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<keyword id="6354427" type="ORGANIZATION" weightage="20" keywordseo="apple">Apple</keyword> has removed at least 47,000 apps from its App Store in <keyword id="1334" type="COUNTRY" weightage="20" keywordseo="China">China</keyword> to comply with the new policy from the state regulators.<br /><br />According to a report in The Information, China may be closing the loopholes exploited by Apple in previous years, "starting with the recent removal of thousands of apps from the Chinese App Store".<br /><br />"The technology giant operates the App Store and many other services without government licenses and local partners in China. That has left it vulnerable to regulatory risk in China as Trump attacks TikTok and WeChat in the US," the report said on Tuesday.<br /><br />The US administration's action against the Chinese behemoths like ByteDance (TikTok) and Tencent (WeChat) has fueld a new war between the two nations.<br /><br />The Donald Trump administration has also tightened restrictions on Chinese conglomerate Huawei.<br /><br />Last month, Apple removed at least 4,500 games from China's App Store under the pressure from the Chinese government to comply with its Internet policies.<br /><br />More than 3,000 games were removed from Apple's China App Store in just two days, which is one of the biggest game purges on Apple's App Store ever.<br /><br />New regulations require game developers to gain approval from the Chinese regulators before uploading their apps in China's Apple App store.<br /><br />China is Apple's biggest App Store market, with sales of $16.4 billion a year, according to data from Sensor Tower. In the US, the figures are $15.4 billion a year.<br /><br />Apple currently hosts roughly 60,000 games in China that are paid for or have in-app purchases.

Apple removes 47,000 apps from its Chinese app store

<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="Earls37a / Flickr, CC" title_caption="Android: Big in China." class="zoomin" href="https://static-ssl.businessinsider.com/image/530f4b84eab8ea9b212a450e-960/8644299906_7e3492dd7d_b.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span><a href="http://www.flickr.com/photos/indraw/8644299906/sizes/l/">Earls37a / Flickr, CC</a></span></p><p class="caption">Android: Big in China.</p></div><p></p></div></div>Google's Android mobile operating system has 1 billion users -  more than twice the 470 million people on Apple's iOS equivalent - yet Apple pays out twice the amount of revenue to app developers on its system, <a href="http://ben-evans.com/benedictevans/2014/6/25/market-shares">according to Andreessen Horowitz analyst Benedict Evans</a>.</p>
<p>That's because Google is aggressively going after lower-income users on a global scale. <a href="http://www.businessinsider.com/android-one-may-help-google-protect-its-platform-from-becoming-overrun-with-forks-in-emerging-markets-2014-6">The company recently launched Android One in India</a>, which allows device manufacturers to make $100 smartphones. Apple, by contrast, prefers to sell its iPhones for more than $600.</p>
<p>So although it sounds crass to say "Android is for poor people," on a global scale that's exactly how it is being used. Remember, both companies are seeking to create user-bases composed of hundreds of millions or billions of people. There are fewer than 1 billion people in the U.S. and Europe, but more than double that number in India, China and the rest of the developing world. To put this in perspective, per capita income in the U.S. is about $47,000 annually. In India it's $3,560, <a href="http://siteresources.worldbank.org/DATASTATISTICS/Resources/GNIPC.pdf">according to the World Bank</a>. We've seen this platform/income split a couple of times before, <a href="http://www.businessinsider.com/chart-android-v-ios-market-share-2014-5">both globally</a> and <a href="http://www.businessinsider.com/android-is-for-poor-people-maps-2014-4">within the U.S.</a></p>
<p>And app store revenue reflects that split.</p>
<p>Evans estimates that Apple paid developers $10 billion in the last 12 months after taking its 30% cut from app download revenue in the App Store. Google paid out $5 billion in the same period, Evans believes.</p>
<p>Here's Evans' chart of the split, with developer revenue on the far right:</p>
<p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Benedict Evans" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53ad4ad2ecad042618c5b817-960/screen shot 2014-06-25 at 2.37.00 pm.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span><a href="http://ben-evans.com/benedictevans/2014/6/25/market-shares">Benedict Evans</a></span></p></div><p></p></div></div></p>
<p>The strategy has led to a sharp divide in market share. Apple's share of all users is now down to about 18% worldwide, <a href="http://www.businessinsider.com/android-one-may-help-google-protect-its-platform-from-becoming-overrun-with-forks-in-emerging-markets-2014-6">according to Business Insider Intelligence</a>, from 23% in 2012. Android versions are up to 76%, from 70%, in the same period:</p>
<p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="BII" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53a0993c6bb3f776760bc4fd-960/forkedandroids.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>BII</span></p></div><p></p></div></div>Note that Google has lost control of a huge chunk of its platform in the form of "forked" versions of Android. Because Google gives the Android system away for free, some companies - mainly in China - use it in ways that Google doesn't like, and Google doesn't support those users with apps or an app store. Android One will help Google combat that by providing an approved version for makers who want to sell smartphones at super-low prices.</p>
<p>Evans makes two points:</p>
<ol>
<li>Android's market share is strongest in relatively lower income countries</li>
<li>Many people in those countries lack credit cards and Google has been very slow to offer carrier billing</li>
</ol>
<p>There is one other interesting factor at work here, and it favors Google over Apple in the long run. Both Evans and App Annie, the app download analytics company, note that download revenue for Google Play apps is growing at a faster rate than for Apple apps. Google is coming off a smaller base, of course, so file that under "interesting, check back later." But it does beg a question: If there comes a day when Google dominates the mobile environment in terms of both people and app download revenue, how will Apple react if developers start moving priorities to Android instead of iOS?</p>
<p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="App Annie" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53ad5798ecad04d143c5b81a-960/screen shot 2014-06-27 at 11.55.29 am.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>App Annie</span></p></div><p></p></div></div></p>

Proof That Android Really Is For The Poor

<p><em><strong>Mobile Insights is a daily newsletter from <a href="https://intelligence.businessinsider.com/welcome?utm_source=House&amp;utm_medium=Edit&amp;utm_term=MI&amp;utm_content=link&amp;utm_campaign=BIIMobile">BI Intelligence</a> delivered first thing every morning exclusively to <a href="https://intelligence.businessinsider.com/welcome?utm_source=House&amp;utm_medium=Edit&amp;utm_term=MI&amp;utm_content=link&amp;utm_campaign=BIIMobile">BI Intelligence</a> subscribers. <a href="https://intelligence.businessinsider.com/welcome?utm_source=House&amp;utm_medium=Edit&amp;utm_term=MI&amp;utm_content=link&amp;utm_campaign=BIIMobile">Sign up for a free trial of BI Intelligence today</a>.</strong></em><span><br /></span></p>

