Lexus & American Airlines Get Mobile Right!

2011 was a big year for mobile and it seems 2012 is set to maintain the same momentum and push mobile even further. Let’s start 2012 by looking at two companies that are finding unique ways to provide added value and convenience to their customers. First we have Lexus – the luxury division of automotive giant Toyota – who has introduced myLFS, an iPhone and iPod touch application that allows Lexus customers to pay their bills online.

Building on the personal nature of mobile devices, Lexus has also found a great way for its brand to constantly stay in direct contact with its end consumers, providing them with company news and current specials. Although mobile payments are still some time from mass adoption, and there have been studies showing consumers are mainly hesitant due to security reasons, this hasn’t deterred Lexus. Instead, they have paid attention to consumer needs and tackled the problem head on by enhancing security measures incorporated in the app, and promising their customers that their personal information will be safe and sound.

Next, we have American Airlines. This organization is utilizing the mobile platform in their new ad campaign to allow consumers book and change flights. The ads run on TV Guide’s mobile app, and upon clicking the ad the consumer is redirected to a mobile landing page where they can enter their account credentials in order to book flights, change dates, check in or simply view their mobile boarding pass. With traditional media advertising costs so high, and the financial turmoil most airlines face these days, mobile advertising can be a great economical way to reach consumers, especially since more and more consumers are using their mobiles and their primary means of going online.

Both these companies have found different ways to harness the power of mobile and strive toward essentially the same goal. By providing their consumers with great service they are incubating brand affinity and increasing loyalty, allowing them to get closer to their customer’s true lifetime value.

Spending money on lavish items is fine, if you have the money. However, there is a limit to everything, and we say a $50,000 featurephone has definitely exceeded that limit! Pricey luxury items should at least try and justify why they are pricier – unfortunately, the Gresso Grand Premier does no such thing. Yes, there is about 150 grams of gold and 138.5 carats of sapphire crystals in each handset, but if that is what you are looking for, why not just buy some serious jewellery?

What really gets to me is the fact that this bedazzled phone isn’t even SMART (meaning, it’s not of the smartphone variety)! In a time where everything is moving towards mobile – from the way we communicate to the way we shop or entertain ourselves – Gresso has the audacity to design a phone with an ancient S40 UI and charge $50,000 for it! Who is exactly the target market here? We ask you.

Maybe it’s just me, but even if I had the cash, I would rather buy an iPhone and use the rest of the money to purchase a YAMAHA Disklavier Piano, a beautiful Arkiane Kephren fireplace and a 16 year old bottle of Lagavulin scotch. That way I could stare at my stunning fireplace and sip on my scotch while I ask SIRI to play me some Wagner on my Disklavier Piano.

Today was a big day at Plastic. The Marketing Intern brought in homemade chocolate chips cookies so we were all on a major sugar high for the launch of “ETF Central,” our latest app that was created in partnership with Claymore Investments, a subsidiary of Guggenheim Funds Services Group, Inc.

Because a part of our mandate is to pioneer innovative products and solutions that allow the financial industry to expand into the mobile space, we wanted to be sure that ETF (Exchange-traded Funds) Central met all of the user needs, in an engaging and easy-to-use format.

So, employing both tech and creative wizardry (our magical formula for super apps) we created a sophisticated tool that sets the bar for excellence in the financial space. Voila! ETF Central. A new, free, customized, dual-purpose mobile app available on BlackBerry, PlayBook, iPhone and iPad.

ETF Central satisfies both the need to better educate users unfamiliar with the relatively new exchange-traded funds, as well as allows them to manage their ETF investments easily and conveniently. The app puts all Canadian-listed ETFs into the user’s palm, allowing them to view market prices of all TSX listed ETFs, create and track their ETF portfolio, view ETF educational resources, link to all online brokerages to trade ETFs, track upcoming ETF events and more. Ultimately, it’s a pretty outstanding financial gadget.

The leading force behind the app creation, and our very own “Queen of Apps,” Melody Adhami was excited to launch ETF Central as ETFs represent a sizable industry, but public awareness about them has been limited. She and our team here at Plastic Mobile set out to create a tool that would both educate and manage ETFs for the average user/investor. To read the full media release, click here.

In the news:

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Investment Executive News

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The battle continues over which is the superior platform – Android or iOS. Everyone from users to marketers have weighed in with their future predictions, past musings and current praises and complaints. From a developer’s perspective, things remain uncertain and, at times, contradictory. Here’s the low down based on the latest research.

