Estimating the Market Sizefor launching a new application
Device USERSNumber of sold iPhone:218 million units.Number of sold iPod Touch:60 million unit.Number of sold iPad:67.1 million units.** Apple Reports Quarter Results.
Cooking • 22, 755, 800Potential USERS Result peoplePeople interested incooking serchedthrough Facebook • United States, Canada,advertisong tool in the Ireland, United Kingdom,category Cooking Australia, India, Who live in Pakistan, Phillippins • 18 and older Aged
Cooking • 59, 762, 360 peoplePotential USERS ResultPeople searched inthe category iPad/iPhone •United States, Canada, Ireland, United Kingdom, Australia, India, Pakistan, Phillippins Who live inThus, 1 out of each4 iPhone/iPad usersare interested incooking (data • 18 and olderconsidered only in AgedEnglish-speakingcountries).
CUSTOMER’S VALUE An iPhone oriPad device costs $1 for an app reasonable price is $400-700
SELLING SYSTEMbased on in-app purchase Pays for additional Paly s with packs and is and options tests itThecustomergets the appfor free
MARKET SIZE CALCULATIONS345 million of devices1 user per each 4 devicesmakes 86.28 million users 21.57 million users interested in cooking 1 out of 4 device users are interested in cooking $1 in-app 10% of the users will do this in-app purchase while 90% will just use the free version $2.16 million