobile devices but that number isn’t as important when you consider usage. While RIM currently outsells Apple in smartphone devices (RIM sold 10.1 million devices in the quarter ending November 28, 2009 whereas Apple sold 7.4 million iPhones in about the same period), the iPhone accounted for 60% of page views AND 75% of mobile revenue at the top online retailers this past holiday season according to Omniture (source). So while BlackBerry devices are more prevalent, users avoid using this device to browse the web. This decision is likely based on the poor web browsing experience. And Marketers that are considering the accessibility of their website should optimize it for the iPhone.

So Marketers that want to interact with the largest group of mobile users should first focus on the iPhone platform — nothing else compares. But besides usage, Apple provides plenty of additional reasons for why the iPhone platform will also win in the long run:

• The current quarter’s iPhone unit sales numbers exclude the 55% year-over-year growth in sales of the iPod Touch. The iPod Touch is a Wifi-enabled mobile device that supports many of the iPhone applications. The iPod Touch user segment represent a group that is not bound by telephony service but are still connected (likely to be a younger demographic).
• Sales growth was driven by strong global demand. This implies that marketers can now expose their application/campaign or brand to an international audience (while facing the challenges that come with such a relationship).
• With the introduction of the iPhone 3GS, demand for the iPhone has spilled from the consumer market over to the enterprise market. Apple reported that 70% of the Fortune 200 are either deploying or piloting the iPhone. While marketers may have previously focused on the business to consumer or B-to-C market segment, they now have an opportunity to create applications that address the needs of the business to business or B-to-B market.
• Apple continues to invest heavily in customer service, whether it is through training of mobile carriers on device or one-on-one coaching of new customers at their 283 stores (currently present in 10 countries). This is a critical tactic for Apple to attract and service an older demographic of users that may not be as comfortable with touch-based technologies.
• The numbers did not account for the  upcoming product introduction of a tablet-like device. This highly anticipated announcement is expected tomorrow but the value of this news is that Apple will give marketers yet another device that will support mobile applications. The segment of the users that select and use this device is still unknown but it is potentially a new group of untapped users.
• Lastly, Apple has completed two recent acquisitions: music streaming service Lala and mobile advertising platform Quattro. Both represent the company’s continued future-looking view on revenue generation and demands.

Apple seems to be benefiting from a positive feedback loop. While the iPhone does have its flaws (it is not a perfect mobile device!), Apple has built an elegant smartphone unit that is extremely user-friendly. Additionally, iPhone users regularly promote their smartphone to other non-users in their social circles so the masses are choosing iPhone when deciding to go mobile (source). For brands that are still on the sidelines or ones that are only focused on the alternatives (which is a mistake; source), there’s no better time than now to jump on the iPhone platform bandwagon.

The Facebook iPhone app [iTunes link] just got better. Facebook for iPhone 3.1 went live in the iTunes application directory yesterday. The new version includes two new features:  1) Address Book Syncing & 2) Push Notifications.

Push Notifications

As soon as you update the app to version 3.1, you’ll be asked for permission to receive notifications. You can receive push notifications for messages, wall posts, friend requests, friend confirmations, photo tags, events, and comments. You’ll probably want to customize these notifications so that you do not get overwhelmed with constant updates. And, as I discovered, all notifications are on by default. You can modify them by going to “Settings” on the iPhone and scrolling down to the Facebook app.

Address Book Syncing

After you allow or deny push notifications, you’ll be asked if you want to sync Facebook with your address book. If you enable this feature, it will sync your current contacts with Facebook and pull in names, photos, and other info. You have the option to choose whether or not to sync profile pictures. I really like this new feature as I was previously using an app called FriendSync to sync my iPhone contacts with my Facebook friends and it never seemed to work properly.

The Facebook for iPhone application is one of the most popular apps (not surprising) with over 23.5 million monthly active users and over 11 million daily active users. It’s one of my favorite iPhone applications and I use it everyday (more than once).

What do you think of these new features? What other enhancements would you prefer to see in the future?

