AppStore Economy session at the NASSCOM EMERGEOUT Conclave


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The "app economy" is a new generic buzz word that describes the value chain of the rapidly emerging new business model for software developers, technology providers and connectivity providers. The mobile AppStore - pioneered by Apple iPhone has become a phenomenan. Blackberry, Andriod, Nokia, Motorola have all launched appstores. Telecom providers - Vodaphone, Airtel, ATT have also launched appstores. Specialized application providers have their own stores.

The AppStore economy has yet to hit India in a big way. While some Indian product developers have already published their wares to global appStores, specific localized/customized solutions for Indian consumers has yet to hit mainstream. However, the imminent launch of 3G services in the country promises to lead to a blossoming of the appstore economy.

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  • Set the scene – telling what RIM sees the future of smartphone will be and how the application strategy fits into that
  • Set the scene – telling what RIM sees the future of smartphone will be and how the application strategy fits into that
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  • AppStore Economy session at the NASSCOM EMERGEOUT Conclave

    1. 1. EMERGEOUT 2010: App Store Economy Session Arvind Jha, CEO, Movico Technologies Rahul Tygai, Sr. Mgr. Cognizant Technologies Barnes Lam, Director, RIM Sridhar Muppidi, CEO, PurpleTalk Lokesh Gupta, CEO, Spice Labs
    2. 3. App Stores in Comparison iPhone AppStore Android AppMarket Blackberry AppWorld Palm App Catalog Nokia Ovi Store Windows Mobile Marketplace Launch Date 7/08 10/08 4/09 6/09 5/09 TBD # of Apps/ # New 250k+ 525/day 110k+ 600+/day 7K+ 500per month 1.5K+ 7K+ 800per month 2K Apps Downloaded 5B+ 30M per day 1.3B+ 1M per day 67M 1.5M per day ? # of Developers 50k+ 50k+ ? ? ? ? % Free 28% 62% 24% 32% 15% 22% Developer Share 70% 70% 70% 70% 70% 70%
    3. 4. Barnes Lam, Director – APAC Alliances Research in Motion [email_address]
    4. 5. About Research In Motion <ul><li>Research In Motion Limited </li></ul><ul><li>Canadian. Founded 1984. </li></ul><ul><li>550 Carriers/Partners. 175+ Markets. </li></ul><ul><li>Fortune Magazine, World’s Fastest Growing Company . </li></ul><ul><li>Revenues: US$14.95B (FY10, ending Feb 2010) </li></ul><ul><li>BlackBerry </li></ul><ul><li>Sold over 100M. 50M in last 18 months </li></ul><ul><li>No. 1 smart phone in the US </li></ul><ul><li>No. 2 in the world (Canalys, April 2010), </li></ul><ul><li>No. 4 mobile phone vendor (IDC, July 2010) </li></ul><ul><li>250,000+ Registered Developers . </li></ul><ul><li>BlackBerry Brand is 14th most valuable in the world (Millward Brown, April 2010) </li></ul>
    5. 6. The Smartphone of the future … Is about having the tools to power a new level of communication , collaboration and integration that will transform the way we work and live. It will empower us by making us more connected and engaged in every aspect of what we do.
    6. 7. Application Experience: A RIM Perspective When it comes to enterprise and consumer apps… We focus on enabling high value , empowering experiences
    7. 8. Super App Experience <ul><li>Always-on experience </li></ul><ul><li>Seamless integration with native apps and 3 rd party apps & Contextualized </li></ul><ul><li>Proactive, notification-driven </li></ul><ul><li>Social and connected </li></ul><ul><li>Efficient and intelligent </li></ul>
    8. 9. Where are the apps? ….. enterprise eUNO R 10 : ECG On Mobile “ I can do that on my BlackBerry?”
    9. 10. Apps for the individual
    10. 11. Super Apps Enablers <ul><li>Multi-threaded Operating System with background apps </li></ul><ul><li>APIs for deep, contextualized integration with Inbox, PIM, Camera, Phone, etc. </li></ul><ul><li>Rich event-based notification model </li></ul><ul><li>Push services for just-in-time data delivery </li></ul><ul><li>Platform to enable highly engaging , real-time apps that act as natural extensions to the apps they already use </li></ul>End-to-end solution: Smartphone, OS, App Dev Environment, Application Store, Enterprise Middleware, Accessories and Operator partnerships.
