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Apple App Store Ecosystem Growth Analysis

The document presents an analysis of Apple's App Store, detailing its history, business model, and organizational design using the STAR model. It highlights key factors contributing to Apple's success, including the introduction of the External Developer Platform and the shift towards a digitally-enabled ecosystem. Additionally, it discusses the strategic decisions made under CEOs Steve Jobs and Tim Cook that have shaped the App Store's growth and operational efficiency.
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
70 views48 pages

Apple App Store Ecosystem Growth Analysis

The document presents an analysis of Apple's App Store, detailing its history, business model, and organizational design using the STAR model. It highlights key factors contributing to Apple's success, including the introduction of the External Developer Platform and the shift towards a digitally-enabled ecosystem. Additionally, it discusses the strategic decisions made under CEOs Steve Jobs and Tim Cook that have shaped the App Store's growth and operational efficiency.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

App Store:

Apple’s Silent Growth Engine

Presented by
Maximilian Marinoff (808723)
Agcia Bararajasegaram (806970)
Le Nguyen (Jane) (817740)

June 10th, 2025


App Store Tue Jun 10, 2025

Search
Introduction of Apple Inc.
Company Introduction

Definition
Key Facts
Business Model

STAR Model Founded in 1976


Success Factors

Challenges
Revenue $391B
Comparison

References
Total asset $365B

Tim Cook – CEO of Apple Inc.


Core Products

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

• Founded by Steve Jobs, • Graphical User Interface


Steve Wozniak and (GUI)
Ronald Wayne • Users can use computers
easier

Le Nguyen (Jane)
(O’Grady, 2008)
App Store Tue Jun 10, 2025

Search
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

DIGITAL VALUE CHAIN


End User

Le Nguyen (Jane)
(Ross, Beath, & Mocker, 2019)
App Store Tue Jun 10, 2025

Search
Relevance of Apple: Its External Developer Platform Building Block
Company Introduction

Definition

Business Model SERVITIZATION


STAR Model From goods-driven model towards a
Success Factors combination of services and goods
Challenges

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

Search
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

Use of idle assets

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

Search
Apple’s Organizational Design – Star Model Analysis
Company Introduction

Definition

Business Model Direction


STAR Model

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 Direction


STAR Model

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

Leveraging software Developers earn Creation of virtuous Ecosystem lock-in


to build a platform revenue alongside cycles through through powerful
on top of Apple’s Apple via platforms network effects product-service
product business ecosystem

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

Business Model
Strategy What strategic goals has Apple set to ensure
STAR Model the App Store’s success?
Success Factors

Challenges

Comparison

References

Leveraging software Developers earn Creation of virtuous Ecosystem lock-in


to build a platform revenue alongside cycles through through powerful
on top of Apple’s Apple via platforms network effects product-service
product business ecosystem

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

Business Model Direction


STAR Model

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 Direction


STAR Model

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

References From 1997 onwards:


• Centralized structure aligned everyone to company-wide strategic goals
• Jobs took all key strategic decisions personally

From 2011 onwards:


• Shift toward decentralization under Cook
• Maintained centralized strategy but allowed more autonomy at functional levels
• Increased collaboration and freedom

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

References From 1997 onwards:


• Centralized structure aligned everyone to company-wide strategic goals
• Jobs took all key strategic decisions personally

From 2011 onwards:


• Shift toward decentralization under Cook
• Maintained centralized strategy but allowed more autonomy at functional levels
• Increased collaboration and freedom

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 Direction


STAR Model

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 Direction


STAR Model

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

References Horizontal Processes Vertical Processes

• Cross-functional collaboration on single • Executive decision-making for strategic


features alignment

• Integration across sales, engineering, • Domain experts lead design, engineering


product and developers and policy

• Continuous iteration based on user • Ensures focus, coherence, and platform


feedback excellence

• Quality updates → better discovery,


monetization, UX

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

References Horizontal Processes Vertical Processes

• Cross-functional collaboration on single • Executive decision-making for strategic


features alignment

• Integration across sales, engineering, • Domain experts lead design, engineering


product and developers and policy

• Continuous iteration based on user • Ensures focus, coherence, and platform


feedback excellence

• Quality updates → better discovery,


monetization, UX

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 Direction


STAR Model

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 Direction


STAR Model

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

Business Model Direction


STAR Model

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 Direction


STAR Model

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

References Internal Talent Strategy External Attraction & Community

• Experts lead experts • Silicon Valley location

• Functional org. structure (by skill, not • Risk-taking & experimentation culture
product)
• Global developer community (WWDC,
• Specialized roles → optimal skill fit support)

• Passionate retail employees enhance CX

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

References Internal Talent Strategy External Attraction & Community

• Experts lead experts • Silicon Valley location

• Functional org. structure (by skill, not • Risk-taking & experimentation culture
product)
• Global developer community (WWDC,
• Specialized roles → optimal skill fit support)

• Passionate retail employees enhance CX

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
Proof of Success: Turning Ecosystem Into $100bn Earnings
Company Introduction

Definition Apple’s Revenue Breakdown in 2024


Business Model

STAR Model 9%
Success Factors

Challenges 7% 25%
$391B
Comparison
Revenue
References
8%

51%

Services iPhone MacBook iPad Wearables, Home and Accessoires


Maximilian Marinoff
(Apple Inc., 2024)
App Store Tue Jun 10, 2025

Search
Success Factor #1: Overcoming the Chicken-and-Egg Problem
Company Introduction

