Apple Inc. v. Amazon.Com, Inc.

Filing 23

Declaration of Matthew Fischer in Support of 18 MOTION for Preliminary Injunction NOTICE OF MOTION AND MOTION FOR PRELIMINARY INJUNCTION filed byApple Inc.. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2a, # 3 Exhibit 2b, # 4 Exhibit 2c, # 5 Exhibit 3, # 6 Exhibit 4, # 7 Exhibit 5, # 8 Exhibit 6, # 9 Exhibit 7, # 10 Exhibit 8, # 11 Exhibit 9a, # 12 Exhibit 9b, # 13 Exhibit 10, # 14 Exhibit 11, # 15 Exhibit 12)(Related document(s) 18 ) (Eberhart, David) (Filed on 4/13/2011)

EXHIBIT 9
TO DECLARATION
OF MATTHEW FISCHER

Apple, Google make it easier to subscribe to digital media - USATODAY.com

Apple, Google make
it easier to
subscribe to digital
media
Updated 1h 25m ago |

By Scott Martin, USA TODAY

Apple and Google are making it easier for
consumers to subscribe to digital media on
an array of devices.
The companies launched rival services this
week that allow publishers to set terms and
billing for content selected and distributed
in apps — as long as Apple and Google can
grab a piece of the revenue that's generated.
Apple's subscription billing service,
announced Tuesday, lets publishers of
magazines, newspapers, music and video set
terms and prices for content chosen from
the App Store. This à la carte deal promises
readers access to subscriptions that they
purchase on iTunes, no matter which of their
devices are used — the iPad, iPhone or iPod
Touch.

Page 1 of 2

Some publishers bristled at Apple's
announced plan to take a 30% cut from
publisher subscriptions initiated inside
apps, calling that too steep. But other
publishers are biting on the deal. "The No. 1
complaint we get from our customers is that
they want to subscribe via the iPad," said
Sara Öhrvall, director of research and
development at Bonnier, publisher of
Popular Science, which has signed on.
Fashion glossy Elle has also taken the digital
catwalk.
Bonnier plans to launch many of its 60 U.S.
magazines on Apple's App Store platform
and Google's One Pass. "Meanwhile, we will
discuss the terms with Apple about the
revenue share," Öhrvall said.
Apple spokeswoman Trudy Muller declined
to comment as to whether the revenuesharing terms are negotiable. "Our
philosophy is simple," said Apple CEO Steve
Jobs. "When Apple brings a new subscriber
to the app, Apple earns a 30% share. When
the publisher brings an existing or new
subscriber to the app, the publisher keeps
100% and Apple earns nothing."
Advertisement

Google unveiled its One Pass subscription
publishing service a day later, making digital
content available across tablets,
smartphones and websites — presumably a
boost to Android-based devices. The
company plans to take 10% from publishers.
In the past, many consumers had to
subscribe to content on a publisher's
website.

http://www.usatoday.com/money/media/2011-02-18-apple18_ST_N.htm

2/17/2011

Apple, Google make it easier to subscribe to digital media - USATODAY.com

Page 2 of 2

The timing of the two digital offers comes
amid growing rivalry between the Silicon
Valley giants over everything from operating
systems and mobile advertising to talent.
"That was a coincidence," said Londonbased Madhav Chinnappa, Google's head of
news partnerships. "Obviously, we don't
know what Apple is doing."
Rhapsody President Jon Irwin said the
arrangement with Apple is "economically
untenable." Rhapsody, whose business
operates on razor-thin margins, is
considering leaving the App Store. Rival
music services Mog, based in Berkeley, Calif.,
and Stockholm-based Spotify declined to
comment.
For more information about reprints & permissions,
visit our FAQ's. To report corrections and
clarifications, contact Standards Editor Brent Jones.
For publication consideration in the newspaper, send
comments to [e-mail]. Include name,
phone number, city and state for verification. To view
our corrections, go to corrections.usatoday.com.

Advertisement

http://www.usatoday.com/money/media/2011-02-18-apple18_ST_N.htm

2/17/2011

2/16/11 WASHINGTONPT A13

Page 1

2/16/11 Wash. Post (Wash., D.C.) A13
2011 WLNR 3067429
Washington Post, The (Washington, D.C.)
Copyright 2011 The Washington Post
February 16, 2011
Issue DAILY
Section: Main (A Section)
Apple to offer subscription service via App Store
- Hayley Tsukayama
Apple announced Tuesday that it will begin taking subscriptions through its App Store for "all publishers of content-based apps."
Apple is using the same deal it has for the Daily - it will take 30 percent of subscription revenue for purchases
through the App Store. However, if a publisher brings the subscriber to the app through its Web site or by other
means, the publisher gets 100 percent of the subscription money.
Apple to offer subscriptions via App Store
There's also a lot of complicated negotiation between what publishers and subscribers can do within an app and
outside an app, but the gist of Apple's system is that a subscriber should have equal access to non-app subscription
features through a given app.
According to Apple's news release, subscribers can pick the length of a subscription as determined by the publisher
(weekly, monthly, etc.) and manage subscriptions from a central list. Publishers are not allowed to offer outside
(non-Apple) subscription deals from within an app and must provide their own system of authentication to let current subscribers take advantage of in-app features.
Publishers are required to offer any outside subscription deals to app subscribers at the same price or less.
Addressing privacy concerns, Apple will offer subscribers the option of choosing whether to release their information to a publisher when purchasing an app. The way that information is used is governed by the publisher's privacy
policy.
- Hayley Tsukayama
EDITION: M2

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

2/16/11 WASHINGTONPT A13

Word Count: 240
2/16/11 WASHINGTONPT A13
END OF DOCUMENT

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

Page 2

iPhone 4 or Android? - chicagotribune.com

Page 1 of 2

www.chicagotribune.com/features/tribu/ct-tribu-tech-questions-iphone-androi20110211,0,4893423.story

chicagotribune.com
The Gadget Q&A

iPhone 4 or Android?
Now that you have more choices, which should you choose? Here's a quick guide to
help you narrow it down.
By Eric Gwinn, Tribune Newspapers
February 11, 2011
This article was updated at 1:25 p.m. Tuesday, Feb. 15,
to correct the spelling of Sara Zailskas' name and to
clarify that Google Calendar is used as an example of
integration.

adverti sement

With iPhone 4's arrival on Verizon Wireless' network,
maybe you're thinking about switching phones. Maybe
you're an Android user who's finally ready to take a bite
of the Apple, now that there's an alternative to AT&T.
Or perhaps you're through with the iPhone and want
something you can completely customize to your life.
How do you choose between the two hottest phone
platforms?
iPhone 4 is simplicity. Android phones are a tweaker's
paradise. Of course, the iPhone can be tweaked and an
Android can be simple to use, but on the whole, the iPhone is for folks who don't want to mess with a
whole bunch of settings, and an Android phone is for those who do.
Android to iPhone iOS4
Why: The iTunes App Store is bigger, more varied, better organized and has vetted apps. App-makers
usually develop for the iPhone first, Android phones second. If you have a $99 Apple TV, you can
easily watch your iTunes movie rentals and purchases on your TV. Those are some of the reasons
iPhone owners don't feel phone envy, unlike Android owners who see improved models coming out
every other month.
The killer app: The iTunes App Store plus Apple TV will change your life. The breadth and depth of
games, photo-editing tools, travel helpers, dinner planners, car mechanic finders and more available at
the touch of a virtual button will make getting through each day easier. As the old ad said, "There's an
app for that." Add an Apple TV, and you might start thinking seriously about dropping your cable
company.
iPhone to an Android

http://www.chicagotribune.com/features/tribu/ct-tribu-tech-questions-iphone-androi20110...

2/17/2011

iPhone 4 or Android? - chicagotribune.com

Page 2 of 2

Why: The Android operating system seems to do things faster than the iPhone's OS, and Google's Web
applications are integrated with your phone. So, while an iPhone lets you get your Gmail message with
the address of tonight's party, on an Android phone you tap that message to get a map to the soiree.
The killer app: The $2.99 iSyncr app lets you drag your iTunes music library to your phone (sorry, no
movies or podcasts), as long as the songs were bought after September 2009 (when Apple stopped using
copy-protection software on all its songs or pre-2009 iTunes Plus songs). So no worries about losing
your iTunes music.
Everyone will find something to love about an Android phone (Yeah! It uses a micro-USB cable to
connect to my computer, instead of a proprietary 30-pin connector) and the iPhone 4 (Wow! It's so
sexy!). Similarly, everyone will find something to gripe about (Boo! Android phones seem built for
power users only. Yuck! By approving what's available in the App Store, Apple is deciding what I can
and can't have).
But now that the iPhone is available from more than one carrier, and given the growing love affair with
the Android platform—it had the fastest-selling phones last year—there are more choices for everybody.
And that's a good thing. You just have to decide if you're a power user (Android) or a just ready to grab
and go (iPhone).
Once you've made your decision, there's no need to look back. Just ask Verizon Wireless customer Sara
Zelinski, who bought an Android-powered Droid 2 last year, before Apple confirmed the iPhone 4
would be available on that carrier: "I realize now I was missing out more just by not having a smart
phone—not just an iPhone—and now that that problem's solved, life is good."
Do you have a tech question? Send a note to Eric Gwinn at [e-mail]. Be sure to include
your name, location and a way to reach you if we need more information—and your question, of course.
Copyright © 2011, Chicago Tribune

http://www.chicagotribune.com/features/tribu/ct-tribu-tech-questions-iphone-androi20110...

