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Economic Primer on App Development


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This slide deck is for people who are newcomers to app development, but are interested in building one.

While the first part of the deck has some numbers and history useful for anybody, the second part is just some guidance to students on how to get started with app development.

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Economic Primer on App Development

  1. 1. App SchoolThe Economics Of App Development Feb 10, 2012 Amarpreet Kalkat
  2. 2. The Growth Of App Economy 2016 $52 billion 2012 (Juniper Research) $17 billion 2008 (Chetan Sharma Consulting) Another Industry 2007 Fad Unknown Term
  3. 3. App Usage
  4. 4. Why?• Every app is one more reason to consider buying a phone• Increases phone productivity by a few 100 times• Personalization - an opportunity to have your device just the way you like it
  5. 5. Relative Number Of Apps Platform Number of Apps iOS 5,50,000+ Android 4,00,000+ Windows 50,000+There s a lot of competition out there.
  6. 6. Free v/s Paid Platform % of Free Apps iOS 37% Android 67% Windows 61%Only 13% of downloads however are paid ones.
  7. 7. Current Shares (In US)
  8. 8. India v/s World Item India World Total no. of internet users 121 million ~2 billion Mobile Internet Users 60+ million 500+ million % of Mobile Internet users 50 -60% ~25%• India has the 3rd highest number of internet users in the world after US and China.• Mobile usage expected to drive the internet in India.
  9. 9. A Few Specific Angles
  10. 10. The Windows Phone Angle
  11. 11. The Windows Phone Angle• Big incentives being doled out – Free device for every 3 submissions – Free device for each submission by a female developer• Promotions expected to continue
  12. 12. The Tablet Angle• The growing popularity of tablet devices means a greater share of app revenue• Expected to go up from 7% of the total global app revenue today to 25% by 2016• iPad Kindle rivalry helping the cake become bigger
  13. 13. The Web App Angle• App store model expected to come under threat with the emergence of HTML5• Offers great opportunities for content publishers to offer content on-site rather than be reliant on storefront distribution• Web apps great for standardization, native apps for leveraging phone capabilities
  14. 14. What To Develop?
  15. 15. Revenue ModelsPaid Download• Direct monetization, but marketing is difficult• Works well with gaming, weather and utilities usuallyAdvertising• Can drive more revenue than paid, but only if the user base becomes large enoughIn-App Purchase• Requires some repeat usage• One of the faster growing modelsPartnership/Sponsorship• Used for niche apps• Not a very common model
  16. 16. Deciding What To Develop
  17. 17. Which Platform To Start With• Start with the technology you are comfortable with• iOS development cost is a little higher than others• Device is the bigger cost, go with what you have or can borrow from friends
  18. 18. What Idea Do I Start With• A simple one is better than a complex one• Something that scratches your own itch• POC in a week, release in a month. Anything longer is not simple enough• You don’t have to be the first one• Idea has 0 value, unless you build it out
  19. 19. What Is In It For Me• Would improve your programming skills more than anything else could• Good companies LOVE people who have some code to show• You never know what might take off
  20. 20. Thank