Apple App Store Ecosystem Growth Analysis
Apple App Store Ecosystem Growth Analysis
Presented by
Maximilian Marinoff (808723)
Agcia Bararajasegaram (806970)
Le Nguyen (Jane) (817740)
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Introduction of Apple Inc.
Company Introduction
Definition
Key Facts
Business Model
Challenges
Revenue $391B
Comparison
References
Total asset $365B
Le Nguyen (Jane)
(O’Grady, 2008)
App Store Tue Jun 10, 2025
Search
History of Apple: Important Breakthroughs
Company Introduction
Definition
Business Model
1977 2008
STAR Model
Creation of Apple II Development of the App Store
Success Factors
Challenges
• Apple became a major player • Became open to external
• Revenue continued to grow developers
Comparison
References
1976 1984
Introduction of Apple I Macintosh was born
Le Nguyen (Jane)
(O’Grady, 2008)
App Store Tue Jun 10, 2025
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The External Developer Platform (ExDP): How it works
Company Introduction
Definition
Business Model
Operational opens used by
STAR Model
Success Factors
Backbone Organization Digital Asset
Challenges
uses
Comparison
References
Run Digital used by creates
Platform
API Owner
uses
External
Developer creates
Platform Developer App
uses
VALUE CHAIN
Le Nguyen (Jane)
(Ross, Beath, & Mocker, 2019)
App Store Tue Jun 10, 2025
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Relevance of Apple: Its External Developer Platform Building Block
Company Introduction
Definition
Comparison
References
ExDP
OPENNESS STRATEGIC MOVE
Allows developers to build Enhances the attractiveness
and monetize their apps of Apple devices
Le Nguyen (Jane)
(Cuthbertson et al., 2015; Koch et al., 2022)
App Store Tue Jun 10, 2025
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Business Model: Digitally-enabled Ecosystem
Company Introduction
Definition
Business Model
STAR Model
Success Factors
Challenges
Digitally-enabled
Comparison
Ecosystem Selling beyond physical products
References
Customer loyalty
Le Nguyen (Jane)
(Apple Inc., 2025a; Apple Inc., 2025c; Cuthbertson et al., 2015; Koch et al., 2022; Leyden, 2025)
App Store Tue Jun 10, 2025
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Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model
Strategy What strategic goals has Apple set to ensure
STAR Model the App Store’s success?
Success Factors
Challenges
Comparison
References
Agcia Bararajasegaram
(Brockmann et al., 2015; Cuthbertson et al., 2015; Podolny & Hansen, 2020; Van Alstyne & Parker, 2017)
App Store Tue Jun 10, 2025
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Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model
Strategy What strategic goals has Apple set to ensure
STAR Model the App Store’s success?
Success Factors
Challenges
Comparison
References
Agcia Bararajasegaram
(Brockmann et al., 2015; Cuthbertson et al., 2015; Podolny & Hansen, 2020; Van Alstyne & Parker, 2017)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model Structure What type of organizational structure within Apple supports the development,
STAR Model management and continuous innovation of the App Store?
Success Factors
Challenges
Comparison
Agcia Bararajasegaram
(Cuthbertson et al., 2015; Dudovskiy, 2023; Podolny & Hansen, 2020)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model Structure What type of organizational structure within Apple supports the development,
STAR Model management and continuous innovation of the App Store?
Success Factors
Challenges
Comparison
Agcia Bararajasegaram
(Cuthbertson et al., 2015; Dudovskiy, 2023; Podolny & Hansen, 2020)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model Processes What key processes, information flows, and workflows has Apple established to
STAR Model efficiently manage the App Store?
Success Factors
Challenges
Comparison
Agcia Bararajasegaram
(Basole & Karla, 2012; Brockman et al., 2015; Lee & Raghu, 2014; Leyden, 2025; Podolny & Hansen, 2020; Van Alstyne & Parker, 2017)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model Processes What key processes, information flows, and workflows has Apple established to
STAR Model efficiently manage the App Store?
