Feeds

iOS lauded as top moneymaker

iPad, iPhone rake in 'freemium' cash

Beginner's guide to SSL certificates

The iPad and iPhone are the most valuable and profitable devices available for your software-development business – at least according to Evernote CEO Phil Libin.

Presenting a wealth of figures about his company's sales, users, and upgrade rates at The Founder Conference in Silicon Valley, Libin revealed that Apple's iOS platform provides the most total revenue for Evernote, as well as the most revenue per developer hour and the largest number of new users per developer hour.

In other words, the iPad is the most profitable platform out there, topping Windows, Mac, Android, Blackberry – even the good ol' web itself. In fact, the web proved to be the weak sister. "Native platforms do a lot better than the web," Libin explained. "And web users are the least profitable on all levels."

Since Evernote provides a simple way for anyone to capture ideas, notes, pictures, and other various scribblings, the service has to work across all platforms since most customers use multiple devices to access their account.

iOS provides Evernote with 28 per cent of its overall revenue, with Windows next at 24 per cent. But the real payoff comes in "revenue per developer year" – i.e., how much the company earns relative to the amount of time it spends paying software engineers to make its product work. In this important metric, iOS led the field with $628,515 per developer year. Android came next with $420,290, and RIM's Blackberry sat at the bottom with $142,664.

Likewise, iOS provided 973,083 users per developer year. Android was number two with 656,640, and Blackberry again sat in last place with 142,668.

The only area where Apple's iPad doesn't come out on top is in revenue per user, where the outmoded Windows Mobile was number one. That aging OS's moneymaking success, however, is primarily due to the fact that the longer people use Evernote, the more likely they are to pay for it. After one month, just 1 percent pay for the Premium version, but after 36 months, that number jumps to 23 per cent – and the uptake rate is pretty much a straight line in between.

Evernote CEO Phil Libin explains how revenue per user rises over time

Evernote CEO Phil Libin explains that the longer someone uses his product, the more likely they are to upgrade

Telling the crowd that "this is the best time in the history of the universe to start a business," Libin also gave a passionate defense of the "freemium" model, in which a product is given away for free, but some users pay for a more capable version.

"In the old days you would spend a huge sum of money getting one million users – a sales and marketing team, a Super Bowl ad," he said. "But with the freemium model you spend that money building a product and giving it to people, and you end up with the same number of paying users."

In fact, freemium is a better marketing, sales, and distribution model, according to Libin, because at the end of the process you have a better product, a huge amount of feedback, and a massive customer base.

Libin closed by outlining the self-titled Libin's Law: "In a startup environment, you have to multiply Moore's law by Murphy's law: the number of things that will go wrong will double every year." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.