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Orange Proliferates Application Storefront Options to Exploit the Long Tail

| Feb 17, 2009 | Wireless Services - Europe | Show Update

| Analyst: Emma Mohr-McClune

Current Perspective: Positive/Neutral
Vendor Importance: High
Market Impact: Low

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Event Summary

February 16, 2009 -- Orange announces the May-scheduled launch of a new widget shop, and expands its multi-platform Orange Application Shop. The new widget catalogue will feature a selection of simple mobile widgets such as weather updates and news alerts specifically for Signature devices; the goal is to open this to 80% of all Signature phones by 2009. Additionally, Orange will extend its existing Orange Application Shop to more Operating Systems, and launch the storefront across more Orange markets in the coming months.


Analytical Summary

• Current Perspective: Slightly positive on Orange’s MWC mobile applications announcement at MWC 2009, as this sees Orange seek to establish differentiation through a proliferation of storefront options; an unusual and differentiated approach. Broad OS and device compatibility choice is increasingly a key advantage for service providers in the crowded app store space. However, Orange’s pricing strategy for the new Signature application catalogue is yet unknown, making the strength of this event difficult to call.

• Vendor Importance: High to Orange, as its existing Orange Application Shop proposition is now under attack from a flood of new offers, notably from Apple, but also from Google, Microsoft and Nokia. Whereas these new app stores are all niche propositions, and highly limited in device and OS scope, Orange has chosen to emphasize broad handset compatibility for a competitive advantage.

• Market Impact: Low on the European mobile media market, as this announcement fails to establish a strong USP in the applications/widget catalogue space. Orange is already an experienced applications storefront provider to different segments. The new widget catalogue for Signature devices simply extends this strategy with a differentiated offer for Signature devices.

 

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