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charlesarthur : revenue   13

Fortnite earns $100m in its first 90 days on mobile • Sensor Tower
Randy Nelson:
<p>Having brought in more than $25m during its first month on mobile, Fortnite increased its revenue generating momentum to surpass $50m by its 45 day mark. Now, three months since its March 15 launch, Sensor Tower Store Intelligence data reveals that the game—which debuted on Nintendo’s Switch console last week—has reached $100m in worldwide player spending on Apple’s mobile platform.

In reaching this milestone, Epic Games has managed to surpass some of most successful multiplayer mobile titles of the past two years, despite the fact that Fortnite initially launched in invite-only form for two of the 12 weeks it has been available. As the chart below shows, it earned more than 3x as much as Tencent’s massively successful Honor of Kings—known as Arena of Valor in Western markets—did in China during its first 90 days on iOS, despite not being available there itself. (It will be launching in China at an undetermined future date courtesy of none other than Tencent.)

<img src="https://s3.amazonaws.com/sensortower-itunes/blog/2018/06/fortnite-mobile-100-million-revenue-90-days.jpg" width="100%" />

The mobile version of Fortnite has also earned about 4.3x more than its closest revenue rival among the new breed of battle royale titles on mobile, Knives Out from NetEase. What’s more, it managed to earn approximately 65% as much as Supercell’s Clash Royale did in its first 90 days, a title that had the most successful launch in mobile gaming history next to Niantic’s Pokémon GO in terms of revenue.</p>
Fortnite  gaming  mobile  revenue 
june 2018 by charlesarthur
Behind the messy, expensive split between Facebook and WhatsApp’s founders • WSJ
Kirsten Grind and Deepa Seetharaman:
<p>With Mr. Zuckerberg and Ms. Sandberg pushing to integrate it into the larger company, WhatsApp moved its offices in January 2017 from Mountain View, Calif., to Facebook’s Menlo Park headquarters about 20 minutes away. Facebook tried to make it welcoming, decorating the Building 10 office in WhatsApp’s green color scheme.

WhatsApp’s roughly 200 employees at the time remained mostly segregated from the rest of Facebook. Some of the employees were turned off by Facebook’s campus, a bustling collection of restaurants, ice cream shops and services built to mirror Disneyland.

Some Facebook staffers considered the WhatsApp unit a mystery and sometimes poked fun at it. After WhatsApp employees hung up posters over the walls instructing hallway passersby to “please keep noise to a minimum,” some Facebook employees mocked them with chants of “Welcome to WhatsApp—Shut up!” according to people familiar with the matter.

Some employees even took issue with WhatsApp’s desks, which were a holdover from the Mountain View location and larger than the standard desks in the Facebook offices. WhatsApp also negotiated for nicer bathrooms, with doors that reach the floor. WhatsApp conference rooms were off-limits to other Facebook employees.

“These little ticky-tacky things add up in a company that prides itself on egalitarianism,” said one Facebook employee.

[WhatsApp co-founder Jan] Koum chafed at the constraints of working at a big company, sometimes quibbling with Mr. Zuckerberg and other executives over small details such as the chairs Facebook wanted WhatsApp to purchase, a person familiar with the matter said.

In response to the pressure from above to make money, Messrs. Koum and [co-founder Brian] Acton proposed several ideas to bring in more revenue. One, known as “re-engagement messaging,” would let advertisers contact only users who had already been their customers. Last year, WhatsApp said it would charge companies for some future features that connect them with customers over the app.

None of the proposals were as lucrative as Facebook’s ad-based model. “Well, that doesn’t scale,” Ms. Sandberg told the WhatsApp executives of their proposals, according to a person familiar with the matter. Ms. Sandberg wanted the WhatsApp leadership to pursue advertising alongside other revenue models, another person familiar with her thinking said.</p>


Pretty clear that Koum spoke to the writers. To my reading, he's really angry about what happened.
facebook  whatsapp  revenue 
june 2018 by charlesarthur
Chinese smartphone maker OnePlus breaks billion-dollar sales barrier • The Telegraph
James Titcomb:
<p>Oneplus, the cult Chinese smartphone maker, has broken the billion-dollar sales barrier for the first time and made a profit, a rare feat in the ultra-competitive mobile market.

