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The iPhone App Store
iPhone 3G
launch
11 July 2008
App Store
launch
11 July 2008
11 Months Later...
What is the App Store?
Part of the iTunes Store
Exclusive marketplace for iPhone
applications
70% / 30% revenue split with...
How big was it?
80 Countries
30m iPhones & iPod Touches sold
800m App downloads
50k Developers
25k Applications
How big is it now?
80 Countries
4 0 m iP h o n e s & iP o d
To u c h e s s o ld
1 , 0 0 0 m A p p d o w n lo a d s
50k+ De...
4 0 m illio n
  p o t e n t ia l
c u s to m e rs
iP h o n e 3 G S
 s o ld 1 m illio n
in f ir s t 3 d a y s
How does it work?
#1 rule

 You must have
an iPhone to play
Creating an App


Use an existing platform
Develop something yourself
App Store Presence

Listed in iTunes on desktop and in the
App Store on iPhone
Icon, product description, screen shots
App Store Presence

Listed in iTunes on desktop and App
Store on iPhone
Icon, product description, screen shots
User revie...
Mobile Fotos
My precious
“ Pretty disappointing”
“ Abominable”
“ stupid no use”
App Store Presence

Listed in iTunes on desktop and App
Store on iPhone
Icon, product description, screen shots
User revie...
App Store Presence


Appearance & availability can vary by
region
Popular or features apps vary by region
Getting on to the App Store


Join the programme (US$99 / annum)
Contracts, Bank details & IRS tax forms
Submit applicatio...
Application Review
Application Review

Apple review all submissions
Terms & conditions
Unknown duration
 3 days, 2 weeks, or more
Rejection
Eucalyptus
Things Made Out Of
Other Things
Changeability
App Ratings
4 + No objectionable material
9 + Mild or infrequent violence /
mature / horror
1 2 + Infrequent mild language...
In-App Sales

Paid via iTunes = easy for customers
Sell a base application (not free)
Sell content inside the app
Creates ...
Pricing Tiers

Free
US$0.99
US$1.99, US$2.99, ..., US$999.99
70% / 30% revenue split
Financials

Paid monthly into bank account
Up to 45 days after the end of month
Paid in 6 currencies
 USD, CAD, GBP, EUR, ...
Reporting


Daily sales reports
Monthly financial reports
Small Scale
Leverage existing platform
 Legends
Time to market: 1 week
Promoted through social media
50% revenue share
Low...
Competition

Books category has ~5,000 apps (NZ)
App on the front-page for ~2 days
Top sales are “Transformers”
Sales stat...
Promoting iPhone Apps
Promotion on the
App Store is hard
Hallokitty
Cactuslab
“ Leo sez ‘kick him in the balls
for me!’ after playing with
HalloKitty.”
Hallokitty
Downloads / day   T Renaissance
                   he
“ Haha im gonna get everyone
with this app,
I almost sh!t my pants... LoL”
Thanks & Credits
Adam Christopher, David Frampton, Layton Duncan,
John Ballinger

Flickr Creative Commons Photos
 http://w...
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
Karl Von Randow
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Karl Von Randow

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Transcript of "Karl Von Randow"

  1. 1. The iPhone App Store
  2. 2. iPhone 3G launch 11 July 2008
  3. 3. App Store launch 11 July 2008
  4. 4. 11 Months Later...
  5. 5. What is the App Store? Part of the iTunes Store Exclusive marketplace for iPhone applications 70% / 30% revenue split with Apple E-commerce included Bandwidth included
  6. 6. How big was it? 80 Countries 30m iPhones & iPod Touches sold 800m App downloads 50k Developers 25k Applications
  7. 7. How big is it now? 80 Countries 4 0 m iP h o n e s & iP o d To u c h e s s o ld 1 , 0 0 0 m A p p d o w n lo a d s 50k+ Developers 5 0 k A p p lic a t io n s
  8. 8. 4 0 m illio n p o t e n t ia l c u s to m e rs
  9. 9. iP h o n e 3 G S s o ld 1 m illio n in f ir s t 3 d a y s
  10. 10. How does it work?
  11. 11. #1 rule You must have an iPhone to play
  12. 12. Creating an App Use an existing platform Develop something yourself
  13. 13. App Store Presence Listed in iTunes on desktop and in the App Store on iPhone Icon, product description, screen shots
  14. 14. App Store Presence Listed in iTunes on desktop and App Store on iPhone Icon, product description, screen shots User reviews
  15. 15. Mobile Fotos My precious
  16. 16. “ Pretty disappointing”
  17. 17. “ Abominable”
  18. 18. “ stupid no use”
  19. 19. App Store Presence Listed in iTunes on desktop and App Store on iPhone Icon, product description, screen shots User reviews No free trials or previews of apps
  20. 20. App Store Presence Appearance & availability can vary by region Popular or features apps vary by region
  21. 21. Getting on to the App Store Join the programme (US$99 / annum) Contracts, Bank details & IRS tax forms Submit application for review
  22. 22. Application Review
  23. 23. Application Review Apple review all submissions Terms & conditions Unknown duration 3 days, 2 weeks, or more
  24. 24. Rejection
  25. 25. Eucalyptus Things Made Out Of Other Things
  26. 26. Changeability
  27. 27. App Ratings 4 + No objectionable material 9 + Mild or infrequent violence / mature / horror 1 2 + Infrequent mild language / mature themes / simulated gambling, frequent violence 1 7 + Frequent, intense, ...
  28. 28. In-App Sales Paid via iTunes = easy for customers Sell a base application (not free) Sell content inside the app Creates new business models
  29. 29. Pricing Tiers Free US$0.99 US$1.99, US$2.99, ..., US$999.99 70% / 30% revenue split
  30. 30. Financials Paid monthly into bank account Up to 45 days after the end of month Paid in 6 currencies USD, CAD, GBP, EUR, AUD, JPY
  31. 31. Reporting Daily sales reports Monthly financial reports
  32. 32. Small Scale Leverage existing platform Legends Time to market: 1 week Promoted through social media 50% revenue share Low costs
  33. 33. Competition Books category has ~5,000 apps (NZ) App on the front-page for ~2 days Top sales are “Transformers” Sales stats are private
  34. 34. Promoting iPhone Apps
  35. 35. Promotion on the App Store is hard
  36. 36. Hallokitty Cactuslab
  37. 37. “ Leo sez ‘kick him in the balls for me!’ after playing with HalloKitty.”
  38. 38. Hallokitty Downloads / day T Renaissance he
  39. 39. “ Haha im gonna get everyone with this app, I almost sh!t my pants... LoL”
  40. 40. Thanks & Credits Adam Christopher, David Frampton, Layton Duncan, John Ballinger Flickr Creative Commons Photos http://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/nicsuzor/2554668884/ http://www.flickr.com/photos/valter/1158915892/ http://www.flickr.com/photos/dirkhansen/3112059563/ http://www.flickr.com/photos/the_justified_sinner/2498066986/ http://www.flickr.com/photos/lorispindler/2559724403/
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