The AppStore Business Model: A Survey With Case Studies

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This presentation is delivered by iStartApp in collaboration with the University of Florence. It provides a summary of Niccolò Feroci’s Bachelor Thesis Work on "Mobile AppMarketing: Actors and Products".

This content is made available for the general public. We hope it can provide useful information for further studies on this vast and fast-moving market.

Please reference as:
Feroci N., Guercini S., "The AppStore Business Model: A Survey With Case Studies",Internship Final Presentation at iStartApp, Florence, Italy, 2012.

Contacts:
web: http://www.istartapp.com
email: info@istartapp.com
facebook: www.facebook.com/istartapp
twitter: iStartApp

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The AppStore Business Model: A Survey With Case Studies

  1. 1. THE APPSTORE BUSINESS MODEL:A SURVEY WITH CASE STUDIESNiccolò Feroci, University of Florence – 2012 GraduateSimone Guercini, Full Professor of Business Economyat the University of Florence in collaboration with
  2. 2. FOREWORDThis presentation is delivered by iStartApp incollaboration with the University of Florence.It provides a summary of Niccolò Feroci’sBachelor Thesis Work on"Mobile AppMarketing: Actors and Products"This content is made available for thegeneral public. We hope it can provide usefulinformation for further studies on this vastand fast-moving market.
  3. 3. FACTS: In 2011, for the first time, more 45% of global smartphones territory than basic covered by phones sold in 5.9 billions broadband the USA activated sim network (159 cards, 1.2 countries) billions with mobile-web supportSource: International Telecommunication Union
  4. 4. FACTS: Smartphones Shipped Wordlwide with 2013 Forecast (MLN) 820 900 800 656 700 600 488 500 400 303 300 140 173 200 77 115 50 100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Annual Shipments – estimates for 2012 and 2013 - source: Gartner; IDC. 2011: WORLD SMARTPHONE OS MARKET 52% 17% iOS Android Operating System market share. Source: Gartner; IDC; Startegy Analytics
  5. 5. FACTS: 2011: 2011:USA SMARTPHONE OS EU SMARTPHONE OS 55% 32% 23% 27% iOS Android iOS Android Source: Nielsen Company
  6. 6. EU: China: USA: Japan:AppStore vs 369 mln 12 mln 421 mln 43 mln Android Android Android AndroidAndroid Market 346 mln 178 mln 430 mln 83 mln AppStore AppStore AppStore AppStore January 2012 Downloads Source: Xyologic Mobile Analysis
  7. 7. Most Innovative Companies :Ranking/ 2010 2009 2008 2007 2006CompanyApple 1 1 1 1 1Google 2 2 2 2 2Microsoft 3 4 5 5 5IBM 4 6 12 9 10Amazon 6 11 11 20 21LG electrics 7 27 NP 49 85Sony 10 14 9 10 14source: Business Week
  8. 8. As of 2011: AppStore Android MarketAbout 20% of 96% oftotal app downloadsdownloaded were free appswere paid apps More than 60% 70% of total of paid apps apps available costed $0.99 were free 21% of total 32% of total app downloads app downloads were utility, vs were games 6% of Appstore Source: www.chomp.com
  9. 9. MobileAdvertising eCPM $ 1.3 $ 1.7 Japan: Fill Rate 85% 78% Japan: CTR 1.1% 2.3% Japan: Source: blog.inner-active.com
  10. 10. AppStoremarketing
  11. 11. AppStore marketing High expectation among the users High-end target More than 500000 apps available Tough competition
  12. 12. Business model  Free app  Pay app • pay per download • daily or weekly payment • freemium
  13. 13. Good practice for design and marketing usability functionality entertainment promotion
  14. 14. Marketing and communication• Only one store• more than 500000 apps available• NO advertising on the store BE CREATIVE Media Social Networks Go global
  15. 15. Pricing Fixed tires : free, $0.99 , $1.99, $.2.99 ... Exchange rate fixed and controlled by Apple Price can be changed anytime Freemium model generates 72% of total revenues of paid apps
  16. 16. Milestones for app success solid content smart keywords choice(usability, functionality, entertainment) regular updates price drops
  17. 17. Search results: iOs Android 14% 19% function function search search name name search search 86% 81%
  18. 18. CASE STUDIESin collaboration with iStartApp
  19. 19. FileXChangereleased24 April 2011category:business
  20. 20. FileXChange: update effect Significant peak after Update the first update release DOWNLOADS Month average DATES
  21. 21. SpeakNotesreleased24 April 2011category:business
  22. 22. SpeakNotes: price drop effect Price Significant peak after drop halving the price from $1.99 to $0.99 DOWNLOADS Month average DATES
  23. 23. Acknowledgements Giuliana Scillia Niccolo’ Tosi Giorgia Taurino Ilaria Esposito Contacts info@istartapp.com www.istartapp.com

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