Posts Tagged 'iphone'

Android users will surpass iPhone users in 2010

Android appears to be getting the traction it has been looking for probably thanks to all of those new Android handsets being announced.

Android users will surpass iPhone users by the end of 2010, according to statistics collected by Google’s Admob ad network, said Admob Team Manager Brendon Kraham. This is despite the fact that the data usage and number of apps on iPhone (and iPod Touch) far exceed those on Android.

You can read more over at MobileBeat.

Most developers only make $700 from their iPhone Apps

I just read a great post explaining why most developers only make $700 from their iPhone Apps:

  • Apple claims that cumulative app revenue has reached $1,4bn by June 2010. This is based on 5bn downloads (free and paid)
  • Several reports have pinned the number of paid apps to be about 73-77% of the total. At the moment, there are 225.000 apps in total, which at 73% gives 164.250 paid apps.
  • The average revenue is roughly then 1.4bn/164.000 less Apple’s 30% cut, which means developers earned on average $6.100/app over a 2 year period, or $3.050 per year/app.
  • However, average is not a relevant measure, because it is skewed as the tail of apps is long. There are a few apps who make the majority of money, so the relevant number is the median, where 50% make more, and 50% make less
  • The average price for an app, based on a number of reports, is roughtly about $1.95/app, which puts the number of paid apps downloads to about 733 million, or 15% of the total number of downloads.
  • SuperCollider Blog reported that half of all paid apps have less than 1000 downloads, say 999. At $1.95, that means the median revenue over two years is $1363, or $682 for one year, i.e. app $ 700 (see SuperColliders post on the economics of branded apps for more).

It is taken from a comprehensive analysis of iPhone App economics.

You really need to decide on what your goals are. Free apps are generally downloaded more than paid apps and thus have a greater reach. Advertising on your free apps can be a better option than charging for your app in terms of revenue generated. That said, charging for an app has seen some great successes.

Checkout one of my old posts: Brand Marketers: Don’t Sell Your iPhone App! If you’ve found this of interest.

Brand Marketers: Don’t Sell Your iPhone App!

If you want to use iPhone Apps as a way to get your brand out there, then you should be looking to create a free iPhone app.

Yes, you could charge for the app and there might even be a chance that you recover your costs. But what are you in the business of doing selling iPhone apps or selling your service or product?

If you aren’t in the business of selling iPhone apps then you want is a marketing tool and you want it to reach and engage the greatest number of people possible. Free apps are downloaded around 400 times more than paid apps according to one report. From a sheer numbers point of view, free apps are the best bet as marketing tool.

Yyou might not get the level of engagement with a free app versus a paid app; however you are only forgoing a small loss in engagement versus a huge gain in overall reach. The weight of overall reach in this case, to me, is a clear winner over the small loss in engagement.

But what about recovering the cost of the app? Well chances are it won’t happen. An app developer with nearly 20 apps in the App Store, some ranked in the top 20-40 apps, points out that his apps only make $20-30 per day in downloads. That’s about $7,300 per year and he’s top 20-40 out of over 100,000 apps.

So, if you get lucky you’ll recover your costs and then some, if you get really lucky you might end up making hundreds of thousands. Chances are you’ll barely recover your costs and barely reach your full potential audience.

With a free app you’ll reach a much larger audience and, let’s face it, the cost of development really isn’t that high either (probably cheaper than some YellowPages subscriptions I hear about). So why not use a free app as a marketing tool to get your business in front of the millions of iPhone users.

UrbanSpoon Generates $5k per 100k Visitors

Through brand advertising, affiliate networks, ad networks and citysearch ads UrbanSpoon is generating $5,000 per 100,000 visitors.

This traffic and revenue is predominantly coming through the iPhone.

You can read more about it over on TechCrunch.

Optus Happy Place – iPhone place for people in Sydney

Optus is having the “Optus Happy Place” for people to talk about their iPhone and the things they do with their iPhone. Given that I recently broke my collarbone I’m undecided as to whether I will go down yet, but I may pop my head in tomorrow.

