Karl Von Randow

The iPhone App Store

The iPhone App Store

iPhone 3G iPhone 3G launchlaunch11 July 200811 July 2008

App Store App Store launchlaunch11 July 200811 July 2008

11 Months Later...11 Months Later...

Part of the iTunes StorePart of the iTunes Store

Exclusive marketplace for iPhone Exclusive marketplace for iPhone applicationsapplications

70% / 30% revenue split with Apple70% / 30% revenue split with Apple

E-commerce includedE-commerce included

Bandwidth includedBandwidth included

What is the App Store?What is the App Store?

80 Countries80 Countries

30m iPhones & iPod Touches sold30m iPhones & iPod Touches sold

800m App downloads800m App downloads

50k Developers50k Developers

25k Applications25k Applications

How big was it?How big was it?

80 Countries80 Countries

40m iPhones & iPod Touches sold40m iPhones & iPod Touches sold

1,000m App downloads1,000m App downloads

50k+ Developers50k+ Developers

50k Applications50k Applications

How big is it now?How big is it now?

40 million40 millionpotential customerspotential customers

iPhone 3GSiPhone 3GSsold 1 millionsold 1 millionin first 3 daysin first 3 days

How does it work?How does it work?

You must have You must have an iPhone to an iPhone to

playplay

#1 rule#1 rule

Creating an AppCreating an App

Use an existing platformUse an existing platform

Develop something yourselfDevelop something yourself

App Store PresenceApp Store Presence

Listed in iTunes on desktop and in Listed in iTunes on desktop and in the App Store on iPhonethe App Store on iPhone

Icon, product description, screen Icon, product description, screen shotsshots

App Store PresenceApp Store Presence

Listed in iTunes on desktop and Listed in iTunes on desktop and App Store on iPhoneApp Store on iPhone

Icon, product description, screen Icon, product description, screen shotsshots

User reviewsUser reviews

Mobile FotosMobile FotosMy preciousMy precious

““Pretty disappointing”Pretty disappointing”

““Abominable”Abominable”

““stupid no use”stupid no use”

App Store PresenceApp Store Presence

Listed in iTunes on desktop and Listed in iTunes on desktop and App Store on iPhoneApp Store on iPhone

Icon, product description, screen Icon, product description, screen shotsshots

User reviewsUser reviews

No free trials or previews of appsNo free trials or previews of apps

App Store PresenceApp Store Presence

Appearance & availability can vary Appearance & availability can vary by regionby region

Popular or features apps vary by Popular or features apps vary by regionregion

Getting on to the App Getting on to the App StoreStore

Join the programme (US$99 / Join the programme (US$99 / annum)annum)

Contracts, Bank details & IRS tax Contracts, Bank details & IRS tax formsforms

Submit application for reviewSubmit application for review

Application ReviewApplication ReviewApplication ReviewApplication Review

Application ReviewApplication Review

Apple review all submissionsApple review all submissions

Terms & conditionsTerms & conditions

Unknown durationUnknown duration

3 days, 2 weeks, or more3 days, 2 weeks, or more

RejectionRejection

EucalyptusEucalyptusThings Made Out Things Made Out Of Other ThingsOf Other Things

ChangeabilityChangeability

App RatingsApp Ratings

4+4+ No objectionable material No objectionable material

9+ 9+ Mild or infrequent violence / Mild or infrequent violence / mature / horrormature / horror

12+12+ Infrequent mild language / Infrequent mild language / mature themes / simulated mature themes / simulated gambling, frequent violence gambling, frequent violence

17+ 17+ Frequent, intense, ...Frequent, intense, ...

In-App SalesIn-App Sales

Paid via iTunes = easy for Paid via iTunes = easy for customerscustomers

Sell a base application (not free)Sell a base application (not free)

Sell content inside the appSell content inside the app

Creates new business modelsCreates new business models

Pricing TiersPricing Tiers

FreeFree

US$0.99US$0.99

US$1.99, US$2.99, ..., US$999.99US$1.99, US$2.99, ..., US$999.99

70% / 30% revenue split70% / 30% revenue split

FinancialsFinancials

Paid monthly into bank accountPaid monthly into bank account

Up to 45 days after the end of Up to 45 days after the end of monthmonth

Paid in 6 currenciesPaid in 6 currencies

USD, CAD, GBP, EUR, AUD, JPYUSD, CAD, GBP, EUR, AUD, JPY

ReportingReporting

Daily sales reportsDaily sales reports

Monthly financial reportsMonthly financial reports

Small ScaleSmall Scale

Leverage existing platformLeverage existing platform

LegendsLegends

Time to market: 1 weekTime to market: 1 week

Promoted through social mediaPromoted through social media

50% revenue share50% revenue share

Low costsLow costs

CompetitionCompetition

Books category has ~5,000 apps Books category has ~5,000 apps (NZ)(NZ)

App on the front-page for ~2 daysApp on the front-page for ~2 days

Top sales are “Transformers”Top sales are “Transformers”

Sales stats are privateSales stats are private

Promoting iPhone AppsPromoting iPhone Apps

Promotion on Promotion on the App Store is the App Store is

hardhard

HallokittyHallokittyCactuslabCactuslab

““Leo sez ‘kick him in the Leo sez ‘kick him in the balls for me!’ after balls for me!’ after playing with HalloKitty.”playing with HalloKitty.”

HallokittyHallokittyDownloads / dayDownloads / day The RenaissanceThe Renaissance

““Haha im gonna get Haha im gonna get everyone with this app,everyone with this app,I almost sh!t my pants... I almost sh!t my pants... LoL”LoL”

Thanks & CreditsThanks & CreditsAdam Christopher, David Frampton, Layton Adam Christopher, David Frampton, Layton Duncan, John BallingerDuncan, John Ballinger

Flickr Creative Commons PhotosFlickr Creative Commons Photoshttp://www.flickr.com/photos/kitcowan/729969119/

http://www.flickr.com/photos/babamdogo/836974530/

http://www.flickr.com/photos/erikvanhannen/2475255345/

http://www.flickr.com/photos/superamit/130623447/http://www.flickr.com/photos/superamit/130623447/

http://www.flickr.com/photos/nicsuzor/2554668884/http://www.flickr.com/photos/nicsuzor/2554668884/

http://www.flickr.com/photos/valter/1158915892/http://www.flickr.com/photos/valter/1158915892/

http://www.flickr.com/photos/dirkhansen/3112059563/http://www.flickr.com/photos/dirkhansen/3112059563/

http://www.flickr.com/photos/the_justified_sinner/2498066986/http://www.flickr.com/photos/the_justified_sinner/2498066986/

http://www.flickr.com/photos/lorispindler/2559724403/http://www.flickr.com/photos/lorispindler/2559724403/