Success Factors
Challenges
Comparison
Agcia Bararajasegaram
(Basole & Karla, 2012; Brockman et al., 2015; Lee & Raghu, 2014; Leyden, 2025; Podolny & Hansen, 2020; Van Alstyne & Parker, 2017)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model Rewards What key processes, information flows and workflows has Apple established to
STAR Model efficiently manage the App Store?
Success Factors
Challenges
Comparison
References
Agcia Bararajasegaram
(Basole & Karla, 2012; Brockman et al., 2015; Cuthbertson et al., 2015; Dudovskiy, 2023; Eaton, 2014; Podolny & Hansen, 2020)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Success Factors
Challenges
Strategy
Comparison
Skills/mindset Power
References
People Structure
APP APP
OF THE OF THE
DAY DAY
Rewards Processes
Motivation Information
Agcia Bararajasegaram
(Galbraith, 2002; Strategyzer, 2015)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model People What specific skills and mindsets are critical for the people involved in running
STAR Model and evolving the App Store?
Success Factors
Challenges
Comparison
• Functional org. structure (by skill, not • Risk-taking & experimentation culture
product)
• Global developer community (WWDC,
• Specialized roles → optimal skill fit support)
Agcia Bararajasegaram
(Basole & Karla, 2012; Cuthbertson et al., 2015; Dudovskiy, 2023; Kang, 2023; Podolny & Hansen, 2020; Van Alstyne & Parker, 2017)
App Store Tue Jun 10, 2025
Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction
Definition
Business Model People What specific skills and mindsets are critical for the people involved in running
STAR Model and evolving the App Store?
Success Factors
Challenges
Comparison
• Functional org. structure (by skill, not • Risk-taking & experimentation culture
product)
• Global developer community (WWDC,
• Specialized roles → optimal skill fit support)
Agcia Bararajasegaram
(Basole & Karla, 2012; Cuthbertson et al., 2015; Dudovskiy, 2023; Kang, 2023; Podolny & Hansen, 2020; Van Alstyne & Parker, 2017)
App Store Tue Jun 10, 2025
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Proof of Success: Turning Ecosystem Into $100bn Earnings
Company Introduction
STAR Model 9%
Success Factors
Challenges 7% 25%
$391B
Comparison
Revenue
References
8%
51%
Search
Success Factor #1: Overcoming the Chicken-and-Egg Problem
Company Introduction
Definition
Business Model
STAR Model
Success Factors
Challenges
Comparison
References
Maximilian Marinoff
App Store Tue Jun 10, 2025
Search
Success Factor #1: Overcoming the Chicken-and-Egg Problem
Company Introduction
Definition
Business Model
STAR Model
Comparison
iPhone’s massive user base
Why it worked:
References
Popular hardware created instant
demand for apps
FACTOR FACTOR FACTOR
Impact:
FOR FOR FOR
Fast developer adoption and app
SUCCESS SUCCESS SUCCESS
variety from the start
Chicken-and-Egg Network Effects & VIEW Platform Monetization VIEW User Experie
Problem Ecosystem Lock-in
Maximilian Marinoff
(Ada, 2013)
App Store Tue Jun 10, 2025
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Success Factor #2: Network Effects & Ecosystem Lock-In
Company Introduction
Definition
Business Model
STAR Model
at it is:
Success Factors
Maximilian Marinoff
App Store Tue Jun 10, 2025
Search
Success Factor #2: Network Effects & Ecosystem Lock-In
Company Introduction
Definition
Business Model
STAR Model
at it is:
Success Factors What it is:
ed platform launch dilemma via
Challenges Value increased as more users and
ne’s massive user base
Comparison
developers joined
y it worked: Why it worked:
References
ular hardware created instant More apps → more users → more
and for apps developer interest
FACTOR FACTOR FACTOR
act: Impact:
FOR FOR FOR
developer adoption and app Self-reinforcing growth and strong
SUCCESS SUCCESS SUCCESS
ety from the start user retention
Maximilian Marinoff
(Garcia-Swartz & Garcia-Vicente, 2015)