2/17/2011

2/7/11 ATCON (No Page)

Page 1

2/7/11 NPR All Things Considered (Pg. Unavail. Online)
2011 WLNR 2470905
NPR All Things Considered
Copyright 2011 National Public Radio®. All rights reserved.
February 7, 2011
iPad Storybook Apps And The Kids Who Love Them
MELISSA BLOCK, host:
OK. It's time now for a bedtime story. So let's curl up and get out the iPad. Children's book apps are big sellers for
the iPad. They include not only text, but also audio and games. And for tech writer and dad, Omar Gallaga, the apps
are transforming bedtime.
OMAR GALLAGA: What do you want to read?
Ms. LILLY GALLAGA: Let's see what we have.
GALLAGA: Scoot over.
It's bedtime for my 3-year-old daughter, Lilly. She climbs into her little twin-size bed with Tinkerbell sheets covered with dolls and stuffed animals. We're about to choose tonight's bedtime stories as she gets settled in.
All right, do you want regular books tonight or iPad?
Ms. GALLAGA: IPad.
GALLAGA: In November, I started reviewing children's iPad apps for Kirkus Reviews. Lilly is my review partner.
We've gone through 50 apps in two months. Like much of the Apple App Store, the quality of what's available runs
the gamut from crude cash-ins with ugly illustrations, barely worth the 99-cent price tag, to lavish productions with
top-notch voice talent and 3-D pages. The priciest can cost up to $10.
What's that one?
Ms. GALLAGA: "Alice in Wonderland."
GALLAGA: What's that?
Ms. GALLAGA: Teddy.
GALLAGA: What's this one?

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

2/7/11 ATCON (No Page)

Page 2

Ms. GALLAGA: "Jack and the Beanstalk."
GALLAGA: Lilly doesn't know how to use the Internet or a computer mouse, but she can easily navigate the iPad's
touch screen. Her small hands flip past pages of apps, and she taps a finger on the ones she wants.
(Soundbite of iPad app)
Unidentified Woman #1: (As Narrator) Once upon a time there was a man and a woman.
GALLAGA: Lilly is in her princess phase and is obsessed with not one but two apps that tell the tale of Rapunzel.
The first is a straightforward storybook with narration, colorful, hand-drawn illustrations and numerous hidden
sound effects and animations that you can activate by pressing parts of the screen.
(Soundbite of "Rapunzel" app)
(Soundbite of sound effect)
(Soundbite of laughter)
Ms. GALLAGA: The kitty goes meow.
GALLAGA: Yeah.
(Soundbite of sound effect)
Ms. GALLAGA: And then the duck goes ah, ah.
GALLAGA: The second is a pop-up book that asks the reader to complete small challenges before Rapunzel can
meet and fall in love with her prince.
(Soundbite of "Rapunzel" app)
Unidentified Woman #2: Shake the trees by tapping them to collect some apples.
GALLAGA: She's not as crazy about some of the apps I've given high marks to, like PopOut! The Tale of Peter
Rabbit, where the characters don't just appear; they giggle and wiggle on virtual springs. Lilly pokes them to make
them speak, or slides what look like tabs in a paper pop-up book to make Peter squeeze under a fence or to make Mr.
McGregor chase the rabbit with a rake.
(Soundbite of "Jack and the Beanstalk" app)
Unidentified Man #1: (As Narrator) Once upon a time there was a young boy named Jack.
GALLAGA: The apps we both love tend to build upon traditional works to create something even better - like
Ayars Animation's "Jack and the Beanstalk," a great app that features voice acting, hidden sound effects and original
music.

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

1/25/11 SJMERCN 1D

Page 1

1/25/11 San Jose Mercury News 1D
2011 WLNR 1545072
San Jose Mercury News (CA)
Copyright 2011 San Jose Mercury News
January 25, 2011
Section: Business
APP STORE NO FLY-BY-NIGHT FAD, PAPER AIRPLANE GAME ILLUSTRATES
Patrick May, [e-mail]
He's the Ten-Billionth-App Man.
After an illustrious career in copywriting, creative design and developing online games (you all remember "Bikini
Bounce," don't you?), Oli Christie got the phone call this weekend that every app creator dreams of getting.
"I'd just put my kids to bed and went to check my phone for e-mails and I saw this missed call from America," said
Christie, who runs his fledgling app-game design business near Oxford, England. "Then I saw the text that said 'Mr.
Christie, I'm with Apple in Cupertino. Can you call me? I have some good news to share with you.'"
Like millions of Apple fans around the globe, Christie had been watching the digital counter on the tech giant's
website spinning like crazy the past few weeks, quickly closing in on the 10 billionth app downloaded from Apple's
App Store. His free "Paper Glider" app lets users earn points by flicking a paper airplane on the iPhone's screen and
sending it flying through an office, out the window and over yawning landscapes. It had skyrocketed in recent weeks
to the top of the charts in the U.K. and to second place in the United States, but Christie never thought it would become a historical marker for the apps phenomenon.
"My heart was going pitter-patter," Christie said. At first he thought he'd maybe won the $10,000 iTunes gift card
that Apple had promised to give the lucky person who downloaded the milestone app. "But then she said, 'the winning app was your "Paper Glider," and I laughed out loud."
The $10,000 went to another Brit, Gail Davis, who after her teenage daughters had downloaded Christie's app also
got a congratulatory call from Apple. After initially hanging up on what she thought was a prankster, Davis got in
touch with Apple at her kids' urging and eventually collected her prize.
Christie didn't get a gift card. But he did get instant fame and calls from reporters around the world, not to mention
the predictable boost in downloads that invariably follows publicity around these mind-boggling benchmarks.
From the day it opened for business in mid-2008, through the one-billionth download in April 2009 to the fivebillionth last June, Apple has been on app-downloading fire. In a news release referring to the "more than 10 billion

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

1/25/11 SJMERCN 1D

Page 2

apps downloaded in just two and a half years" and the "staggering seven billion apps" downloaded in the past 12
months, Apple quoted its marketing chief, Philip Schiller, as saying "the App Store has surpassed our wildest
dreams."
Analyst Rajeev Chand, who covers the mobile industry for investment banking firm Rutberg, said the 10 billion
mark truly is a milestone Apple can be proud of, even if the "abandon rate" of apps among jaded downloaders after
30 days has been estimated by some to be as high as 50 percent.
"Apple has revolutionized the way consumers and enterprises are using these mobile devices," he said. "And that,
in turn has led to more innovation in this mobile-app ecosystem. But we would clearly argue that the unforeseen
opportunities that lie ahead are even greater.
"What we've seen so far," said Chand, "has merely been a dress rehearsal for what's coming."
The starring role that "Paper Glider" played this week underscores the searing pace of innovation in the app universe, as well as the seemingly insatiable appetite smartphone and tablet users have for the more than 350,000 cutting-edge tools and time-sucking games now available at the App Store. iPhone, iPod touch and iPad users in 90
countries around the world have been scarfing up games, as well as business, news and travel apps, just as quickly as
developers can come up with them.
Just last week, said Christie, about 380,000 people a day were downloading "Paper Glider." And this despite the
fact that user reviews at the App Store called the game "boring" and "Lame."
Not bad for an app that Christie's company, Neon Play, whose six apps have been downloaded a total of 6.2 million
times, launched only last month. "It never crossed our minds that the 10-billionth would be one of our games," said
Christie. "Watching that counter tick upwards every day like crazy, we never imagined it would be us. This was the
biggest stroke of luck ever."
Contact Patrick May at 408-920-5689.
EDITION: Valley Final
Word Count: 719
1/25/11 SJMERCN 1D
END OF DOCUMENT

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

BBC - Newsbeat - Apple app store reaches 10 billion downloads
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The 10 billionth download has
been made from Apple's app
store, the company has
announced.

Website accused of letting teenagers take
part in vicious cyber-bullying closes down.

The world's largest technology
firm reached the milestone on
Saturday night (22 January).
The downloaded game was a free
app called Paper Glider,
developed by British company
Neon Play, where users control a
paper aeroplane.

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Of all the millions of Apple users from around the world, it was
downloaded by Gail Davis from Orpington in Kent.

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She told the BBC: "I have to confess it wasn't actually my download,
it was my daughter's.
"I had no idea, when Apple called me. I thought it was a prank call
and I declined to take it."

Ahead of this year's Brit Awards Newsbeat
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But after speaking to her daughters she found out they'd
downloaded the game and realised she'd made a mistake.
"I had a moment of blind panic but thankfully Apple called me back.
"They said it's not a joke and you are the winner."

