5 Years Ago, the iPhone Changed Everything June 29, 2012
Posted by justincaldbeck in communication, culture, discovery, iphone.add a comment
While it almost seems hard to believe, it was just five years ago today that the first iPhones were sold. I remember the enormous amount of people lined up outside of Apple Stores eagerly waiting for their new device. It was easy to understand the hype of the device, but what many did not predict would be the way it would shape our behaviors and give birth to an entire industry.
The iPhone itself is a game changer, few could deny that, but much like iTunes was the real power behind the iPod, the App Store has been the big game changer for our industry.
We didn’t all immediate realize the power of the App Store, in fact my partners wrote an interesting post in 2009 about how little revenue Apple was making from apps. But today, we have seen companies emerge as App providers and other that have started as popular Apps and then expand to other platforms. Rovio, makers of Angry Birds, Pulse*, Instagram, Uber and Foursquare are just a few examples of companies that have seen incredible success as mobile apps.
In addition, the iPhone has played a big role in reducing the friction for consumers to use products from businesses that were previously web-centric such as TaskRabbit*, LivingSocial* and GrubHub* as well as retailers like Gilt. These companies not only built better customer engagement through the iPhone but also attracted new users who discovered the brand for the first time on a mobile device.
Despite all of these early successes, the market is still in its infancy in many ways. While it may seem that everyone we know has an iPhone or Android device, Nielson recently reported that only about 50 percent of US consumers have a smartphone today. As that number grows, the audience and demand for new applications and types of mobile solutions will grow too.
For my part, I feel fortunate to have the opportunity to watch the market emerge and evolve and help companies take advantage of this amazing platform.
*Lightspeed portfolio companies
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Apple has made no more than $20-45m in revenue from the app store May 13, 2009
Posted by jeremyliew in apps, iphone.172 comments
About a month ago Apple announced that one billion iphone apps have been downloaded in the first nine months. That’s an amazing number. I wondered how much money Apple was making from the app store.
Although it’s hard to come by the definitive ratio of free to paid paid to free apps, talking to industry participants I got estimates in the 1:15 to 1:40 range. So that suggests that between 25-60m paid apps have been sold.
O’Reilly recent did a survey of iphone apps and noted that the mean price for paid apps is $2.65:
The weighted average price for paid apps is probably lower than this as the median is $1.99 and there is significant price elasticity for iphone apps, but let’s go with the $2.65.
Multiplying this by 25-50m paid apps, that suggests that the cumulative revenue from iphone apps is around $70-$160m. Apple gets 30% of this so Apple has probably made around $20-45m from the billion iPhone apps downloaded. (Note that if you use an assumption closer to $1.50 for weighted average app price, then this estimate drops to around $12-27m).
Now it’s worth noting that it took 6 months to hit 500m app downloads, and only three months for the next 500m app downloads, so Apple’s revenue run rate is higher than this.
Given that Apple sold 13.7m iPhones in 2008, the app store is not a meaningful direct contributor to their overall revenue. Much like iTunes, Apple is using the App Store to drive demand for their hardware.
The biggest assumption here is the ratio of free to paid apps, so if any readers have better data on this, please comment.
Three meta-rules for usability design November 20, 2008
Posted by jeremyliew in iphone, product management, UI, usability.2 comments
I recently saw a useful deck from Create with Context about how people really use the iPhone. The company did a bunch of ethnographic research on how ordinary users (not power users) used the iPhone, and in particular, what were common mistakes made. Based on their research, here are their eight rules of thumb for designing for the iPhone:
1. Take advantage of learned behaviors
2. Avoid interaction inconsistencies
3. Provide clear conceptual link across widgets
4. Put space between action widgets
5. Plan for accidental overswiping
6. Don’t rely exclusively on multitouch
7. Provide visual feedback for taps
8. Provide interaction affordances
The presentation provides examples of all of these rules and what sort of errors are possible when they are not followed, and is well worth the 10 minutes it takes to review.
These useful rules of thumb fall into three metarules for design that make sense under almost all circumstances:
A: (1&2) Use UI standards whenever you can
When I was GM of Netscape I drove some bad design decisions for the Netscape 8 browser based on my idea of “efficiency”. The worst one was moving the browser dropdown menus to the right hand side of the application window, up a level so that it was on the same level as the logo and the name of the current web page. See a screenshot here (look at the top right hand corner of the page, in the black background with blue text).
We did this with the best intentions – to save some pixel height and thereby create more space on the screen for the actual webpage. Of course, since this “improvement” was different from the way that every other app in the world works, many users were confused and couldn’t find the dropdown menus at all. It was a bad idea.
I think that tagclouds, once all the UI rage, have since faded from the scene for the same reason. A few years ago they were the hallmark of web 2.0, all over the home pages of Delicious, Technorati and Flickr. But they are gone from all of these home pages now. The majority of users (not early adopters) found them to be too different from the standard forms of navigation that they were used to (left hand nav bars, top nav bars, search, headline-teaser) and didn’t use them.
B: (4&5) Make sure that user error is not catastrophic
This is obvious, but worth mentioning. The team building a product are by definition experts, and this can lead to a blindness to possible modes of error. Just five user tests will turn up the biggest problems.
C: (3,6,7&8) Give users visual clues as to what does what
This is an area where designers sometimes come with the wrong instincts. Making things look good is definitely not the same as making them easy to use. In fact, sometimes these factors are contradictory.
One common example is in formatting a page to fit a screen. While the most aesthetic design has all the elements of a page fitting neatly into a grid so that nothing is “cut off” by the fold of the screen, in fact having partial images disappearing off screen is an important visual cue to users that there is more below the fold. Similarly, overly stylized icons can confuse a user as to what they represent. Also, UI that is too subtle can leave a user confused as to what is clickable and what is not, and what they should be clicking on next. Why are some web ads and social network profiles so garish and “ugly”? Because they serve not to please the eye, but to draw the eye, and they do that job well.
Keep these three simple meta rules in mind when you’re designing your user interactions.
People like to have fun. Who would have thunk it? July 16, 2008
Posted by jeremyliew in apps, facebook, iphone.1 comment so far
There has been much handwringing about how silly facebook apps are, and how it would be so much better if they were more useful. But Facebook users have voted with their mouse buttons, as the O’Reilly report in May showed:
According to a Medialets survey, it seems that iPhone users have voted in exactly the same way, with almost half iPhone apps being games or entertainment:
Girls (and boys) just want to have fun.