I'd disagree, with the rate iPhones are selling at, the app sales rate is going to go through the roof, IMO.
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$30 Million in App Store Sales in One Month, Confirms Kill Switch
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I'd disagree, with the rate iPhones are selling at, the app sales rate is going to go through the roof, IMO.
Sure, but $100 million a year? Compared to Apple's other revenue streams, it's pretty small potatoes, but $100 million a year in the first year is impressive.
Revenue is projected at $360 million, of which roughly $100 million is not paid out to developers. Apple's profit is net that $100 million. I don't think it's realist to assume that Apple's operational costs are anywhere in the neighborhood of $100 million a year. Keep in mind that their share of revenue on the iTMS is generally assumed to be in the low single digits, and they still make money on it. Jobs seems to be downplaying the profitability of the App Store, even though he acknowledges that it could become a billion dollar business.
Yes, the iPhone is selling great.
I would suggest that individuals are downloading many apps because the store is new.
As the newness wears off sales will decrease.
However, as I stated in my post above, new apps will be introduced and spur sales. So initial climb, leveling off (even a possible decrease), then increasing over time.
Unfortunately we'll almost certainly never know. The profit will probably just get lumped into one of the existing categories on the financial reporting. There will be no way to separate out the app store by either income or costs so we'll all be left guessing...
Anybody know how much it costs for the credit card charges on the 99 cent sales?
I believe Visa/MC charge a percentage of the sale down to a certain amount. Then from that point, it is a flat fee.
Anybody know if this is correct?
Yes yes yes.
Every God-loving person on Mother Earth ought to buy one iPhone 3G for himself/herself, and then buy another iPhone 3G for his/her loved ones.
Then, eveyone with an iPhone should go to itunes store and download apps and music and movies, and then go out and buy a mac desktop, laptop, and Apple cinema display.
AAPL to $300/share.
I love $$$$$!
Every God-loving person on Mother Earth ought to buy one iPhone 3G for himself/herself, and then buy another iPhone 3G for his/her loved ones.
Then, eveyone with an iPhone should go to itunes store and download apps and music and movies, and then go out and buy a mac desktop, laptop, and Apple cinema display.
AAPL to $300/share.
I love $$$$$!
This is excellent news! I'm a huge fan of the potential of the App Store. Sure there are some problems, but I think these will all be worked out over time.
I tend to lean more towards the free apps, but I've bought a few of the lower-priced ones. Although I do have my eye on Teleport, but for $25 I want to make sure it works smoothly before buying.
Pssh. You obviously have no sense of humor!
Demon Llama!
I tend to lean more towards the free apps, but I've bought a few of the lower-priced ones. Although I do have my eye on Teleport, but for $25 I want to make sure it works smoothly before buying.
You joined to say that?
Pssh. You obviously have no sense of humor!
Demon Llama!
I think most have probably gone the free route.
IMHO, within a year, we will see much more expensive apps being offered.
Ones that come to mind:
- Word processor
- Spreadsheet
- Presentation
- Database (iFileMaker or FileMaker Mobile)
- Photo editing
- Some utility apps
- More games
- More powerful calculators like the HP-12C emulator.
If the iPhone is selling great, then there will be a continuous influx of new customers for the App Store (nearly 1 million per month?). For them it will be a new and not a worn off experience.
The burst of people who purchased apps before the 3G even went on sale is gone, but that's got to only be a few percent.
Good point.
We shall see.
Nonetheless, this is a great time for developers and should be well into the future and the iPhone/Touch platform matures.
Thanks for the info. Fantastic.
Released on the 5th -- which would be the 6th here in Japan.
Looks like I am 5 days behind releases. Dang!
Cost is $69.99 so it is more expensive as I predicted.
Funnily enough, the biggest problem for developers might turn out to be the number of applications!
Small developers on the iPhone might have the same problem they have on the Windows platform - there are so many developers out there it's hard to get your app noticed. With the deluge of apps likely on the App Store, I can easily see that happening!
I expect we will see the app store change like iTMS did in the early days with easier access to desired applications based on price, area, ratings, etc.
Completely agree with your point.
Like how many flashlights do you need. Or calculators.
But we can still make educated guesses, right?
I think the most interesting part of Apple's success in selling applications is that it puts the lie to the idea that they were forced into it. I've always believed that Apple intended from the start for the iPhone and touch to be complete computing platforms with third-party applications, but when they didn't do it right away, the cry went up that it was a "typical Apple" closed platform and always would be. Even when the SDK was released, much of the media reported that Apple was doing so "reluctantly."
That was a silly assumption, if only because it was based on cliches about Apple that go back about a million years. If we've learned anything about Apple, it's that they do things in their own way and in their own time.
Sure. Did you know that the OQO was created by former Apple engineers that approached Steve Jobs for this kind of portable Mac, but being refused created their own company? Amazing. Hopefully, Apple will release a similar device, perhaps based on the new Intel Atom chip, like a small tablet (5-inch or so). That is what we need. The editing is not so important. The full blown presentation from a handheld device is. Whatever the price. With Mac OS X inside, FireWire and Ethernet we are sold!
Yep, sure did.
We shall see.
Yep, only for Intel Macs. No PPC support.
I don't mean to be rude, but for all the developers out there saying that apple's support for the app store sucks did you ever think about cutting them some slack as the app store has only been open for how long? a month?