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MacRumors
Nov 21, 2011, 02:40 PM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2011/11/21/app-store-holds-85-90-share-of-mobile-app-dollars-says-analyst/)


http://images.macrumors.com/article-new/2011/11/510b48fa-291d-4385-ae87-715aaa9e3c67-500x331.jpg


Apple has frequently promoted how much money has been paid out to developers selling apps via the App Store. The latest pronouncement was during the iPhone 4S introduction when Scott Forstall announced that Apple had paid out three billion dollars for app sales. The point Fostall is making when sharing these totals is that developing for iOS is more profitable for developers than other platforms, most notably Android.

According to analyst Gene Munster at Piper Jaffray, Apple commands 85 to 90 percent of mobile app dollars (http://tech.fortune.cnn.com/2011/11/21/piper-jaffray-android-app-revenue-is-7-of-iphones/), with Google's Android Market Place generating just 7 percent of the gross revenue of the App Store. Munster anticipates Apple will continue to hold more than 70 percent of mobile app dollars going forward.

http://images.macrumors.com/article-new/2011/11/androidvsappstore.jpg


Munster says Apple developers have made more than $3.4 billion since the App Store opened, compared to just $240 million for Google developers. As with all analyst estimates, these numbers should be taken with a little skepticism, but by all accounts the App Store is a tremendous success.

Image courtesy The Verge (http://live.thisismynext.com/Event/Apple_iPhone_5_event_live_blog?Page=2)

Article Link: App Store Holds 85-90% Share of Mobile App Dollars Says Analyst (http://www.macrumors.com/2011/11/21/app-store-holds-85-90-share-of-mobile-app-dollars-says-analyst/)



CylonGlitch
Nov 21, 2011, 02:49 PM
This is huge. From a developer stand point, you want to develop for a system that will give your software the best chance of becoming successful. If you can only write for one system, iOS is the way to go. This is just the opposite of what happened with Apple and Microsoft. With Windows being the dominate platform for desktops, developers flocked to it because that is where their customers were; Apple tried but never got nearly as many 3rd party developers. This time around, the shoe is on the other foot. We'll see what Apple does with this success.

wikus
Nov 21, 2011, 02:52 PM
I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

mkrishnan
Nov 21, 2011, 02:53 PM
Yes, as long as Apple can produce numbers like that, their market share vis-a-vis Android is pretty irrelevant. It'll be interesting to see what kind of sub-share Amazon can eke for the Fire.

Icaras
Nov 21, 2011, 03:00 PM
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Pretty interesting how Android dominates hardware market share, but Apple clearly dominates the the software front. Shouldn't the software business be driving the hardware business? This is at least true in the portable handheld gaming market.

brayhite
Nov 21, 2011, 03:04 PM
It's interesting that the avg. ASP for Android is higher than iOS. I suppose smaller sample size has to do with that, but what apps on Android are expensive (and by expensive, I consider anything $9.99+ expensive for an app)?

I also wonder how they come up with that number. By number of apps with a certain price (which makes me wonder if they consider sale prices as a new "app" to affect average) or by average price paid for an app, which makes the number very deceiving.

----------

I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

And..?

*LTD*
Nov 21, 2011, 03:08 PM
The App Store is where the $$$ is.

This was obvious a long time ago. Not really news.

Icaras
Nov 21, 2011, 03:09 PM
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It's interesting that the avg. ASP for Android is higher than iOS. I suppose smaller sample size has to do with that, but what apps on Android are expensive (and by expensive, I consider anything $9.99+ expensive for an app)?

I also wonder how they come up with that number. By number of apps with a certain price (which makes me wonder if they consider sale prices as a new "app" to affect average) or by average price paid for an app, which makes the number very deceiving.

----------

I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

And..?

I know, and...? Lol.

I'm the complete opposite. I now purchase everything media on iTunes: apps, books, music, movies, TV Shows. Same goes for the Mac App Store. I love the system and I've been moving all my software purchases to it.