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As the app store account holder Gail is being given an iTunes gift
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Apple says seven billion of those have come in the last 12 months.
There are 350,000 apps available to more 160 million iPhone, iPod
touch and iPad users in 90 countries around the world.

But has Sony's Xperia Play come too late in
the day for gamers?

But Apple is facing growing competition.

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In the mobile phone market Google's Android and RIM's (the makers
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The company's iPad is also facing a much tougher market than when
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Apple’s App store hits 10 billionth download - Telegraph

Page 1 of 3

Apple’s App store hits 10 billionth download
Paper Glider, made by UK developer Neon Play, is Apple's 10 billionth app downloaded

Paper Glider, by Neon Play, was the 10 billionth app downloaded from Apple's App Store

By Matt Warman (http://www.telegraph.co.uk/journalists/matt-warman/) , Consumer Technology Editor
11:05AM GMT 24 Jan 2011

http://www.telegraph.co.uk/technology/apple/8278278/Apples-App-store-hits-10-billionth-download.html

2/14/2011

Apple’s App store hits 10 billionth download - Telegraph

Page 2 of 3

Apple has announced that its App Store has now hit 10 billion downloads since it launched in July 2008. Paper Glider, made by Cirencester-based
iPhone App developer Neon Play was downloaded by Gail Davis from Orpington in Kent. She was rewarded with a $10,000 (£6,250) Apple gift
card.
Apps have found remarkable popularity among users of all Apple’s 160 million compatible devices, with Facebook’s free app the most popular.
Gaming, however, has become a mainstay thanks to the iPhone and IPod’s sensitive touchscreens. Of the top 10 paid-for apps, nine are currently
games, and Doodle Jump is the most popular paid iPhone app of all time.
Paper Glider, which Ms Davis told the BBC her daughters had downloaded without telling her, requires users simply to swipe across the screen to
‘throw’ a paper aeroplane out of an office window and through various environments. Apple has called it 'the most addictive paper flying game
ever'.
It took the App store 11 months to reach its first billion downloads, but accelerated growth saw it reach 3 billion by January 2010, and 10 billion just
a year later. Users of the iPhone, iPod Touch and iPad can all download apps.
Philip Schiller, Apple's senior vice president of Worldwide Product Marketing, said: 'With more than 10 billion apps downloaded in just two and a
half years, a staggering seven billion apps in the last year alone, the App Store has surpassed our wildest dreams.'

Apple: The 10 most popular free and paid apps (http://www.telegraph.co.uk/technology/apple/8278380/Apple-The-10-most-popular-free-and-paidapps.html)
Apple App Store: Its rapid success (http://www.telegraph.co.uk/technology/apple/8278554/Apple-App-Store-Its-rapid-success.html)
Apps appeal: the revolution has only just begun (http://www.telegraph.co.uk/technology/8278738/Apps-appeal-the-revolution-has-only-just-begun.html)

Oli Christie, chief executive officer at Neon Play, said his company had been “been eagerly discussing the 10 billion app countdown in our game
studio, so when I got a call from Apple Cupertino saying they had some "good news", I thought they might tell us they were featuring one of our
apps on the App Store. When they said that Neon Play's Paper Glider was the 10 billionth app, I was completely and utterly dumbstruck. It's a great
piece of news for the whole Neon Play team. Paper Glider is currently the number one app in the UK, so this is a double piece of great news for our
studio."

http://www.telegraph.co.uk/technology/apple/8278278/Apples-App-store-hits-10-billionth-download.html

2/14/2011

Apple’s App store hits 10 billionth download - Telegraph

Page 3 of 3

Apps allow users to customise their devices; prices range from free to typically a few pounds or less.

© Copyright of Telegraph Media Group Limited 2011

http://www.telegraph.co.uk/technology/apple/8278278/Apples-App-store-hits-10-billionth-download.html

2/14/2011

Page 1

FOCUS - 125 of 217 DOCUMENTS
Copyright 2011 Newstex LLC
All Rights Reserved
Newstex Web Blogs
Copyright 2011 The Business Insider
The Business Insider
January 23, 2011 Sunday 12:00 PM EST
LENGTH: 228 words
HEADLINE: The Hugeness Of 10 Billion Apps (AAPL)
BYLINE: Matt Rosoff
BODY:
Jan. 23, 2011 (The Business Insider delivered by Newstex) --

Apple announced yesterday that more than 10 billion iPhone and iPad apps have now been downloaded from the App
Store.

With such big numbers routinely thrown around in finance, it's easy to lose track of what an impressive feat that
actually is for a consumer products company.
Here's what 10,000,000,000 actually means:
Each of Apple's 160 million iPhone and iPad customers has downloaded an average of 62.5 apps. That's an average
of 18 million apps per day -- or 206 apps per second -- since the store launched on July 10, 2008. That's more than the
total number of personal computers sold -- ever. (Total PC sales for 2010 were around 350 million. At that rate, it will
take more than 28 years to reach 10 billion sold. And sales rates were much lower when the PC market started in the
1980s.) If you made a stack of 10 billion iPhone 4s, it would be 58,396 miles high -- about a quarter of the distance to
the moon.
Apple also revealed that the total number of apps now available is 350,000, with 60,000 dedicated iPad apps.
Now, take a look at the most popular free iPhone apps of all time?'
Join the conversation about this story »
See Also:
The 10 Most Downloaded Free iPad Apps Of All TimeThe Top 10 Paid iPhone Apps Of All TimeThe Top 10 Paid iPad
Apps Of All Time
Newstex ID: BZIN-5352-100062868

Page 2
The Hugeness Of 10 Billion Apps (AAPL) The Business Insider January 23, 2011 Sunday 12:00 PM EST

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FOCUS - 134 of 217 DOCUMENTS
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Newstex Web Blogs
Copyright 2011 International Business Times News
International Business Times News
January 23, 2011 Sunday 6:39 PM EST
LENGTH: 283 words
HEADLINE: Apple announce App store downloads reaches 10 billion
BODY:
Jan. 23, 2011 (International Business Times News delivered by Newstex) -Apple has announced that download from its iconic App store breached 10 billion apps by the more than 160 million
iPhone, iPod touch and iPad users across the globe. The 10 billionth app downloaded, Paper Glider, was purchased by
Gail Davis of Orpington, Kent, UK. As the winner of the App Store Countdown to 10 Billion Apps, Gail Davis will
receive a $10,000 iTunes Gift Card.

"With more than 10 billion apps downloaded in just two and a half years-a staggering seven billion apps in the last year
alone-the App Store has surpassed our wildest dreams," said Philip Schiller, Apple's senior vice president of Worldwide
Product Marketing. "The App Store has revolutionized how software is created, distributed, discovered and sold. While
others try to copy the App Store, it continues to offer developers and customers the most innovative experience on the
planet."
The revolutionary App Store offers more than 350,000 apps to iPhone, iPod touch and iPad users in 90 countries around
the world, with more than 60,000 native iPad apps available. App Store customers can choose from an incredible range
of apps in 20 categories, including games, business, news, sports, health, reference and travel.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional
software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple is reinventing the
mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is
defining the future of mobile media and computing devices.
Newstex ID: IBTX-7212-100065849
NOTES: The views expressed on blogs distributed by Newstex and its re-distributors ("Blogs on Demand®") are solely
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general information only and should not, in any respect, be relied on as professional advice. No content on such Blogs

Page 4
Apple announce App store downloads reaches 10 billion International Business Times News January 23, 2011 Sunday
6:39 PM EST
on Demand® is "read and approved" before it is posted. Accordingly, neither Newstex nor its re-distributors make any
claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained therein or
linked to from such blogs, nor take responsibility for any aspect of such blog content. All content on Blogs on
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LOAD-DATE: January 23, 2011