<p class="p1"><strong><div class="image-container float_right" style="width:400px"><div class="image"><p class="source">Kevin Smith/Business Insider</p></div></div></strong></p>
<p class="p1"><a href="http://www.berryreview.com/2013/08/20/one-app-developer-responsible-for-47000-apps-in-blackberry-world/"><strong>One-Third Of BlackBerry World Apps Come From The Same Developer</strong></a><strong> (Berry Review)<br /></strong><span style="line-height: 1.5em;">A developer firm known as S4BB has single handedly created over 47,000 <keyword id="6354741" type="UNKNOWN" weightage="60" keywordseo="Apps">apps</keyword> for the BlackBerry World app market. That amounts to almost one-third of BlackBerry World's total app count. The </span><a href="https://intelligence.businessinsider.com/comparing-the-growth-of-top-app-markets-2013-7">app store race</a><span style="line-height: 1.5em;"> is not even close, but this revelation illustrates another stumbling block in BlackBerry's attempt at platform and app store relevancy - the huge discrepancy between quantity and quality of apps in BlackBerry World. </span><a href="http://www.berryreview.com/2013/08/20/one-app-developer-responsible-for-47000-apps-in-blackberry-world/">Read &gt;</a><span style="line-height: 1.5em;"> </span></p>
<p class="p1"><a href="http://www.businessweek.com/articles/2013-08-21/why-lenovo-might-be-the-savior-htc-needs"><strong>Should HTC Look To Lenovo?</strong></a><strong> (Bloomberg Businessweek)<br /></strong><span style="line-height: 1.5em;">Taiwanese smartphone maker <keyword id="16129" type="CITY" weightage="60" keywordseo="HTC">HTC</keyword> has been struggling in the global market and is sitting at a crossroads. Businessweek surveys the potential benefits behind a HTC-Lenovo partnership. </span><a href="http://www.businessweek.com/articles/2013-08-21/why-lenovo-might-be-the-savior-htc-needs">Read &gt;</a></p>
<p class="p2"> <a href="http://www.engadget.com/2013/08/21/lg-exec-tablet-phablet-smartwatch-and-firefox-os-device/"><strong>LG Tablet, Phablet, Smartwatch, And Firefox OS Device Coming Soon</strong></a><strong style="line-height: 1.5em;"> (Engadget)<br /></strong><span style="line-height: 1.5em;">The head of LG's mobile communications in Bulgaria, Dimitar Valev, spoke on the company's plans to launch a full fleet of devices. LG's tablets are currently on the back burner, but it also wants to stake its claim in the up and coming smart watch and mobile computing market. LG will also lean on upstart Firefox OS for a new device. </span><a href="http://www.engadget.com/2013/08/21/lg-exec-tablet-phablet-smartwatch-and-firefox-os-device/">Read &gt;</a></p>
<p class="p2"> <a href="http://allthingsd.com/20130820/is-google-ready-to-buy-its-way-into-tv-with-an-nfl-deal/"><strong>Google Wants NFL Content </strong></a><strong style="line-height: 1.5em;">(All Things Digital)<br /></strong><span style="line-height: 1.5em;">The NFL's contract with DirecTV for its Sunday Ticket package is up in 2014. Google is getting a head start on grabbing a potential bid on the subscription-TV service. The kicker will be how willing the NFL is to partner with an "over-the-top" provider like Google versus traditional cable and satellite providers. </span><a href="http://allthingsd.com/20130820/is-google-ready-to-buy-its-way-into-tv-with-an-nfl-deal/">Read &gt;</a></p>
<p class="p2"> <a href="http://www.wired.com/gadgetlab/2013/08/the-great-app-net-mistake/"><strong>The Great App.net Mistake</strong></a><strong style="line-height: 1.5em;"> (Wired)<br /></strong><span style="line-height: 1.5em;">App.net is a platform for social applications that is designed on the premise that all of the user data within the social infrastructure is too important to be free. App.net has a radical business plan that is sure to shake up the landscape, but it must overcome many obstacles before becoming a social-network super power. </span><a href="http://www.wired.com/gadgetlab/2013/08/the-great-app-net-mistake/">Read &gt;</a><span style="line-height: 1.5em;"> </span></p>
<p class="p1"><a href="http://www.bloomberg.com/news/2013-08-21/apple-ipad-s-china-market-share-slumps-as-samsung-tablets-gain.html"><strong>More Evidence Of Apple's Struggles In China </strong></a><strong>(Bloomberg)<br /></strong><span style="line-height: 1.5em;">Apple's share of the tablet market declined from 49% last year to only 28% this year. Meanwhile, Samsung's share surged to 11%. </span><a href="http://www.bloomberg.com/news/2013-08-21/apple-ipad-s-china-market-share-slumps-as-samsung-tablets-gain.html">Read &gt;</a></p>

One-Third Of BlackBerry World Apps Come From Just One Developer

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Reuters</span></p><p class="caption">Evan Spiegel.</p></div><p></p></div></div>Snapchat has expanded out of its beloved Venice Beach neighborhood and into an airport.</p><p>The Santa Monica City Council approved a $3 million-a-year lease for Snapchat to take over space at the Santa Monica Airport, which includes two buildings and eight airplane hangers, according <a href="http://www.smmirror.com/articles/News/Snapchats-SMO-Move-Approved/45488">to the Santa Monica Mirror</a>. Snapchat didn't immediately respond to a request for comment.</p><p>The five-year-lease gives Snapchat room to expand into the two office buildings, totaling 70,473 square feet, although it has to spend at least $1.4 million in improvements on them.</p><p>The deal also includes eight airport hangars, totaling 8,900 square feet of space. It's unclear if Snapchat actually intends to use it to store aircraft - its CEO Evan Spiegel <a href="http://economictimes.indiatimes.com/opinion/interviews/economic-times-startup-awards-2015-do-not-forget-to-have-fun-and-play-says-evan-spiegel/articleshow/49345084.cms">is a helicopter pilot</a> after all - or whether it will also be converted to office space for the company as it rapidly expands. </p><p>Snapchat has been on a real estate tear recently, snapping up buildings further inland in Venice and now its neighboring Santa Monica Airport. Rather than building a central campus, like you see at Facebook, Google, and Apple, Snapchat's office buildings are sprawling and <a href="http://www.businessinsider.com/snapchat-taking-over-office-space-in-venice-2015-4">tucked throughout Venice Beach</a>. </p><p>Its first official office was a bright blue beach house, but it quickly outgrew it and expanded into a 6,000 square foot space at 63 Market Street and two more buildings nearby. In January 2015, it leased an additional 25,000 square feet at the Thornton Lofts. Its latest major land grab came in May 2015, when the messaging app <a href="http://www.businessinsider.com/snapchat-has-signed-a-10-year-lease-at-a-venice-office-complex-displacing-roughly-40-small-businesses-2015-5">signed a 10-year lease for a 47,000 square foot office complex in Venice</a>.</p>     <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/self-destructing-videos-from-your-iphone-2016-3">Forget Snapchat - you can send self-destructing videos from your iPhone</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="U2Y2d4MTE6EE53N85sRY-e_C_DDDdwLn" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Snapchat to lease part of Santa Monica Airport, including 8 hangars