Definition

Business Model

STAR Model

Success Factors

Challenges

Comparison

References

FACTOR FACTOR FACTOR FACTOR


FOR FOR FOR FOR
SUCCESS SUCCESS SUCCESS SUCCESS
Chicken-and-Egg Network Effects & VIEW Platform Monetization VIEW User Experie
Problem Ecosystem Lock-in

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

Success Factors What it is:


Challenges Solved platform launch dilemma via

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

Search
Success Factor #2: Network Effects & Ecosystem Lock-In
Company Introduction

Definition

Business Model

STAR Model

at it is:
Success Factors

ed platform launch dilemma via


Challenges

ne’s massive user base


Comparison
y it worked:
References
ular hardware created instant
and for apps
FACTOR FACTOR FACTOR FACTOR
act:
FOR FOR FOR FOR
developer adoption and app
SUCCESS SUCCESS SUCCESS SUCCESS
ety from the start

Chicken-and-Egg Network Effects & Developer


VIEW Platform Monetization VIEW User Experience VIEW
Enablement
Problem Ecosystem Lock-in

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

Chicken-and-Egg Network Effects & Developer


Platform Monetization VIEW User Experience VIEW
Enablement
Problem Ecosystem Lock-in

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

Network Effects & Developer Chicken-and


Platform Monetization VIEW User Experience VIEW
Enablement
VIEW
Problem
Ecosystem Lock-in

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

Network Effects & Developer Chicken-and


Platform Monetization User Experience VIEW
Enablement
VIEW
Problem
Ecosystem Lock-in

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

Success Factors What it is:


at it is:
Challenges Strict App Store review ensured
h commission on app and in-app
quality and safety
chasesComparison
Why it worked:
References
y it worked:
Built trust and aligned with Apple‘s
able, low-cost revenue stream
act:
premium brand
FACTOR FACTOR FACTOR
sted Apple‘s Services to 25% of
Impact:
FOR FOR FOR
l revenue
Higher user satisfaction and
SUCCESS SUCCESS SUCCESS
platform loyalty

Developer Chicken-and-Egg Network Effe


Platform Monetization User Experience Enablement
VIEW
Problem
VIEW
Ecosystem L

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

Developer Chicken-and-Egg Network Effects & Platform


User Experience Enablement
VIEW
Problem
VIEW
Ecosystem Lock-in
VIEW
Monetization

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

Developer Chicken-and-Egg Network Effects & Platform


User Experience Enablement Problem
VIEW
Ecosystem Lock-in
VIEW
Monetization

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

STAR Model Epic Games Lawsuit Commission Controversy


Success Factors • Legal battle over App Store • Fee seen as too high by bigger
rules and in-app payment companies like Epic or Spotify
Challenges
restrictions • Sparks debate on fairness and
Comparison • Exposed tension between competition barrier
Apple and large developers
References

MacBook Pro

Regulatory Pressure & Governance Tension: Control


Antitrust Scrutiny vs. Innovation
• Digital Markets Act (EU), U.S. DOJ • Apple’s curated model ensures
lawsuits safety and quality
• Risk of enforced openness and • But limits flexibility for developers
reduced platform control and partners

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

STAR Model Epic Games Lawsuit Commission Controversy


Success Factors • Legal battle over App Store • Fee seen as too high by bigger
rules and in-app payment companies like Epic or Spotify
Challenges
restrictions • Sparks debate on fairness and
Comparison • Exposed tension between competition barrier
Apple and large developers
References

MacBook Pro

Regulatory Pressure & Governance Tension: Control


Antitrust Scrutiny vs. Innovation
• Digital Markets Act (EU), U.S. DOJ • Apple’s curated model ensures
lawsuits safety and quality
• Risk of enforced openness and • But limits flexibility for developers
reduced platform control and partners

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

Tightly Controlled Fully Open

Developer Engagement

Low Engagement High 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

Tightly Controlled Fully Open

Developer Engagement

Low Engagement High 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

Tightly Controlled Fully Open

Developer Engagement

Low Engagement High 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

App Store further?


App Store Tue Jun 10, 2025

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]

Galbraith, J. (2002). The Star model . [Link]


App Store Tue Jun 10, 2025

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.

Success Factors [Link]

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
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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.

O'Grady, J. D. (2008). Apple Inc. Bloomsbury Publishing.

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

on Information Systems (ECIS).


Strategyzer. (2015, February 3). Implementing your business model with the Galbraith Star Model. [Link]

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

Business Economics and Management, 47, 72–79. [Link]


App Store Tue Jun 10, 2025

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References - Pictures
Company Introduction

Definition Apple. (2023). App Store. Apple. [Link]

Business Model freebie Supply. (2024). Salesforce Logo PNG Transparent & SVG Vector - Freebie Supply. Freebie Supply. [Link]

STAR Model [Link]. (2025). Seek Vectors. [Link]. [Link]


Success Factors
[Link]. (2022). Tim Cook. [Link]. [Link]
Challenges
SPIEGEL. (2022). Erfolgsprämie für 2021: Apple-Chef Tim Cook erhält fast hundert Millionen Dollar. [Link]. [Link]
Comparisons
2021-fast-100-millionen-dollar-erfolgspraemie-a-2edbabaf-c808-4463-adc5-18312e22338f
References
UpMeTomorrow. (2018). PurePNG. PurePNG | Free Transparent CC0 PNG Image Library. [Link]

Wikipedia . (2018). Steve Jobs. Wikipedia. [Link]

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