9/16/10 USATD IB

Page 2

While competitor Google's Android mobile platform is starting to catch up, the biggest audience for advanced mobile apps continues to be with Apple, which has sold some 120 million mobile devices.
Greg Joswiak, vice president of marketing for Apple, says that when the iFund was announced, Apple had sold just
5 million iPhones, and no apps had yet been created. Kleiner "had the foresight to see this massive opportunity. It's
easy to see now, but the fact is, they saw something big was coming and acted on it."
The 250,000 apps in Apple's App Store will generate nearly $2 billion in revenue this year, growing to $3 billion in
20 11, says Piper Jaffray analyst Gene Munster. "If you look at the next decade, the concept of a mobile app will be
the equivalent of what software was 20 years ago," Munster says. "Computing is moving to mobile. Apps are the
software of the future."
Indeed, BlackBerry maker Research In Motion has a similar fund with several partners which invests in apps for its
BlackBerry smartphones. Beyond that, "Every VC (venture capitalist) is trying to figure out how to participate in
what appears to be the biggest megatrend over the next 10 years," Murphy says.
Hotbed for mobile creativity
The iFund began shortly after the iPhone was announced, to help encourage developers to create apps for Apple's
hot new gadget. The tech community long had talked about mobile as "next year's revolution," says Cyriac Roeding,
. CEO of Shopkick. "A lot of people thought, 'OK, I've heard this a million times.' But Kleiner was right."
Now, Roeding says, the center of the mobile universe is in and around Palo Alto -- not far from the corporate homes
of Apple and Google -- rather than Europe and Asia (home to Nokia, Samsung and other phone manufacturers)..
When Murphy invests in companies, he generally insists they open a headquarters in Palo Alto, perhaps best known
as home to Stanford University, the birthplace of Google. Palo Alto has access to great engineers who like the mild
weather and collegiate atmosphere of the University Avenue shopping district, Murphy says. Three of his iFund
companies are right off University Avenue.
"We don't want to be more than biking distance from Stanford," says Soujanya Bhumkar, CEO of Cooliris, an
iFund-backed company whose apps offer visual search tools.
The iFund was originally budgeted at $100 million, but Kleiner expanded it to $200 million in March to embrace
iPad app development. Murphy has about $85 million left to invest. When he helps to seed a company, he generally
puts in $8 million to $10 million over the life of the investment -- giving Kleiner Perkins about a third of ownership.
In accepting start-ups for the iFund, Murphy says, he wants "big ideas" that can be turned into companies. "If you
think you're going to have one great hit app, you should do it on your own," Murphy says. "But if you're looking to
build a big company, come to us."
Developers have many ways to fund their work -- personal bank accounts, friends and family, or seeking investment from other venture-capital firms. Most Apple app development is self-financed, says analyst Munster, with the
average developer generating revenue of around $40,000 yearly for their wares.
In the club
It's not easy getting into the iFund. So far, only 14 companies have been accepted out of 6,000 submissions.

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

9/16/10 USATD 18

Page 4

vate hotline to the superhero.
"We can call Apple and say, 'Hey, we'd like you to take a look at this company,' but it also works both ways."
Apple recommended the music app Shazam to Kleiner. And the iFund's next, still unannounced, new company
came direct from Apple CEO Jobs, who sent an e-mail to Kleiner suggesting an investment, Murphy says.
The iFund specializes in Apple mobile devices, but that's not to say it won't invest in companies making programs
for the competing Android platform from Google, says Murphy. However, if someone pitched Murphy on an app
made only for the Android, he says it "wouldn't pass the IQ test because the iPhone platform is too big. I'd convince
them it should be on both platforms."
Owners of Apple devices "are more active and spend more," Murphy says. "That gap will eventually close, but it
will take some time."
Murphy should know. He spends so much time on iTunes checking out the chart rankings of his iFund companies,
"I am probably the most active person on the App Store," he says. Apple's charts are updated often, and he can't resist taking one more peek. "It's like watching the stock market," he says.
Word Count: 1612
9/16/10 USATD 18
END OF DOCUMENT

© 2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

Mobile Apps Market Scales Up From Zero To Billions : NPR

Page 1 of 2

Mobile Apps Market Scales Up From Zero To Billions
by WENDY KAUFMAN

April 13, 2010

text size A

A A

Apps are now big business.
Three years ago the industry barely existed. But
recent studies suggest the app economy is
growing rapidly and could top $20 billion — the
amount Americans spend on children's clothing —
in just a couple of years.
Roughly 3 billion apps have been downloaded for
Apple's iPhone, iPod Touch and iPad.
Enlarge

Screengrab via Apple.com

Roughly 3 billion apps have been downloaded for Apple's
devices. Analysts say Apple has helped expand the app
economy from a market offering free apps into one with
annual revenues of up to $6 billion.

Greg Anderson, a senior software analyst at The
Seattle Times, creates apps for mobile devices.
He's also an independent app developer.

"You know, when Apple recognizes you or when
you get up in the morning and you see all the downloads, it's like Christmas everyday," Anderson says.
"It's like caffeine because people appreciate what you've done, so you want to do more."
The Advantage Of Free Apps
Anderson's new app, which converts Celsius temperatures into Fahrenheit, can be downloaded free.
That means he's not making a penny from this app.
"I think every developer will tell you — you'll get 10 to 15 times more downloads for free than if it costs
money," Anderson explains.
Roughly 80 percent of all apps are free. Many of the rest cost just 99 cents.
So how did a market, which focuses on free and almost-free apps, grow into an industry with annual
revenues of $5 billion to $6 billion? Analyst Chetan Sharma offers a one-word explanation: Apple.
"Apple really changed the game in many ways. They made it very simple for developers to get their
application to the App Store in front of the consumers," Sharma says.
And once it was easier, faster and more lucrative to develop apps and sell them, more developers
began to create them. The promise of a digital Swiss army knife became a reality.
But making money from apps is another story.
Charles Golvin, a senior analyst at Forrester Research, says developers who sell millions of their apps
— even for a tiny price — can turn a profit.

http://www.npr.org/templates/story/story.php?storyId=125872867

2/17/2011

Mobile Apps Market Scales Up From Zero To Billions : NPR

Page 2 of 2

"It could be someone as big as Electronic Arts, the largest gaming publisher, or could be two guys in a
garage," Golvin says.
And the guys in the garage who are giving their app away free may be hoping to eventually sell a
premium version — or sell something that goes with it.
Developers typically get 70 cents of every dollar spent to download their app. Golvin says the platform
provider — like Apple — gets the rest. And then there's a separate stream of revenue from advertising.
Advertising Dollars
Developers get most of the advertising dollars, but companies that that serve up ads make money as
well. Zumobi, a Seattle-based company, creates apps and places advertisements to go with them.
"We have several apps coming out focused on the female demographic, parents, [and] that audience is
obviously very attractive to advertisers," says John SanGiovanni, a co-founder of Zumobi.
The company often partners with big content providers like NBC and Motor Trend.
Ken Willner, Zumobi's chief executive officer, suggests that being big in the app industry has some
advantages.
"As a publishing network, we can cross-promote aggressively all of our applications," Willner says. "For
example, you've downloaded our Motor Trend App; we will also suggest our NASCAR app — very, very
big advantage and frankly something the two guys in the garage can't take advantage of."
As the number of apps has exploded, it's becoming more difficult for small guys to get noticed.

http://www.npr.org/templates/story/story.php?storyId=125872867

2/17/2011

Health: Health-related apps for emergencies - chicagotribune.com

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There's an app for most ailments
There are plenty of apps that can make staying healthy a little easier. Or at the
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Jan Jarvis
Fort Worth Star-Telegram
March 11, 2010

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There are more than 60 apps to help smokers kick the habit.
Look for apps to help you go cold turkey, apps that double as
subliminal tools, even apps with inspirational words from the
Bible to get you through cravings.
But that's just the beginning. The Apple App Store is loaded
with all kinds of health apps, from the practical to the absurd.
Some translate lab test results or offer first-aid advice. There
are apps for pet emergencies and some that stop just short of
diagnosing symptoms. For those who are sleep-deprived,
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With so many health-related apps available, sorting out the
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What it does: Keeps track of how long you have been smokefree and how much money you've saved since kicking the
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What it does: If you're worried about your blood pressure,
tracking it daily will give you a clear picture of where you stand.
This app makes it easy. Besides tracking the data, it also
analyzes it, and the information is easy to read. Color icons
show you when your values are too high, normal or too low.
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What it does: Think of this app as a mini version of the eye
chart on the wall of your optometrist's office. If the first line or
giant E is blurry, brace yourself for some bad news: You're
legally blind and should see an optometrist. It also identifies
flaws in the vision colorblindness test. It's not going to replace a visit to your optometrist, but for 99 cents,
it's an easy way to check your vision.
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iPHARMACY
Cost: 99 cents
What it does: Your doctor prescribes a drug that you've never heard of. Before even leaving the exam
room, you can see if there's a cheaper, generic version available. This handy app contains information on
more than 6,000 common drugs. Look up dosages, adverse reactions, drug interactions and overdosing.
You also can save a list of the drugs that you take or e-mail that information.
iMEDICAL LAB TESTS
Cost: $5.99
What it does: Say you just got back lab results on your blood test. Use this app to see if the lab values
are normal. The app includes common tests for red blood cells, electrolytes, lipids and hormones.
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2/17/2011

FINANCIAL TIMES TUESDAY DECEMBER 22 2009

21

★★★

Companies | International

App army
promises
to bring a
new tech
revolution
The Apps explosion
Sales are booming
even as consumers
are pinching
pennies, says
Joseph Menn
A decade ago, San Francisco’s trendy South of Market district was the birthplace of hundreds of web
design firms that have since
gone under or been swallowed by rivals.
Now it is the turn of the
“app army”, the scores of
companies
devoted
to
churning out small programs known as applications that run on Apple’s
iPhone and rival devices, as
well as on regular computers for users of Facebook
and similar websites.
App sales are booming at
a time when corporations
are cutting tech spending
and consumers are pinching
pennies.
Indeed, veteran industry
executives, investors and
analysts are calling the
shift to internet-capable
devices and the apps that
run on them a once-adecade leap in technology,
on a par with the great
personal computing boom
of the 1980s and the debut

Rather than the
small individual
developers, it is the
biggest companies
that are faring best
of the World Wide Web in
the 1990s.
“The ramp [growth rate]
of the iPhone and iPod
touch in the first eight or
nine quarters is more than
five times the ramp for the
internet,” says Kathryn
Huberty, Morgan Stanley
tech analyst. These devices,
and faster wireless networks, are both now reaching about a fifth of the global population, she estimates, which will drive
much more rapid development: “Globally,” she says,
“2010 is the tipping point.”
No company is more central to the shift towards the
mobile internet than Apple,
which enjoys a wide lead in
distributing applications.
More than 100,000 apps are
available on its App Store
and more than 2bn have
been downloaded in less
than a year and a half.
To keep that gusher flowing, Apple has sought to
inspire more outsider developers with the rare rags-toriches stories – like that of
Steve Demeter, a bank programmer
who
earned
$250,000 in two months of
2008 after launching a simple game called Trism.
But just as many from
the front lines of the dotcom revolution were left on
the battlefield, not all of
those writing for the tiny
screen will make it big.