A couple of months back, the general opinion was that app developers were turning their attention to Android over iOS, because of its rapidly increasing market share. A survey from Appcelerator indicated that the momentum was shifting in favour of Android, closing the gap on current app development that traditionally favoured iOS. The idea behind the supposed shift was that the Android platform is considered to have the best long-term outlook.

The latest news, however, turns that theory upside down. It appears that Android continues to take a back seat to iOS, in part because, well, it’s not as mainstream cool (those Mac commercials still make us chuckle). While Android operating system is still the big winner on the charts (46.3% of US smartphone owners running the mobile operating system) according to the Strategy Analytics’ survey, “App Developer Attitudes and Behaviours,” it seems that Apple’s iOS platform remains near and dear to developers’ hearts, with 51% saying they plan to write for the “iTeam” (iPod, iPad and iTouch) platforms in 2012. Yes, Android is fast approaching a majority share in smartphones among US customers, but it now seems that the platform is suffering among its app builders, with interest rising only 30% from 23% in 2011. If it’s not one thing, it’s another.

That being said, it seems that Apple’s status among the people writing app code comes from the multiple device types now using the operating system, with the iPhone down 26%. In fact, the real growth for iOS comes from the iPad, which attracted only 8% of developers last year, but will get 19% in 2012 (+138%). With more than half a million apps now cataloged in the Apple App Store, over 150,000 are compatible with or written specifically for the iPad.

Experts such as Strategy Analytics report author and Director of Apps Research, Josh Martin, expect that money will talk and developers will continue to favour platforms that offer the most diverse ways of generating revenue.

Piper Jaffrey recently estimated that Apple’s App Store substantially outperforms the Android marketplace for developers, with Apple responsible for about 80% to 90% of revenue generated by the app market.

What do you think? Will iOS continue to corner the market in app developers despite Android’s appetite for market share? Or will the interest in the iTeam fizzle out and watch Android steal their fan base?

This week, the Internet marketing research giant and data specialist, comScore, released its MobiLens service data, revealing key trends in the Canadian smartphone industry. As of September 2011, eight million Canadians owned smartphones – a figure representing 40% of the total mobile market in Canada. The highly anticipated data reveals that the Canadian smartphone adoption rates are increasing aggressively; with a seven per cent increase in just the past six months! One surprising fact to come out of the comScore data was that RIM still leads the pack with a 35.8% market share, albeit, followed closely by Apple’s 30.1%. Also, although Google’s Android is sitting in the number three spot with only 25%, it is important to note that Android has doubled its market share during the last six months; corresponding fluidly with the global surge in Android device purchases within the past few months. (FYI: Android gobbled up more than half of all global smartphones sales in Q3 alone!) The dying fossil Symbian is ranked at the fourth spot, with 4.2%, followed by the new kid on the block, Microsoft (at 3.2%).

In terms of content use, it seems Canadians are using the phones to consume a very wide and diverse range of content and information, and of course to no surprise, the smartphone users are outdoing the feature-phone users in every form and aspect of mobile content consumption, as shown in the chart below.  With such a fast pace of smartphone adoption and such diverse and broad range of smartphone use, the Canadian market is shaping to be the perfect place for businesses to embrace mobile technology and provide the added comfort and value that the Canadian consumers are soon going to automatically expect.  Instead of waiting for mobile access to become a mainstream consumer service before you invest the necessary resources, which you will inevitably have to do, we suggest hopping on the mobile train in its relative infancy, and taking advantage of its current indie and avant-garde profile to garner some serious respect and up your street cred, or as we say in the marketing world “gain some competitive advantage by becoming and early adopter.”  For being so forward thinking.

In the News

Just some of the people who think we’re pretty cool (thank you!).

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In 1997 Steve Jobs launched the ‘Think Different” campaign, and set out to change
the world. To state that in the last 14 years he has accomplished just that would be
precisely accurate.

As a leader and a visionary with exemplary passion and dedication he has set the
example for, not only the tech industry as it strives to serve society, but everyone
who has an idea and dares to be different…to think different. He had mastered user
experience before there was a term to describe it.

I’m not interested in recapping his accomplishments and successes as this is not an
obituary, but I can claim with confidence that if you’re reading this-and you can be
anybody- you already have had the experience of the very thing that Steve Jobs set
out to do. You have already experienced the soul of Apple and whether you care to
admit it or not, it changed your world and probably your life.

To put this man on a pedestal would be antagonistic to his idiosyncratic nature,
at the end of the day he’s only human but one that values greatness. That is the message that he has  infused into the
heart of Apple.

