The Apple App Store case study document discusses the following key points:
- The Apple App Store was launched in 2008 and allows users to browse, download, and purchase apps on iTunes. It has since generated billions of downloads and $250 million in revenue for Apple in 2010.
- Apple owns and controls the App Store, taking 30% of revenues from app sales while developers receive 70%. It reviews and can reject apps from companies.
- The App Store audience includes people of all ages from different socioeconomic groups. It offers a wide range of apps for various uses like work, entertainment, education and more.
- Apps are exhibited and distributed through the App Store platform which is organized by categories. This
2. Overview of App Store Opened on July 10, 2008 via an update to iTunes. Browse and download applications Can be bought for free or at a cost. 10 billionth app was downloaded from Apple App Store on January 22, 2011
3. Ownership and Control Apple generated $250 million in revenue in 2010 Promotion 30% of revenues from the store go to Apple, and 70% go to the seller of the application Reject or applications by companies Companies may compete in order for their apps to be successful
4. Audience consumption Range of applications Apps dedicated to different audiences, e.g. Businessmen, students Useful for all types of work e.g. building, calculating, note taking Sophisticated in terms of usability , graphics and quality of apps
5. Distribution and Exhibition App Store is set categories such as Entertainment, Productivity Android Marketplace and OVI Store have similar apps, but mainly for entertainment and work Exhibited different platforms such as internet advertisements, viral marketing, tube posters App store popular due to quality of apps and usefulness of apps
6. App Store Audience Adults, teenagers and children B/C1/C2/D and E socio economic groups Mainstreamers , Aspirers and Succeeders Diversion, relationships, personal identity, surveillance Apps for downloading music, entertainment or for work
7. Audience choices and response Pluralistic model- Freedom of choice Audience interaction - YouTube and video making apps on iPhone4 UGC Buy apps for free or purchase them from the App Store Upgrade apps
8. Concerns and Considerations Microsoft concerned as Apple is trying to trademark 'The App Store’. Deregulation of Apps Create apps which are better than their competitors Create content which is superior to their competitors Web applications can be downloaded on the device but may be less functional
9. Social and Political Implications "Consumerism generates hunger for material status symbols, new material needs". More demand of these products Political parties have apps- Conservatives ‘Wikileaks’ app Improve business relations between countries Moral panics surrounding adult content and deregulation
10. Effects on institutions Benefit from having apps on smart phones Music institutions profit from selling music on iTunes Competition from different app stores for apps e.g. Android Marketplace Develop in order to gain profits and appeal to wider audiences. Technological changes- app store may become advanced
11. Issues regarding censorship and regulation Adult apps on the App store Children can access adult apps Dumbing down theory Piracy- Apps to watch movies for free Baby Shaker App Sun Newspaper- Page 3
12. Cross Cultural Factors and Globalisation " ....large corporations can maximise profits by entering foreign markets". 323 Apple Stores around the world Multiculturalism- Languages and Cooking apps Different people can learn about other people’s culture- Learning to write Chinese app, Japanese cooking app App store available around the world Apps come in different languages, e.g. German