Presentation on mobile App stores presented to the Medien Forum in Cologne, Germany on June 24, 2009

1. 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

2. You can get caught in it.

3. Try and protect yourself or.....

4. Embrace
it!

5. 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

6. 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

7. 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

8. 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

9. BUT WHO’S LOOKING TO TAKE A BIG
BITE OUT OF THE APPLE?

10. THE REST OF THE 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 WIN THE POT OF GOLD AT THE END OF
THE APP STORE REVENUE RAINBOW?
Stay tuned......

16. 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

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)
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22. WIP Partners and Customers