Not sure why people hate it so much. It's been nothing but super streamlined convenience with excellent customer service.

Kid A
Nov 21, 2011, 03:15 PM
I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

I think you forgot to add a "Neener-neener! :p :cool:" to your post.

Seriously, though, your post puts an entirely new spin on the above story. Turns out, Apple oughta be shaking in their boots if they're banking on a successful iTMS or App Store! I mean, with you in the mix... :rolleyes:

nagromme
Nov 21, 2011, 03:17 PM
Has the analyst taken into account ad revenue pocketed by developers? I assume so—it would be an absurd omission, since both platforms offer paid and ad models. But the article doesn’t specifically clarify that.

Either way, with or without ad revenue, this kind of big split is no surprise. Then factor in the higher development and support costs for a fragmented Android “platform”! (In reality a chaotic collection of dozens of related but incompatible platforms.) Then look at piracy on Android—not just by users, but by developers repackaging the work of others (with or without added malware)!

No thank you. If/when I finish my iOS game, I’ll surely be more interesting in putting time into a second game to sell on iOS... not into porting and tech support for the chance to wring a few dollars out of the first game on Android.

ctdonath
Nov 21, 2011, 03:20 PM
Asp = ?

1goodidea
Nov 21, 2011, 03:21 PM
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It's an awesome platform and really has seen a resurgence in the independent/basement programmer competing and often doing better than the big budget guys. Hats off to Apple for that.

nagromme
Nov 21, 2011, 03:22 PM
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Pretty interesting how Android dominates hardware market share, but Apple clearly dominates the the software front. Shouldn't the software business be driving the hardware business? This is at least true in the portable handheld gaming market.

Actually, doesn't iOS dominate in hardware user base/unit sales too, last we know?

The iOS app market reaches more than just all of Apple's phones: it’s iPods and iPads too.

Whereas the Android app market reaches LESS than all Android phones: Android tablets have not taken off, and many "Android” phones are Android-based in technicality only, and may count towards Google’s market stats but can’t run Android apps. (For example: Asian OS variations, limited “feature phones” based on Android, and the Fire tablet: if Amazon sees success with that, it will boost book sales, but not Android app sales!)


Asp = ?

Average selling price.

Shrink
Nov 21, 2011, 03:37 PM
I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

And you're proud as punch about it, too.

Don't compromise your principles!

Stand firm against the tide!

People who buy from the App Store or iTunes are lemmings!

March to your own drummer!

:rolleyes::D

BTW - why don't you buy anything from the App Store or iTunes??:confused:

Icaras
Nov 21, 2011, 03:37 PM
Actually, doesn't iOS dominate in hardware user base/unit sales too, last we know?

The iOS app market reaches more than just all of Apple's phones: it’s iPods and iPads too.

Whereas the Android app market reaches LESS than all Android phones: Android tablets have not taken off, and many "Android” phones are Android-based in technicality only, and may count towards Google’s market stats but can’t run Android apps. (For example: Asian OS variations, limited “feature phones” based on Android, and the Fire tablet: if Amazon sees success with that, it will boost book sales, but not Android app sales!)

Ha! Well played! I forgot about iOS as a whole. It is indeed a larger user base than Android.

Go Apple! :cool::apple:

sunspot42
Nov 21, 2011, 03:42 PM
Android is running the risk of becoming the new Commodore 64 - a cheap computer that flew off the shelves due to the rock bottom price, but attracted a userbase that refused to pay for software.

Ultimately, it's the software and not the hardware that makes the platform a success. That's the reason why the IBM PC and Mac are still around, while Commodore is long-extinct. PC and Mac users were willing and able to pay for software.

Having Android hijacked by Amazon isn't doing the platform any favors, either...

Mad-B-One
Nov 21, 2011, 03:42 PM
Asp = ?

Average Sales Point = Mean price of apps - now it does not qualify if it is the mean (most likely), the median or the mode. Average also does not qualify if that is average of sold apps or offered apps. So, you are still in the blue about what that actually means statistically.