“It’s just getting ridiculously overwhelmed right
now because of all these
stories about people getting
rich. It’s few and far
between,” says solo developer Barry Egerter of
Ontario, who hit the
number one spot on the
best-selling paid app chart
last Thursday.
Even though Mr Egerter
made it to the top, it took a
year’s work. He has quit his
day job, and earned perhaps
$200,000 before taxes with
Live Cams, a 99-cent app
that allows users to look
through the lenses of internet-controlled security cameras. Mr Egerter expects his
ride at the top to be like
that of most who make it
there: exciting and brief. “If
things don’t work out, I
may just find another desk
job,” he says.
Rather than the small
individual developers, it is
the biggest companies that
are faring the best. Electronic Arts, which has been
one of the largest-grossing
games sellers for a decade,
had four of 2009’s top-five
selling App Store games.
EA, which has expanded
both
organically
and
through acquisition, in 2005
made its largest bet until
then by buying early phone
gaming company Jamdat
for $680m. And last month
it bought London-based
Playfish, one of the three
revenue-leading specialists
in social games – and one
developing a bigger iPhone
presence – for about $300m.
Social networking, gaming and mobile are increasingly combining. Zynga, the
biggest social gaming company by revenue with
FarmVille and Mafia Wars,
has stripped-down versions
of some games on the
iPhone.
The advantages the bigger companies have over
the smaller developers –

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News analysis
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FT montage

Apple App store

Top grossing UK iPhone applications 2009

Available applications (’000)

Games

Developer

100

The Sims 3

Electronic Arts (Games)

Scrabble

Electronic Arts (Games)

Worms

Team17 Software (Games)

Sonic the Hedgehog

Sega (Games)

Need for Speed Undercover

Electronic Arts (Games)

80
60
40

Applications
CoPilot Live UK & Ireland

11
Jul

14 9 22 16 17 23 8 14 9 28 4
Jul Sep Oct Jan Mar Apr Jun Jul Sep Sep Nov
2008
2009

Source: company

scale, expertise and marketing know-how – mean there
may not be any “app millionaires” in the years
ahead, says Matt Murphy of
venture capital firm Kleiner
Perkins Caufield & Byers,

little as zero, if friends
convince other friends to
play.
Second, in 2008 Apple
announced that it would
open its App store to
outsiders, putting pretty well
any developer with a great
product a few finger-taps
away from millions of
iPhone users.
“It felt like one of those
inflection moments. This felt
like one of the biggest,” Mr
Young said, and in March he
started assembling a cadre
of like-minded industry
veterans and venture
funding.
In the year and a half
since, the company –
which has fewer than 40
employees – has landed six
games in Apple’s Top Ten
charts, notching up more
than 10m downloads.
One of the guiding
principles that Ngmoco
espouses is to combine
games with a heavy social
component, so that people
interact while playing and

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*Based on available updates from Apple

who runs a fund devoted to
backing iPhone developers.
But small groups that
have multiple successes
will be pursued by bigger
companies. “There will be
teams of people who get a

Games guru puts his finger on chart success
Inside the San Francisco
offices of iPhone app maker
Ngmoco, across from the
Giants’ baseball stadium, the
forces of modern games are
colliding.
Chief executive Neil Young
left Electronic Arts, one of
the two leading electronic
gaming companies, to start
Ngmoco last year to take
advantage of big
developments in the
industry.
First, games that did not
require a lot of time or
processing power, such as
the role-playing games
Mobsters and Mafia Wars,
had started to spread on
MySpace and Facebook.
Social games have a
financial advantage over
console games, where
Electronic Arts and
Activision are strongest,
because they require much
less up-front investment and
because they can be
improved daily in response
to how they are played.
Distribution costs can be as

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20

thus recruit additional
players. Another is that
games should be free to
play, but that spending
money inside them should
make them more enjoyable.
Ngmoco’s Eliminate did that
so well that it became the
first game to make the
separate Top Ten charts for
free games and also for
top-grossing games.
In June, Ngmoco became
the latest gamemaker to
deploy a social network for
its games and those of
partners, so that the players
who know each other from
one imagined world can find
each other in another, while
the company crosspromotes its wares.
But all of that is so far
only on the iPhone, and that
is not where Ngmoco is
going to stay. “The web is
the central platform,” said
Clive Downie, marketing
vice-president. “The question
is how we make games on
other devices that utilise the
web as well.”

hit franchise acquired for
north of $1m,” Mr Murphy
says.
The business models are
changing
so
rapidly,
though, that it is hard to
make firm predictions.
Advertising money adds
to the income from direct
app sales, and ads inside
games helped the three biggest mobile advertising networks globally, AdMob,
Quattro Wireless and Millennial Media, to double
revenues in the past year.
Through trial and error,
apps developers have discovered that having a free
version of a program would
help them market a fuller,
paid version – the “freemium” model.
And just months after it
started allowing supplemental purchases within paid
applications, Apple agreed
in October to allow purchases within free apps, creating a new path to profit.
Ideally, some of the most
sophisticated apps makers
would like to become services themselves, so that
they have the same sort of
ongoing relationship with
customers that Apple does.
But if they do that, it is
unclear how vital Apple
will be to the equation.
Tomorrow: apps beyond
Apple
www.ft.com/techblog

Regulator attacked over Rusal IPO constraints
INDUSTRIAL METALS

Activist says limits
might backfire
By Tom Mitchell in Hong
Kong

Hong Kong’s leading shareholder activist has issued a
stinging critique of the market regulator’s unprecedented decision to restrict
retail investor participation
in UC Rusal’s $2bn initial
public offering.
The
Securities
and
Futures Commission on Friday allowed the IPO to proceed but insisted on a minimum upfront investment of
HK$1m ($129,000).
The regulator will also
require Rusal, a Russian
aluminium group, to be
traded on the Hong Kong

stock exchange in blocks of
200,000 shares, making it
too expensive for most
small investors.
“This is crazy,” David
Webb told the Financial
Times. “If the prospectus
doesn’t meet our disclosure
standards
then
they
shouldn’t approve the listing, and if it does it should
be available to all investors.”
Under Hong Kong’s “dualfiling regime”, Hong Kong
Exchanges and Clearing’s
listing committee reviews
and approves IPO applications. But in a simultaneous process, company filings are also vetted by the
SFC, which can mandate
changes or even veto a listing to protect investors.
Mr Webb noted that the
SFC’s restrictions could

backfire
if
determined
investors “stretched” their
finances to participate in
the IPO.
He said that the restric-

David Webb: says regulator’s
decision is ‘crazy’
AP

tions were discriminatory,
as they implied that small
investors are not as sophisticated as wealthy ones.
Members of HKEx’s listing committee are also sceptical of the SFC’s attempt to
restrict participation in
both Rusal’s IPO and subsequent trading in the secondary market.
“Personally I don’t think
it will work,” one member
said. “You can try to ringfence it but the market is
the market.”
The SFC declined to comment.
People familiar with the
SFC’s deliberations said
that Rusal, controlled by
Russian oligarch Oleg Deripaska, has met all of its disclosure obligations, especially over a complex
$16.8bn debt restructuring

completed at the end of
November. The company’s
prospectus runs to 1,000
pages, including a lengthy
section on risk factors.
They added that the efficacy of the SFC-mandated
restrictions was not the
point. A caveat emptor has
effectively been stamped on
Rusal’s IPO, they argue,
and it is now up to investors to decide if they will
heed or ignore the regulator’s implicit signal.
“We’re in the business of
facilitating listings, not
standing in their way,” said
a listing committee member. “I can’t see anything
that should stop [Rusal’s
IPO]. The investment banks
have done their job and it’s
a going concern.”
See Lex

VISIT FT.COM

For the first article
in this series and a
glimpse into the
world of apps
developer Ngmoco
www.ft.com/apple

