IT’S RAINING APP STORES –
       HALLELUJAH?
      Surviving the App Storm




       Caroline Lewko, CEO, WIP
          info@wipconnector.com
                                  Medien Forum, Cologne, Germany
                                         Mobile Media Marketplace
         www.wipconnector.com                      14.00 – 14:15
           www.wipwiki.com          Wednesday, June 24, raum.vier
           www.wipjam.com
You can get caught in it.
Try and protect yourself or.....
Embrace
  it!
HISTORY LESSON on APP STORES


           Nothing new – around since
             2001 (Palm, Handango...)_

           But limited success because:
           • Complex certification
           • Varied billing / revenue
             share models.
           • Cost / effort outweighing
             potential profits!
           • Smaller markets
           • Less awareness
WHAT’S THE BIG DEAL
– global issues drive the magnitude of the opportunity,
4 births per second, 25 mobile phone sold per second
The biggest product phenomena in history

                                     The Opportunity:
                                     110 M iPods
                                     800 M Cars
                                       1 B Personal computers
                                      1.2 B Internet users
                                       3.6 B Mobile phones
NOW ITS RAINING APP STORES!
•   It’s also hailing devices &
    more sophisticated devices
    (ala smart phones and feature
    phones)
•   Network speeds increasing
    (2.5/3G)
•   Mobile-app store users to
    quadruple in 2013 as 100
    million of all smartphone
    users will be able to access
    mobile-application stores
•   Mobile Developer Community
    has exploded
APPLE CHANGED THE RULES
                     They made it easy
RECIPE FOR SUCCESS:
Apps written for and marketed toward a
specific type of device (1) – simple
certification & submission
Integrated discovery, installation and billing
experience
Apps are approved and sold with one time fee
with free updates
Store operator takes fixed percentage –
transparent billing
Cross carrier international reach, simplified
targeting
Brand and marketing
BUT WHO’S LOOKING TO TAKE A BIG
    BITE OUT OF THE APPLE?
THE REST OF THE MOB
App Stores List

CURRENT
     –   Apple AppStore (iPhone) - www.apple.com/iphone/appstore
     –   Windows Mobile Catalogue (Microsoft Windows Mobile) -
         http://www.microsoft.com/windowsmobile/catalog/cataloghome.aspx
     –   Blackberry App World (RIM) - www.blackberry.com/appworld/
     –   Android Market (Android) - http://www.android.com/market/
     –   Orange App Shop http://orangestore.cellmania.com/orange/applications.do
     –   Nokia OviStore (Nokia) – http://store.ovi.com
     –   Samsung Mobile Applications (multiplatform, powered by Pocket Gear) –
         http://applications.samsungmobile.com
     –   GetJar (multiplatform) - http://www.getjar.com
     –   Handango (mulitplatform) - http://www.handango.com
     –   PocketGear (multiplatform) - http://www.pocketgear.com/

COMING SOON TO A STORE NEAR YOU!
    – Sky Market (Microsoft Windows Mobile)
      http://www.guardian.co.uk/technology/blog/2008/sep/01/microsoftskymarketcomingfor
    – Java Store (Sun Microsystems) - http://www.vnunet.com/vnunet/news/2242726/sun-world-biggest-
      application
    – Carphone Warehouse http://www.carphonewarehouse.com/mobiles/new-and-exclusive/snapp
    – WeFiApps - http://wefiapps.com/



                            And lots more not announced yet….
SOME NOTABLES




•   477 million subscribers    •   109 country rollout in 1   •   1 billion downloads in
•   New homegrown                  day                            9 months
    standard (TD-SCDMA)        •   60 devices                 •   50,000 apps
    and OMS platform based     •   50 million phones S60
    on Android)                                               •   40 million phones
                               •   (468m last yr sales)
•   50% rev share                                             •   70% rev share
                               •   100 new apps/day
                               •   %70 rev share
SOME NOTABLES




•   280 million subscribers    •   Free apps           •   Min. price $2.99
•   ‘Geo-targeting’            •   Advertising model   •   80% dev share
•   Widgets


NOT LIVE YET
SURVIAL TIPS !
•   Define your market.. or not (iphone good for trial,
    and others brining on beta sandboxes)

•   Choose your market region, don’t forgot
    about UX and Localization
•   Pick your platform – lots of tools for porting
•   Check out the charges, time to launch,
    payment timing, revenue model
•   Are you happy with developer resources
    provided
•   Pricing – free now/pay later, coupons, micropayments,
    beware of price sensitivity

•   Get noticed – bloggers and social media may be short
    lived

•   Monogamy is overrated – don’t limit yourself to one
    store/one operator

•   Submit app + cross fingers +Watch $$ roll in
    ☺
WHO WILL WIN THE POT OF GOLD AT THE END OF
    THE APP STORE REVENUE RAINBOW?