Example one (most likely):

Averaged all sales that really append for paid apps on the platform. This would represent the closest to what you want to know as a developer but it is distorted because iOS represents 2 platforms with iPad and iPhone/iPod while the tablet market for Androids has most likely almost no impact on sales numbers.

Example two:

Averaged all prices of apps available for paid apps on the platform. Problem here is that there are prep apps for passing the bar / becoming a lawyer that go for $999 (max allowed by Apple) which greatly would distort the statistics. So, you hang in there not really knowing what the revenue would be.

Example thee:

Both example one and two including the free apps. This would lower the number but it would also be more representative on how much a typical customer will spend per download and how many free apps you might sell. This also is interesting for people who want to decide to either use the business model with advertisement and free apps or getting the revenue through trail app & purchase premium.

Did I miss something?

wikus
Nov 21, 2011, 03:45 PM
BTW - why don't you buy anything from the App Store or iTunes??:confused:

1) iTunes music store sucks for electronic music. I use beatport.
2) App store i find useless. I also don't agree with apple's cut in profits.

mkrishnan
Nov 21, 2011, 03:48 PM
It's interesting that the avg. ASP for Android is higher than iOS. I suppose smaller sample size has to do with that, but what apps on Android are expensive (and by expensive, I consider anything $9.99+ expensive for an app)?

I'd be curious about that too -- there are handfuls of expensive apps on the iOS store, but since the early days of the store, the $9.99 price point even has largely disappeared -- there used to be lots of buzz around games by places like Gameloft that debuted at this price point, and that's much rarer now.

I would guess the most common expensive app purchase on iPhone is a navigation suite, and this would be relatively rare on Android, since there is a turn-by-turn tool built in. Otherwise, there are expensive productivity apps (like QuickOffice, the iWork apps, etc), but I don't know what kind of sales volumes those apps generate.

EDIT: as far as ASP is concerned, if the numbers in the chart for Google are used... 6.75B apps * 1.3% non-free * $3.79/app = $332M, which is within rounding error of the reported revenues; the number for Apple is also within rounding error. So it looks like this number is a straightforward mean price for non-free apps).

bigcat318
Nov 21, 2011, 03:50 PM
You dont buy apps because you don't agree to the share apple gets of the profits? That makes zero sense. As the end consumer the profits the developer makes doesn't affect you at all.

Now if you said you refused to develop for iOS, then you may have a point.

wikus
Nov 21, 2011, 03:56 PM
You dont buy apps because you don't agree to the share apple gets of the profits? That makes zero sense. As the end consumer the profits the developer makes doesn't affect you at all.

Now if you said you refused to develop for iOS, then you may have a point.

Really? So you'd rather have the developer make less money than they deserve? What does apple do to deserve their huge chunk of the pie?

----------


I know, and...? Lol.

Downrank me moreso. Clearly I'm a horrible monster and/or fool for not using the app store or iTunes Music Store. Whoever said I have a choice is also wrong.

bigcat318
Nov 21, 2011, 03:57 PM
The developer agreed to the terms, did they not? They are making profit on software made for hardware Apple developed, are they not? Apple not only provides the medium for the software but also the distribution. Or do you think 500,000sqft data center facilities are free?

You can boycott it all you want. You just have no logical reason for doing so.

*LTD*
Nov 21, 2011, 04:06 PM
It is intensely satisfying to see that Apple's tremendous successes have driven certain types of people absolutely bat-**** insane.

wikus
Nov 21, 2011, 04:07 PM
The developer agreed to the terms, did they not? They are making profit on software made for hardware Apple developed, are they not? Apple not only provides the medium for the software but also the distribution. Or do you think 500,000sqft data center facilities are free?

You can boycott it all you want. You just have no logical reason for doing so.

Please don't put words into my mouth. I never said I'm boycotting ITMS or the App store. I have no need for either and already stated that for electronic music Beatport is superior in every way. Adding my 2 cents on apples profit sharing does not mean im boycotting.