Congratulations are in order as Research In Motion’s Blackberry App World has finally reached 1 billion downloads last week. For those who don’t follow tech news, RIM has been struggling for the past several months (understatement). Approximately three years ago, RIM shares were trading at $150.00 apiece; currently they are trading at roughly $26.00.

Shareholders must be ripping their hair out!

Although we are happy for RIM, we cannot side track from the fact that it took about two years to accomplish this whereas, Apple’s app store has a total of 15 billion downloads to date and hit it’s 1^st billion in just nine months. Google’s Android has a total of 4.5 billion downloads to date.

In the latest shareholders meeting, RIM confirmed that it is planning on releasing seven new phones in the upcoming months. SEVEN? RIM hasn’t stated what new smartphones they will be launching but they are most likely to be upgraded models. The two most talked-about Blackberries to be released are the Bold 9900 and the Torch 2 (9860), as for the other five, we will just have to wait and see.  Also, RIM announced that the new Blackberry OS 7 would be the OS running on the Bold 9900.

We are thrilled to see the new operating system but rumor has it that current blackberry users would not be able to upgrade to OS 7. Let us hope that this is just a rumor.

But could this be the beginning of a comeback or the coming of Rimageddon?

Most will agree with the latter, it’s just too difficult to stay optimistic! Just a couple of days ago, RIM announced they plan to lay off 2,000 employees, which is equivalent to approximately 11% of their workforce. The intended purpose for this is to help RIM achieve higher growth, realign strategic objectives, and restructure senior management. These lay-offs will allow RIM to reduce costs and supposedly, introduce products to the market in a more timely manner (i.e. faster).

The next couple of months should be exciting.

Good or bad move by RIM?

Good luck RIM, you’ll need it.

Tomorrow (March 2nd) is a big day for most Apple fans, the unveiling of the iPad 2. It seems earlier than expected. Maybe it’s a strategic plan to overshadow the popularity of the Motorola Xoom? We highly think so.

What should we expect from tomorrow’s Apple-a-palooza? I think we’ll be getting some new advancements but nothing too revolutionary that’ll make you want to sell your old iPad for the new one (unless, you’re a tech snob, and there is nothing wrong with that). Here are a few things to expect:

• With Steve Jobs away due to medical reasons, who’ll make the announcement of the iPad 2? Likely, the presentation will be from Phill Shiller, senior VP of worldwide product marketing at Apple Inc. The last time Jobs was ill, Shiller had revealed the iPhone 3GS.

• Yes, they’ll be a front facing camera, so that they can continue to promote their video calling app/software, FaceTime. Most are predicting there’ll be a rear-facing camera too; I’m still not sure if Apple will give in.
• It’ll be smaller and thinner, but nothing too drastic.
• The new device is expected to be faster, with a robust processor. Rumors say that Apple will use an A5 chip.
• Better and louder stereo speakers.
• Cheaper! Apple can afford to knock off at least $100 of the current price point. The price model of the iPad is one of its competitive advantages against the the other tablets.

As the battle of tablet continues, we’ll be watching the Apple conference tomorrow.

Imagine how convenient it’ll be to make payments at restaurants or stores with your iPhone or iPad! Imagine how great it’ll be to have a fast checkout process and not have to wait in line. According to Bloomberg’s report, Apple’s next iPhone and iPad are expected to have NFC technology.

NFC technology (near field communication) that is gaining popularity, allows various forms of data transfer between the iPhone and other NFC capable devices. NFC technology receives and sends out information at distances up to 4 inches. This means iPhone and iPad users will soon be able to make payments using NFC.

The key to this is iTunes, or better say the payment system within iTunes that is already in use by millions and millions of people around the world. By entering the payment service market, Apple has a massive opportunity. By including NFC into its iPhone and iPad, Apple could use its existing iTunes accounts and give consumers an alternative to traditional financial services by Visa, MasterCard and PayPal.

Right now, Apple has launched a prototype for the payment services by allowing smaller businesses to scan NFC-enabled devices.  Upcoming versions of the AT&T iPhone and iPad 2 are expected to have the technology enabled and the technology is anticipated to be available by mid 2011.

If Apple can nail NFC and tie it directly into their iTunes payment system, it could change everything. This can be an evolution of the payment system within iTunes.

This could be the greatest tactic they’ve ever pulled. Is it possible that Apple and iTunes will replace Visa and Mastercard? From our perspective, it seems unlikely that they will go that far due to the complications and the financial burden associated with giving consumers credit.  But I guess we will never know how far they will go and we will just have to wait and see!