                                Stay tuned......
APPENDIX – Other Useful Links and
                       Tables


USEFUL LINKS
http://gizmodo.com/5199933/giz-explains-all-the-smartphone-mobile-app-stores
http://www.fiercewireless.com/story/lowenstein-evolution-app-store-business-model/2009-04-29
http://www.visionmobile.com/blog/2008/11/the-mobile-application-store-phenomenon/
http://www.mobilechoiceuk.com/News/Orange+launches+its+own+Application+Shop/3182
http://www.themda.org/mda-blog/Will-App-Stores-castrate-the-Mobile-Operators-.html?blogger=Nick
Apple App      Nokia      Blackberry App  Microsoft Mobile    Android                               China 
Program Name   Store          OviStore   World           Catalogue           Market       Handango      GetJar     Mobile
                                                                             Android 
Platform       iPhone         S60        Blackberry     Windows Mobile       Market       Multi OS      Multi OS   Multi OS
                                                                                                                   477M 
Install Base   30M            200M       21M            20M                  N/A          N/A           N/A        Subscribers
Developer 
Margin         70%            70%        80%            70%                  70%          60%           ad‐based   50%
Global 
Marketplace    Yes            Yes        Partial        Yes                  Partial      Yes           Partial    Partial

Distribution   OEM            OEM        OEM            Other                Other        Other / OEM Other / OEM Operator
On‐device 
dicovery       Yes            Yes        Yes            Yes                                                        N/A
Developer 
Resources      Yes            Yes        Yes            Yes                  Yes          FAQ's         Forum / KB N/A

               $99, Enterprise 
Program Fee    $299           Free       No             $99                  $25          No            Free       N/A



                                                        $99 per app, five                 Varies Per 
App Signing Fee No            Yes        No             free initially       ??? No ???   Platform      Free       N/A
App Submission                           $200 for 10 
Fee             No            Free       apps           Free                 Free         Free          Free       N/A



                        Gathered for WIP by John Wyer from various web sources.
Apple                 Microsoft           Blackberry App World           Android
                                                                                                                        Nokia
                  AppStore               (Marketplace)                (RIM)                   Market
                                                                                                                       Ovi Store
                   (iPhone)
JOINING       Standard Program
FEE            US$99, Enterprise
                                                                                       US$25 - but only
                 Program (for
                                            US$99              US$200 (includes ten available to developers
             companies with over                                                                                           €50
                                           annually             app submissions).    in the US and UK at
              500 staff to develop
                                                                                            present
             iPhones for in-house
                use) is US$299
PRICE PER                                    US$99
APP                                   Five free apps until        US$200 for ten
                                         close of 2009.             application
                    FREE               App updates are             submissions.                 FREE                     FREE
                                       charged as new          App updates count as
                                          applications         separate submissions

MARGINS
                                                                                                                  Developers receive 70
            Developer earns 70 per                                             Developers receive 70               per cent of sale, net
                  cent of sale.                                                   per cent of sale.              refunds and returns and
             Apple keeps 30 per    Developers receive 70 Developers receive 80 Google says the 30 per             minus taxes for credit
              cent for profit and     per cent of sale      per cent of sale    cent is to pay carriers           card sales and minus
            payment of credit card                                              and billing settlement            taxes + fixed operator
               interchange fees                                                          costs.                   costs for direct mobile
                                                                                                                      account billing

TERMS                                                           Customers purchase                                Customers purchase
                                     Customers purchase
             Developers paid via                                   using PayPal.                                  via credit card or via
                                       via credit card                                  Credit card processing
            monthly direct deposit                              Developers paid via                               their phone bill with
                                     Other options being                                via Google Checkout
             into bank account                                        PayPal.                                     participating mobile
                                          explored.
                                                                                                                    phone operators
MARKET
                                         Undisclosed.
SIZE        30 million devices (17m
                                    18 million licenses sold    21 million Blackberry                               50 million Nokia
              iPhones, 14m iPod                                                                  N/A
                                             in 2008                subscribers                                    devices worldwide
             Touch) as of Dec 08
                                     for Windows Phones
MARKET
                                                               United States, Canada
REACH           App Store in 77
                                             Global                and the United          US and UK only                Global
                  Countries
                                                                      Kingdom
DEVELOPER
                    50,000                  480,000                    1000+                     N/A                Several thousand
BASE
RESOURCES          developer           Windows Mobile          BlackBerry App World          developer.                  publish.
                  .apple.com           Developer Center               FAQ's                 android.com                  ovi.com