Kaibelf
Nov 21, 2011, 04:10 PM
Really? So you'd rather have the developer make less money than they deserve? What does apple do to deserve their huge chunk of the pie?

Do you seriously think that retailers pass 100% of a sales price on to anyone who creates the product on their shelves? What does apple do? They provide the entire storefront, handle transactions, push updates, and provide customer care. What DON'T they do? Make you go to a store or find an obscure website for the exact same product.

StyxMaker
Nov 21, 2011, 04:12 PM
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You dont buy apps because you don't agree to the share apple gets of the profits? That makes zero sense. As the end consumer the profits the developer makes doesn't affect you at all.

Now if you said you refused to develop for iOS, then you may have a point.

He wants to show his solidarity with the mistreated developers by making sure they get 0% instead of 70% of the selling price of the App.

spazzcat
Nov 21, 2011, 04:14 PM
Please don't put words into my mouth. I never said I'm boycotting ITMS or the App store. I have no need for either and already stated that for electronic music Beatport is superior in every way. Adding my 2 cents on apples profit sharing does not mean im boycotting.

Without Apple they wouldn't made any money. Apple's cut is part of doing business. And the developer agrees to this before they write their first line of code...

bigcat318
Nov 21, 2011, 04:14 PM
I like how your entire response was based on a single word I used, and not actually respond to the relevant question.

Not surprising though, because your arguement had no leg to stand on.

You stated, in your words, that you didn't use the app store partially because of the profit sharing. Let me refresh your memoy on what a boycott is:

A boycott is an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest.

wikus
Nov 21, 2011, 04:18 PM
I like how your entire response was based on a single word I used, and not actually respond to the relevant question.

Not surprising though, because your arguement had no leg to stand on.

You stated, in your words, that you didn't use the app store partially because of the profit sharing. Let me refresh your memoy on what a boycott is:

A boycott is an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest.

Your reading comprehension skills are lacking. Let me repeat myself for the third time:

I don't use the app store because i have no need for it.

Icaras
Nov 21, 2011, 04:30 PM
1) iTunes music store sucks for electronic music. I use beatport.

Then we at least share the same love for electronic music then. I've been a house DJ before, and it's still my most passionately favorite genre of music, but clearly your musical tastes are deprived of choice from the get go. But thats fine that you just love one style of music. No one will fault you for that or should try to change your mind.

But for some people, there is also life outside of one style of music. I'm also a huge on orchestral and film score music, as well some old school Beatles and occasionally I'll dabble in a bit of contemporary rock like Radiohead, so I like to use Beatport in conjunction with iTunes. However as great as Beatport is for fresh off the press newer electronic music and exclusives, I don't think I'm going to find a single film score by John Williams or Hans Zimmer there, let alone The Beatles, do you?

yeah
Nov 21, 2011, 05:11 PM
1) iTunes music store sucks for electronic music. I use beatport.
2) App store i find useless. I also don't agree with apple's cut in profits.

So would you rather waste gas to go to a box-retailer and buy a CD or just download an app in minutes? :rolleyes:

firewood
Nov 21, 2011, 05:40 PM
If you look at the Android current market share versus these app sales numbers, the ratio looks even worse.

It's the same with hardware. More Android units sold, but iOS takes the majority of the profits in the business.

It really looks like the majority of Android users are low income types who can't afford to buy nicer hardware or apps.

Why develop software (as a business) for customers who spend no money?

As for Apple's cut. I'd far rather have 70% of $3B over 100% of $300M. How about you?

Rodimus Prime
Nov 21, 2011, 05:53 PM
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Pretty interesting how Android dominates hardware market share, but Apple clearly dominates the the software front. Shouldn't the software business be driving the hardware business? This is at least true in the portable handheld gaming market.

From the looks of it the flaw in the numbers if those are downloads from the get go. In that department Apple had a monster head start so it would have some inflation in the numbers.

That is going to throw a massive wrench in the numbers from the head start Apple App store has. It got the early lead and not enough time has pass for the lead not to be a major factor. It is not a direct Apple's to Apple's comparison so to speak.