App Store Tue Jun 10, 2025
Search
Success Factor #3: High-Margin Platform Monetization
Company Introduction
Definition
Business Model
STAR Model
at it is:
Success Factors
e increased
Challengesas more users and
elopers joined
Comparison
y it worked:
References
re apps → more users → more
eloper interest
FACTOR FACTOR FACTOR FACTOR
act:
FOR FOR FOR FOR
-reinforcing growth and strong
SUCCESS SUCCESS SUCCESS SUCCESS
r retention
Maximilian Marinoff
App Store Tue Jun 10, 2025
Search
Success Factor #3: High-Margin Platform Monetization
Company Introduction
Definition
Business Model
STAR Model
at it is:
Success Factors
What it is:
e increased
Challengesas more users and
High commission on app and in-app
elopers joined
Comparison
purchases
y it worked:
References Why it worked:
re apps → more users → more
Scalable, low-cost revenue stream
eloper interest
Impact: FACTOR FACTOR FACTOR
act:
Boosted Apple‘s Services to 25% of FOR FOR FOR
-reinforcing growth and strong
total revenue SUCCESS SUCCESS SUCCESS
r retention
Maximilian Marinoff
(Apple Inc., 2024; Caminade & Borck, 2023; Zhang, 2025)
App Store Tue Jun 10, 2025
Search
Success Factor #4: Quality-Assured User Experience
Company Introduction
Definition
Business Model
STAR Model
Success Factors
at it is:
Challenges
h commission on app and in-app
chasesComparison
References
y it worked:
able, low-cost revenue stream
act: FACTOR FACTOR FACTOR FACTOR
sted Apple‘s Services to 25% of FOR FOR FOR FOR
l revenue SUCCESS SUCCESS SUCCESS SUCCESS
Developer Chicken-and-Egg Network Effe
Platform Monetization User Experience VIEW
Enablement
VIEW
Problem
VIEW
Ecosystem L
Maximilian Marinoff
App Store Tue Jun 10, 2025
Search
Success Factor #4: Quality-Assured User Experience
Company Introduction
Definition
Business Model
STAR Model
Maximilian Marinoff
(Cuadrado & Dueñas, 2012; Curry, 2025)
App Store Tue Jun 10, 2025
Search
Success Factor #5: Scalable Developer Enablement
Company Introduction
Definition
Business Model
STAR Model
at it is:
Success Factors
t AppChallenges
Store review ensured
ity and safety
Comparison
y it worked:
References
trust and aligned with Apple‘s
mium brand
FACTOR FACTOR FACTOR FACTOR
act:
FOR FOR FOR FOR
er user satisfaction and
SUCCESS SUCCESS SUCCESS SUCCESS
form loyalty
Maximilian Marinoff
App Store Tue Jun 10, 2025
Search
Success Factor #5: Scalable Developer Enablement
Company Introduction
Definition
Business Model
STAR Model
at it is:
Success Factors What it is:
t AppChallenges
Store review ensured Tools, APIs, and global developer
ity and safety
Comparison
support
y it worked: Why it worked:
References
trust and aligned with Apple‘s Lowered entry barriers and
mium brand encouraged innovation
FACTOR FACTOR FACTOR
act: Impact:
FOR FOR FOR
er user satisfaction and $1.1T ecosystem sales in 2022, $320B+
SUCCESS SUCCESS SUCCESS
form loyalty made by developers since 2008
Maximilian Marinoff
(Apple Inc., 2025b; Caminade & Borck, 2023; Jarrahi & Malhotra, 2024)
App Store Tue Jun 10, 2025
Search
Challenges & Criticism of Apple’s Platform Model
Company Introduction
Definition
Business Model
MacBook Pro
Maximilian Marinoff
(Cuadrado & Dueñas, 2012; European Commission, 2020; Mackrael & Tilley, 2024)
App Store Tue Jun 10, 2025
Search
Challenges & Criticism of Apple’s Platform Model
Company Introduction
Definition
Business Model
MacBook Pro
Maximilian Marinoff
(Cuadrado & Dueñas, 2012; European Commission, 2020; Mackrael & Tilley, 2024)
App Store Tue Jun 10, 2025
Search
Comparison of External Developer Platforms
Company Introduction
Definition • B2C platform targeting end-users • B2B platform targeting hospitals • B2B platform targeting enterprises
• Monetized via commissions and • Selling digital solutions rather than • Revenue via licensing, royalties, and
Business Model
in-app purchases just products subscriptions
STAR Model • Transformed Apple into a service- • Struggled expanding the ecosystem • Strong ecosystem and client