<p>Nearly <a href="https://intelligence.businessinsider.com/mobile-insider-androids-latin-american-lead--skewed-emerging-market-data--lg-earnings-2014-7">90% of people in Brazil have Android phones</a>, and almost none of them has Apple's iPhones, <a href="http://www.jana.com/blog/advantage-android-in-latin-america/">according to Kantar</a>. That astonishing statistic, and the equally dramatic news that <a href="http://www.kantarworldpanel.com/smartphone-os-market-share/intro">Android has more than 75% of smartphone market share in Argentina, Brazil, and Mexico</a>, gives you an idea of the headwinds facing Apple's new iPhone 6 when it launches in September:</p>
<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image"><a title_source="Kantar" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53d6bef2ecad04fd152d921f-960/android_latinamerica-1.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>Kantar</span></p></div><p></p></div></div>These are modern economies with millions of phone users but they also have huge numbers of poor consumers. Few of them will be able to afford the iPhone 6.</p>
<p>Yet, Apple is about to go to war with an iPhone 6 that will likely cost nearly $700 per unit. It will be competing in markets where a slew of $100 and $200 large-format Androids are about to be launched.</p>
<p>The Kantar numbers suggest that even Microsoft's Windows phones actually have a greater market share than Apple's iOS mobile devices in some Latin American countries. <a href="http://www.emarketer.com/Article/Smartphone-Users-Latin-America-Reaching-Android-Devices/1010619">eMarketer has</a> slightly <a href="http://www.emarketer.com/Article/Android-Crushes-Competitors-Latin-America/1010653">different numbers</a>, but even then it's clear that no matter how you measure it <a href="http://stats.areppim.com/stats/stats_mobiosxtime_sam.htm">the stats show iOS is an also-ran mobile operating system</a> in many modern but still developing economies. In <a href="http://uk.kantar.com/media/743400/kantar_worldpanel_comtech_smartphone_os_barometer_30_06_14.pdf">Spain, for instance, Android's market share</a> declined from 93% to 87% mostly because it lost share to Windows, not Apple.</p>
<p>This is important because as more and more of the world comes online via mobile, all the growth is going to be in poor countries. Apple doesn't even have distribution in some of these countries. It only just opened its first store in Brazil last year.</p>
<p>The term "poor" here is being used in the relative, macroeconomic sense as a contrast to the "rich" countries of North America and Western Europe. To put this in perspective, per capita income in the U.S. is about $47,000 annually. In India it's $3,560, <a href="http://siteresources.worldbank.org/DATASTATISTICS/Resources/GNIPC.pdf">according to the World Bank</a>. That is significant because an iPhone in the U.S. costs $700. <a href="http://www.businessinsider.com/apple-iphones-in-brazil-cost-1200-2014-2">iPhones are nearly $1,200 in Brazil</a> and more expensive than the U.S. <a href="http://www.businessinsider.com/the-true-cost-of-an-iphone-around-the-world-2014-2">in every other country where they are sold</a>. In the U.S., you can save your wages for a couple of weeks and buy a new iPhone. In Brazil or India, you'll have to save more than a month of your wages.</p>
<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image"><a title_source="BII" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53d6bf16ecad042c172d921b-960/appleasp-1-1.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>BII</span></p></div><p></p></div></div>If you're an Apple user, you can say one good thing about Android: It sure helped bring down the average selling price of an iPhone, if only briefly. <a href="http://www.businessinsider.com/four-important-charts-from-apples-earnings-2014-7">Average iPhone prices have gone beneath $550</a> since Apple began selling the iPhone 4 and iPhone 4S as entry-level models at discount prices in places like India.</p>
<p>Arguably, the iPhone 4 range is Apple's competitor to cheaper Androids: It's the iPhone you can get if you want to pay <a href="http://store.apple.com/us/buy-iphone/iphone4s">$0 down and walk out of the store with an Apple</a>.</p>
<p>But now there are questions about that strategy, too. Those iPhone 4 models will be going up against the new <a href="https://intelligence.businessinsider.com/mobile-insider-androids-latin-american-lead--skewed-emerging-market-data--lg-earnings-2014-7">Android One, Google's bare-bones Android for India</a>, which will cost $100.</p>
<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image"><a title_source="Areppim" title_caption="Mobile operating system market share for South America." class="zoomin" href="https://static-ssl.businessinsider.com/image/53d6c697ecad04b0342d921b-960/mobios_sam_timeseries_800x574.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span><a href="http://stats.areppim.com/stats/stats_mobiosxtime_sam.htm">Areppim</a></span></p><p class="caption">Mobile operating system market share for South America.</p></div><p></p></div></div>There are a range of Chinese companies undercutting the bottom of the market with cheap Android copies of Samsung phones. Many of them, particularly Android One, are likely to be much better value for money than an iPhone 4 or - if you're poor and every penny counts - an iPhone 6. The cheap, <a href="http://www.businessinsider.com/apple-v-samsung-and-the-delay-of-55-inch-iphone-6-2014-7">modern Androids have big screens and the same apps and features as the older iPhones</a>.</p>
<p>Apple's strategy is not to care about the bottom of the market. Apple has always wanted to dominate only the most profitable, high-end section of the market where all the profits are.</p>
<p>The strategy appears to be working, for now. <a href="http://www.businessinsider.com/samsung-versus-xiaomi-2014-7#ixzz38njfEfHP">Samsung may get hurt most in the short-run</a> - why bother with an expensive Samsung Android when a cheap Xiaomi Android will do? But a cheaper, better Android would be more of a threat to Apple than Samsung is now.</p>
<p>What is the point of a mobile platform that only 20% of the world uses? Most developers want their apps exposed to as many people as possible, not a select few. And why would you want a tiny old 3.5-inch iPhone 4 when you can get a 5-inch Android for the same price?</p>
<p>That is why it would not be a surprise to see the iPhone 5C get offered at a further discount once iPhone 6 launches. Its screen is larger than the iPhone 4 series, and it's still a pretty good phone. But it probably won't fall as far as $100 for most buyers - and that is where it will be interesting to see how Apple responds.</p>