Contracts & Tenders

Chinese banks will raise as
much as Rmb500bn ($73bn)
from capital markets next
year to boost their core
capital in the wake of
this year’s lending boom, a
senior official at the Chinese banking regulator has
said.
China’s listed banks were
likely to issue Rmb300bn400bn in equity or bonds in
2010 to boost their financial
strength, said Li Fuan, acting director-general of one
of the China Banking Regulatory Commission’s departments.
In addition, Agricultural
Bank of China would raise
Rmb100bn-200bn from its
initial public offering which
is expected next year, Mr Li
said in a speech.
His comments were the
first official acknowledgement of the likely fundraising effort by China’s banks,
although there has been
widespread speculation
about the amounts they
will need to boost capital
ratios.
Chinese banks extended
Rmb9,210bn in new loans in
the first 11 months of this
year, far more than the
average of Rmb3,000bn4,000bn in recent years.
The lending boom came
as the government rolled
out a massive stimulus
package to counter the
effect of the global crisis.
Beijing has set a target of
Rmb7,000bn-8,000bn in new
bank loans for next year,
according to people familiar
with the latest policy.
With
more
than
Rmb1,000bn of this year’s
loans remaining unspent in
the banking system, the
target in effect means that
the Beijing government is
planning to maintain lending at its current rate next
year.
In spite of the huge volume of lending this year,
regulators believe that
the country’s banking system is fundamentally sound
although they remain wary

of a re-emergence of nonperforming loans, an official
told the Financial Times.
In contrast to their western counterparts, China’s
banks have emerged from
the global economic crisis
in better shape than at any
time since the country
embarked
on
market
reforms three decades ago,
said Liao Min, director
general of the China Banking Regulatory Commission
General Office.
“Credit quality in general
has improved and nonperforming loans have
reached their lowest level
ever,” Mr Liao said.
“By number and by
nature, our banks are
stronger and healthier than
at any time in history,” he
added.
The ratio of non-performing loans at all China’s
commercial
banks
decreased to 1.6 per cent
at the end of November,
while the total outstanding
level of bad loans fell
below Rmb500bn for the
first time in more than a
decade.
Charlene Chu, an analyst

‘Credit quality has
improved and nonperforming loans
have reached their
lowest level ever’
with Fitch, the ratings
agency, said that asset quality and profits had held
steady.
“But there has been deterioration this year in the
amount of capital the banks
have on hand to deal with
shocks to the loan book,”
she said.
Mr Liao said that the
regulator was wary of
seeing a jump in nonperforming loans as a result
of the enormous, rapid
credit expansion this year
and had introduced a range
of measures that were
designed to mitigate future
risks.
“We adhere to an ancient
Chinese philosophical saying which tells us that
“Ju’an siwei, sizhe youbei,
youbei wuhuan’ [‘‘Be vigilant in peacetime and
prepare yourself; precautions avert perils’,”] Mr
Liao said.

Apple's App Store Blasts Past Two Billion Downloads

Page 1 of 2

Article location:http://www.fastcompany.com/blog/kit-eaton/technomix/apples-app-store-blasts-past-two-billion-downloads-stillaccelerating
September 28, 2009
Tags: Innovation, Technology, App Store Wars, iphone apps

Apple's App Store Blasts Past Two Billion Downloads
By Kit Eaton
In April Apple announced [1] that a billion apps had been downloaded from its iTunes App Store. Now, 14 months since the Store's
launch, the folks at Cupertino have revealed that another billion apps have zipped over the wires.

That's an incredible acceleration of growth--8 months to a billion, 6 months to another billion. These figures translate to a 6.6 million app
-a-day download rate for the last two and a half months. Why so fast? Back in April there were just 25,000 apps available, and now there
are more than 85,000. That helps explain why so many more apps are being downloaded. But there's also the fact that people are more
aware of the App market, thanks to aggressive Apple advertising and a growing embrace of downloads among Apple's installed
userbase.
While the income pouring in through the App Store may not be at the core of Apple's business--its Mac, iPod, and iPhone hardware are
still its bread and butter--it still represents a big chunk of cash (with Apple taking a 30% skim off paid app sales). It's easy to see the

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Apple's App Store Blasts Past Two Billion Downloads

Page 2 of 2

writing on the wall: App Store income will soon become really important for Apple. That's because while iPod sales might be slowing
(the app-friendly Touch being an iPod, of course) the iPhone's sales are basically set to sky-rocket.
Sales will skyrocket for a number of reasons--the key force is the end to Apple's carrier exclusivity deals and its launch into the Chinese
cellphone market. In the U.K., it has just been confirmed [2] that Orange will soon sell the iPhone alongside previous exclusive-vendor
O2. That pattern is likely to expand to other nations where Apple is only using one carrier. Though we have no evidence of an imminent
date, Apple's marriage to AT&T in the U.S. can't last much longer--the clunky handling of iPhone data tethering [3] and MMS [4]
capabilities for American iPhone owners surely have embarrassed Apple and angered its execs enough to threaten a longer-term
extension to AT&T's deal.
It has also been long-rumored [5] that Apple's been chasing a distributor in China--the world's biggest cellphone market with 700 million
subscribers--and that despite numerous set-backs, China Unicom was the favorite. That deal has been confirmed [6], and the phone will
launch in China from October. We think Apple's attempts to deal with China's biggest carrier, China Mobile, soured partly since the
network bosses wanted to meddle with Apple's business plan and take a cut of the App Store sales--hence we can assume Apple's happy
to settle with Unicom due to preferable App Store conditions in the deal.
All these moves mean Apple's iPhone installed user base is going to literally explode over the next six months or so. And with
continuing growth in the number of developers writing apps for the platform. this is going to equate to even faster application sales. I
wouldn't be surprised to see the four billion app barrier being smashed sometime around Valentines Day, 2010. And then Apple's
financial love affair with mobile apps will be plain for all to see.
[Apple [7]]
Links:
[1] http://www.fastcompany.com/blog/kit-eaton/technomix/one-app-store-rule-them-all-itunes
[2] http://www.slashgear.com/o2-losing-iphone-3gs-exclusivity-on-orange-uk-later-in-2009-2858124/
[3] http://www.fastcompany.com/blog/chris-dannen/techwatch/simple-secret-iphone-tethering-fix
[4] http://www.fastcompany.com/blog/chris-dannen/techwatch/att-turns-iphone-mms-world-yawns
[5] http://www.fastcompany.com/blog/kit-eaton/technomix/five-days-new-iphone-rumor-round
[6] http://tech.yahoo.com/news/nm/20090928/tc_nm/us_chinaunicom
[7] http://www.apple.com/pr/library/2009/09/28appstore.html

http://www.fastcompany.com/node/1379471/print

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Page 1

1 of 1 DOCUMENT

Copyright 2009 Los Angeles Times
All Rights Reserved
Los Angeles Times
April 13, 2009 Monday
Home Edition
SECTION: BUSINESS; Business Desk; Part B; Pg. 1
LENGTH: 1061 words
HEADLINE: IPhone changes dynamics of the video game industry;
Developers are making shorter, cheaper titles for the device and the iPod Touch.
BYLINE: Alex Pham
DATELINE: SAN FRANCISCO
BODY:
Only a few years ago, bigger guns, badder enemies and louder explosives mattered most in video games.
Now, small is beautiful, and Apple Inc.'s iPhone is largely responsible.
The surprising emergence of the iPhone and its phone-less sibling, the iPod Touch, as hand-held game consoles has
started to change the dynamics of the $40-billion game software industry. In addition to making titles for the iPhones,
publishers are studying the thousands of games already available, figuring out what works and applying those lessons to
more traditional games.
After years of building large, graphics-intensive blockbusters that come out every few years, developers are starting
to make shorter, less expensive games that are released in more frequent installments. They're also making iPhone
versions of major franchises that tie into the version for the console or computer.
"The iPhone has changed everything," said Neil Young, a game developer who last year left one of the industry's
largest publishers, Electronic Arts Inc., to found Ngmoco, a San Francisco maker of iPhone games.
It's not just the device that's having an effect. It's also Apple's App Store, an online marketplace where users can
browse through 25,000 software applications from thousands of publishers.
Many are games that take advantage of the multitouch screens, accelerometers and Web connections featured in the
iPhone and iPod Touch. On a typical day, six to eight of the 10 bestselling apps are games.
One-third of all iPhone owners who use apps had downloaded Tap Tap Revenge by February, research firm

