Feeds

iOS lauded as top moneymaker

iPad, iPhone rake in 'freemium' cash

Website security in corporate America

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." ®

Internet Security Threat Report 2014

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.