Financial information for publicly traded companies always provides a wealth of information, especially if you’re searching for clues as to where the technology is going. That’s why I love looking at quarterly earnings announcements from big technology companies, like Apple, IBM, Google and Microsoft.

Last night, Apple announced their 4th Quarter 2009 earnings and reported that their quarterly revenue hit almost $10 Billion dollars. [If you're trying to gain some perspective on these numbers, you should consider that Microsoft recently posted revenue of $13.1 Billion for the same quarter (which ended June 30th, 2009).]

I ran across a few interesting stats in the earnings report and the analyst call transcript:

• 7.4 million iPhone handsets were sold in the past quarter, a rise from 5.2 million iPhones sales in the prior quarter.
• Nearly 21 million iPhones were sold in the fiscal year, which ended in September 2009.
• There are more than 85,000 applications for the iPhone in the iTunes store.
• iPod sales were down nearly 8% for the quarter to 10.2 million units.
• iPod Touch sales also grew strongly during the quarter, up 100% year over year.

What does this mean to Technologists?

POINT #1: Apple is in a dominant market position.

They’ve reached this position via the introduction of the iPod and the iTunes Store. Over the years, everyone and I mean everyone (eg: Amazon) has tried to develop an interface with music library/music store capabilities but none have been able compete with iTunes.

POINT #2: Demand for apps in a packed iTunes apps store remains strong.

Soon after the introduction of the iPhone, Apple established a Developer Program that allowed technologist to create custom applications for the iPhone platform. The program required developers to pay a fee to distribute their application in the apps section of the iTunes store. The apps were valuable to iPhone users because they could personalize their device and be more productive (eg: I can check my Starbucks card balance and the weather while listening to my favorite song).  But Apple also limited the number of apps by  instituting an application approval process that required new apps to be vetted before they were made available to the public. By restricting the iPhone platform (that is in wide demand), they further fueled the fire of marketers who wanted to interact with these iPhone device users.

POINT #3: Exclusivity agreement with AT&T has driven iPhone innovation.

Apple launched the iPhone in the US by establishing an exclusive relationship with AT&T. While the relationship has received plenty of criticism (source), the exclusivity agreement has benefited Apple in that they were able to focus on a single platform and deliver innovative features for that platform. They avoided marginalizing the features of the iPhone by not having to deal with integration issues that come with having to support a device on the networks of multiple carriers. Additionally, the infrastructure investment has driven AT&T to improve their customer support by providing a more robust network for a smart phone devices.

BOTTOM LINE:

Apple provides a growing platform with a broad user base. Developers that are considering mobile applications will first need to build for the iPhone if they want to have the broadest reach. But because of the fierce competition, developers have to recognize that their app has to stand out in an already crowded market place. The good news is that Google and other competitors (aka, Microsoft) are courting developers to their mobile platform because they recognize the importance of mobile. One effective strategy that developers can employ is to look for alternate mobile platforms as a means of getting some initial buzz. By establishing a foothold in these platforms, Developers can build further recognition for their application on the iPhone platform. As part of this strategy, developers will have to utilize a platform that allows them to code their application in one language that can be compiled into a language that’s compatible with each platform. [NOTE: each mobile platform requires different programming languages/programming skills]. Otherwise, they will not be able to create and distribute their application in a timely manner.

Analysts say this is the year of the coupon, with most of our nation increasingly looking for ways to save money and stretch their dollar. And online coupons, with their convenience and targeted display to the user, continue to be a great driver to a brand experience and/or purchase.

Scientists say online coupons have higher impact than print coupons. They test our “Key Neurological Metrics” like attention, emotional engagement, and memory retention. Ok, so eye-tracking and galvanic skin response is exciting for the folks behind that study, but most of us are excited by extra savings in our shopping cart.

Most of us shoppers get coupons from:

•  coupon subscriptions sites
•  links direct to loyalty cards
•  check the wildly popular “mommy blogs” for daily coupons
•  and some like me send them directly to their phone. (I love mobile coupons. But I don’t want to have to print anything out or read cryptic numbers to a store check-out associate.)