This Chart Shows The Massive Pricing Problem Facing Apple's iPhone 6

BANGALORE: India has become a major ingredient in <keyword id="6354427" type="CITY" weightage="100" keywordseo="Apple">Apple</keyword>’s secret sauce, and the scale may surprise many. It is estimated that a third of the $171-billion company’s engineering staff is Indian, and that a large and increasing proportion of its enterprise software, service and support work is done by Indian IT vendors.<br />
<br /> Apple filed 1,750 H-1B applications during the 10-year period 2001 to 2010, but the number increased sharply to 2,800 during 2011-13. US-based HfS Research that compiled the data says the majority of the H-1Bs would be Indians, indicating that the iPhone and <keyword id="101239" type="CITY" weightage="40" keywordseo="iPad">iPad</keyword> maker’s dependence on Indian engineers has risen significantly in recent years.<br />
<br />
"About one-third of Apple’s engineering headcount consists of Indians who are either on H-1B or on Green Card," said Pareekh Jain, principal analyst at HfS Research.<br />
<br />
HfS arrives at that conclusion looking at figures Apple disclosed in 2012, when it said it had 47,000 people working directly for it in the US, of which 7,700 were customer support operators, and 27,350 worked retail in Apple Stores, leaving about 12,000 as engineers, designers, marketers and other white-collar tech product workers.<br />
<br />
HfS Research also finds that Apple works with at least five India-based IT vendors — including four large firms and one small firm — and the scope of the work they do has been rising.<br />
<br />
<br />
<br />
"Apple’s outsourcing strategy can be described in three words as ‘outsourcing for growth’. The scope of outsourcing work has been enlarged in the last two or three years. From 2013, Apple has dedicated IT outsourcing vendor managers based out of Bangalore who are acting as the bridge between Apple’s IT managers and India based IT vendors," said Jain.<br />
<br /> HfS Research declined to name the IT vendors. TCS, <keyword id="6354512" type="CITY" weightage="60" keywordseo="Infosys">Infosys</keyword> and <keyword id="10862" type="CITY" weightage="40" keywordseo="Wipro">Wipro</keyword> are known to do work for Apple. Apple is seen to be among Infosys’ top 10 clients. Two years ago, Infosys rented a 1.4-lakh sqft office space near its headquarters in Electronics City to house employees who would work exclusively for Apple. The building had a capacity to initially house 1,400 people.<br /> Apple engages with Indian IT players for application development &amp; maintenance, business intelligence &amp; data-warehousing, data analytics applications, enterprise application integration and ERP implementation. Indian vendors also provide software support for development and maintenance of Apple retail stores, specific work for iTunes, <keyword id="667357" type="UNKNOWN" weightage="40" keywordseo="iCloud">iCloud</keyword>, internal applications of release management, job search portals, and porting of web applications to <keyword id="75489" type="ORGANIZATION" weightage="40" keywordseo="IOS">iOS</keyword> mobile.<br />
<br />
<br />
<br />
"The other aspect of Apple’s outsourcing strategy is multi-sourcing, with each IT vendor having some strong focus in areas like channels, CRM, supply chain, marketing and finance, and some overlap," Jain said.<br />
<br />
Apple did not respond to a mail TOI sent on Friday seeking confirmation of the data. That was perhaps to be expected from a company regarded as among the most secretive in the world.<br />
<br />
In 2006, Apple had leased space in Bangalore to establish a technical support centre with 3,000 people. But within months the company abandoned the plan following an outcry from customers casting doubts on India’s ability to service and support Apple’s high-quality products. But in the following years, Apple was clearly convinced it could not do without India and found other ways to use the country’s talent.<br />
<br />
More recently, incremental work coming from Apple has increased substantially as the volumes and complexity of Apple’s supply chain has increased. Apple, whose market valuation is now stands at $585 billion, sold 35.2 million iPhones in the June quarter, a growth of 12.7% compared to the same period last year. Apple said demand from BRIC economies - Brazil, Russia, India and China - spurred iPhone sales.<br />
<br />
"Its data warehousing applications have petabytes of data. Its product lines, volumes and need for analytics have increased. Also, Apple has acquired more than 30 firms in the last three years whose systems and applications need migration and integration to Apple’s applications. All this is translating into additional work for IT vendors," Jain said.<br />
<br />
<strong>What do Indian IT firms do </strong><br />
<br />
* Porting of web applications into iOS compatible mobile apps<br />
<br />
* Master Data Management for Apple’s supply chain data<br />
<br />
* Development and maintenance of Apple’s internal communication product Chatterbox<br />
<br />
* Development and maintenance of Apple’s identity management services, Apple online Store, Point Of Sale retail application<br />
<br />
* Human Resources Management System, SAP Business Objects and SAP LO (Logistics)<br />
<br />
* Apple filed 1,750 H-1B applications during the ten year period 2001 to 2010, but the number increased sharply to 2,800 during 2011-13.<br />
<br />
Source: HfS Research<br />
<br />