The company’s chief executive Pete Lau told The Telegraph that its revenues last year had doubled to more than $1.4bn (£1bn) and that this had come with “healthy profits”. It comes as OnePlus plans to challenge bigger players by tying up with mobile networks in the US and Europe.

The smartphone market has been flooded by competition from Chinese upstarts in recent years, making profits rare and sending established brands like HTC and Motorola into losses. While OnePlus pales to most of its rivals in size, Mr Lau said it has eked out healthy margins by focusing only on the high-end of the market. It sells most of its mobiles directly to a core of fans online, instead of through mobile networks, although it began to distribute phones through O2 in the UK in 2016.</p>


Some confusion between the headline, intro and second para. I think it's that they've passed a billion dollars. That's an average of $250m per quarter; at $250 per handset that would be a million per quarter, or 4m per year. At $125 per handset, it's 8m per year. Those seem like the likely boundaries of its sales.

So that's the good news. Now we go to the bad news…
oneplus  revenue 
january 2018 by charlesarthur
Apple captures 79% of global smartphone profits in 2016 • Korea Herald
Quoting Strategy Analytics research:
<p>Samsung Electronics Co.'s smartphone business posted an operating profit of $8.3bn last year, accounting for 14.6% of the global profits.

Samsung is still reeling from the global recall of the Galaxy Note 7 smartphone, which was discontinued in October last year over safety concerns. The South Korean tech giant's operating profit margin stood at 11.6% last year, while its annual sales of smartphones fell to $71.6bn from $75.2bn in 2015.

Profitability at Chinese smartphone makers is still low, although their cheaper handsets are rapidly gaining market share.

Huawei posted an operating profit of $929m last year, accounting for 1.6% of global profits. OPPO took 1.5% of the global profits, while its rival Vivo accounted for 1.3%, according to the research. </p>


Hadn't seen the Huawei figures before; it also shows how there's (almost) no profit outside China. Apart from Apple, Sony and Samsung, everyone outside China is losing money.
smartphones  revenue 
march 2017 by charlesarthur
Super Mario Run earnings projections downgraded significantly by SuperData • GameSpot
Eddie Makuch:
<p>SuperData updated its projections for Super Mario Run today, saying it now expects the game to bring in between $12m and $15m in its first month. That's down significantly from the company previous first-month forecast of $60m.

SuperData said the game's always-online requirement is "prohibitive" and added that it expects Nintendo to drop the price of the one-time payment after the holidays.

Based on the early numbers we see coming in and the response from consumers, we expect Super Mario Run to initially earn on the lower end of our forecast, around $12-15M in its first month," it said. "Requiring to 'always be online' is prohibitive and the game is still a bit too heavy-handed for quick-play on a phone. Finally, we anticipate Nintendo to announce a discount after the holidays to keep momentum."</p>


Cut their forecast by 75%? Yeah, that's an update. (None of this indicates any mistake by Nintendo - we don't know what its internal forecasts were.)
supermario  revenue 
december 2016 by charlesarthur
PC leaders must overhaul their businesses or leave the market by 2020 • Gartner
<p>Business leaders of PC vendors face a stark choice and must decide between overhauling their businesses or leaving the PC market by 2020, according to [research company] Gartner. If they decide to stay, they need to rapidly determine what changes to make or what alternatives to adapt in today's over-penetrated PC market.

"The PC business model as we have traditionally known it is broken. The top five mobile PC vendors have gained 11% market share over the past five years — from 65% in 2011 to 76% in the first half of 2016; but this has come at the expense of profitable revenue," said Tracy Tsai, research vice president at Gartner. "While this does not mean that the PC market is finished, the installed base of PCs will continue to decline over the next five years, with a continuing erosion of PC vendors' revenue and profit.

"The traditional way of gaining shipment market share by competing on price to stimulate demand simply won't work for the PC market over the next five years," said Ms. Tsai. "Today's PC vendors need to adjust to the new realities that are shaping consumption, including the fact that PC users are extending PC lifetimes until end of life, business PC applications and storage are moving into the cloud, and are less reliant on PC performance and, crucially, that price and specification are not enough for a user to upgrade a PC — a new and better customer experience is the only true differentiation."</p>


Intel and Microsoft are looking elsewhere, Gartner says, but the PC companies don't seem to have caught the hint. Moreover, it says the installed base of PCs is shrinking: from 1.48bn in 2015 to 1.44 this year, and 1.33bn in 2019. Fewer PCs means fewer replacements means fewer sales means less profit.


