Android Appstore BP for HW ODM
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This document discusses Apple's App Store business model. It explains that the App Store allows iPhone, iPod Touch, and iPad users to browse and download apps developed for the iPhone SDK. Developers can sell apps or offer them for free download directly to devices. The document then outlines how Apple's business model works, including its strong products that drive volume downloads, revenue sharing structure with developers, and how each user contributes revenue through multiple app downloads on average. Finally, it provides considerations for how Shuttle could build its own app store, including development, hosting options, payment processing, and marketing requirements.
Android Appstore BP for HW ODM
- 1. App Store Study Jouston Huang Product Council / MobileSW jouston_huang@tw.shuttle.com
- 2. What isApp Store App Store是一個由蘋果公司為 iPhone和 iPod Touch 以及 iPad 創建的服務，允許用戶從 iTunes Store瀏覽和下載一些為了 iPhoneSDK 開發的應 用程式。 用戶可以購買或免費試用，讓該應用程式直接下載 到 iPhone或 iPod touch 。其中包含：遊戲，日 曆，翻譯程式，圖庫，以及許多實用的軟體。 - Wikipedia
- 3. How Applebusinessmodel works? (I) Strong Product(iPod, iPhone, iPad) Volumedownloads(3,000,000,000+) Fully opened SDK Apple:Developer = 30%:70% Low priced applications Avg User Downloaded 10.2~18.4 application Each user contributeUSD. 9.49~9.79
- 4. How Applebusinessmodel works? (II) Who: Customer base is iPhone, iPod and iPad users. Target customers are fashion sensitive, Internet users. What: App Store bridges developer and end user, the ONLY WAY to allow iPhone, iPod Touch and iPad download application. From App Store Apple provided an up-sell opportunity for itself and developers where end customer gets many supplementary goods. Where: Where iPhone sells, App Store went to 70+ countries. How to achieve: Through Apple sophisticated design and rich feature set, target customer was pursue to buy iPhone, iPod and iPad. Application developers can utilize hardware feature to provide attractive applications. Ex. Flash Light, Navigation, Need For Speed and other games. How to make money: App Store gets profit from end user download, Apple share 70% revenue to individual developers. Multiple payment was accepted: AmEx, VISA, JCB, Master, iTunes gift card and Paypal.
- 6. What'sShuttlecustomer need? System Update Lower maintenancecost Supplementary Software Boost devicesales Up-Sell opportunity Money and End customer royalty
- 7. How Shuttlebuildsan App Store? Development Maintenance Client Software and SDK Payment Marketing and Promotion Self development Self host ShuttleBranded Shuttleowned Shuttle Outsourcing 3 party host Customer Brand Customer Owned Customer or Joint Venture
- 8. Pro and Con analysis Self-owned Market Market-kit for Customer Pros Up-sell revenuesource Competence diversification Competence Cons Heavy Investment High fix cost Defocus No PreemptiveAdvantage available MiddleInvestment High variablecost No PreemptiveAdvantage available
- 9. What requiresfor building Shuttle SW Market? People: No talent available Opportunity: Shuttlemaking Tablet and hold strong position Context: Market need aHD/Tablet SW Market Deal: ~1M USD investment, ~600K USD return in first year.
- 10. Investment for building an SW Market SDK: Payment, DRM..etc. DRM: ShuttleDRM or market availableones(Film, TV, Music, eBook, Games, Documents, Applications) Bandwidth and ServerFarm: Shuttlebuild oneor utilizeCloud services(EC2, CHT..etc.) Payment: WorldPay or others
- 11. Rough Deal Analysis Investment: 11 employees(2 Marketing, 5 engineer, 2 BD, 1 Admin and 1 GM) cost 650K/yr(Min) DRM system cost 100K/yr(Min) Bandwidth and Server Farm cost 150K/yr(Min) Marketing and Promotion cost 100K/yr(Min) Total cost is 1M/yr(USD) Deal: AssumeConversion Rateis7%(Max)