1. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Mobile Application Stores A developers perspective Karl Good, Director of Applications, Truphone 2009

2. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Truphone background 1 st Mobile Voice App in Apples app store on day of app-store launch Millions of customers registered (significant proportion iPhone / iPod) Live products today, in OVI, Blackberry World, Android Market Place and Apples App Store

3. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Todays Topics App store landscape today The good, the bad and the ugly “Free or not to be free” – that is the question? Marketing your products… Apple case study

4. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Where are we headed? “Phone differentiation used to be about radios and antennas and things like that. We think, going forward, the phone of the future will be differentiated by software.” Steve Jobs, CEO Apple

5. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Challenge of equality Not all software created equal Not all app stores made equal

6. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL The Application Store Landscape What are App Stores? Who’s out there? What’s available? Where’s it all heading?

7. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL What are application stores?

8. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL What are application stores?

9. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL What are application stores? More like warehouses One-stop distribution and management Meta data – search keywords Metrics on downloads, sales Storefront service

10. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Wider App Store Universe

11. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Who Really Counts? Apple Computer Inc.

12. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Where’s it all heading? App store mania “Owning the customer”? Many stores, many apps means fragmentation Customers go where apps are easiest to access… Developers go where the customers are…and the device / platform is fun to develop on.

13. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Wider App Store Universe

14. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL

16. Apples App Store $99/year to join as a developer Allows paid for applications, with a royalty to Apple 1.5 billion applications sold to date Launched July 2008 As of Nov 2009, 98K applications available

17. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Allows paid for applications, with a royalty to Apple Large audience of app store users, massive volume of downloads Multi-country, multi-language support and distribution Tough staying at the top of the store, with everyone making 99c apps Already 98K apps in the store Allows paid for applications, with a royalty to Apple No clear rules on what is and what isn’t allowed Sometimes lengthy, black box signing/approval process Can’t reply to customers reviews

18. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Android Market Launched October 2008 10K applications available $25/year to join as a developer Allows for paid applications, with a royalty to Google Apps downloaded: unknown

19. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Only charges a one-time $25 fee Only self signing of apps required – very quick release time Mobile Search interface is slick, superior to OVI and Blackberry Self-signing also attracts rubbish to the store Immediate “go live” means immediate “go live” Small customer base but could grow aggressively (good) New terms and conditions challenge Little or no moderation of users comments

20. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL RIM AppWorld Launched April 2009 3K applications available $200 for 10 app submissions Allows paid for applications, with a royalty to RIM *plus ongoing fee

21. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Big flexibility in deciding who can download apps Blackberry takes 20% of paid apps *caveat see UGLY Easier than Apple store to find less well-known apps The most expensive store Inflexible for paid apps Store only available in a few countries 20% of all ongoing revenues for life of customer, including apps that are downloaded free Signing has taken up to a month for some

22. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Nokia Ovi Store Launched May 2009 3.2K applications available Free for app submissions Allows paid for applications, with a 30% royalty to Nokia

23. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Free application submission Most sophisticated app store Search is poor Store is slow to respond and feels awkward to navigate and explore Poor billing system Application has to be tested twice, once by Symbian, once by Nokia QA Users need an Ovi account, or visit to web URL

24. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL PalmPre Launched June 2009 300 applications available No paid apps yet 750K devices in market 2.2 million downloads since June

25. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Free submission of applications Simple to develop applications, quick Applications limited to web technologies No option to sell apps – yet No multi-country multi-language support Too early to say

26. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL “Free or not to be free?” Depends on your model? Service oriented with payments for ongoing service – then free makes for a low barrier to entry Free vs. premium – with additional features and services … if your app is liked – customers may pay for more developed features

27. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Free? Free can hook in customers Up-sell tool to convert users to full paid app Reversed declining sales trend Source: www.flurry.com/blog Free as a sales tool

28. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Free? What should you charge? Many apps opt for 99 cents One high price vs pick ‘n mix at low price point Most popular paid apps still games No right answer, be prepared to experiment Source distimo – www.distimo.com

29. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Free? Source distimo – www.distimo.com

30. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Free or not to be free? Chose to move to paid app model Research led to $5.99 price point Paid apps downloads strong Nokia billing raises price to $7.99 ShoZu has compelling service, customers comfortable paying

31. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Pricing Conclusions Be prepared to experiment, no right answer across the board Micro payments can be more profitable than one big up front price Free limited version of an app can drive high sales of paid apps

32. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Marketing Top-of-category listings the best possible advertising Do everything to get there Focus efforts on Friday to Sunday, (when application downloads increase)

33. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Cross Selling Source: www.flurry.com/blog Oldest marketing technique still works Cross-sell to existing customer base Add a link within your application

34. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL 3 rd Party Cross Selling Several 3 rd parties with in app iPhone SDK’s PPC model Small banner ads, cycled Can have a rapid increase in application downloads

35. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL 3 rd Party in app advertising In app adverts driving users to application downloads

36. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL New apps usually see growth initially but not for long. Not marketing your app WILL result in your app going stale and lost in the mix of other applications Your downloads WILL jump off a cliff (and maybe you too!) Do Nothing?

37. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Marketing Conclusions Market wisely: use all assets at your disposal Pay for in-app advertising strategically Pricing out by big brands w/big budgets possible

38. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Final Thought “One of the best ways to persuade others is with your ears – by listening to them” Dean Rusk Secretary of State JFK Cabinet 1961

39. V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL Contact Information Twitter: thewelsh1 Skype: thewelsh1 Email: karl.good@truphone.com