One In Every 3 Engineers At Apple Is An Indian

<p>Welcome to <keyword id="11937554" type="UNKNOWN" weightage="60" keywordseo="10-things" source="Orion">10 Things</keyword> Before the Opening Bell.</p><p>If this was forwarded to you, <a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell"><strong>sign up here</strong>.</a> Plus, download Insider's app for news on the go – <a href="https://apps.apple.com/app/apple-store/id554260576?pt=385758&amp;ct=06292021_newsletters&amp;mt=8"><strong>click here for iOS</strong></a> and<a href="https://play.google.com/store/apps/details?id=com.freerange360.mpp.businessinsider"> <strong>here for Android</strong></a>.</p><p>Let's get into it. </p><p><strong>1. Fed hawkishness is thrashing crypto. </strong>The aggressive tone of the minutes from December's meeting of the Federal Open Market Committee <a href="https://markets.businessinsider.com/news/currencies/bitcoin-price-crypto-market-cryptocurrencies-ethereum-binance-cardano-fed-minutes-2022-1">sent bitcoin, ethereum and other tokens plunging into the red</a> yesterday. The prospect that policymakers could raise rates faster or earlier than expected spurred the crypto sell-off and sunk the world's largest token to a <a href="https://markets.businessinsider.com/news/stocks/stock-market-today-fed-minutes-spark-sell-off-bitcoin-price-2022-1">one-month low</a>. </p><p>As the Fed plans to curtail unprecedented easy money policies that have supported the economy through the pandemic, risk assets investors flocked to for returns lose their luster. Higher bond yields make cryptocurrencies — <a href="https://markets.businessinsider.com/news/stocks/why-are-tech-stocks-falling-explained-federal-reserve-interest-rates-2022-1">as well as high-growth tech stocks</a> — less attractive. </p><p>Bitcoin's bear market is <a href="https://markets.businessinsider.com/news/currencies/bitcoin-bear-market-crypto-value-2-trillion-peak-cryptocurrency-btc-2022-1">dragging the total crypto market capitalization back down toward $2 trillion</a> after peaking at $3 trillion just two months ago. </p><p>And even as digital assets gain mainstream acceptance, <a href="https://markets.businessinsider.com/news/currencies/crypto-investing-survey-institutional-investors-top-concerns-security-regulators-volatility-2022-1">some institutional investors continue to show hesitance in the space</a>, with many wealth managers pointing to security and regulatory uncertainty. </p><p>Here's what else to keep on your radar:</p><ul><li>Bitcoin dropped as low as $42,500 in Thursday trading, after trading above $47,000 the day before.</li><li>Altcoins followed suit, as metaverse tokens Axie Infinity, Enjin coin, and The Sandbox <a href="https://markets.businessinsider.com/news/currencies/axie-infinity-sandbox-price-metaverse-tokens-bitcoin-rout-crypto-2022-1">all tumbled.</a></li><li>Separately, <a href="https://markets.businessinsider.com/news/currencies/ethereum-upgrade-dominance-defi-market-share-rivals-eth2-sharding-jpmorgan-2022-1">JPMorgan this week warned</a> that ethereum's dominance is threatened by rivals if its network upgrade doesn't come soon enough. </li></ul><p><strong>2</strong><strong>. US stocks are trading nervously ahead of the December jobs report, given the Fed's more hawkish tone. </strong>A strong reading could push policymakers to step up the pace of interest rate hikes, which would hit risk assets. <a href="https://markets.businessinsider.com/news/stocks/stock-markets-today-tech-futures-teeter-ahead-of-jobs-report-2022-1">Check out the latest moves on the market.</a></p><p><strong>3. RBC Capital said to buy these 30 high-conviction global stocks set to dominate in 2022. </strong>Some of the listed stocks are set to provide returns above 40% —<a href="https://www.businessinsider.com/stocks-picks-2022-high-upside-ideas-investing-strategy-outlook-rbc-2022-1"> and one is even set to surge over 200%. </a></p><p><strong>4. Earnings on deck:</strong> Acuity Brands, Lawson Inc., and Cal-Maine Foods, all <a href="https://markets.businessinsider.com/earnings-calendar">reporting.</a></p><p><strong>5. Rivian stock dipped below its IPO price in Thursday trading after Amazon's new agreement with rival EV-maker. </strong>The e-commerce giant is set to be the first commercial customer of Stellantis, a maker of electric delivery vans — but Amazon said <a href="https://markets.businessinsider.com/news/stocks/rivian-stock-price-ipo-amazon-stellantis-electric-vehicle-deal-competitor-2022-1">it doesn't expect the new deal to impact its business with Rivian.</a></p><p><strong>6. GameStop shares are surging after a report said the retailer is planning an NFT marketplace. </strong>The combo of meme stock and crypto-mania has Reddit apes <a href="https://markets.businessinsider.com/news/stocks/gamestop-stock-gme-nft-marketplace-crypto-wallstreetbets-meme-rally-2022-1">ready for a return to last year's retail trading frenzy</a>. </p><p><strong>7. The tech rout sparked by Fed hawkishness might actually be a buying opportunity. </strong>The spiral doesn't seem to worry Wedbush's Dan Ives. He noted Wednesday that it represents <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-hawkish-fed-tech-investors-major-buying-opportunity-2022-1">a "get out the shopping list" moment for investors willing to buy downward trending stocks.</a></p><p><strong>8. Samsung is opening a metaverse store.</strong> The tech giant will launch a version of its flagship NYC store in Decentraland, an ethereum-based virtual world. Samsung said customers will be able to <a href="https://markets.businessinsider.com/news/currencies/samsung-metaverse-decentraland-ethereum-337x-avatar-digital-asset-store-2022-1">buy and sell exclusive digital assets like land and wearables.</a></p><p><strong>9. Stockcharts.com's Julius de Kempenaer explained why altcoins look primed to outperform bitcoin in the weeks ahead. </strong>The world's largest cryptocurrency doesn't have the momentum as some smaller altcoins —<a href="https://www.businessinsider.com/what-crypto-should-i-buy-altcoins-bitcoin-outperform-technical-analysis-2022-1"> but Kempenaer shared what could signal a bitcoin surge to $70,000.</a></p><p><strong>10. Even as Apple smashed through the $3 trillion mark, UBS said buying other tech themes could deliver bigger returns than the mega cap going forward. </strong>Over the next few years, Mark Haefele thinks some companies in the 5G or AI sectors could beat out Apple and even the entire sector. <a href="https://www.businessinsider.com/best-tech-stocks-investing-ideas-themes-ai-5g-mega-caps-2022-1">See the four tech themes he's eyeing.</a></p><p>Compiled by Phil Rosen. Feedback? Email <a href="mailto:prosen@insider.com">prosen@insider.com</a> or tweet <a href="https://twitter.com/philrosenn">@philrosenn</a>.</p><p><strong>Sign up for </strong><a href="https://www.businessinsider.com/subscription/newsletter"><strong>more Insider newsletters here</strong></a><strong>.</strong></p>