Today I tested out two coupon provider companies. First was Coupon Sherpa’s free app for the iPhone. It was super easy to install and displayed coupons available at retailers in my area quickly. After scanning the list, I viewed the Smith & Hawken coupon on my browser. Sadly, the webpage wasn’t optimized for the iPhone (which you would think they could have managed the display size of the webpage knowing I was on an iPhone!?). CouponSherpa also provided the location of the nearest store and the ability to email the coupon. I tried the process again with an AMC Theatres coupon, but in this case the coupon had to be printed to be redeemed, which meant emailing it and then taking a physical print into the store. No thanks.

Coupon Sherpa

Second test was through the Samplesaint website, which offers scannable mobile coupons. My zip code wasn’t supported, but I was able to go through a sample download. I liked the user experience up until I clicked through the offer text message (basically, up until I had to use my phone). They send the coupon via text message. Clicking through opened up a webpage that had THE SMALLEST size layout and text. (Again, funny, since this site was also supposed to be optimized for mobile viewing, and they could easily detect my iPhone). Samplesaint only gives you 20 minutes to use the coupon once you click “checkout”. This is a usage barrier for me, since I will probably complete this process BEFORE I enter the store, rather than while shopping. Still it’s worth checking out. I’m wondering if the service is available for any of you non-Atlantans?

The Samplesaint coupons on my iPhone

I’ll keep testing and providing feedback – and in the meantime let me know what has been your best online coupon experience. And while this entry focused on the front-end, stay tuned for follow-up from an esteemed colleague on the technical side of the scannable coupon technology evolution…

Back to work on a online display advertising campaign that is actually offering a $2 coupon (jackpot!) for an eye drop. Now that’s savings to tell yo momma about!

It was really exciting to discover that we have been asked to create a mobile website for one of our major clients. It was even more exciting to learn that this site was to be accessed by iPhone and Blackberry users. Hooray — our foray into the world of small–but–powerful screens!

I still remember reading about the User Experience of the iPhone only 1.5 years ago. As User Experience Architect on this project, my first order of business was to research mobile UI (and quickly)! Some of the findings were obvious, and others weren’t.

First, here are some UI considerations when designing for all devices:

• People on a phone and people on a computer shouldn’t necessarily see the same thing with different paint; they should see an entirely different application with different form, function, and priority.

• When designing for the mobile screen, it is crucial to consider a user’s context. When using the phone to surf the web, users are likely surrounded by countless distractions and are less likely to be devoting all of their attention their mobile phones. This means all interactions need to be concise and engaging.

• Due to bandwidth limitations, every item – from text to image – needs to be absolutely necessary to the functionality of the application.

Of course, the iPhone, with its slick, touch-screen interface, is the Ferrari of mobile phone UI’s. Apple even created a driver’s manual for those attempting to create custom features. Here’s some highlights:

• iPhone users are accustomed to the well-designed, sleek user interface of the native applications and features, which raises the bar for all other content (web, etc.) that they experience on their phone.

• iPhoners have a much more personal relationship with their phone than they have with their computer, causing them to expect a more engaging, personal experience on their mini screens than on their desktops.

• iPhone users are accustomed to jumping into and out of any application or website (to take a call, text, etc.). This just supports the point that the website needs to be extremely applicable or “sticky” in order for users to return to it and remain engaged.

The challenge with our project is that it is a web application rather than a standalone “native” application. It works in a browser rather than downloaded directly to the phone.

Here are some findings regarding web apps:

• A successful iPhone web application is perceived as a standalone application. In other words, the browser does not impede the interaction in any way, causing the user to forget that he / she is actually on the web.

• Web browsing can be fast (via wireless access) or slow, depending on where the user is. As a result, the UI designer should always aim for the lowest common denominator when it comes to bandwidth.

• All web content on an iPhone is viewed in the Safari browser.
  Flash and Java are not supported

In summary, when designing UI’s for mobile, if you focus on the user, how the device is being used, and simplify the core tasks, you are at least on track toward success. So what’s the conclusion? For now it’s “Keep it Simple, Stupid.”