iPhone software store contributes next to nothing to the company’s revenue. Yet, the digital bazaar continues to prove a key weapon keeping Apple’s iPhone atop a growing number of smartphone rivals.
Since it opened 10 months ago, the App Store has been a runaway hit selling a host of software that turn the smartphone into everything from a carpenter’s level to a virtual change purse. Any day now, the Cupertino, Calif.-based computer company is expected to announce total downloads have surpassed 1 billion.
The App Store shows no sign of letting up. That, analysts say, is key to the iPhone retaining its popularity with consumers, even as a host of new competitors are readied for market. “They are little value enhancers,” Gartner analyst Mike McGuire said of the downloads. They are why “Apple is the platform of choice” in the consumer smartphone area, he added.
The App Store’s popularity may never have been more important. In coming weeks, Sprint Nextel Corp. (S) will begin selling Palm Inc.’s (PALM) Pre smartphone, a cutting-edge gadget that’s getting good reviews and is seen as a big challenger to the iPhone’s popularity. Meanwhile, Nokia Corp. (NOK) and Research In Motion Ltd. (RIMM), both battling the iPhone with their latest smartphones, have launched online application markets hoping to capture some of the magic the App Store has delivered for Apple.
On Wednesday, Apple is expected to report second-quarter results that show earnings rising 5% to nearly $8 billion even as the economy sputters. During the quarter, sales of iPhones, which retail at $199 apiece, are expected to reach 2.3 million units. The App Store will likely contribute less than 1% to revenues, even though roughly 110 million “apps” are downloaded every month.
- from WSJ
Hulu, the joint online video venture from NBC Universal and News Corp., is developing software for Apple’s App Store, Silicon Alley Insider’s Dan Frommer reports. The app will be available in a few months and is supposedly “as excellent as Hulu’s Web site.” It will reportedly work over both Wi-Fi and 3G. – from MediaPost
Mobile app analytics start-up Flurry is building a business helping iPhone developers get “discovered” in Apple’s App Store. Its tips for developers range from promoting other apps within an app to getting as many users as possible to rate and review an app. (See “Making iPhone Apps Pay.”)
If those tactics don’t work, there are always other tricks. One involves inserting popular keywords into the product descriptions included in every App Store listing. A developer could write that Britney Spears was an inspiration for his app, for instance, or posit that his game is “just as fun” as top-selling game “Tap Tap Revenge.” Think of it as search engine optimization for the App Store. – from Forbes
Nintendo recently announced that owners of its DSi hand-held console will be able buy downloadable games for as little as $2. Nintendo executives said their pricing strategy was formed independently from the App Store, and they were quick to point out how their business was different from Apple’s.
“Are we intrigued by the iPhone? Yes,” said Reggie Fils-Aime, president of Nintendo’s North American business. “But our approach is fundamentally different. We want to give our customers high-quality, innovative and captivating entertainment. A storefront with 10,000 pieces of content doesn’t do that.” – from Latimes