10 things before the opening bell

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Mireya Acierto/Getty Images</span></p><p class="caption">Gympass says 70% of its members didn't have a gym membership before.</p></div><p></p></div></div></strong></p><ul class="summary-list"><li><strong>Brazilian startup Gympass has raised $300 million from SoftBank's Vision Fund, SoftBank's Latin America fund, and other backers to get office workers into the gym.</strong></li><li><strong>Gympass has a presence in Latin America, Europe, and the US, and will use the money to build out its technology and expand to Asia.</strong></li><li><strong>Gympass partners with big companies to lure employees who don't have gym memberships into doing workouts.</strong></li><li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary" target="_blank" rel="noopener">Click here for more BI Prime stories</a>.</strong></li></ul><p>Brazilian startup Gympass has raised $300 million in new funding led by SoftBank's Vision Fund to speed up its international expansion. SoftBank's Latin America fund is conditionally part of the raise, while existing backers General Atlantic, Valor, and Atomico all joined the round.<strong><br /></strong></p><p>Gympass partners with employers to offer corporate wellness schemes, providing employees who sign up with discounted gym memberships.</p><p>Gympass was founded by Cesar Carvalho in Brazil 2012, after he dropped out halfway through his MBA programme at Harvard.</p><p>In the last seven years, it has expanded further into Latin America, Mexico, the US, and Europe. The firm is now headquartered in New York and plans to use the cash injection to fund its expansion to Asia, Carvalho told Business Insider.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Gympass</span></p><p class="caption">Cesar Carvalho, CEO and founder of Gympass</p></div><p></p></div></div></p><p>Carvalho said Gympass was different from services like ClassPass, which allow individual consumers to sign up for multiple fitness classes for a flat fee.</p><p>The UK's Hussle/PayAsUGym likewise lets consumers pay cheaper rates for gym membership.</p><p>But Gympass only works with employers, and says it is primarily targeted at people who don't tend to exercise at all.</p><p>"Our biggest competition is the couch," Carvalho said, in an echo of Netflix CEO Reed Hastings. Hastings <a href="https://www.fastcompany.com/40491939/netflix-ceo-reed-hastings-sleep-is-our-competition">famously said in 2017</a> that the streaming service's main competition was sleep.</p><p>Carvalho described Gympass's model as a "three-sided marketplace." It targets HR departments to get corporates on board, but must also persuade gym networks to sign up to its platform. Once an employer is on board, employees interact with Gympass through a dedicated app.</p><p>Gympass makes money by charging employers a fee to sign up to its platform. This effectively subsidises employees, who pay a discounted gym membership rate to access any gym on the Gympass platform. Gympass then hands a portion of that fee every time a member visits the gym, although Carvalho didn't detail how much. The sell to gyms is an increase in footfall and access to customers who, theoretically, would never have visited without a Gympass membership.</p><p>The company has signed up blue-chip customers such as PwC, British supermarket Tesco, mobile network Telefonica, and Disney.  The firm says it has 2,000 corporate clients, and 47,000 gyms signed up across its 14 markets.</p><p>The model makes Gympass a fairly sales-heavy operation for now. Carvalho said the company has around 1,000 employees, with around 20% focused on technology and the rest focused on corporate and sales.</p><p>Carvalho doesn't say whether the firm is profitable, although it's fairly safe to assume not given its focus on rapid growth.</p><p>"Even in the most mature markets, the ones where we started seven years ago, we're still in the early days," he said. "In the most mature markets, we're reaching 10% of the clients we could reach. To me, there's still a huge opportunity to get clients to join our mission."<span style="font-weight: 400;"></span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/apple-launched-6000-mac-pro-2019-worldwide-developer-conference-2019-6">Apple just launched a $6,000 Mac Pro, available this fall</a></h3>        <div>                    </div>    </div>

Gympass raises $300 million from SoftBank's Vision Fund and other backers to get office workers into the gym

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Jason Marmon just turned 18 a few days ago. That's a real milestone in anyone's life. But his 17th year was so spectacular, it's going to be hard to beat.</p><p>When he was 17, he dropped out of high-school (with his parents' blessing) after he co-founded a New York startup called HomeSwipe with two other co-founders. His business partners are Michael Lisovetsky, now 22 (whose tech career started in middle school) and <a href="https://www.linkedin.com/in/deansoukeras">Dean Soukeras</a>, 43, an experienced entrepreneur.</p><p>Last year, they launched an app of the same name, HomeSwipe, which they dubbed the "Tinder for apartment hunting" because you swipe through listings to find the apartment you want.</p><p>The team raised a $500,000 seed round in the most unusual fashion, too, with the backing of A-list VC Tim Draper and tech billionaire Marc Benioff. Benioff was himself a wiz-kid teen coder and <a href="https://angel.co/news/benioff">does his fair share of angel investing. </a></p><p>And all of it happened because Marmon saw a post from Lisovetsky on Facebook asking for help with a "great idea."</p><h2>Draper University</h2><p>Their story actually begins in 2014 when Lisovetsky attended Draper University.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>It's a 7-week Silicon Valley live-in entrepreneurship program for promising young people.</p><p>Lisovetsky took part in the program in the summer of 2014, when he was in college.</p><p>He already had one success in the tech world. When he was in middle school, he created a web hosting site called FazeWire that was acquired for a small but undisclosed sum.</p><p>He was clearly Draper University material, and after he completed it, he got to work on a couple of <a href="https://www.linkedin.com/in/michaellisovetsky">other ideas.</a> But they didn't work out and the "team fell apart," he said.</p><p>He was not discouraged. He had been through this before. He had taken a course at the Founders Institute in 2013, an entrepreneur training and startup launch program. That's where he met Soukeras. "We were working on different companies separately that failed," he said.</p><p>"At Draper, there were a lot of people working on 'Tinder for X' companies and for a long time, I couldn't understand it," he said.</p><p>He stayed in touch with Soukeras and one day asked him what swipe could be used for besides dating.</p><p>Soukeras, who worked in real estate for years and is a broker in New York, didn't miss a beat. "Real estate," he answered.</p><p>And "that's how the idea was born," Lisovetsky said. Lisovetsky then realized the "value of the [swipe] interface is to take a large amount of data and make it simple to interact with it."</p><p>He then reached out to Marmon by posting a message on a Facebook group for young coders where they both belonged. Marmon saw the message and signed up to help.</p><p>They went straight to Draper looking for seed financing.</p><p>Instead, Draper issued them a challenge. He said he was traveling to New York in two weeks and would meet with them and take a look at their app. "Show me some progress by then," Draper told them.</p><h2>They got busy</h2><p>In two weeks, Marmon and Lisovetsky not only finished a prototype, but finished the whole app and submitted it to Apple's App Store, where it was accepted. They even secured a few users. Both of them knew how to code quickly. They had cut their teeth on hackathons.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Draper was so impressed, he agreed to fund them, but first, he issued another challenge.</p><p>He told them to get more investors that would add to the sum he was willing to contribute. He wanted them to bring the total seed round to $500,000.</p><p>They got busy and managed to secure $400,000 (including Draper's promised money), they told us. Then they stalled out.</p><p>Instead of giving up, they went back to Draper and asked for ideas.</p><p>He introduced them via email to Benioff. Seven minutes later Benioff replied: "I'm in," his email said. (Naturally, they've kept that email.)</p><p>They had their $500,000.</p><h2>Dropping out</h2><p>With all this going on, Marmon was spread thin. A senior in high school, he was going to class in the morning, commuting to the office, working late, sleeping a few hours, and doing it over again.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>He started talking to his parents about dropping out.</p><p>"It wasn't just one conversation, but an extended dialog," he tells us.</p><p>They balked at first, but then started to believe him, that this company was "a great opportunity" and worth suspending his high school education. In the end, he left high school, and "they were very supportive," he told us.</p><p>He might go back to school one day, he tells us, possibly through alternatives such as online school.</p><h2>'Embarrassing'</h2><p>There was one problem with the launch of their company. The first version of the app, built in less than two weeks, was a mess.</p><p>"I'm going to admit it it, the first version of the app was embarrassing. The app looked ugly.  It was broken. It was bleh," Lisovetsky told us.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Meanwhile, Soukeras was doing his part and signing up New York realtors like mad. HomeSwipe doesn't go out and scrape other real estate sites. Realtors submit their listings directly to HomeSwipe.</p><p>With the $500,000 seed money, they hired two people, classmates of Lisovetsky's from NYU. (After Draper University, Lisovetsky finished his business degree.)</p><p>And they got busy on an new-and-improved app, launched earlier this month.</p><p>"Now, with the new version launched earlier this month, I feel pride in what we've done," Lisovetsky says.</p><p>These young co-founders laugh that all of the seed money has gone to pay their employees and they can barely "afford food and transportation."</p><h2>Next up: A business model</h2><p>HomeSwipe isn't generating income yet, but they've got an interesting plan to get there.</p><p>They will charge realtors a small transaction fee every time a user requests information on a property.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>They are working on an in-app chat function that lets users talk to realtors about a property right from the app.</p><p>When conversation takes place, the realtor will be charged a fee, and will be happy to pay it.</p><p>They're adding more cities, too. They just launched Chicago and are planning for more.</p><p>Clearly, $500,000 isn't enough to get them there. So they're hitting Sand Hill road this week, with a ton of pitch meetings lined up, Lisovetsky tells us.</p><p>And they're full of confidence that they'll get their funding.</p><p>That's because, in the six months since the app has been live, it has had over 47,000 downloads, is supported by 2,200 New York real estate agents and is showcasing 85% of NY rental inventory market, Lisovetsky tells us.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/roar-filmed-with-100-untamed-lions-movie-injured-2015-4">70 people were injured while filming this movie with 100 untamed lions</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="Nzc3hmdDr4a5heo3T-j-WFkV1wYM_fEN" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

