Posts Tagged ‘iphone’

Apple’s recent attempts to convince developers to charge more for the apps that they try to distribute through the app store seems to have fallen on deaf ears: a recent poll suggests that over 71% of apps developed for distribution through the app store will be available completely for free.

Further bad news for Apple from the same survey includes the conclusion drawn analyst Gene Munster (of Piper Jaffray) that the average cost of those apps for which a charge will be made will only be $2.29. This is a far cry from the $10 per app that Apple mentioned in the keynote speech and which, clearly, it was hoping for.

The reason for Apple’s urgency with regards to the price charged in the app store is fairly obvious: their revenue model revolves purely on a cut of 30% of the revenue made from those apps sold. Even the marketing boys at Apple realize that 30% of nothing is still nothing. In return Apple provide the infrastructure of the app store and provide the means to distribute to the paying customer.

So a slight loss may be on the cards if Apple forges ahead with the concept of the app store as it is. This should not worry Apple too much and even Munster doubts that the free apps will hurt the overall benefit.

The Apple iPhone games is perhaps one of the most exciting little gadgets conceived. While the concept of a mini computer is not new (the Treo and Blackberry, among others, blazed this particular trail) what it does off is the ultimate sexiness in gadgets.
And Apple are soon to release the new model of its iPhone games, if rumors and market conditions are to be believed. A key catalyst to this rumor is the complete lack of iPhone games availability in the online shop, and a definite paucity in brick and mortar establishments that would usually carry the device.
While this might seem like a huge error on Apple’s part it most definitely is not. For a start Apple don’t make this kind of error, and secondly it is easy to see the rationale behind the move: choke supply to increase demand before the new iPhone games release. When it comes people would be fighting in the streets (Apple would no doubt love that coverage).