    11. 12. Developers are key! <ul><li>RIM’s commitment to increase our investment into </li></ul><ul><ul><li>Platform and Tools </li></ul></ul><ul><ul><ul><li>Comprehensive Resources, including Open Beta Programs for SDKs! </li></ul></ul></ul><ul><ul><ul><li>Dev days, forums, webinars </li></ul></ul></ul><ul><ul><li>Developer Community </li></ul></ul><ul><ul><ul><li>FREE Registered Developer Program </li></ul></ul></ul><ul><ul><ul><li>Super App challenge, rewards </li></ul></ul></ul><ul><ul><ul><li>Access local and world markets </li></ul></ul></ul><ul><ul><li>Strategic Partnerships </li></ul></ul><ul><ul><ul><li>Application consultant support and Joint Go to market plan with carriers, partners </li></ul></ul></ul><ul><ul><ul><li>Enable cross leverage of partners globally </li></ul></ul></ul>
    12. 13. India developers can drive mobile apps development globally <ul><li>Raise the bar - engage deeply with BlackBerry ecosystem, use the latest platform technology and create Super Apps </li></ul><ul><li>Cut cost and time to market - develop reusable components / middleware </li></ul><ul><li>Leverage the BlackBerry App World and market your applications </li></ul>
    13. 14. Mobile Apps – App Life Cycle <ul><li>App Life Cycle - Phases </li></ul><ul><li>Inception of idea </li></ul><ul><li>Market Analysis </li></ul><ul><ul><li>Feasibility of product and market segmentation </li></ul></ul><ul><ul><li>Pricing strategies </li></ul></ul><ul><ul><ul><li>Revenue model </li></ul></ul></ul><ul><ul><ul><li>Paid App </li></ul></ul></ul><ul><ul><ul><li>Free App </li></ul></ul></ul><ul><ul><li>Rollout/Promotion Strategies </li></ul></ul><ul><ul><li>Exit Strategies </li></ul></ul><ul><li>Development </li></ul><ul><ul><li>Flurry for analytics </li></ul></ul><ul><ul><li>AdMob Integration </li></ul></ul><ul><li>QA </li></ul><ul><ul><li>DeviceAnywhere </li></ul></ul><ul><ul><li>Mob4Hire </li></ul></ul><ul><li>App Certification </li></ul><ul><li>Launch </li></ul><ul><li>Market Feedback </li></ul><ul><li>App Life Cycle - Typical Timelines </li></ul><ul><li>Avg. complexity app can take 3-5 months from inception to launch </li></ul><ul><li>Inception and Market Analysis– 2 to 4 Weeks </li></ul><ul><li>Development and QA – 7-11 Weeks </li></ul><ul><li>App Certification – 2-4 weeks </li></ul><ul><li>Launch – 1 Week </li></ul>
    14. 15. Mobile App – Pricing Model and ROI <ul><li>Pricing :“Free MoApp Model” </li></ul><ul><li>Business Model </li></ul><ul><ul><li>Free App , Ad Impression based revenue model </li></ul></ul><ul><ul><li>Free Lite version App and charge for Pro versions </li></ul></ul><ul><li>Simple Free App </li></ul><ul><ul><li>Inception to Launch typical cost: $20000-30000 </li></ul></ul><ul><ul><li>3-6 months of ROI </li></ul></ul><ul><ul><li>Monetization with mobile ad provider i.e. $3 per 1000 Ad Impression </li></ul></ul><ul><li>Highly Successful Free App </li></ul><ul><ul><li>Android Task Killer , de-facto presence on Android devices, millions of downloads </li></ul></ul><ul><ul><li>Yelp, location based app for iPhone and Android </li></ul></ul><ul><li>Pricing: “Paid MoApp Model” </li></ul><ul><li>Business Model </li></ul><ul><ul><li>Price per download </li></ul></ul><ul><li>Simple Paid App </li></ul><ul><ul><li>Inception to Launch typical cost: $20000-30000 </li></ul></ul><ul><ul><li>3-6 months of ROI </li></ul></ul><ul><li>Highly successful Paid App </li></ul><ul><ul><li>Trism , Made $250000 in initial few days from launch! </li></ul></ul><ul><ul><li>Sling Player </li></ul></ul><ul><ul><li>Flight Track Pro </li></ul></ul><ul><li>Pricing: “Hybrid MoApp Model” </li></ul><ul><li>Business Model </li></ul><ul><ul><li>Free app and up sell content during usage of app, called as “ Freemium ” i.e. social games </li></ul></ul><ul><ul><li>Subsidized price per download and earn revenue from Ad impressions </li></ul></ul><ul><li>Simple Hybrid App, Hybrid apps are typically costlier </li></ul><ul><ul><li>Inception to Launch typical cost: $30000-50000 </li></ul></ul><ul><ul><li>3-6 months of ROI </li></ul></ul><ul><li>Highly successful Hybrid App </li></ul><ul><ul><li>Mafia War </li></ul></ul><ul><ul><li>FarmVille </li></ul></ul>
