3-D app profits report by Smith's 2017

Smith’s (2017) graph demonstrates information about how many profits have been made by the app Read me books in Australia since its launch in 2011. Overall, what stands out from the graph is that there has been a remarkable upward trend in profits. The app was launched in 2011 and its profits rapidly reached $500, 000 in six months later. Profits stagnated until the end of the year due to the economic stagnation. From 2012 to 2014, as a result of economic growth and a government contract, profits soared to reach a peak of two million dollars. Owing to a termination of the government contract, there was a crash in profits to one million dollars by 2015. Because of the conduct of internet advertising in 2015, profit rose marginally. Then, when a competitor launched their app in 2016, profits grew slightly to $1. 3 million by 2017. It is forecast that profits for the app Read me books will rise more slowly in the future. This report, which has been required by the Board of Directors of Apps International, describes the trends in profit of two popular apps (Read me books and Bookboard) and evaluates the data. It recommends that Apps International should invest in Bookboard. In his article “3-D app sees profits soar”, Jones (2017) states that a new 3-D version of popular children’s picture book app Bookboard, which allows children to see picture books in 3-D view, has been released. However, profits declined, from an initial point of $500, 000, when the original 2-D app was launched in 2011 during a global economic downturn. He adds that they recovered slightly to $300, 000 because the economic downturn eased in 2012. In next year, profits dropped to over $100, 000 because of the extremely high Australian dollar. According to Michael (2017, cited in Jones 2017), a surge to $1. 1 million by July was caused by a successful advertising which used a popular celebrity to endorse their app. It is predicted that profits will continue to increase with the release of their new 3-D app. Smith’s (2017) graph demonstrates information about how many profits have been made by the app Read me books in Australia since its launch in 2011. Overall, what stands out from the graph is that there has been a remarkable upward trend in profits. The app was launched in 2011 and its profits rapidly reached $500, 000 in six months later. Profits stagnated until the end of the year due to the economic stagnation. From 2012 to 2014, as a result of economic growth and a government contract, profits soared to reach a peak of two million dollars. Owing to a termination of the government contract, there was a crash in profits to one million dollars by 2015. Because of the conduct of internet advertising in 2015, profit rose marginally. Then, when a competitor launched their app in 2016, profits grew slightly to $1. 3 million by 2017. It is forecast that profits for the app Read me books will rise more slowly in the future. In conclusion, Smith’s graph suggests that the recent success of the app Read me books was the result of the government contract, so its profits could have plunged if they had not won the contract. In addition, the later advertising campaign was not very effective. In contrast, owing to a hugely successful TV commercial, profits of the app Bookboard have increased significantly recently. However, in the first half of the decade, its profits fluctuated due to many external economic factors. Therefore, Bookboad could be the more prospective app because of their new 3-D version. I highly recommend that Apps International should invest in Bookboard. While Read me books has a higher profits recently, I believe that the number of profits for Bookboard will increase dramatically in Australian than Read me books if the economic conditions remain stable. Bookboard receives the government contract similar to the one used by Read me books.