                      Source: http://www.itnews.com.au/Tools/Print.aspx?CIID=141524
Table 3 - http://www.visionmobile.com/blog/2008/11/the-mobile-application-store-phenomenon/
Table 4 – http://www.visionmobile.com/blog/2008/11/the-mobile-application-store-phenomenon/
Presented by:
        Caroline Lewko, CEO
Wireless Industry Partnership (WIP)


www.wipconnector.com
- Connecting Mobile Developers to information, resources and
people to help them get to market faster and smarter.
- Developer Program strategy and support.

www.wipjam.com
Next World Tour Stops
 -June: Singapore, Amsterdam, Berlin, Marseille
- July: San Jose (Verizon)
- September: Amsterdam (OSiM)
- October: San Diego (CTIA)
- February: Barcelona (MWC)

www.wipwiki.com
The best resource site for mobile developers




                 @Mobilejam
                 #wipjam
WIP Partners and Customers

It's Raining App Stores

  • 1.
    IT’S RAINING APPSTORES – HALLELUJAH? Surviving the App Storm Caroline Lewko, CEO, WIP info@wipconnector.com Medien Forum, Cologne, Germany Mobile Media Marketplace www.wipconnector.com 14.00 – 14:15 www.wipwiki.com Wednesday, June 24, raum.vier www.wipjam.com
  • 2.
    You can getcaught in it.
  • 3.
    Try and protectyourself or.....
  • 4.
  • 5.
    HISTORY LESSON onAPP STORES Nothing new – around since 2001 (Palm, Handango...)_ But limited success because: • Complex certification • Varied billing / revenue share models. • Cost / effort outweighing potential profits! • Smaller markets • Less awareness
  • 6.
    WHAT’S THE BIGDEAL – global issues drive the magnitude of the opportunity, 4 births per second, 25 mobile phone sold per second The biggest product phenomena in history The Opportunity: 110 M iPods 800 M Cars 1 B Personal computers 1.2 B Internet users 3.6 B Mobile phones
  • 7.
    NOW ITS RAININGAPP STORES! • It’s also hailing devices & more sophisticated devices (ala smart phones and feature phones) • Network speeds increasing (2.5/3G) • Mobile-app store users to quadruple in 2013 as 100 million of all smartphone users will be able to access mobile-application stores • Mobile Developer Community has exploded
  • 8.
    APPLE CHANGED THERULES They made it easy RECIPE FOR SUCCESS: Apps written for and marketed toward a specific type of device (1) – simple certification & submission Integrated discovery, installation and billing experience Apps are approved and sold with one time fee with free updates Store operator takes fixed percentage – transparent billing Cross carrier international reach, simplified targeting Brand and marketing
  • 9.
    BUT WHO’S LOOKINGTO TAKE A BIG BITE OUT OF THE APPLE?
  • 10.
    THE REST OFTHE MOB
  • 11.
    App Stores List CURRENT – Apple AppStore (iPhone) - www.apple.com/iphone/appstore – Windows Mobile Catalogue (Microsoft Windows Mobile) - http://www.microsoft.com/windowsmobile/catalog/cataloghome.aspx – Blackberry App World (RIM) - www.blackberry.com/appworld/ – Android Market (Android) - http://www.android.com/market/ – Orange App Shop http://orangestore.cellmania.com/orange/applications.do – Nokia OviStore (Nokia) – http://store.ovi.com – Samsung Mobile Applications (multiplatform, powered by Pocket Gear) – http://applications.samsungmobile.com – GetJar (multiplatform) - http://www.getjar.com – Handango (mulitplatform) - http://www.handango.com – PocketGear (multiplatform) - http://www.pocketgear.com/ COMING SOON TO A STORE NEAR YOU! – Sky Market (Microsoft Windows Mobile) http://www.guardian.co.uk/technology/blog/2008/sep/01/microsoftskymarketcomingfor – Java Store (Sun Microsystems) - http://www.vnunet.com/vnunet/news/2242726/sun-world-biggest- application – Carphone Warehouse http://www.carphonewarehouse.com/mobiles/new-and-exclusive/snapp – WeFiApps - http://wefiapps.com/ And lots more not announced yet….
  • 12.
    SOME NOTABLES • 477 million subscribers • 109 country rollout in 1 • 1 billion downloads in • New homegrown day 9 months standard (TD-SCDMA) • 60 devices • 50,000 apps and OMS platform based • 50 million phones S60 on Android) • 40 million phones • (468m last yr sales) • 50% rev share • 70% rev share • 100 new apps/day • %70 rev share
  • 13.
    SOME NOTABLES • 280 million subscribers • Free apps • Min. price $2.99 • ‘Geo-targeting’ • Advertising model • 80% dev share • Widgets NOT LIVE YET
  • 14.