How a 17-year-old high school dropout got two Silicon Valley bigshots to invest $500,000 in his app

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Associated Press</span></p><p class="caption">JPMorgan CEO Jamie Dimon's Finn app was not a hit with millennial customers.</p></div><p></p></div></div></p><ul class="summary-list"><li>JPMorgan's digital-only banking app, Finn, was plagued internally with uncertainty around how it would operate and the impact it would have on the bank's traditional Main Street offering, sources told Business Insider. </li><li>Consultants estimate the cost of the project to be between $50 million to $100 million.</li><li>Finn, which was shuttered less than two years after it launched, illustrates the issues that can befall Wall Street firms when they try to disrupt themselves. </li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories.</a></li></ul><p>A house divided against itself cannot stand, and neither, it appears, can two competing banking apps within a firm. </p><p>And while the rise and fall of JPMorgan's digital-only bank, Finn, didn't quite lead to a civil war, it did illuminate the issues that can crop up when Wall Street firms with entrenched lines of business attempt to disrupt themselves.</p><p>Finn was meant to be JPMorgan's introduction to digital-only banking, and a way for Wall Street's biggest bank to attract a demographic - millennials - <a href="https://www.businessinsider.com/challenger-banks-like-monzo-n26-and-chime-pose-a-disruptive-threat-2019-2">it felt it was at risk of losing to upstarts</a>. Less than two years later, <a href="https://markets.businessinsider.com/news/stocks/jpmorgan-shut-down-finn-its-milliennial-banking-app-2019-6-1028260540">the banking app is on its way out</a> thanks to a lack of coordination regarding how it was set up, skepticism around how it would operate and uncertainty over its impact on the bank's traditional Main Street offering, three people briefed on its operations told Business Insider. </p><p>In early June, <a href="https://www.businessinsider.com/jpmorgan-internal-memo-announces-shutdown-of-finn-digital-banking-app-2019-6">JPMorgan notified Finn customers</a> their accounts at the digital-only bank, which launched its pilot program in St. Louis in October 2017, would be rolled over to traditional Chase accounts by August 10. Wall Street analysts suggested the product seemed somewhat doomed from the start, questioning why JPMorgan, which is one of the most well-known names in banking, <a href="https://www.businessinsider.com/experts-explain-why-jpmorgans-millennial-focused-finn-failed-2019-6">chose to create an entirely separate brand for its new offering</a>. </p><p>Others in the market did too. </p><p>"Lots of people in fintech thought they were essentially running an A/B test," said Ahon Sarkar, vice president of product and strategy at StoneCastle, referring to the practice of running an experiment with two versions or variables to see which one performs better. "<span>While they've had decent adoption of mobile with the 50-plus crowd, the shuttering seems to confirm that breaking into the millennial digital-only arena didn't quite pan out</span>."</p><p>Most importantly, that sentiment was shared internally, according to the people. Some senior executives at the bank were not completely sold on the concept of Finn, according to one person, unsure of why it was sanctioned and how it would operate. Others in the bank's traditional retail unit weren't involved in some of the key decisions, the person said. At times, the two groups - Finn and the traditional banking unit - didn't talk to each other, according to a second person. </p><p><em><strong>Read more:</strong></em> <em><a href="https://www.businessinsider.com/experts-explain-why-jpmorgans-millennial-focused-finn-failed-2019-6">'Who is Finn?': JPMorgan's banking app for millennials seemed destined to fail from the start</a></em></p><p>Pablo Rodriguez, a spokesman for JPMorgan, said in an emailed statement: "Our retail business was involved throughout the entire process of Finn."</p><p>One reason for the lack of organizational buy-in, according to the people briefed, was due to the fact Finn was established completely separate from Chase's traditional consumer banking group. The Finn app wasn't even built internally by JPMorgan. Instead the bank <span style="font-weight: 400;">worked with several third-party contractors to build it out, including </span>Virtusa, the <span>Southborough, Massachusetts-based consulting firm,</span> one of the people said.</p><p>Frank Palermo, an executive vice president of global digital solutions at the consulting firm, did not return repeated calls for comment. </p><p>Building the app separately, in theory, gives more room to those working on the project to innovate and go in a different direction than what JPMorgan's brand might dictate. But in this case it meant key executives in the traditional retail banking business, the largest in the US, weren't completely brought into the project, one of the people said.</p><h2>'JPMorgan is sitting on 50 years of COBOL and Fortran'</h2><p>Finn operated as a stripped down version of JPMorgan's banking app, but with a different user interface and features that made it easier to save and track spending. It also allowed users <span>to rate their transactions with emojis, which <a href="https://www.businessinsider.nl/jpmorgan-chase-online-bank-finn-for-millennials-2018-7/">some people didn't understand</a>. Despite all that, the app was </span>designed as an added layer on top of JPMorgan's decades-old banking infrastructure. </p><p>"I understand that they tried to separate the tech as much as possible from the JPM core, but they still had to run it on that core," said Todd Baker, a senior fellow at Columbia University and managing principal at Broadmoor Consulting LLC. "JPMorgan is sitting on 50 years of COBOL and Fortran," he said, citing old programming languages. </p><p>That makes it more expensive and sets up a cost structure that's even more prohibitive