iOS games – Market IntroPurpose: The purpose of the presentation is to give an

introduction to the iOS applications market especially the iPhone and iPad games market for a person considering to

invest into the market any means.

Prepared byBarath Kumar

App Store

• The Appstore is an online market place developed and maintained by Apple Inc.

• Opened on July 10, 2008• Sellers are developers who develop and sell

application for apple devices like ipod touch, iphones and ipads

• Buyers are consumers and businesses that buys the application

• Apple Inc. takes a cut of 30% of sales made by developers in the Appstore market

The App Economy

• More than 700,000 apps in apple appstore as of Dec 2012

• More than 35 billion app downloads since launch in 2008 July

• Apple Inc. paid over $6.5 billion in royalties to the developers

Games

• App store has a number of categories under which the apps for iphone/ipad are sold

• Books, business, health, entertainment, games, etc are popular categories

• Games category has proved to be the cash king in app store

• Games category contributes– 62% of iPhone apps total gross revenue– 48% of iPad apps total gross revenue

Category iPhone iPadAll Free Paid Grossing Free Paid GrossingBooks 1.00% 0.75% 1.25% 3.75% 3.25% 4.75%Business 1.75% 2.75% 2.25% 2.00% 4.00% 4.75%Education 1.75% 2.25% 1.75% 6.25% 11.50% 5.00%Entertainment 13.50% 11.00% 5.00% 11.25% 7.00% 4.00%

Finance 2.50% 1.00% 0.50% 2.25% 0.50% 0.50%Games 36.25% 45.75% 62.00% 35.00% 42.75% 48.25%Health 3.25% 5.50% 2.00% 2.00% 1.75% 1.50%Lifestyle 6.50% 3.00% 2.00% 8.00% 2.75% 5.00%Medical 0.00% 0.25% 0.50% 0.00% 0.25% 1.25%Music 4.25% 3.50% 3.75% 3.25% 1.75% 2.25%Navigation 0.75% 1.50% 2.25% 0.25% 0.50% 0.75%News 1.50% 0.50% 0.50% 4.75% 1.25% 4.75%Photo 3.75% 6.75% 2.50% 2.00% 2.75% 1.25%Productivity 3.25% 2.50% 2.25% 4.50% 9.00% 9.25%Reference 1.75% 2.00% 1.50% 2.25% 1.75% 1.50%Social 7.25% 3.25% 3.75% 3.00% 1.50% 1.00%Sports 1.00% 0.25% 1.00% 1.50% 0.25% 0.50%Travel 3.75% 0.25% 1.00% 2.50% 0.75% 0.50%Utilities 6.00% 6.00% 3.75% 4.25% 5.75% 2.75%Weather 0.25% 1.25% 0.50% 1.25% 1.00% 0.50%

Apps by Category Chart

Top Grossing apps – Example 1

• TapTap Revenge by Tapulous Inc.• Making over $1 million a month in 2009• Acquired by Walt Disney for an undisclosed

amount in 2010• Over 35 million downloads by 2011

Top Grossing apps – Example 2

• Draw Something by OMGPOP• Made $200,00 0 a day during its peak sales in

2010• Acquired by Zynga for 180 million dollars• Over 50 million downloads by 2011

Top Grossing apps – Example 3

• Angry Birds by Rovio Entertainment• Over 1 billion downloads across all its

platforms• Combined revenue of $106 million in 2011

from games download and merchandise• Looking at IPO in 2013 – expected valuation of

$9 billion

Top Grossing apps – Example 4

• Fruit Ninja by HalfBrick

• Over 300 million downloads

• Crosses a revenue of $ 1 million per month in 2012

• $400,000 per month of the $1 million comes from ads

Top Grossing apps – Example 5

• Doodle Jump by Lima Sky• Over 10 million downloads by Dec 2011• Launched in March 2009• Crossed a revenue of $ 3 million by 2010

Summary

• App developers are making millions - one of the most scalable business models-Access to huge market because of app store distribution capacity

• Revenue comes from app downloads, in-app purchases and advertisements

• Things to be aware– 50 % of app developers don’t break even– Top 10% of game developers capture 1/3 of revenue from

gaming apps

Reference URL’s• http://www.apple.com/about/job-creation/

• http://www.somegeekintn.com/blog/2012/02/app-store-category-breakdown/

• http://adage.com/article/digital/mobile-app-economics-fruit-ninja-makes-400-000-a-month-ads/235965/

• http://techcrunch.com/2010/03/08/never-ending-goldrush-doodle-jump-for-iphone-smashes-through-3-million-sales/

• http://www.investopedia.com/slide-show/million-dollar-apps/#axzz2G1Ad8DiE

• http://www.theappside.com/2012/07/16/fruit-ninja-making-1m-a-month-in-revenues/

• http://www.pcmag.com/article2/0,2817,2404012,00.asp