    15. 16. Mobile Apps Marketing Sridhar Muppidi, CEO, PurpleTalk [email_address]
    16. 17. The 20-80 Rule <ul><li>Development (20) / Marketing (80) </li></ul><ul><li>Idea to App/Product (at least 5-10 people are working on the same idea) </li></ul><ul><li>UI Design and UX are the most important </li></ul><ul><li>Focus on simplicity </li></ul><ul><li>Clearly know the direction your app would take in the upcoming 4-5 releases </li></ul>
    17. 18. <ul><li>Rank is everything in App Store--Focus on getting to top 25 Rank in a category </li></ul><ul><li>Factors that determine rank: </li></ul><ul><li>1) # of downloads (regular updates & push notification) </li></ul><ul><li>2) Price (1.99 has 30% less downloads then .99 cents) </li></ul><ul><li>3) Rating (not proven but works: use appirater API) </li></ul><ul><li>TOP 5 MARKETING STRATEGIES </li></ul><ul><li>1) App Advertising </li></ul><ul><li>Tapjoy (offer wall) Apperang (cash for Install) </li></ul><ul><li>Flurry (ads & offer wall) OpenfeintX (offer wall) </li></ul><ul><li>ad networks </li></ul>Marketing Basics
    18. 19. <ul><li>2) App Store Marketing </li></ul><ul><li>Logo </li></ul><ul><li>Name </li></ul><ul><li>Price </li></ul><ul><li>Keywords </li></ul><ul><li>Great design & regular updates can get you featured </li></ul>Text <ul><li>3) Online & social media Marketing </li></ul><ul><li>Website </li></ul><ul><li>SEO </li></ul><ul><li>YouTube & SlideShare </li></ul><ul><li>Twitter account & Facebook fan page </li></ul>What to do on AppStore 4) International marketing (increases your downloads by almost 50%) 5) Great Support a) Respond back to any support requests immediately b) Monitor App Store your comments section c) Monitor social networks, social media sites and discussion broads
    19. 20. <ul><li>Example flow to launch an App </li></ul><ul><li>Set up Twitter account well before launch </li></ul><ul><li>Follow and RT interesting people </li></ul><ul><li>Set up Facebook fan page </li></ul><ul><li>Upload demo video to Youtube </li></ul><ul><li>Upload demo to SlideShare </li></ul><ul><li>Make app screenshots available on site for easy download </li></ul><ul><li>Reach out to ALL the relevant blogs that you can find, and request reviews in advance. </li></ul><ul><li>Make sure your website has contact info for your users </li></ul>Text <ul><li>Example flow after an app featured </li></ul><ul><li>Update iTunes Description, website, FB page, etc. </li></ul><ul><li>Release an update </li></ul><ul><li>Respond user comments through updates </li></ul><ul><li>Always keep Tapjoy etc. APIs integrated. when the app is featured, you can implement major promotion easily </li></ul><ul><li>Drop the price slightly--or substantially--till you see a spike in downloads </li></ul><ul><li>Make the app free for a few hours or a weekend if you can-getting to no. 1 will be worth it </li></ul><ul><li>Get the app icon to display ‘limited offer’ etc. if possible. </li></ul>Checklists, anyone?
    20. 21. Mobile Apps – Top Categories Category % Share Games 20% Entertainment 14% Books 12.5% Travel 6.7% Utilities 6.5% Education 6.5% LifeStyle 5.6% Others Balance
    21. 22. Child’s Play Lokesh Gupta, CEO, Spice Labs [email_address]
    22. 23. Paradox Of Choice
    23. 24. The Only Problem Was Where To Start ?
    24. 25. We Started from End User But not the Obvious one
    25. 26. Mobile Apps For KIDS?: You Got To Be Kidding ? No. We Are Not
    26. 27. We Looked Around
    27. 28. We Looked Around
    28. 29. We Looked Around
    29. 30. KIDS Were Hooked To Cell Phone
    30. 31. And The World Agreed With Us
    31. 32. We Took Some Baby Steps to Capture this Niche
    32. 33. Kiddo (C) Spice Labs
    33. 34. (C) Spice Labs
    34. 35. (C) Spice Labs
    35. 36. (C) Spice Labs
    36. 37. (C) Spice Labs
    37. 38. Hangman Kids (C) Spice Labs
    38. 39. (C) Spice Labs
    39. 40. Maze (C) Spice Labs
    40. 41. (C) Spice Labs
    41. 42. (C) Spice Labs
    42. 43. (C) Spice Labs
    43. 44. Parting Note :Know Thy Customer
    44. 45. Thank you!