Elan Microelectronics Corporation v. Apple, Inc.

Filing 342

Declaration of Jane H. Bu in Support of 341 MOTION to Compel Discovery Related to Apple iOS Applications for the Accused Products filed byElan Microelectronics Corporation. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I)(Related document(s) 341 ) (Bu, Jane) (Filed on 7/15/2011)

EXHIBIT I

AppleInsider | iOS App Store downloads grow 61%, average app price up 14%

Page 1 of 4

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Monday, July 11, 2011

@AppleInsider

iOS App Store downloads grow 61%, average app price up 14%
By Neil Hughes
Published: 08:00 AM EST

Having recently hit the 15 billion download milestone, a new analysis has
found that downloads from Apple's iOS App Store will increase 61 percent in
calendar year 2011, while the average selling price of software will be up 14
percent.
Gene Munster with Piper Jaffray published on Monday his latest App Store model,
including average selling prices, for the official iOS digital download destination.
The new numbers reflect Apple's announcement from last week that more than 15
billion applications have been downloaded by more than 200 million iPhone, iPad
and iPod touch users.

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Munster estimates that the average iOS user will download 83 applications in
calendar year 2011, up from 51 in calendar year 2010. That's an increase of 61
percent year over year.

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"We believe this trend points to the increasing importance of an app store with a

In battle of iPad vs. Android-based Galaxy...

broad selection of tested apps to drive device sales," Munster wrote. "Smartphone

iPad, Apple's 'Mac of the masses,' predicted...

users are showing an increasing appetite to use apps to add features to their
phones, and iOS has the leading app ecosystem."
Piper Jaffray's App Store model also indicates that paid application average selling prices are on the rise in 2011. Munster said the
data shows prices up 14 percent year-over-year in calendar year 2011, compared to the 18 percent decline seen by paid applications
in 2010.
"After the initial race to the bottom in App Store pricing, we are seeing users pay up to add features and games to their iOS devices,"
he said.
Using Apple's announced figures, the App Store model suggests that 82 percent of applications on the iOS App Store are free, while
18 percent are paid. Those paid applications have an average selling price of $1.44.

http://www.appleinsider.com/articles/11/07/11/ios_app_store_downloads_grow_61_averag... 7/15/2011

AppleInsider | iOS App Store downloads grow 61%, average app price up 14%

Page 2 of 4

Munster attributed the increase in 2011 at least partially to more expensive iPad applications that are gaining share among App Store
downloads. The average selling price of the top 10 iPad applications is $6.32, up 36 percent from $4.66 a year ago. Meanwhile, the
top 50 iPhone applications have an average price of $1.61.
The App Store model also shows that iPhone, iPad and iPod touch users are now downloading more than 32.3 million applications
per day. That's nearly triple the 11.9 million-per-day rate of tracks downloaded from Apple's iTunes Music Store.

Apple does not profit greatly from its iOS App Store, and Piper Jaffray estimates that the company's 30 percent share of all sales
amounts to just 1 percent of its total revenue. More importantly for Apple, though, the App Store drives sales of iOS devices -something that Munster admitted is hard to quantify.

http://www.appleinsider.com/articles/11/07/11/ios_app_store_downloads_grow_61_averag... 7/15/2011

AppleInsider | iOS App Store downloads grow 61%, average app price up 14%

Page 3 of 4

"Even though our qualitative analysis does not factor in the sale of additional devices, we believe the App Store drives device sales,"
he said. "We see a virtuous cycle of Apple's robust app ecosystem adding features and functionality to the iOS devices, which drives
sales, which makes the ecosystem more robust, which encourages more developers to write apps, and the cycle repeats itself."
[ 4 Comments ]

Filed under : iTunes, iPhone, iPad
Story topics: iPod touch, iOS, App Store, Piper Jaffray, Gene Munster

[ Print ] [ Story Link ]

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