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Ios game apps market intro

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Ios game apps market intro

  1. 1. iOS games – Market Intro Purpose: The purpose of the presentation is to give an introduction to the iOS applications market especially theiPhone and iPad games market for a person considering to invest into the market any means. Prepared by Barath Kumar
  2. 2. App Store• The Appstore is an online market place developed and maintained by Apple Inc.• Opened on July 10, 2008• Sellers are developers who develop and sell application for apple devices like ipod touch, iphones and ipads• Buyers are consumers and businesses that buys the application• Apple Inc. takes a cut of 30% of sales made by developers in the Appstore market
  3. 3. The App Economy• More than 700,000 apps in apple appstore as of Dec2012• More than 35 billion app downloads since launch in2008 July• Apple Inc. paid over $6.5 billion in royalties to thedevelopers
  4. 4. Games• App store has a number of categories under which the apps for iphone/ipad are sold• Books, business, health, entertainment, games, etc are popular categories• Games category has proved to be the cash king in app store• Games category contributes – 62% of iPhone apps total gross revenue – 48% of iPad apps total gross revenue
  5. 5. Apps by Category ChartCategory iPhone iPadAll Free Paid Grossing Free Paid GrossingBooks 1.00% 0.75% 1.25% 3.75% 3.25% 4.75%Business 1.75% 2.75% 2.25% 2.00% 4.00% 4.75%Education 1.75% 2.25% 1.75% 6.25% 11.50% 5.00%Entertainme 13.50% 11.00% 5.00% 11.25% 7.00% 4.00%ntFinance 2.50% 1.00% 0.50% 2.25% 0.50% 0.50%Games 36.25% 45.75% 62.00% 35.00% 42.75% 48.25%Health 3.25% 5.50% 2.00% 2.00% 1.75% 1.50%Lifestyle 6.50% 3.00% 2.00% 8.00% 2.75% 5.00%Medical 0.00% 0.25% 0.50% 0.00% 0.25% 1.25%Music 4.25% 3.50% 3.75% 3.25% 1.75% 2.25%Navigation 0.75% 1.50% 2.25% 0.25% 0.50% 0.75%News 1.50% 0.50% 0.50% 4.75% 1.25% 4.75%Photo 3.75% 6.75% 2.50% 2.00% 2.75% 1.25%Productivity3.25% 2.50% 2.25% 4.50% 9.00% 9.25%Reference 1.75% 2.00% 1.50% 2.25% 1.75% 1.50%Social 7.25% 3.25% 3.75% 3.00% 1.50% 1.00%Sports 1.00% 0.25% 1.00% 1.50% 0.25% 0.50%Travel 3.75% 0.25% 1.00% 2.50% 0.75% 0.50%Utilities 6.00% 6.00% 3.75% 4.25% 5.75% 2.75%Weather 0.25% 1.25% 0.50% 1.25% 1.00% 0.50%
  6. 6. Top Grossing apps – Example 1• TapTap Revenge by Tapulous Inc.• Making over $1 million a month in 2009• Acquired by Walt Disney for an undisclosed amount in 2010• Over 35 million downloads by 2011
  7. 7. Top Grossing apps – Example 2• Draw Something by OMGPOP• Made $200,00 0 a day during its peak sales in 2010• Acquired by Zynga for 180 million dollars• Over 50 million downloads by 2011
  8. 8. Top Grossing apps – Example 3• Angry Birds by Rovio Entertainment• Over 1 billion downloads across all its platforms• Combined revenue of $106 million in 2011 from games download and merchandise• Looking at IPO in 2013 – expected valuation of $9 billion
  9. 9. Top Grossing apps – Example 4• Fruit Ninja by HalfBrick• Over 300 million downloads• Crosses a revenue of $ 1 million per month in 2012• $400,000 per month of the $1 million comes from ads
  10. 10. Top Grossing apps – Example 5• Doodle Jump by Lima Sky• Over 10 million downloads by Dec 2011• Launched in March 2009• Crossed a revenue of $ 3 million by 2010
  11. 11. Summary• App developers are making millions - one of the most scalable business models -Access to huge market because of app store distribution capacity• Revenue comes from app downloads, in-app purchases and advertisements• Things to be aware – 50 % of app developers don’t break even – Top 10% of game developers capture 1/3 of revenue from gaming apps
  12. 12. Reference URL’s• http://www.apple.com/about/job-creation/• http://www.somegeekintn.com/blog/2012/02/app-store-category-breakdown/• http://adage.com/article/digital/mobile-app-economics-fruit-ninja-makes-400- 000-a-month-ads/235965/• http://techcrunch.com/2010/03/08/never-ending-goldrush-doodle-jump-for- iphone-smashes-through-3-million-sales/• http://www.investopedia.com/slide-show/million-dollar-apps/#axzz2G1Ad8DiE• http://www.theappside.com/2012/07/16/fruit-ninja-making-1m-a-month-in- revenues/• http://www.pcmag.com/article2/0,2817,2404012,00.asp

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