Optus has announced it will be opening an inflatable pop-up venue –The Happy Place – where all Sydney-siders will be able to find out more about the new Apple iPhone 3.0 software.

Open to all and free of charge to the public, the venue will host a series of interactive, intimate ‘HAPPlication Sessions’ where a range of leading experts and celebrities will share their stories on how the device has enhanced their work and life since its iconic launch.

The Happy Place, located at First Fleet Park, will provide a wide range of speakers conducting up to eight sessions daily from Monday 22 – Thursday 25 June.

You can read more about it here.

3 Mobile customers finally get iPhone

The Vodafone Hutchison merger means that 3 customers can finally get iPhones.

“It’s very exciting to be introducing it to 3 customers for the first time,” VHA’s chief Nigel Dews said in a statement.

You caan read more about it here.

Australian Mobile Internet Statistics

BuzzCity has just launched a mobile advertising campaign planner. The campaign planner gives you access to some high level mobile internet statistics for countries around the world. There are some important take-aways from a quick skim over the data:

The iPhone is only one handset in a portfolio of handsets

The first statistic that really stands out is that iPhone users make up less than 1% of the mobile internet market in Australia. Therefore less than 200,000 Australian’s own an iPhone, given that almost 100% of the 20+ million Australians and some percentage less than that would actually use the mobile internet. What does this mean? It means that the iPhone should only form part of your mobile offering, along with all the other available handsets.

bymanufacturer

XHTML services have viability

BuzzCity says 22% of mobiles accessing the internet have an XHTML browser feature. This would imply about 4.4 million handsets with the ability to checkout standard XHTML websites.

XHTML browsing may only make up 22% of handsets accessing the internet but if you combine this with figures indicating that iPhone users consume much more data than other users then you could assume that XHTML mobile users consume more than non-XHTML mobile users. This might be because those users are more savvy, have better phones, or just have a better browsing experience because of richer data or a richer browser.

So, it would now seem viable to develop straight XHTML services to suit your mobile users which will make development easier.

Further Information

Where it starts to get interesting is mixing this data up and being able to drill down from all different angles at once. Unfortunately, the statistics BuzzCity provides are just broad at the stage, but they do serve as a great starting point for mobile internet usage. Something that needs to be done is to verify these statistics against statistics from others.

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Google AdVertisers get cheeky

You aren’t allowed to create AdWords with the text “iPhone” in them – very frustrating when you’re trying to advertise a service for the iPhone.

Some cheeky buggers have managed to get around that – I wonder how long it will last:

Cheeky Google Advertisers

The image is a bit dodgy, but if you look closely see that they’ve changed “iPhone” to “1Phone”.

What Vodafone Australia looks for in mobile offerings

I was at Mobile Monday Sydney last week and listened to a presentation from Hanno Blankenstein, Vodafone Australia’s Head of Innovation.

The interesting slide that stuck out was the one discussing what Vodafone looks for in mobile (and non-mobile) opportunities. Here is what I picked up about what Vodafone is looking for:

  • Appealing service offering
  • Market access – strong distribution partner(s), cross platform, cross operator
  • Optimized architecture – cloud
  • Commercial – mobile marketing from day one, users and usage as a foundation

Whilst nothing above is earth shattering, they’re great points to keep in mind.

People are excited about iPhone Apps

It was amazing to watch two complete strangers discuss an iPhone application on the bus today. I couldn’t see which it was, I’ve got a feeling it was one of the twitter ones. They were helping each other with a few features and chatting about the application itself.

You read about the stats and you use the apps yourself (being the techie that you are), but when you see two “everyday people” talking iPhone it really drives home the statistics like a median of 5 apps per iPhone user, a supposed 10x larger iPhone web usage share than it’s rival and the huge success of the App Store.

What seeing these two people talk iPhone really means to me is that people are ready to make use of mobile applications and are really excited about it. It takes a lot to turn around and start talking to a stranger on a bus and an iPhone application managed to get someone to do this.


Scott Middleton
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