    SURVIAL TIPS ! • Define your market.. or not (iphone good for trial, and others brining on beta sandboxes) • Choose your market region, don’t forgot about UX and Localization • Pick your platform – lots of tools for porting • Check out the charges, time to launch, payment timing, revenue model • Are you happy with developer resources provided • Pricing – free now/pay later, coupons, micropayments, beware of price sensitivity • Get noticed – bloggers and social media may be short lived • Monogamy is overrated – don’t limit yourself to one store/one operator • Submit app + cross fingers +Watch $$ roll in ☺
  • 15.
    WHO WILL WINTHE POT OF GOLD AT THE END OF THE APP STORE REVENUE RAINBOW? Stay tuned......
  • 16.
    APPENDIX – OtherUseful Links and Tables USEFUL LINKS http://gizmodo.com/5199933/giz-explains-all-the-smartphone-mobile-app-stores http://www.fiercewireless.com/story/lowenstein-evolution-app-store-business-model/2009-04-29 http://www.visionmobile.com/blog/2008/11/the-mobile-application-store-phenomenon/ http://www.mobilechoiceuk.com/News/Orange+launches+its+own+Application+Shop/3182 http://www.themda.org/mda-blog/Will-App-Stores-castrate-the-Mobile-Operators-.html?blogger=Nick
  • 17.
    Apple App  Nokia  Blackberry App  Microsoft Mobile  Android  China  Program Name Store OviStore World Catalogue Market Handango GetJar Mobile Android  Platform iPhone S60 Blackberry Windows Mobile Market Multi OS Multi OS Multi OS 477M  Install Base 30M 200M 21M 20M N/A N/A N/A Subscribers Developer  Margin 70% 70% 80% 70% 70% 60% ad‐based 50% Global  Marketplace Yes Yes Partial Yes Partial Yes Partial Partial Distribution OEM OEM OEM Other Other Other / OEM Other / OEM Operator On‐device  dicovery Yes Yes Yes Yes N/A Developer  Resources Yes Yes Yes Yes Yes FAQ's Forum / KB N/A $99, Enterprise  Program Fee $299 Free No $99 $25 No Free N/A $99 per app, five  Varies Per  App Signing Fee No Yes No free initially ??? No ??? Platform Free N/A App Submission  $200 for 10  Fee No Free apps Free Free Free Free N/A Gathered for WIP by John Wyer from various web sources.
  • 18.
    Apple Microsoft Blackberry App World Android Nokia AppStore (Marketplace) (RIM) Market Ovi Store (iPhone) JOINING Standard Program FEE US$99, Enterprise US$25 - but only Program (for US$99 US$200 (includes ten available to developers companies with over €50 annually app submissions). in the US and UK at 500 staff to develop present iPhones for in-house use) is US$299 PRICE PER US$99 APP Five free apps until US$200 for ten close of 2009. application FREE App updates are submissions. FREE FREE charged as new App updates count as applications separate submissions MARGINS Developers receive 70 Developer earns 70 per Developers receive 70 per cent of sale, net cent of sale. per cent of sale. refunds and returns and Apple keeps 30 per Developers receive 70 Developers receive 80 Google says the 30 per minus taxes for credit cent for profit and per cent of sale per cent of sale cent is to pay carriers card sales and minus payment of credit card and billing settlement taxes + fixed operator interchange fees costs. costs for direct mobile account billing TERMS Customers purchase Customers purchase Customers purchase Developers paid via using PayPal. via credit card or via via credit card Credit card processing monthly direct deposit Developers paid via their phone bill with Other options being via Google Checkout into bank account PayPal. participating mobile explored. phone operators MARKET Undisclosed. SIZE 30 million devices (17m 18 million licenses sold 21 million Blackberry 50 million Nokia iPhones, 14m iPod N/A in 2008 subscribers devices worldwide Touch) as of Dec 08 for Windows Phones MARKET United States, Canada REACH App Store in 77 Global and the United US and UK only Global Countries Kingdom DEVELOPER 50,000 480,000 1000+ N/A Several thousand BASE RESOURCES developer Windows Mobile BlackBerry App World developer. publish. .apple.com Developer Center FAQ's android.com ovi.com Source: http://www.itnews.com.au/Tools/Print.aspx?CIID=141524
  • 19.
    Table 3 -http://www.visionmobile.com/blog/2008/11/the-mobile-application-store-phenomenon/
  • 20.
    Table 4 –http://www.visionmobile.com/blog/2008/11/the-mobile-application-store-phenomenon/
  • 21.
    Presented by: Caroline Lewko, CEO Wireless Industry Partnership (WIP) www.wipconnector.com - Connecting Mobile Developers to information, resources and people to help them get to market faster and smarter. - Developer Program strategy and support. www.wipjam.com Next World Tour Stops -June: Singapore, Amsterdam, Berlin, Marseille - July: San Jose (Verizon) - September: Amsterdam (OSiM) - October: San Diego (CTIA) - February: Barcelona (MWC) www.wipwiki.com The best resource site for mobile developers @Mobilejam #wipjam
  • 22.