driven ecosystem due to labour intensive onboarding integration
Success Factors
Challenges
Business Model & Impact Business Model & Impact Business Model & Impact
Comparison
References
Platform Openness & Governance
Developer Engagement
Maximilian Marinoff
(Apple Inc., 2025b; Azam, 2025; Caminade & Borck, 2023; Curry, 2025; Mocker & Ross, 2017; Mocker & Sebastian, 2024)
App Store Tue Jun 10, 2025
Search
Comparison of External Developer Platforms
Company Introduction
Definition • B2C platform targeting end-users • B2B platform targeting hospitals • B2B platform targeting enterprises
• Monetized via commissions and • Selling digital solutions rather than • Revenue via licensing, royalties, and
Business Model
in-app purchases just products subscriptions
STAR Model • Transformed Apple into a service- • Struggled expanding the ecosystem • Strong ecosystem and client
driven ecosystem due to labour intensive onboarding integration
Success Factors
Challenges
Business Model & Impact Business Model & Impact Business Model & Impact
Comparison
References
Platform Openness & Governance
Developer Engagement
Maximilian Marinoff
(Apple Inc., 2025b; Azam, 2025; Caminade & Borck, 2023; Curry, 2025; Mocker & Ross, 2017; Mocker & Sebastian, 2024)
App Store Tue Jun 10, 2025
Search
Comparison of External Developer Platforms
Company Introduction
Definition • B2C platform targeting end-users • B2B platform targeting hospitals • B2B platform targeting enterprises
• Monetized via commissions and • Selling digital solutions rather than • Revenue via licensing, royalties, and
Business Model
in-app purchases just products subscriptions
STAR Model • Transformed Apple into a service- • Struggled expanding the ecosystem • Strong ecosystem and client
driven ecosystem due to labour intensive onboarding integration
Success Factors
Challenges
Business Model & Impact Business Model & Impact Business Model & Impact
Comparison
References
Platform Openness & Governance
Developer Engagement
Maximilian Marinoff
(Apple Inc., 2025b; Azam, 2025; Caminade & Borck, 2023; Curry, 2025; Mocker & Ross, 2017; Mocker & Sebastian, 2024)
App Store Tue Jun 10, 2025
Any Questions?
App Store Tue Jun 10, 2025
Could Apple have been even more successful if it had loosened control and opened the
Should regulators force Apple to allow third-party app stores or payment systems, or
does Apple have the right to protect its platform however it wants?
App Store Tue Jun 10, 2025
App Store Tue Jun 10, 2025
Search
References
Company Introduction
Ada, S. (2013). Two-sided markets: Apple’s digital application platform. Journal of Social Sciences Research, 1(1), 14–20. [Link]
Definition Apple Inc. (2024). Condensed consolidated statements of operations (Unaudited). [Link]
Business Model Apple Inc. (2025a). App Store Small Business Program. Apple Developer. [Link]
STAR Model Apple Inc. (2025b). A week of technology and creativity. All online and free. Here’s what WWDC25 has in store: WWDC25. [Link]
Success Factors Apple Inc. (2025c). Membership details. Apple Developer. [Link]
Challenges Azam, F. (2025, March 25). Apple App Store statistics 2025: Key insights and trends. TekRevol. [Link]
Basole, R. C. & Karla, J. (2012). Value transformation in the mobile service ecosystem: A study of App Store emergence and growth. Service Science, 4(1), 24-41. [Link]
Comparisons
Brockmann, T., Stieglitz, S. & Cvetkovic, A. (2015, March 17). Prevalent business models for the Apple App Store. Wirtschaftsinformatik Proceedings 2015. [Link]
References
Caminade, J., & Borck, J. (2023). The continued growth and resilience of Apple’s App Store ecosystem. In Apple (pp. 1–32). Analysis Group. [Link]
[Link]
Cuadrado, F., & Dueñas, J. C. (2012). Mobile application stores: Success factors, existing approaches, and future developments. IEEE Communications Magazine, 50(11), 160–167.