SandynJosh
Nov 21, 2011, 06:48 PM
But for some people, there is also life outside of one style of music.

There's also a lot of life outside of just music on iTunes. I love being able to download CarTalk free to listen to at my leisure, I listen to various radio stations available on iTunes while working on my laptop, and I've learned a lot from the iUniversity free classes on iTunes. I've discovered a couple fine musicians, like Brandi Carlie, by trying the free song-of-the-week on iTunes. However it's not all free fun and games, I do buy a lot of music and a few TV shows from iTunes now and then.

I'm not stuck on iTunes. I go to Amazon for my used CDs and DVD, and even my used books. And I don't forget to use Google to find where the song lyrics may be found. It's all good.

*LTD*
Nov 21, 2011, 07:00 PM
1) iTunes music store sucks for electronic music. I use beatport.
2) App store i find useless. I also don't agree with apple's cut in profits.

Those might be legitimate reasons (even if the second part of #2 is just ludicrous stretching in order to somehow make your post look justified), but that isn't why you posted here.

hbunting
Nov 21, 2011, 08:06 PM
Really? So you'd rather have the developer make less money than they deserve? What does apple do to deserve their huge chunk of the pie?

They provide the ecosystem, the credit card processing, hosting of your app, upgrade system. The developer doesn't make less money due to this arrangement.

*LTD*
Nov 21, 2011, 08:31 PM
I also don't agree with apple's cut in profits.

What does that have to do with you?

Devon61
Nov 21, 2011, 09:03 PM
This in very interesting in light of Research in Motion's recent claim regarding their 70 million active paid subscribers (up from 50 million last year):

BlackBerry App World apps generate 40 percent more revenue than Android Market apps.

BlackBerry App World apps generate 43 percent more daily downloads than the average iOS app and 48 percent more daily downloads than the average Android app.

13 percent of BlackBerry developers have made $100,000 or more from BlackBerry App World sales, compared with 1 percent of iOS developers who have made more than $1,000.

I guess that since RIM gets nearly $5 per month for each "active paid subscriber" [which works out to about $4 billion a year to RIM] the average BlackBerry subscriber is a much more valuable customer and is also much more likely to be the type of person that is willing to pay a developer for their app. Instead of a small fish in a gigantic iOS/Android pond many BlackBerry developers are able to become gigantic fish in a small but fast growing pond.

marksman
Nov 21, 2011, 09:40 PM
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The developer agreed to the terms, did they not? They are making profit on software made for hardware Apple developed, are they not? Apple not only provides the medium for the software but also the distribution. Or do you think 500,000sqft data center facilities are free?

You can boycott it all you want. You just have no logical reason for doing so.

It is an illogical viewpoint which is likely not even true no sense debating with them about it when they are not telling the truth in the first place

----------

Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A334 Safari/7534.48.3)

Really? So you'd rather have the developer make less money than they deserve? What does apple do to deserve their huge chunk of the pie?

Do you seriously think that retailers pass 100% of a sales price on to anyone who creates the product on their shelves? What does apple do? They provide the entire storefront, handle transactions, push updates, and provide customer care. What DON'T they do? Make you go to a store or find an obscure website for the exact same product.

Yeah the cut is actually much less than the traditional retailer model. People upset about this on behalf of the developers have no idea what they are talking about

dljames9
Nov 21, 2011, 09:58 PM
Do you seriously think that retailers pass 100% of a sales price on to anyone who creates the product on their shelves? What does apple do? They provide the entire storefront, handle transactions, push updates, and provide customer care. What DON'T they do? Make you go to a store or find an obscure website for the exact same product.

