Mobile is Money!2 de May de 2019
After having completely changed the users’ lives, smartphones have now transformed the companies’ scenery once and for all, in various segments. Not just in searching innovation anymore, but even in cash cow. And, despite the rapidity, it did not happen in a snap of fingers; it was a process. A process that, in 2019, led to billions and billions of dollars in revenues and in IPOs from startups with 100% mobile DNA. And what is behind all this? Business decisions.
Back in 2012, right after going public, Mobile accounted for 11% of revenues in Mark Zuckerberg network’s ads. Within seven years, the company realized how valuable smartphones are and increased efforts to turn the website into Mobile Only – an indication of it is the purchase of a photo network in the period. The result? By the end of March 2019, smartphones accounted for 93% of the company’s earnings with ads! Keeping the due proportions, the operation was similar to what happened at Pinterest – it started web-only in 2010, then it became an application. And, soon after its IPO (that increased the startup’s market value to US$ 12 billion), which occurred the week before last, the information is that 80% of users originate from smartphones!
Head in the clouds…
Some large companies are still in the middle of its pivot for Mobile, which is Amazon’s case. Jeff Bezos’s company does not have 100% of its earnings coming from e-commerce; in fact, it does not have even 70% of its revenues coming from online sales, because Amazon Web Services (AWS), the cloud, got into play. Just to have an idea, AWS brought in more revenues than McDonald’s in 2018. But what does that have to do with Mobile? EVERYTHING. This week, it was revealed that Apple has spent US$ 30 million a month in 2019 to obtain Bezos’s cloud services. Airbnb, Pinterest, Epic Games, and Lyft are some key AWS clients. Do the math…
Disk M for Microsoft
Last week, Microsoft reached a market value of ONE TRILLION DOLLARS (in capital letters, because you know…); however, this is not what we are going to talk about, but how a Mobile product has been the most successful in the company since Satya Nadela joined it. Called Enterprise Mobility, the security software for corporate smartphones has grown its user base by 53% and already reaches 100 million cell phones. If we consider that the product’s subscription varies between US$ 8.70 and US$ 15 a month, then we can see a billionaire – and recurrent – revenue line for the Windows creator.
A break to remember that smartphones not only got into well-established companies, but also created a new segment of companies that, this year, have started to go public. To date, Zoom, PagerDuty, Pinterest, and Lyft chose to go public into the New York Stock Exchange – together, and after the IPOs, the companies sum US$ 50 billion in market value. A high number, but not as high as another one: US$ 90 billion, which is what Uber intends to achieve with its IPO, expected to occur within the next weeks.
Now in Reais, please!If you think Brazil, with its 230 million active smartphones, is out of this money race, then you’d better give it a second thought. And our unicorns show it very clearly: 99, iFood, and NuBank – which reached 5.9 million users in the end of March, none of them would exist without the internet-connected cell phones. All this to get to a moral of the story: If Mobile is where the client uses it, then it is also where the money is hidden and where your business should be.