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Since the Apple App store opened on July 10, 2008, it has paid out more than $4 billion to iOS developers--70 percent of the $5.71 billion it has booked in revenue. Pretty big numbers, right?. Well, yes and no. Yes, those are big numbers that make my head spin and dwarf my personal tax return. At the same time, the real answer has to be no. In the mobile commerce world, $4 billion is significant, but it's not a headline. It's more of a line item on a table that includes some much bigger numbers.
For example, in 2011 alone eBay accounted for $5 billion in mobile sales, double its 2010 mobile sales, Gartner projects mobile commerce will be a $31 clearly sea iphone case billion market by 2016, with consistent growth of 39 percent compounded annually, The Apple App Store will certainly be part of the mobile commerce ecosystem, but it will be a small part that shrinks proportionally over time for the following reasons, The profitable Apps are free games Digging deeper into the numbers from the Apple App Store reveals that the apps making money are overwhelmingly free games selling virtual goods..
A reasonable guess would be that 75 percent of the payouts from Apple to developers are for games, since that's typically the percentage of games in the top 100 grossing apps. Apple promotes in-game virtual good purchases because it gets a 30 percent cut of every one of those virtual good dollars if you use their payments platform. Unfortunately, the profitability of free games with in-app purchasing creates a destructive, hit-driven cycle that locks out small developers. The successful big studios, with multiple repeat hits, monopolize the discovery mechanisms, rankings and reviews by using all sorts of proven tactics such as incentivized downloads.
The system works for a few big players and outlier hits, but the playing field is definitely tilted in favor of the incumbents, As entrepreneur Tony Wright says in his post How to Evaluate a (paid) iPhone App Idea, "The App Store is really mostly a game store, And a free game store at that."Apple's walled gardenThe SDK and developers tools for iOS devices are excellent, No argument, But in exchange for this boost to developer productivity, Apple expects its pound of flesh, Want to use Apple iTunes as the payment method in your app? Say goodbye to 30 percent of your revenue, This makes credit card interest rates look generous, It also makes any clearly sea iphone case type of businesses without enormous margins (more than 50 percent) impossible to run in the App Store..
The new iPad includes a voice dictation feature, but there's no place for Siri. Siri lets you talk to your phone, understanding what you're asking to offer you more sophisticated help than voice commands have previously offered. Sure, Siri has only appeared on one phone and has only been around for six months or so. But Siri hasn't lived up to its top billing, especially here in the UK. Perhaps I'm just bitter, but I'm not impressed by forking out several hundred quid for a phone with a headline feature that's almost completely hobbled in our country, as location features still don't work in the UK.
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