than what a startup might face, according to Robert Sears, a consultant and former BBVA exec in charge of open banking and <span>head of product for new digital businesses. Big bank compliance policies and vendor management issues would also make it more expensive. </span></p><p><span>"<span style="font-weight: 400;">You can build a cool startup but you have to behave like the mother bank in matters that cost a lot," he said. </span></span></p><p><span><span style="font-weight: 400;">Sears estimates that it would likely cost between $20 million and $50 million to develop an app like Finn, and that's just development costs. Marketing would likely add another $10 million to $15 million to the tally. Three other consultants surveyed by Business Insider estimated a cost of between $50 million and $100 million. JPMorgan declined to provide a figure. To be sure, this is a small sum for <a href="https://www.businessinsider.com/heres-a-breakdown-of-how-much-us-banks-are-spending-on-technology-2019-3">JPMorgan, with an annual tech budget of $11 billion.</a></span></span></p><p>The bank also declined to say how many accounts signed up. Estimates vary widely, with a survey conducted by banking consultant Cornerstone Advisors ranking Finn 11th among the top US digital banks, citing an estimated 47,000 deposit accounts. Sensor Tower estimated that just 232,000 people had downloaded Finn onto their mobile phones, according to the <a href="https://www.wsj.com/articles/jpmorgan-closing-down-finn-digital-bank-a-year-after-nationwide-launch-11559819232?utm_source=Triggermail&amp;utm_medium=email&amp;utm_campaign=Post%20Blast%20%28bii-fintech%29:%20Here%27s%20why%20JPMorgan%20got%20Finn%20wrong%20%7C%20Credit%20Agricole%20in%20%2416.8B%20digital%20transformation%20%7C%20SoftBank%20sizes%20up%20Nubank%20investment&amp;utm_term=BII%20List%20Fintech%20ALL">Wall Street Journal</a>. Other early stage efforts, like Goldman's Marcus unit or banking startup Chime, have millions of customers. </p><p>Assuming the bank spent $15 million on marketing to acquire the number of customers that Cornerstone estimates, JPMorgan may have spent something like $319 to acquire each customer. <span>By way of comparison, </span><a href="https://www.businessinsider.com/hbsc-roboadvisors-report-on-breakeven-2019-3">a recent study by HSBC</a><span> found customer acquisition costs for robo-advisors to be around $300. </span></p><p><span>But JPMorgan really needed to get customer acquisition costs below $100 to succeed, Sears said. Finn relied on card swipe fees to generate revenue, and the bank needed customers to spend about $1,500 each month to break even, he estimates. </span></p><p><span>"</span><span style="font-weight: 400;">You have to get it down to under $100 to really scale one of these things and survive," he said. "If they don't happen to hit the mark with the marketing and branding, those costs stay high. Somebody like Chase, they can pump money in for a while, but at some point they're going to get frustrated."</span></p><p>In any case, the app never gained traction. App store reviews, closely watched by industry experts for signs of social and viral pickup, were no more supportive. Finn received just 6,973 reviews in Apple's app store, compared to nearly 2 million that PayPal's app has collected. <span></span></p><h2>Zero-sum game </h2><p>Perhaps Finn's biggest shortcoming was how the potential threat it posed to Chase's traditional checking account was felt internally, one of the people said. The two sides were in a zero-sum game in which a new account on Finn could mean a missed opportunity for Chase. More than half of Finn's users already had relationships with Chase, a spokesman told the Wall Street Journal last month.<strong> </strong></p><p>"Imagine if you were running the checking account business for Chase and then some other group is like, 'I'm going to launch a checking account, but don't worry, it's just going to be for millennials. I swear it won't impact your business,'" the person said. "And you, as the head of the checking account business, have no say into what it is, how it is structured."</p><p><em><strong>See more:</strong></em> <em><a href="https://www.businessinsider.com/jpmorgan-internal-memo-announces-shutdown-of-finn-digital-banking-app-2019-6">JPMorgan is shuttering its banking app for millennials after one year. We got ahold of the internal memo announcing its demise.</a></em></p><p><span style="font-weight: 400;">The broader discussion around fintech probably matters too, according to payments expert Patricia Hewitt. When Finn first launched the industry dialogue focused on how incumbents had to protect themselves from fintech disruptors. It's since shifted based on a realization that existing players will be harder to dethrone than some  thought. </span></p><p><span style="font-weight: 400;">"Finn was conceived in a time when there was this idea that you had to have this snazzy sexy brand for your mobile products," she said. "What they're finding out is they don't, it's all about the feature and functionality."</span></p><p><span style="font-weight: 400;">The consultants and industry insiders were quick to point out that JPMorgan's main banking app will be enhanced by the learnings it got from Finn. </span></p><p>"They failed fast and they were able to acquire customers, knowledge, intelligence and technographic profiles that were very attractive," according to Crone Consulting's Richard Crone. "If anything they self selected their most prized mobile banking customers."</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/executives-from-morgan-stanley-citi-and-barclays-talk-about-tech-2019-6">WATCH: Executives from Morgan Stanley, Citi, and Barclays explain how they encourage innovation within big, unwieldy banks</a></h3>        <div>                    </div>    </div>

Finn, JPMorgan's failed millennial-focused app, was plagued with internal skepticism and uncertainty. It shows how hard it can be for Wall Street to disrupt itself.

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