App Store

(Slide 1) Our final Services strategy is the current strategy for the App Store. As shown by the graph below, combined global application store revenues continue to steadily increase, reflecting the fact that more users are in need of applications through these stores each year. 2014 showed revenues of nearly 35 billion,

(Slide 2) capping off a five year average growth rate 27.5%. The market is led by your iOS' App Store and Android's Google play combining for nearly 90% of all app store revenues.

(Slide 3) In 2014, Apple showed revenues of 25.6 billion while google showed 4.5 billion even though Google play surpassed Apple in both total number of apps and number of downloads with 2 million more applications available and 55 billion more downloads the same year

(Slide 4) These charts also show that Google Play having a higher 5 year average growth rate due to its much slower start in 2010.

(Slide 5) So if Google play also has: ........... So what is it that you're doing to ensure The App Store remains the Market Leader?

(Slide 6) You're Enhancing Ease of Development & Accessibility across the Apple Product Mix The following graph displays revenues for Google play developers vs that of those who develop for apple and you can see that those developing for Apple are seeing much higher revenues than google developers

(Slide 7) This is due to these facts that developers know: ............. It is also easier to raise start-up capital for Apple Applications. The best new apps usually need companies or investors behind them to get their apps on a larger scale. Investors will be more willing to help grow an app that will run on iOS than android. .................. * Google Play serves a larger global audience but this is due in large part to their availability for lower quality smart devices. Unlike iPhone purchasers who are likely to purchase more applications

(Slide 8) This ease of accessibility also benefits Apps store users more than Google Play's by: * Allowing them to purchasing an App once and have it accessible with their settings saved through any Apple device * Having the major Apps available on their platform before Google Play because the App Store's product mix requires less time for development * Allowing users count on App Store apps being updated first and in unison across the product mix These reasons are why your current strategy of enhancing ease of development & accessibility is going to allow you to remain the market leader.