That 2020 timescale is pretty short.
pc  revenue  gartner 
september 2016 by charlesarthur
Pokémon GO: an opportunity, not a threat • App Annie
Sameer Singh:
<p>The Pokémon GO phenomenon is showing little sign of losing steam. The app continues to earn daily revenue of over $10m on iOS and Google Play combined, even though it has been over three weeks since its initial launch. Because of its unprecedented success, we have received numerous inquiries from our customers about its effect on revenue and user engagement of other leading apps and games.

Interestingly, it appears that Pokémon GO’s impact has been largely additive to the app economy. More importantly, it has given app developers a blueprint for increasing engagement with their users and opening up new revenue opportunities.

<img src="https://static-t.aa-cdn.net/wp-content/uploads/2016/07/01-Pokemon-GO-Impact-Revenue-Mobile-Games.png" width="100%" />

Pokémon GO’s impact on revenue of other Games on iOS and Google Play has been mostly muted in countries where it’s available. The United States did see a brief dip, but quickly regained prior levels.

According to data from App Annie Intelligence, Pokémon GO has not had a sustained and meaningful impact on the daily revenue of other games on iOS and Google Play. </p>


On the face of it, this doesn't make sense. This is an annualised revenue of $3.6bn which, if App Annie is correct, has simply appeared like a rare Pokemon out of nowhere. It has to be spending that otherwise would go on something else. The question is, what? Possibly it's subtracted from other games that people launched at the same time, and never had the chance to earn any revenue - and so don't show on App Annie's chart. (And it does look like Germany has been affected.)
pokemon  games  revenue 
july 2016 by charlesarthur
Exclusive: Xiaomi revenues were flat in 2015 • Fortune
Scott Cendrowski:
<p>Xiaomi, the Chinese smartphone maker and second highest-valued startup in the world at $45 billion, barely grew sales at all last year.

Revenue for 2015 reached 78 billion yuan ($12.5bn), a 5% rise from 2014’s 74.3bn yuan, a person in the company’s public affairs office said for the first time over the weekend. Taking into account the falling value of the Chinese currency, the yuan, sales rose 3% in US dollar terms.

Xiaomi has been mum about the 2015 sales total since founder Lei Jun gave a revenue target of 100 billion yuan ($16bn at the time) at a government meeting in March last year. The Xiaomi public affairs official, Ge Liang, announced the 2015 figure in an interview this weekend at a Beijing tech conference. The interview later ran on a few Chinese news sites, including the conference’s own. (One of the news sites, China News Net, has since deleted it.)

A Xiaomi spokeswoman says, “We have never shared the revenue figure and we are not able to comment on the figure that you shared. What we have shared is we sold over 70 million smartphones in 2015 despite the shrinking of the smartphone market.”</p>


Xiaomi's smartphone shipments were up 14.5%, so if its revenues - which now also include TVs and set-top boxes and air conditioners and so on - rose 5%, that's not a healthy sign. Could it just be that all the money pumped into Xiaomi was chasing the wrong business model?
xiaomi  revenue 
may 2016 by charlesarthur
DailyMail Online results: even at huge scale, online news is hard to monetise » Medium
Frank Meehan:
<p>The DailyMail Online is the biggest English language site in the world with 220m unique monthly actives, high engagement and virality of content. It’s a machine.

Yet, in its recent quarterly results announced today, the MailOnline reported advertising revenues of £23m on those 220m.

As the FT’s Lex column points out – that is just 10c of revenue per user [per month].

Not much return for the huge amount of effort put into the content (same may argue that it’s doesn’t take much effort to generate more gossip on the Kardashians, but actually the MailOnline has gossip down to an art form, which is why they are the biggest).</p>


Compare <a href="https://theoverspill.wordpress.com/2015/09/22/how-big-and-bad-adblocking-could-get-and-why-news-sites-should-sell-adblockers/">my estimate of The Guardian's revenue per browser per month</a> of 6.16p.
revenue  advertising 
february 2016 by charlesarthur
How strong is Apple’s grip over mobile phones? » WSJ
Rani Molla (and the graphics team?) put together this nifty graphic of revenue share in the mobile phone industry.

