The iPhone App Store Opportunity

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July 11th marked the release of iPhone 3G and with it, Software Update 2.0, which includes Apple's launch of the App Store. The App Store allows for third party developers to create and distribute applications for iPhone and iPod touch using the iPhone SDK, a native development environment based on Cocoa for Mac OS X.In his talk, Raven will provide a basic overview of the process of developing and distributing software for the iPhone and iPod touch, and share some key findings and metrics gathered in the two weeks since the launch of the App Store. What does the App Store mean for third party mobile developers?

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iPhone & the App StoreMobile Portland Users Group

Raven Zachary 28 July 2008

Agenda

• iPhone History

• Developing with the iPhone SDK

• App Store Overview

Disclaimers

Bias: While I am a technology industry analyst, my passion for the iPhone clouds my rational judgement. I am an iPhone advocate.

Legal: I am under NDA with Apple and therefore only covering publicly disclosed information.

iPhone History

January 2007

Macworld Expo 2007

June 2007

WWDC + iPhone Launch

"We have been trying to come up with a solution to let developers write applications, yet keep the iPhone secure and safe. We've come up with a sweet solution." - Steve Jobs

Web Developers

Mac Developers

"That is a bold idea. Very forward thinking...This is the

coming out party for web apps. We are very excited

about this. These are exciting times." - Jason Fried, 37signals

"Web Apps Are Not Applications...If you don't want 3rd party developers, or aren't ready for them yet, be honest and say so. We'll respect you far more for it. " - Quentin Carnicelli, Rogue Amoeba

July 2007

iPhoneDevCamp 2007

Photo by Adam Towhttp://www.flickr.com/photos/atow/750701139/in/set-72157600701332240/

August 2007

Jailbreak

October 2007

iPhone SDK Announcement

"Let me just say it: We want native third party applications on the iPhone, and we plan to have an SDK in developers’ hands in February." - Steve Jobs

March 2008

iPhone SDK Unveiled

iFund

www.kpcb.com/ifund

June 2008

WWDC 2008

July 2008

iPhone 3GiPhone OS 2.0

App Store

Only 17 days ago!

Developing with the iPhone SDK(mostly content-free)

Highlights

• iPhone OS is based on Mac OS X

• Apps are written in Cocoa + Cocoa Touch

• Works on iPhone and iPod touch

• All apps sold through App Store

• Developers get 70% of revenues

How to write an iPhone App

• Download the iPhone SDK (free)

• You must own an Intel Mac

• Learn Cocoa (Objective-C) & Cocoa Touch

• Join the iPhone Developers Program ($99)

Development Resources

• www.apple.com/quicktime/qtv/iphoneroadmap/

• developer.apple.com/iphone/

• pragmaticstudio.com/iphone/

• Cocoa Programming for Mac OS X by Aaron Hillegass

• Stay tuned for mailing lists, public forums, etc. (NDA still in place)

App Store Overview

Books (117) Business (22) Education (22)Entertainment

(81)

Finance (33) Games (255)Healthcare & Fitness (33)

Lifestyle (36)

Music (30) Navigation (22) News (15) Photography (18)

Productivity (59) Reference (40)Social Networking

(33)Sports (16)

Travel (48) Utilities (88) Weather (8)TOTAL(976)

App Store Inventory (07/28/08)

Gifter

“How We Built an iPhone App for $4873.92”

http://tinyurl.com/gifter

Loopt

The Loopt Debacle - SMS Spam

http://tinyurl.com/looptdebacle

Aurora Feint

Removed from App Store - Community opt-in - Uploaded contacts

http://tinyurl.com/aurorafeint

Trism

Steve Demeter - Wrote at night over the past several months - Top 20 App - $4.99

http://tinyurl.com/trismapp

Where are the download numbers?!

Application Price (USD) Downloads Sales (USD)

Super Monkey Ball $9.99 6,261 $62,547.39

MLB at Bat $4.99 2,144 $10.698.56

Cro-Mag Rally $9.99 1,317 $13,156.83

Omnifocus $19.99 1,106 $22,108.94

Enigmo $9.99 1,023 $10.219.77

Texas Hold’em $4.99 856 $4,271.44

MPG $0.99 808 $799.92

Band $9.99 653 $6,523.47

Bejeweled 2 $9.99 582 $5,814.18

Yellow Pages $0.99 543 $537.57

Source: Tech Crunchhttp://tinyurl.com/5sxnfb

Day 0 App Store Sales Numbers

Application Price (USD) Revenue Estimate

Super Monkey Ball $9.99 $4,915,019

ForeFlight Mobile $69.99 $3,443,465

OmniFocus $19.99 $1,899,164

Nester’s Anatomy Flash Cards $39.99 $1,696,107

LionClock Plus $79.99 $1,628,466

Enigmo $9.99 $1,271,126

Band $9.99 $1,101,642

Ultalingua Spanish Dictionary $29.99 $661,426

Bejeweled 2 $9.99 $627,089

Sketches $5.99 $589.409

App Store Revenue Estimates (07/13/08)

Source: Medialetshttp://tinyurl.com/medialetsappstorerev

$?

We just don’t know for sure.

Stay tuned for developer reports in August.

Summary

Raven’s Take

• Birth of a new mobile platform

• Living in the shadow of the iPhone

• Tremendous commercial opportunity

• Mac developers have a head start

• Very early stages, time to learn and create

• Go out and write some cool apps, make $ !

Raven Zacharyraven@rinzai.com

www.rinzai.com

503.334.1810

IM (AOL): ravenzachary

Twitter: ravenzachary

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