karl von randow
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The iPhone App Store
The iPhone App Store
iPhone 3G iPhone 3G launchlaunch11 July 200811 July 2008
App Store App Store launchlaunch11 July 200811 July 2008
11 Months Later...11 Months Later...
Part of the iTunes StorePart of the iTunes Store
Exclusive marketplace for iPhone Exclusive marketplace for iPhone applicationsapplications
70% / 30% revenue split with Apple70% / 30% revenue split with Apple
E-commerce includedE-commerce included
Bandwidth includedBandwidth included
What is the App Store?What is the App Store?
80 Countries80 Countries
30m iPhones & iPod Touches sold30m iPhones & iPod Touches sold
800m App downloads800m App downloads
50k Developers50k Developers
25k Applications25k Applications
How big was it?How big was it?
80 Countries80 Countries
40m iPhones & iPod Touches sold40m iPhones & iPod Touches sold
1,000m App downloads1,000m App downloads
50k+ Developers50k+ Developers
50k Applications50k Applications
How big is it now?How big is it now?
40 million40 millionpotential customerspotential customers
iPhone 3GSiPhone 3GSsold 1 millionsold 1 millionin first 3 daysin first 3 days
How does it work?How does it work?
You must have You must have an iPhone to an iPhone to
playplay
#1 rule#1 rule
Creating an AppCreating an App
Use an existing platformUse an existing platform
Develop something yourselfDevelop something yourself
App Store PresenceApp Store Presence
Listed in iTunes on desktop and in Listed in iTunes on desktop and in the App Store on iPhonethe App Store on iPhone
Icon, product description, screen Icon, product description, screen shotsshots
App Store PresenceApp Store Presence
Listed in iTunes on desktop and Listed in iTunes on desktop and App Store on iPhoneApp Store on iPhone
Icon, product description, screen Icon, product description, screen shotsshots
User reviewsUser reviews
Mobile FotosMobile FotosMy preciousMy precious
““Pretty disappointing”Pretty disappointing”
““Abominable”Abominable”
““stupid no use”stupid no use”
App Store PresenceApp Store Presence
Listed in iTunes on desktop and Listed in iTunes on desktop and App Store on iPhoneApp Store on iPhone
Icon, product description, screen Icon, product description, screen shotsshots
User reviewsUser reviews
No free trials or previews of appsNo free trials or previews of apps
App Store PresenceApp Store Presence
Appearance & availability can vary Appearance & availability can vary by regionby region
Popular or features apps vary by Popular or features apps vary by regionregion
Getting on to the App Getting on to the App StoreStore
Join the programme (US$99 / Join the programme (US$99 / annum)annum)
Contracts, Bank details & IRS tax Contracts, Bank details & IRS tax formsforms
Submit application for reviewSubmit application for review
Application ReviewApplication ReviewApplication ReviewApplication Review
Application ReviewApplication Review
Apple review all submissionsApple review all submissions
Terms & conditionsTerms & conditions
Unknown durationUnknown duration
3 days, 2 weeks, or more3 days, 2 weeks, or more
RejectionRejection
EucalyptusEucalyptusThings Made Out Things Made Out Of Other ThingsOf Other Things
ChangeabilityChangeability
App RatingsApp Ratings
4+4+ No objectionable material No objectionable material
9+ 9+ Mild or infrequent violence / Mild or infrequent violence / mature / horrormature / horror
12+12+ Infrequent mild language / Infrequent mild language / mature themes / simulated mature themes / simulated gambling, frequent violence gambling, frequent violence
17+ 17+ Frequent, intense, ...Frequent, intense, ...
In-App SalesIn-App Sales
Paid via iTunes = easy for Paid via iTunes = easy for customerscustomers
Sell a base application (not free)Sell a base application (not free)
Sell content inside the appSell content inside the app
Creates new business modelsCreates new business models
Pricing TiersPricing Tiers
FreeFree
US$0.99US$0.99
US$1.99, US$2.99, ..., US$999.99US$1.99, US$2.99, ..., US$999.99
70% / 30% revenue split70% / 30% revenue split
FinancialsFinancials
Paid monthly into bank accountPaid monthly into bank account
Up to 45 days after the end of Up to 45 days after the end of monthmonth
Paid in 6 currenciesPaid in 6 currencies
USD, CAD, GBP, EUR, AUD, JPYUSD, CAD, GBP, EUR, AUD, JPY
ReportingReporting
Daily sales reportsDaily sales reports
Monthly financial reportsMonthly financial reports
Small ScaleSmall Scale
Leverage existing platformLeverage existing platform
LegendsLegends
Time to market: 1 weekTime to market: 1 week
Promoted through social mediaPromoted through social media
50% revenue share50% revenue share
Low costsLow costs
CompetitionCompetition
Books category has ~5,000 apps Books category has ~5,000 apps (NZ)(NZ)
App on the front-page for ~2 daysApp on the front-page for ~2 days
Top sales are “Transformers”Top sales are “Transformers”
Sales stats are privateSales stats are private
Promoting iPhone AppsPromoting iPhone Apps
Promotion on Promotion on the App Store is the App Store is
hardhard
HallokittyHallokittyCactuslabCactuslab
““Leo sez ‘kick him in the Leo sez ‘kick him in the balls for me!’ after balls for me!’ after playing with HalloKitty.”playing with HalloKitty.”
HallokittyHallokittyDownloads / dayDownloads / day The RenaissanceThe Renaissance
““Haha im gonna get Haha im gonna get everyone with this app,everyone with this app,I almost sh!t my pants... I almost sh!t my pants... LoL”LoL”
Thanks & CreditsThanks & CreditsAdam Christopher, David Frampton, Layton Adam Christopher, David Frampton, Layton Duncan, John BallingerDuncan, John Ballinger
Flickr Creative Commons PhotosFlickr Creative Commons Photoshttp://www.flickr.com/photos/kitcowan/729969119/
http://www.flickr.com/photos/babamdogo/836974530/
http://www.flickr.com/photos/erikvanhannen/2475255345/
http://www.flickr.com/photos/superamit/130623447/http://www.flickr.com/photos/superamit/130623447/
http://www.flickr.com/photos/nicsuzor/2554668884/http://www.flickr.com/photos/nicsuzor/2554668884/
http://www.flickr.com/photos/valter/1158915892/http://www.flickr.com/photos/valter/1158915892/
http://www.flickr.com/photos/dirkhansen/3112059563/http://www.flickr.com/photos/dirkhansen/3112059563/
http://www.flickr.com/photos/the_justified_sinner/2498066986/http://www.flickr.com/photos/the_justified_sinner/2498066986/
http://www.flickr.com/photos/lorispindler/2559724403/http://www.flickr.com/photos/lorispindler/2559724403/