[Link]
Curry, D. (2025, January 22). Apple App Store statistics (2025). Business of Apps. [Link]
Cusumano, M. (2015). How traditional firms must compete in the sharing economy. Communications of the ACM, 58(1), 32–34. [Link]
Cuthbertson, R., Furseth, P. I. & Ezell, S. J. (2015). Innovating in a service-driven economy (1st ed., pp. 111- 129). Palgrave Macmillan. [Link]
Dudovskiy, J. (2023, July 3). Apple organizational structure: A brief overview. Business Research Methodology.
Eaton, B. (2014). The dynamics of digital platform innovation: Apple's strategy to control modular and architectural innovation in iOS. 2016 49th Hawaii International Conference on System Sciences
(HICSS). [Link]
European Commission. (2020, June 16). Antitrust: Commission opens investigations into Apple’s App Store rules. European Commission. [Link]
Search
References
Company Introduction
Garcia-Swartz, D. D., & Garcia-Vicente, F. (2015). Network effects on the iPhone platform: An empirical examination. Telecommunications Policy, 39(10), 877–895.
Definition [Link]
Business Model Jarrahi, M. H., & Malhotra, A. (2024). Creating open innovation through API-enabled simultaneous centralization and decentralization. Business Horizons. [Link]
STAR Model Kang, H. Y. (2023). Digital platform complementors and the number of product features: Evidence from the Apple iOS App Store. British Journal of Management, 35(2), 854-870.
Challenges Koch, M., Krohmer, D., Naab, M., Rost, D., & Trapp, M. (2022). A matter of definition: Criteria for digital ecosystems. Digital Business, 2(2), 100027. [Link]
Lee, G. & Raghu, T. S. (2014). Determinants of mobile apps' success: Evidence from the App Store market. Journal of Management Information Systems, 31(2), 133-170. [Link]
Comparisons
1222310206
References
Leyden, B. T. (2025). Platform design and innovation incentives: Evidence from the product rating system on Apple’s App Store. International Journal of Industrial Organization, 99, Article 103133.
[Link]
Mackrael, K., & Tilley, A. (2024, August 16). Apple’s hold on the App Store is loosening, at least in Europe. WSJ. [Link]
Mocker, M., & Ross, J. (2017). Transforming Royal Philips to reinvent healthcare in the digital age. MIT Center for Information Systems Research.
Mocker, M., & Sebastian, I. M. (2024). Building and growing the Salesforce platform business. MIT Center for Information Systems Research.
Podolny, J. M. & Hansen, M. T. (2020, November - December). How Apple is organized for innovation. Harvard Business Review, 98(6).
Ross, J. W., Beath, C. M., & Mocker, M. (2019). Designed for digital: How to architect your business for sustained success. MIT Press. [Link]
Schreieck, M., Wiesche, M., & Krcmar, H. (2016). Design and governance of platform ecosystems – Key concepts and issues for future research. In Proceedings of the Twenty-Fourth European Conference
Van Alstyne, M. & Parker, G. (2017, May). Platform business: From resources to relationships. GfK Marketing Intelligence Review, 9(1), 25-29. [Link]
Zhang, H. (2025). An economic analysis of revenue share policies for applications on Android and iOS platforms: A comparison of market structure, competition, and developer welfare. Highlights in
Search
References - Pictures
Company Introduction
Business Model freebie Supply. (2024). Salesforce Logo PNG Transparent & SVG Vector - Freebie Supply. Freebie Supply. [Link]