android appstore bp for hw odm
TRANSCRIPT
What is App 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 iPhone SDK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
How Apple business model works?(I)
Strong Product(iPod, iPhone, iPad)Volume downloads(3,000,000,000+)Fully opened SDKApple:Developer = 30%:70%Low priced applications
Avg User Downloaded 10.2~18.4 application
Each user contribute USD. 9.49~9.79
How Apple business model 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.
Ecosystem
Apple
Payment Developer
What's Shuttle customer need?
System Update Lower maintenance cost
Supplementary Software Boost device sales
Up-Sell opportunityMoney and End customer royalty
How Shuttle builds an App Store?
Development
Maintenance
Client Software and SDK
PaymentMarketing
and Promotion
Self development Self host Shuttle
BrandedShuttle owned Shuttle
Outsourcing 3 party host Customer Brand
Customer Owned
Customer or Joint Venture
Pro and Con analysis
Self-owned Market
Market-kit for Customer
ProsUp-sell revenue sourceCompetencediversification
Competence
Cons
Heavy InvestmentHigh fix costDefocusNo Preemptive Advantage available
Middle InvestmentHigh variable costNo Preemptive Advantage available
What requires for building Shuttle SW Market?
People: No talent available
Opportunity: Shuttle making Tablet and hold strong position
Context: Market need a HD/Tablet SW Market
Deal: ~1M USD investment, ~600K USD return in first year.
Investment for building an SW Market
SDK:
Payment, DRM..etc.
DRM:
Shuttle DRM or market available ones(Film, TV, Music, eBook, Games, Documents, Applications)
Bandwidth and Server Farm:
Shuttle build one or utilize Cloud services(EC2, CHT..etc.)
Payment:
WorldPay or others
Marketing and Promotion
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:
Assume Conversion Rate is 7%(Max)
Assume avg sale per user is USD. 10(Max)
Assume share revenue 30%
Assume payment gateway cost 5%(Min)
P10(or equivalent) sale: 1M/yr
U7/U10(or equivalent) sale: 2M/yr
Revenue in first year is 598.5K/yr(USD)