a16z Podcast | The Micro and Macro of Mobile

TL;DR

Apple's App Store revenue has doubled in one year, while iPad sales remain flat due to a decrease in tablet purchases overall.

Transcript

welcome to the a 16z podcast I'm Michael Copeland and here with Benedict Evans Benedict welcome hello so it's been a busy week in the mobile world it's always a busy week in the mobile world but there's plenty to cover on both a micro and a macro level so I want to I want you to suss it out for us and maybe let's start with Apple and its App Store ... Read More

Key Insights

• 😀 Apple's App Store revenue has experienced significant growth, indicating a larger iOS user base and more spending on apps.
• 🫓 iPad sales have remained flat due to a decrease in tablet purchases overall, not due to competition from Android devices.
• 📱 The iPad is now considered a one per household device, purchased every few years, rather than a one per person device like a mobile phone.
• 🤝 The Apple and IBM deal aims to bring tablets into enterprise industries and highlights the need for adapting workflows and processes to fit the capabilities of mobile devices.
• ✋ The shift in user interfaces, usability, and location accessibility has resulted in a higher market opportunity for entrepreneurs in the mobile industry.
• 👤 The scale of consumer access to the internet is undergoing a generational change, with more users in more places able to do more things.
• 👶 It is important to consider new and different metrics to measure the success of mobile devices compared to traditional PCs.

Questions & Answers

Q: How does the App Store revenue of Google compare to that of Apple?

Google has reported paying out $5 billion to developers in the past 13 months, compared to Apple's $20 billion. This shows that Apple has significantly higher revenue from its App Store.

Q: Why are iPad sales not increasing?

iPad sales have remained flat because fewer people are buying tablets overall, not just Apple's iPad. It is not due to competition from Android devices such as Samsung.

Q: Are Apple's iPad sales declining?

No, iPad sales are not declining but rather staying at a consistent level. Apple reports that 50% of their sales are to new owners, indicating that they are still attracting customers.

Q: What is the significance of the Apple and IBM deal?

The Apple and IBM deal aims to bring tablets, especially iPads, into enterprise industries. It highlights the importance of adapting workflows and processes to fit the capabilities of tablets, similar to what happened with PCs in the past.

Summary & Key Takeaways

• Apple's App Store revenue has doubled from $10 billion to $20 billion in one year, indicating significant growth in the iOS user base.

• However, the number of iPad sales has remained flat as fewer people are buying tablets, not necessarily due to competition from Android devices.

• The iPad is now considered a one per household device that is purchased every three to five years, rather than a one per person device like a mobile phone.