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The iPhone App Store
iPhone 3G
launch
11 July 2008
App Store
launch
11 July 2008
11 Months Later...
What is the App Store?
Part of the iTunes Store
Exclusive marketplace for iPhone
applications
70% / 30% revenue split with Apple
E-commerce included
Bandwidth included
How big was it?
80 Countries
30m iPhones & iPod Touches sold
800m App downloads
50k Developers
25k Applications
How big is it now?
80 Countries
4 0 m iP h o n e s & iP o d
To u c h e s s o ld
1 , 0 0 0 m A p p d o w n lo a d s
50k+ Developers
5 0 k A p p lic a t io n s
4 0 m illio n
  p o t e n t ia l
c u s to m e rs
iP h o n e 3 G S
 s o ld 1 m illio n
in f ir s t 3 d a y s
How does it work?
#1 rule

 You must have
an iPhone to play
Creating an App


Use an existing platform
Develop something yourself
App Store Presence

Listed in iTunes on desktop and in the
App Store on iPhone
Icon, product description, screen shots
App Store Presence

Listed in iTunes on desktop and App
Store on iPhone
Icon, product description, screen shots
User reviews
Mobile Fotos
My precious
“ Pretty disappointing”
“ Abominable”
“ stupid no use”
App Store Presence

Listed in iTunes on desktop and App
Store on iPhone
Icon, product description, screen shots
User reviews
No free trials or previews of apps
App Store Presence


Appearance & availability can vary by
region
Popular or features apps vary by region
Getting on to the App Store


Join the programme (US$99 / annum)
Contracts, Bank details & IRS tax forms
Submit application for review
Application Review
Application Review

Apple review all submissions
Terms & conditions
Unknown duration
 3 days, 2 weeks, or more
Rejection
Eucalyptus
Things Made Out Of
Other Things
Changeability
App Ratings
4 + No objectionable material
9 + Mild or infrequent violence /
mature / horror
1 2 + Infrequent mild language / mature
themes / simulated gambling, frequent
violence
1 7 + Frequent, intense, ...
In-App Sales

Paid via iTunes = easy for customers
Sell a base application (not free)
Sell content inside the app
Creates new business models
Pricing Tiers

Free
US$0.99
US$1.99, US$2.99, ..., US$999.99
70% / 30% revenue split
Financials

Paid monthly into bank account
Up to 45 days after the end of month
Paid in 6 currencies
 USD, CAD, GBP, EUR, AUD, JPY
Reporting


Daily sales reports
Monthly financial reports
Small Scale
Leverage existing platform
 Legends
Time to market: 1 week
Promoted through social media
50% revenue share
Low costs
Competition

Books category has ~5,000 apps (NZ)
App on the front-page for ~2 days
Top sales are “Transformers”
Sales stats are private
Promoting iPhone Apps
Promotion on the
App Store is hard
Hallokitty
Cactuslab
“ Leo sez ‘kick him in the balls
for me!’ after playing with
HalloKitty.”
Hallokitty
Downloads / day   T Renaissance
                   he
“ Haha im gonna get everyone
with this app,
I almost sh!t my pants... LoL”
Thanks & Credits
Adam Christopher, David Frampton, Layton Duncan,
John Ballinger

Flickr Creative Commons Photos
 http://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/nicsuzor/2554668884/

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

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

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

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

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