The Power of the AppStore
& Its Future Opportunities
Chi-Hua Chien
Partner, Kleiner Perkins Caufield & Byers
Friday, July 31, 2009

Internet vs. Mobile
4,000
PC Internet Users Mobile Phone Users
Millions of Active Users
3,000
2,000
1,000
0
2001 2002 2003 2004 2005 2006 2007 2008
Friday, July 31, 2009

Powerful Trends
Friday, July 31, 2009

iFund
$100,000,000
Friday, July 31, 2009

So How’s It Going?
Friday, July 31, 2009

iPod Became Ubiquitous
1.50
iPod Sales
Millions of Devices Sold
1.25
1.00
0.75
0.50
0.25
0
0 1 2 3 4 5 6 7 8
Quarters after Launch
Source: Apple Inc. Public Filings & Announcements
Friday, July 31, 2009

...But iPhone Dwarfs iPod
25
iPod Sales iPhone Sales
Millions of Devices Sold
20
15
10
5
0 1 2 3 4 5 6 7 8
Quarters after Launch
Source: Apple Inc. Public Filings & Announcements
Friday, July 31, 2009

iPhone is Changing Behavior
US Market iPhone
85%
% of US Mobile Subscribers
74%
70%
59%
50%
31%
13%
9%
6% 7%
5% 4%
Browsing News Web Search Mobile Video Social Networks Music Games
Sources: M:Metrics, 1/31/2008 Survey of U.S. mobile subscribers, n = 31,389 and KPCB estimates (games)
Friday, July 31, 2009

iTunes Is a Juggernaut...
400
iTunes Purchases
Millions of Downloads
300
200
100
0
0 100 200 300 400 500 600 700
Days after Launch
Source: Apple Inc. Public Filings & Announcements
Friday, July 31, 2009

...But AppStore Blows it Away
1,500
iTunes AppStore
Millions of Downloads
1,250
1,000
750
500
250
0 1 2 3 4 5 6 7 8 9 10 11 12
Months after Launch
Source: Apple Inc. Public Filings & Announcements
Friday, July 31, 2009

iFund Progress Report
Proposals Reviewed > 4000
Companies Met > 250
Actively Engaged >5
Funded 7
Friday, July 31, 2009

iFunded Companies
(+2 Unannounced)
Friday, July 31, 2009

Big Ideas to Consider
Mobile Commerce
Real-Time Everywhere & Anywhere
Local Search
Healthcare
Augmented Reality
Real-World Gaming
Friday, July 31, 2009

Q&A
Chi-Hua Chien
cchien@kpcb.com
Friday, July 31, 2009