Tuesday 22 March 2011

Why did Facebook buy Snaptu for 70m USD?

In the current smartphone hype everybody focuses on iOS, Android and HTML5 when speaking about mobile applications. Many might therefore wonder why Facebook would spend 70m USD on acquiring a company that delivers mobile apps based on Java ME (J2ME). Facebook has a simple reason: 95% of all phones worldwide are still non-smartphones. According to Sun there are currently over 2.1Bn Java ME enabled devices worldwide. Of all phones sold worldwide in 2010, 81% were non-smartphones. Smartphones still make up a very small percentage of all mobile devices in emerging markets, where Facebook now has their greatest growth potential with well over a billion connected feature phones. Other big online companies such as eBay, Amazon and Yahoo have also acknowledged this and currently invest in similar technologies in order to position themselves among consumers before they have a chance to upgrade their phones.

At Golden Gekko we believe that Java ME still has another 3-5 years potential for brands that want to reach mass market penetration and low end devices across the globe. Last year, for example, the Java ME version of the Malibu Bowling Game had over 5 million downloads in total; 1,3 million from the independent app store Getjar.

This doesn’t mean that Java ME is for everyone but it’s definitely not dead. One of the challenges for app developer has been fragmentation across devices. This meant that you had to develop 100s of different versions. Today companies such as Snaptu, Mobile Distillery and Golden Gekko have solutions that make this much easier.

For more information about the potential of Java ME please contact Golden Gekko.

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