Page 2
IPhone changes dynamics of the video game industry; Developers are making shorter, cheaper titles for the device and
the iPod Touch. Los Angeles Times April 13, 2009 Monday
ComScore said last week. That made the music game, which is free in some versions and $4.99 in others, the
most-owned app. Twelve of the top 25 -- and five of the top 10 -- listed by ComScore are games.
After shoppers submit their credit card information once at Apple's online iTunes store, they can start buying apps
through a computer or directly on their devices with a single click.
Since July, consumers have downloaded 800 million apps. Some are free, but many others cost 99 cents to $10
(Apple takes a 30% cut).
Video games that cost less than $10 are a big change. A typical title for a console or PC typically sells for $30 to
$60. For hand-held games on Nintendo Co.'s DS, games cost $20 to $35.
Nintendo recently announced that owners of its upcoming DSi hand-held console would be able buy downloadable
games for as little as $2. Nintendo executives said their pricing strategy was formed independently from the App Store,
and they were quick to point out how their business was different from Apple's.
"Are we intrigued by the iPhone? Yes," said Reggie Fils-Aime, president of Nintendo's North American business.
"But our approach is fundamentally different. We want to give our customers high-quality, innovative and captivating
entertainment. A storefront with 10,000 pieces of content doesn't do that."
Analysts see a different story.
"Nintendo is definitely paying attention," said Billy Pidgeon, an analyst with IDC. "It's pretty obvious from their
pricing that Nintendo studies what Apple does."
Other game companies are also paying attention. Electronic Arts, which is releasing 14 iPhone titles this year, is
starting to explore how iPhone apps can be an extension of its larger games, said Travis Boatman, the Redwood City,
Calif., company's vice president of mobile studios.
EA's Spore Origins game for the iPhone was a stand-alone title meant to boost the visibility of its much bigger
sibling, Spore for the PC. But the two games didn't connect, so players couldn't export virtual creatures from the iPhone
game to the PC version. Boatman said future projects were more likely to have those types of crossovers.
"There's potentially a lot of money to be made from those connections," he said, noting that there are more than 17
million iPhones and 13 million iPod Touches in the market. "You will see this happen more because there are very good
business reasons for doing it."
Pidgeon said big publishers such as EA were carefully watching the experiments of small studios that had made
top-selling games for the iPhone, such as Subatomic Studio's Fieldrunners, Secret Exit's Zen Bound and Steve
Demeter's Trism, which generated $250,000 in sales in its first two months.
"They're seeing that small shops with one or two people can make a hit game," he said. "IPhone has taught them
that small bets can pay off big."
The iPhone is also giving developers reasons to rethink their creative approach to designing games. Instead of
spending two years and more than $25 million to develop a title, some developers are looking at releasing multiple
episodes over time.
The idea of smaller, cheaper, faster game development isn't entirely new.
Decades ago, the Sims, from EA, pioneered the notion of selling expansion packs that contained several dozen
virtual items such as outfits, pets and furniture, said Bing Gordon, partner with Kleiner Perkins Caufield & Byers, a
venture firm in Menlo Park, Calif.

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IPhone changes dynamics of the video game industry; Developers are making shorter, cheaper titles for the device and
the iPod Touch. Los Angeles Times April 13, 2009 Monday
And sped-up game development has its roots in the mid- 1990s with Randy Pausch, a computer science professor at
Carnegie Mellon University who taught his students to make lots of quick prototypes of their ideas, rather than trying to
hone one perfect project.
"The real breakthrough is iTunes and the App Store," a section within iTunes, Gordon said. "It suddenly opens the
floodgates" for consumers to buy smaller games in massive quantities.
Lorne Lanning, president of Oddworld Inhabitants, a game developer in San Luis Obispo, said he liked the iPhone's
ability to reach millions of players who can give feedback on a game's features. Developers can either take that
information and refine current versions with software updates or build it into their next installment.
"As we head to the future, we need to start really small," Lanning said. "Get it out there, and let people help shape
it. Learn from your audience."
[e-mail]
-()
Most popular iPhone apps
Five of the top 10 applications downloaded by app users are games.
IPhone app title, category, percentage of app users who have downloaded it
Tap Tap Revenge, games, 32%
Backgrounds, entertainment, 27%
Touch Hockey: FS5, games, 26%
Facebook, social networking, 26%
Pac-Man, games, 24%
IBowl, games, 24%
MySpace Mobile, social networking, 23%
Google Earth, travel, 22%
Labyrinth, games, 22%
Pandora, music, 21%
-Source: ComScore
GRAPHIC: PHOTO: FUN ON THE GO: Travis Boatman of video game maker Electronic Arts plays Scrabble on an
iPhone. EA is releasing 14 iPhone titles this year. PHOTOGRAPHER:Robert Durell For The Times PHOTO: A

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IPhone changes dynamics of the video game industry; Developers are making shorter, cheaper titles for the device and
the iPod Touch. Los Angeles Times April 13, 2009 Monday
VIRTUAL VEHICLE: Artificial Life's BMW Z4 lite for the iPhone lets users customize and test drive the roadster.
PHOTOGRAPHER: Artificial Life Inc.
LOAD-DATE: April 13, 2009

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1 of 1 DOCUMENT

Copyright 2009 San Jose Mercury News
All Rights Reserved
San Jose Mercury News (California)
March 17, 2009 Tuesday
SECTION: BUSINESS
LENGTH: 543 words
HEADLINE: IPhone gets an update
BYLINE: By John Boudreau Mercury News
BODY:
Mercury News
Apple executives on Tuesday gave a glimpse of changes coming to the iPhone's operating system this summer
including a cut-copy-and-paste function but were tight-lipped about whether a new device is in the offing.
At an event at the company's Cupertino headquarters, Apple also released a new software development kit, which
code writers use to create new programs. The new kit will increase the kinds of applications they develop, including
ones that access the iPod music library. It also will enable applications to connect with accessories, such as a
blood-pressure monitor. And it will let iPhones and iPod Touch devices directly connect with each other wirelessly for
activities such as games.
"This is a major update to the iPhone," said Apple vice president Scott Forstall, who heads up the device's software
division.
During a question-and-answer session later, Philip Schiller, Apple's senior vice president of worldwide product
marketing, was asked about a new iPhone device. "Nothing is going to be announced today," he said.
But the software update coming in the summer dubbed iPhone 3.0 was enough to generate plenty of buzz.
The event drew hundreds of reporters, TV news crews, analysts and apps developers a indication of how the
nearly two-year-old iPhone has become an industry trend-setter. Apple's Vice President of iPod marketing, Greg
Joswiak, said the company has sold 17 million iPhones so far in 80 countries.
There have been 800 million downloads from the company's eight-month-old App Store, which now lists more than
25,000 applications. The App Store is available in 62 countries and Apple is adding another 15.
IPhone users spend 70 percent of their time on the device playing games, e-mailing and accessing work documents,

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IPhone gets an update San Jose Mercury News (California) March 17, 2009 Tuesday

analysts say, which makes it a desirable platform for developers to create money-making applications. The iPhone 3.0
software will let developers sell items within apps they create, such as magazine subscriptions, e-books and new levels
of video games.
The operating system upgrade will be free for iPhone owners and be priced at $9.95 for iPod Touch users.
"This continues to give Apple the leadership position when it comes to next-generation smart-phones," said
Creative Strategies President Tim Bajarin.
The iPhone is facing more competition as its rivals from Research In Motion to Sunnyvale-based Palm, whose
highly touted Pre will be launched in coming months embrace iPhone-like features and their own online application
stores.
"The Pre may turn out to be successful," Gartner analyst Ken Dulaney said. "But the iPhone is on a roll. The
biggest problem for the iPhone now is the price of the (AT&T voice and data) service. You are running out of people
who can pay that."
Contact John Boudreau at [e-mail] or [phone].
features Coming soon to the iphone
Cut-copy-and-paste functions.
Spotlight, a feature that lets users search across applications, such as e-mail.
Voice memos, allowing users to record.
Multi-media messaging service program, allowing users to send and receive photos, contacts, audio files and locations
with the messages app.
Landscape view that lets users type e-mail and notes on a larger keyboard by rotating the iPhone to a horizontal
position.
GRAPHIC: Dr. Ge Wang, of Smule, demonstrates playing the Leaf Trombone on the iPhone at the Apple campus in
Cupertino, on March 17, 2009. The application turns the iPhone into a musical instrument which you play by blowing
into it. (LiPo Ching/Mercury News)
Scott Forstall, Senior Vice President of iPhone Software at Apple, unveils the latest version of its iPhone software,
iPhone OS 3.0, at the Apple campus in Cupertino, on March 17, 2009. The new software includes new push notification
features. (LiPo Ching/Mercury News)
Dr. Ge Wang, of Smule, demonstrates playing the Leaf Trombone on the iPhone at the Apple campus in Cupertino, on
March 17, 2009. The application turns the iPhone into a musical instrument which you play by blowing into it. (LiPo
Ching/Mercury News)
LOAD-DATE: March 17, 2009

Page 1

1 of 1 DOCUMENT

Copyright 2008 The Washington Post
All Rights Reserved

The Washington Post
December 21, 2008 Sunday
Correction Appended
Every Edition
SECTION: TRAVEL; Pg. P02
DISTRIBUTION: Every Zone
LENGTH: 541 words
HEADLINE: Hungry? Get Your Apps in Gear.
BYLINE: Rob Pegoraro; Washington Post Staff Writer
BODY:
Few things say "bewildered tourist" like standing on a sidewalk, guidebook in hand, as you scan the surroundings
for a decent restaurant. But if you're peering at the screen of a cellphone instead? Why, you look like you're just sending
a text message, even if you're still seeking dining advice, in this case with a free phone program that finds nearby
attractions.
The kind of software that lets you pull off that trick dates to two recent developments. First, phones learned to find
themselves (by GPS or by computing distances to transmitter towers); then wireless carriers let other people write
software for their phones (giving users an alternative to the carriers' own $10-a-month navigation services).
The most widely used program of this sort is Google Maps (http://google.com/gmm), available for BlackBerry,
Windows Mobile and Palm phones. In most cases, it quickly fixes your location and can then find nearby businesses by
category ("restaurant") or name ("Arnaud's"). On some phones, it also provides Street View panoramas showing what
you'd see from a given stretch of sidewalk.
Google Maps doesn't report much about what people think of the places it finds, but many newer location-aware
applications can, most of them available on Apple's iPhone via its App Store icon.

