The document analyzes pricing and popularity trends for apps on the Apple App Store. It finds that most popular apps are free or priced at $0.99. However, popularity does not always correlate with profitability. The top grossing games tend to be from established developers and priced around $5. Established brands and a moderate price point around $5 seem to offer a good balance of popularity and profitability. The document also segments mobile gamers and finds consumers most comfortable paying $6 or less for apps.

1. Situation Analysis RESEARCH OF APPLE APPS Feb, 2009 Price & Popularity X axis: price Y axis: popularity Mostly popular apps are priced 99cent or Free. But the most popular game on the rank doesn’t mean that it is most profitable game. Nearly all of the top ten are by established players in the game market. When it comes to making money, the low price strategy temporarily help entering, not positioning in the market. The important things are building a brand value and be established. <Source: www.mobileorchard.com>

3. Even the popularity of iHunt is highest the revenue is lowest.The spot of higher profit and lower risk is around $5.00 where No. 1 game positioned.

4. Situation Analysis Segmentation of Mobile gamer Early Adapter Hardcore Gamer Hardcore Gamer Slow Adapter Target Active Gamer Active Gamer Casual Gamer Casual Gamer Hardcore Gamer Early Adapter Age: Late 10s to early 20s Aggressive consumers, much spare time Fully get involved Preference: High Technologies Willing to pay for Apps: High Preference: function, special features regardless of brands Spending much time on learn patterns in games Active Gamer Slow Adapter Willing to pay for Apps: Normal Preference: Hit Apps, Brands Prefer the balance btw challenges and rewards Age: Late 20s to early 40s Busy professionals, relatively high interests in digital device Short using time, limited involvement Preference: Casual, practical playfulness Casual Gamer Willing to pay for Apps: Low Preference: Traditional casual games No challenge, gaming for relief or killing time

5. Situation Analysis Positioning of Top 10 games Price $10.00 Rank Rank 1 1 Lux Touch Rolando 2 2 Galcon Hero of Sparta $7.50 3 3 Wurdle Field runners 4 4 Trism Real Soccer 2009 5 5 iShoot Toy bot Diaries $5.00 6 6 Tapple X-Plain 9 7 7 Top Defence Spore Origins 8 8 Cube Runner Asphalt 4 9 9 Word Warp Trism $2.50 10 10 Jelly Car Crash Bandicoot <Source: www.wired.com> <Source: www.bostonherald.com> Rank Rank 1 Rank 10 In accordance with newly updated rank, average price of application is getting higher and also the reviews from consumers are more positive to paid apps. Recently, regardless of the quality of games, game developers tend to decide the price line higher than before.