The problem is that the app store is the only way to sell an app that runs on iOS. A developer writes an app for OS X, and sells it through his own website. The user downloads an install file, or gets a CDROM, and that's it. Of course the developer can also sell the app through the Apple app store now if they think the exposure is worth while, but they have a choice on what channels they want to market through. What if Apple decided to lock down OS X, and apps could only be installed after they are purchased and downloaded from the Apple run app store, just like the iOS devices are now? No CDROM installs, and no installer packages allowed to be downloaded. People would scream antitrust. What's the difference between your PC and your smartphone, that people are forced to buy and sell through the app store? Would you accept this for all apps developed for your PCs?

vvswarup
Nov 21, 2011, 10:44 PM
Really? So you'd rather have the developer make less money than they deserve? What does apple do to deserve their huge chunk of the pie?

----------



Downrank me moreso. Clearly I'm a horrible monster and/or fool for not using the app store or iTunes Music Store. Whoever said I have a choice is also wrong.

The 30% cut is very typical. If people would bother to read the Android Market developer rules, they'd find that Android charges the same cut. Microsoft has indicated that the will charge the same amount.

the8thark
Nov 22, 2011, 07:45 AM
Asp = ?

The article actually says Average ASP. Or in other words:
Average average selling point.

bigcat318
Nov 22, 2011, 09:10 AM
Your reading comprehension skills are lacking. Let me repeat myself for the third time:

I don't use the app store because i have no need for it.

My reading comprehension skills? I'm referencing an exact quote from you. An idiotic point about not agreeing with apple's profits that you have abandoned after multiple people called you out on it. You are cherrypicking your own comments. Do you work for a political candidate? You might have a real knack for it.

cire
Nov 22, 2011, 09:50 AM
I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

I was like you once. I remember in my late teens dreading the cashless society and the government control it would usher in. I swore I'd always use cash and never depend upon ATMs. Well, I got over it. I still don't use ATMs...cuz I don't use cash :P

brayhite
Nov 22, 2011, 11:01 AM
The problem is that the app store is the only way to sell an app that runs on iOS. A developer writes an app for OS X, and sells it through his own website. The user downloads an install file, or gets a CDROM, and that's it. Of course the developer can also sell the app through the Apple app store now if they think the exposure is worth while, but they have a choice on what channels they want to market through. What if Apple decided to lock down OS X, and apps could only be installed after they are purchased and downloaded from the Apple run app store, just like the iOS devices are now? No CDROM installs, and no installer packages allowed to be downloaded. People would scream antitrust. What's the difference between your PC and your smartphone, that people are forced to buy and sell through the app store? Would you accept this for all apps developed for your PCs?

The difference is that part of the iPhone's appeal and marketing ploy IS that everything is in the Apple-run ecosystem. They don't advertise jailbreaking because they don't want that to be part of the mix and why people buy their product. If Apple PCs were marketed as such, then it'd be the same way. Anti-trust is a control on an industry to impede competition. Apple's curated App Store does nothing to impede competition, i.e. Android. Last time I checked, the Android-based phones were doing pretty well in sales volume. Can't say the same about its app marketplace.

The article actually says Average ASP. Or in other words:
Average average selling point.

My guess is average app selling price/point

firewood
Nov 22, 2011, 11:37 AM
The problem is that the app store is the only way to sell an app that runs on iOS.

And this is great for iOS developers. Why? Because it appears that more people buy more apps when there is just one big app store, and they can one-stop-shop. As an app developer, I don't want there to be another way to distribute apps if it causes most of my potential customers to stop shopping and stop buying.

Why herds of customers act that way? Your guess.

wikus
Nov 22, 2011, 01:13 PM
My reading comprehension skills? I'm referencing an exact quote from you. An idiotic point about not agreeing with apple's profits that you have abandoned after multiple people called you out on it. You are cherrypicking your own comments. Do you work for a political candidate? You might have a real knack for it.

Cherrypicking?

Pot. Kettle.

bigcat318
Nov 22, 2011, 02:04 PM
Cherrypicking?

Pot. Kettle.

So requesting you actually backup 50% of your 2 reasons is cherrypicking?