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Hungry? Get Your Apps in Gear. The Washington Post December 21, 2008 Sunday Correction Appended

Start with Yelp, which provides an immense database of user-contributed reviews of restaurants, bars, stores and
much else. ("Yelpers" can be remarkably loquacious about subway stations.) But its lengthy restaurant listings need
more filtering options, and its locals-first advice can leave you guessing about hotels.
The plainer, perhaps more practical iWant simply lists the closest options in such travel-relevant categories as
hotels, drugstores and banks. Where lets you choose from multiple review sources (Yelp included) as you pan around a
map.
For looking up restaurants alone, UrbanSpoon links to multiple online reviews and offers the giggle-inducing
option of shaking the iPhone like a Magic 8 Ball to get a random suggestion. But it covers only major cities; for
example, this past summer my wife and I made great use of it in Portland, Ore., but not in the town of Hood River, to
the east.
OpenTable has similar coverage limits but also lets you see which places have tables free, then book one online.
(Note: The Post's Going Out Guide competes with many of these apps but covers just the Washington area.)
This fun isn't confined to the iPhone. Google's new Android phone software, running on the T-Mobile G1, allows
for the same sort of programs, accessible via its "Market" icon. The best example of its potential so far is a smart little
program called Wikitude.
That program draws on articles from Wikitravel, a vast user-written guide modeled on Wikipedia, but guides you to
this advice through the G1's camera. Select its "View in Cam" option, point the camera in the desired direction and it
"annotates" the scene in front of you by labeling any local landmarks onscreen. This guidance goes beyond museums
and monuments to cover geographic and historical tidbits. For example, on a street corner in Arlington, Wikitude
pointed the way not just to Arlington Cemetery and the Pentagon but also to nearby neighborhoods and ruins of Civil
War forts.
CORRECTION-DATE: December 24, 2008
CORRECTION:
· A Dec. 21 Travel article about smartphone applications incorrectly said that the UrbanSpoon program for
iPhones covers only major cities. A recent update added coverage for other U.S. locations.
GRAPHIC: IMAGE; Photos By Rob Pegoraro -- The Washington Post; Shake, and UrbanSpoon delivers.
IMAGE; OpenTable can book reservations.
LOAD-DATE: December 21, 2008

Page 1

5 of 5 DOCUMENTS

Copyright 2008 Gannett Company, Inc.
All Rights Reserved
USA TODAY
December 11, 2008 Thursday
FINAL EDITION
SECTION: MONEY; Pg. 5B
LENGTH: 1083 words
HEADLINE: Oh, what fun it is to shop at the iTunes App Store;
Transformers have nothing on iPhone
BYLINE: Edward C. Baig
BODY:
The killer app for the iPhone is -- drum roll, please -- the iTunes App Store. Five months after Apple launched its
online emporium, I believe it even more, having downloaded a gaggle of programs, including some that transform my
iPhone 3G into a harmonica, metric system converter and level.
There are now more than 10,000 of these applications for the original iPhone, its 3G successor and in most cases,
for the iPod Touch. Many are free.
I encounter buggy programs from time to time, but there are frequent updates to fix such snags.
And because of the drain on the battery, Apple still won't let developers produce apps that run in the background.
So forget about listening to Internet radio while checking e-mail. I'm also waiting on an app that will let you shoot
video.
All that said, exploring the App Store on your handheld or via computer is a delight, and you can rely on fellow
users for reviews. Some of my favorites:
*Listening to radio. There's a reason Pandora has emerged as the most popular free iPhone application. Type a song
or artist's name, and Pandora creates an instant radio station inspired by your selection, same as on a PC or Mac.
Fine-tune stations by indicating whether you like what's being played. In some cases, you can buy the music you hear
through iTunes.
The iPhone, of course, functions as an iPod. But your storage is limited. If you have gobs of music on your
computer, consider Simplify Media. The $3.99 program lets you stream (most of) your music collection and that of up
to 30 friends.

Page 2
Oh, what fun it is to shop at the iTunes App Store; Transformers have nothing on iPhone USA TODAY December 11,
2008 Thursday
Setup is simple, and though music sometimes is slow to start up, it sounds good. Simplify generally worked really
well as I rode in and around New York City. (It works on Wi-Fi, 3G or pokier Edge networks.) You can view song
lyrics and artist bios. But Simplify can't remotely play iTunes purchases that are DRM or copy protected.
How often have you heard a song on the radio or in a club but didn't know its name? Hold the iPhone up to the
radio, and let the free Shazam app identify the tune, usually within 20 seconds. Shazam doesn't get it right every time.
But it correctly tagged material as varied as Come On Over from Isobel Campbell & Mark Lanegan and Corcovado
from Astrud Gilberto.
*Making music. Smule's addictive 99-cent Ocarina turns the iPhone into the ancient flute-like instrument. You
softly blow into the iPhone's microphone and play notes by pressing and holding your fingers over any of four virtual
on-screen holes. There are 16 possible combinations, and you can alter the sound by tilting the phone. There's even
"sheet music" on Smule's website to play anything from Over the Rainbow to If I Were a Rich Man.
Ocarina is social. Tap a globe icon to rate performances from users around the world. They, in turn, can show you
the love.
Or try developer Benjamin McDowell's Harmonica app, also 99 cents. Sure, it's odd putting your mouth on the
screen. Fortunately, you can also play with fingers.
*Diversions. I've enjoyed racing games that take advantage of the iPhone motion sensor, including Vivendi's Crash
Bandicoot Nitro Kart 3D ($5.99) and Pangea's Cro-Mag Rally ($1.99). I also like Glu Mobile's recent release of a 3D
marble puzzle called Bonsai Blast ($3.99).
But as a casual gamer, I gravitate to titles such as Brain Toot (99 cents), which serves up vision, memory and other
mind exercises. In one, while being timed, you must pick out the highest or lowest numbers from a series of numbers
shown.
Semi Secret Software's $1.99 Wurdle is a wordsmith's addiction, kind of like Boggle on the iPhone. Against the
clock, trace your finger across a letter-filled board to spot as many words as possible.
*Handy to have around. Want to convert kilometers to miles? Celsius to Fahrenheit? Fetch currency rates? Western
ITS Limited's simple a2z Pro Unit Converter is free and a boon to folks who travel overseas.
The iPhone lacks a voice recorder. The 99-cent Retronyms Recorder adds the capability. There are a few ways to
save recordings to a PC or Mac. You can e-mail a link or sync up recordings via Wi-Fi to listen in iTunes or another
player.
Worried about adverse reactions? The free Epocrates Rx database can clue you in. You'll grapple with medical
jargon, since Epocrates is aimed at health care pros. But the app can enlighten you about the drugs family members
swallow. And if you've got a loose pill lying around, you might be able to identify it by entering its color, shape and
other characteristics.
Looking for a new place to eat? Urbanspoon helps find restaurants near your GPS location. Shake the phone to spin
three wheels, one representing neighborhood, the second, a food type, and the third, price. When the wheels stop, you've
landed on a random listing with an eatery's phone number, address and reviews. The app is free.
Rather dine at home? The 99-cent Grocery IQ shopping list might help you bag the right ingredients. It has a
130,000-item database, right down to brand-name peanut butter, pretzels and pasta. You can choose quantities and
sizes, and check everything off as you patrol the supermarket aisles. Or e-mail your list to whoever is shopping for you.
The free Google Mobile App has direct links to popular Google programs, including your Docs, News, Maps and

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Oh, what fun it is to shop at the iTunes App Store; Transformers have nothing on iPhone USA TODAY December 11,
2008 Thursday
location-aware search. Google also can search your phone's contacts, calendars and so on. The gee-whiz feature is
Voice Search. Hold the phone up to your ear and bark out a query. Results aren't perfect. Google recognized a search for
"child-friendly restaurants" as "cadence-friendly."
As part of its free app, Amazon is experimenting with an interesting feature called Amazon Remembers. You snap
a picture of a product with the iPhone camera; photos are stored at the Amazon site. Amazon will try to find a similar
product for sale on the Web, even at rival sites. It identified images I snapped of Bose headphones and the Sling Media
SlingCatcher.
Need help hanging a picture? PosiMotion's 99-cent A Level utility works in landscape, portrait or face-up mode. As
with a real spirit level, you try to position the iPhone so the bubble is aligned in the center of the screen.
Talk about not being on the level. You're on a blind date that's soured and are dying for an excuse to bolt. The aptly
named 99-cent Fake Calls app from Magic Tap is your ticket outta there. You can select the time a fake call will come
in, customize the "caller's" picture and choose a ring tone. You'll have to devise your own excuse for making an exit.
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LOAD-DATE: December 11, 2008

December 10, 2008