<img src="http://si.wsj.net/public/resources/images/BT-AD240A_MOBIL_9U_20150722105720.jpg" width="100%" alt="mobile phone industry revenue share" />

Note again that it is <em>revenue</em> share, not unit share (one slow-witted commenter failed to comprehend this), or profit share, or OS share. And it's for the whole industry, not just smartphones - but of course smartphones generate more revenue. (A graphic showing absolute revenue would be fun too. Might have a stab at that.)
smartphone  revenue  business 
july 2015 by charlesarthur
They wanted to make a phenomenon. They made $10m » Polygon
Dave Tach:
Unlike many of its contemporaries, nothing about Crossy Road makes a player feel the need to pay to progress or win. Its design subdues its monetization, and that has cost its developers revenue. Crossy Road rarely — if ever — squeezes onto the top of the iOS App Store's list of highest grossing games, where titles like Clash of Clans and Candy Crush Saga are entrenched. Yet yesterday, Crossy Road was the 12th most popular free iPhone app without even appearing in the App Store's list of top 100 grossing iPhone apps.

This is not an accident. Crossy Road was an experiment in doing free-to-play differently, and that experiment has been wildly effective.

Today, at a Game Developers Conference 2015 session, Hall and Sum told the story of Crossy Road's creation and lifted the veil on its real success during the game's first three months. They revealed that, 90 days after its release, Crossy Road's combination of solid gameplay, unobtrusive in-app purchases, and optional in-app ads powered by the Unity engine, has earned $10m from 50m downloads.


A real lesson in the power of mobile's reach. An average of 20 cents per install - and that's probably skewed towards the high end, meaning 45m downloads probably paid nothing, or next to it.
crossyapp  games  revenue 
march 2015 by charlesarthur
How new versions of Android work » Rusty Rants
Russell Ivanovic of <a href="http://www.shiftyjelly.com/">Shifty Jelly</a>, which makes Android and iOS apps:
People are often quick to mis-interpret these numbers. “iOS 8 adoption is at 64%, but Android 4.4, a version that’s years old isn’t even at that!”. There’s two things wrong with these kinds of comments. Firstly there are roughly 6-8x more Android devices than iOS devices in the world, depending on which market share numbers you use. This means that if a version of Android achieves 39% adoption, that’s a huge deal, and you could develop just for that platform and address a larger user base than targeting iOS 8 with its 64%. Secondly people confuse overall numbers, with actual numbers of people who buy apps. Here for example are the version breakdowns of people who buy Pocket Casts on Android:

<img src="https://russellivanovic.files.wordpress.com/2015/01/pc_numbers.png" width="100%">

So while Android 5.0 has less than 1% adoption in the overall Android ecosystem, 23% of our customers already run it. This makes sense when you put a bit of thought into these numbers. People that have the money to buy apps, and are passionate about Android, have up to date phones.

I find Ivanovic a necessary counterpoint to a lot of what one reads about Android and iOS. He's sincere, and expresses his views directly. (He's Australian, so..) One point about Pocket Casts is that it's a podcast player. There are paid-for podcast players on iOS (Marco Arment, obviously) but it seems to me the opportunity is much larger because there's no OS-level podcast app on Android as there is for iOS.

That said, Ivanovic's points are still valid. It's install base x amount paid that really matters for developers (and, to some extent, users, as they benefit from the availability of apps, driven by the size of the ecosystem). Also, he wrote this piece before today's data about Lollipop share - <a href="http://www.androidpolice.com/2015/02/02/android-platform-distribution-numbers-updated-lollipop-finally-shows-1-6/">1.6% of all Google Play installs</a> as of 2 February.
android  podcast  apps  revenue 
february 2015 by charlesarthur
App Annie reports global app store growth and opens doors to the underdog >> Infinite Monkeys
The joint App Annie/MEF report portrays a global app economy dominated by two giants of the industry: Google Play had downloads this year that were 60% higher than the iOS App Store, but the App Store managed to maintain a similar 60% lead in overall revenue. With emerging markets looking to get a piece of both companies’ profits, the drive for market share has become an uphill battle.


As Google Android (as opposed to AOSP Android) goes into more emerging economies, this difference - more downloads, but less per-download revenue versus iOS - is likely to wider. Benedict Evans calculated in the summer that on average an iOS user generated 4x the revenue of an Android user; projects such as Android One will make that tend towards 5x and 6x, even as the Android user base expands.

That's not a bad thing; it's just an outcome of the numbers.
android  ios  app  revenue  monetisation 
november 2014 by charlesarthur

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