Yichan LIU's blog

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  yichanliu 11:29 am on October 5, 2013 Permalink | Reply  

  blog post 2 

  How do free apps make money?

  Currently, the number of apps in Apple’s appstore has reached 1.25 million, and nearly one third of the apps are free for download. Then how do the free app developers make money? This widely disregarded topic deserves attention given that free apps clearly trump paid in terms of download numbers. The fact is that when developers have apps priced at $0.99, they make a little less money than they do from in-app purchases when it’s free. The other difference is that they can get about 10 times the download number when it’s free.

  The freemium upsell is one of the ways that developers make money from free apps. Many free apps have links that users can click that drives them to the “regular” or “HD” version. It’s kind of a feeder system – users can download free apps and get a sense of what they offer, then they can easily purchase the full version (which will have lots more functionality and game play.) The second one is in-app purchases, which allow users to unlock features or purchase more of something, maybe coins in a game like Tap Zoo or gold in a game like Infinity Blade. In this way, it is possible for the developers to drive millions of dollars in sales, even though the app was free. Mobile ads can also help developers generate money. Incorporate mobile ads in apps can even earn much more from advertising than charging users for the apps.

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  References:

  http://www.forbes.com/sites/tristanlouis/2013/08/10/how-much-do-average-apps-make/

  http://www.bluecloudsolutions.com/blog/5-ways-free-apps-money/

  http://blog.smashapp.com/2011/06/15/developers-how-to-earn-money-from-your-free-mobile-app/

   

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  yichanliu 12:27 am on October 1, 2013 Permalink | Reply  

  blog post 1 

  Releasing cheaper iPhones might not be a wise decision

  Apple Inc. recently released two new iPhones, including iPhone 5S and iPhone 5C — the former one has a faster processor and a fingerprint sensor for security, while the latter one has colorful cases and a cheaper price. However, the low cost iPhone can probably cheapen the brand of iPhone, although it may generate additional sales. IPhone was one of the most successful new products ever launched for it belongs to a new category called “touchscreen smartphones” which was considered more advanced than existing keyboard smartphones. The next development, a development that happens to every new category, is that the category divides into two categories — high end and low end. Any brand that tries to both ends of the market is bound to suffer. Also, it is possible that we cannot see throngs of budget-conscious consumers to line up for the iPhone 5C. That is because the supposedly cheap iPhone 5C is not really cheap. The 16GB model retails for $99 with a two-year service contract, and $549 without a subsidy. Tack on an additional $100 for the 32GB model. The rationale is that the more affordable model would better compete in markets where consumers don’t sign contracts and pay an unsubsidized rate for their smartphones. It’s in these markets where the flagship iPhone struggles, and where Apple has to try harder to win over consumers.

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  References:

  http://www.firstpost.com/business/by-introducing-cheaper-iphones-apple-will-lose-its-high-end-position-1103013.html

  http://news.cnet.com/8301-13579_3-57602328-37/apples-iphone-5c-misses-the-low-cost-mark/

   
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  yichanliu 3:51 am on September 5, 2013 Permalink | Reply  

  blog assignment 1 

  CCTV, the predominant television broadcaster in China, has recently reported Apple Inc.’s double-standard warranties on the International Day for Protecting Consumers’ Rights. In China, Apple after-sale service centers only replace certain parts on defective iPhones during the repair process, while in other countries like the US, the company promises to provide a completely new product during the one-year warranty period if the product has quality issues. Though Apple has apologized for its unfair treat towards Chinese consumers, whether to continue supporting Apple products has become an arduous decision for China’s Apple fans. To investigate the reasons for Apple’s arrogant attitude and its double standards, besides Apple’s unwillingness to provide Asian developing countries with after-sales service for high-tech products, on the other hand, the interests-oriented nature of capital is driving Apple crazy, as it will not lose any profit even it displeases Chinese customers. Also, legal protections covering Chinese consumers are still weak, and cost of legal dimension authority is too high for the majority of consumers in China. Therefore, only enhancing market and regulation supervision can protect Chinese customers’ rights, and in this way, companies like Apple might stop violating the rights of their customers.

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  References:

  http://www.globaltimes.cn/content/768449.shtml#.UjIGTWSNkXw

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    Anonymous 3:51 am on September 5, 2013 Permalink | Reply