Your first reason was based on personal preference, I have no argument with that. Your second was idiotic. When you come up with an actual response to my question I'll continue debating. But currently you are a waste of time.

notjustjay
Nov 22, 2011, 02:40 PM
And this is great for iOS developers. Why? Because it appears that more people buy more apps when there is just one big app store, and they can one-stop-shop. As an app developer, I don't want there to be another way to distribute apps if it causes most of my potential customers to stop shopping and stop buying.


Think about it for a second. Say you're an app developer and you've written an awesome new app and you want to get it out there onto people's phones. Say the app store didn't exist and we're still distributing software like it's 2006.

So you set up a website. You buy yourself a domain and a hosting package -- that's about $100/year -- more if your app proves so popular that you need to start fielding charges for extra bandwidth.

Now you need to make sure your website is slick and friendly looking or your ability to make the sale will suffer. So you need to be a graphic designer as well as a programmer -- or hire someone to make a nice looking website for you.

You intend to make money from this, right? So you need to take payments. PayPal will do, but they'll take a cut out of each app sale you make. Don't want to share your cut? Not everyone comfortable with PayPa? Want to set up your own credit card payment system? OK, you'll need...

... an SSL certificate for your website, renewed every year (anywhere from free to $400+/year)
... static IP for your domain ($5-15/month on top of your existing hosting fees)
... a shopping cart and checkout app installed on your site (there are many good free ones, but you need the time and expertise to set this up)
... an account with a credit card merchant gateway for processing the payments ($20-50/month)

Great! Now you're all set to take money. But nobody knows about your app yet. So you need to...

... prime Google so your app shows up when people search for the right keywords
... send your app out to app portal sites and review sites so people start trying it and get the word out
... spam the forums and the blogs telling everyone about your new app
... make sure your app is listed on ALL the different app sites so you don't miss out on opportunities
... hope that word spreads...

And hope that you can build enough momentum that people start flocking to your site to buy and download your app.

OR...

You could send your app to Apple, and let the money start rolling in. People find your app when they search (because there's only ONE place to search), Apple takes care of all the payment issues, no need to build a website or credit card system, no need to deal with declined payments or refunds, your app shows up on Apple's top 10 lists and maybe even gets featured. No bandwidth charges, no outages, no certificates or hosting packages to keep up to date.

Which do you choose?

firewood
Nov 22, 2011, 02:57 PM
Now you need to make sure your website is slick and friendly looking or your ability to make the sale will suffer. So you need to be a graphic designer as well as a programmer -- or hire someone to make a nice looking website for you.

A developer needs to do this anyway. According to Apple developer relations, sales of an app from the iOS App store are better if the developers own web site outside of the App store looks professional.

Same with marketing. The vast majority of apps (well over 80%) get no marketing help just from being in the App store. A developer still has to do or buy his or her own marketing, PR and advertising.

wikus
Nov 22, 2011, 05:31 PM
So requesting you actually backup 50% of your 2 reasons is cherrypicking?

Your first reason was based on personal preference, I have no argument with that. Your second was idiotic. When you come up with an actual response to my question I'll continue debating. But currently you are a waste of time.

So, me saying 'i have no use or the app store' is idiotic?

Ok.

Gemütlichkeit
Nov 22, 2011, 07:53 PM
Do you seriously think that retailers pass 100% of a sales price on to anyone who creates the product on their shelves? What does apple do? They provide the entire storefront, handle transactions, push updates, and provide customer care. What DON'T they do? Make you go to a store or find an obscure website for the exact same product.

Thank you for using your brain unlike most of the people here.

Winni
Nov 23, 2011, 08:33 AM
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

Pretty interesting how Android dominates hardware market share, but Apple clearly dominates the the software front. Shouldn't the software business be driving the hardware business? This is at least true in the portable handheld gaming market.


The situation of iOS and Android is a bit like the situation was with Microsoft Windows and IBM OS/2 back in the 1990s: OS/2 was MUCH more powerful and feature-filled than Windows and it could do much more stuff right out of the box than Windows that the corporate users needed to purchase less third party software for it.

When I compare the software of my out-of-the-box-Galaxy S2 with the iPhone 3G and iOS 4.2.1 that I had before the Galaxy, the situation is similar. The Galaxy has almost everything on board that I need to get my daily business done; I bought a few games for it and some remote administration software, and that's it. And the Android's web browser also feels much more like a "real" -- read: desktop -- web browser than Mobile Safari.

There's probably also a HUGE difference in the respective customer bases and their individual needs and demands. That the iOS App Store sells more games than the Google Market for Android probably already says a LOT about the iOS demographic. From a distance, it feels a bit like people are comparing the Wii console with a real computer...

brayhite
Nov 23, 2011, 10:18 AM
There's probably also a HUGE difference in the respective customer bases and their individual needs and demands. That the iOS App Store sells more games than the Google Market for Android probably already says a LOT about the iOS demographic. From a distance, it feels a bit like people are comparing the Wii console with a real computer...

Mind sharing where you found this? And percentage of apps is more applicable, as there aren't equal numbers of apps overall in both app stores/marketplaces. Not sure where the Wii part comes in. Video game console compared to productivity machine? Both app stores are for devices that make calls and consume media, mind you. Not just one or the other.

sessamoid
Nov 23, 2011, 11:56 AM
So, me saying 'i have no use or the app store' is idiotic?

Ok.

No, the other reason. It's simple. Just admit you were wrong. Is it THAT difficult for you? Do you never make mistakes? Just man up.

mkrishnan
Nov 23, 2011, 12:17 PM
Mind sharing where you found this?

I'd be curious on better numbers on this. The Flurry data (link (http://blog.flurry.com/bid/60307/Apple-and-Google-Capture-U-S-Video-Game-Market-Share-in-2010)) suggests that just iOS revenue in 2009 was 19% of mobile gaming revenue, and then iOS + Android was 34% of a smaller pie in 2010. I don't think there's any evidence that the iOS market has already saturated, let alone started to decline, and so as of 2010 it doesn't seem likely that the 34% represents a cannibalization from iOS's prior 19% by Google -- rather I think it's more likely iOS was still ahead of Google at least at that point. That jibes with what a number of game developers have said also.

Given that the iOS market had a longer time to groundswell, I think it's probably true that, at this point that there is more gaming revenue on iOS than Android. It's weird Flurry didn't break it out, though.

And it may not last forever.

firewood
Dec 3, 2011, 06:38 PM
That the iOS App Store sells more games than the Google Market for Android probably already says a LOT about the iOS demographic.

But it doesn't say what one obviously might think. What it actually says is that android users rarely buy apps, any apps, games included, even if there are far more game players among android device users.

What it thus says about the iOS demographic is that these iOS users are willing to spend money on apps. Which is a great incentive for (non-freeware, non-advertising-supported) developers.

Ccrew
Dec 3, 2011, 10:06 PM
But it doesn't say what one obviously might think. What it actually says is that android users rarely buy apps, any apps, games included, even if there are far more game players among android device users.

What it thus says about the iOS demographic is that these iOS users are willing to spend money on apps. Which is a great incentive for (non-freeware, non-advertising-supported) developers.

I think what's also not being captured is there's a much larger percentage of Android games that are free, versus paid as in IOS.

blackhand1001
Dec 3, 2011, 10:18 PM
So would you rather waste gas to go to a box-retailer and buy a CD or just download an app in minutes? :rolleyes:

Some people like leaving their house and and participating in society.

MarkCollette
Dec 4, 2011, 02:06 PM
Really? So you'd rather have the developer make less money than they deserve? What does apple do to deserve their huge chunk of the pie?

Before the app store, software was sold in boxes in stores, and the publisher took a huge chunk of the profits, and people bought much less software. This has quite clearly been an improvement, I'm not sure how you think developers are getting screwed over.

And as a consumer, I take great comfort knowing that all software is vetted, and isn't just downloaded off of random websites, with random spyware and trojans being included. That feeling of security allows me to buy more software from smaller players, and not just stick to software from big names. Developers are getting value with that cut to Apple.