Wednesday, November 04, 2009

Developers make money on iPhone/iPod applications by luck. Apple makes money by design.

(CNET) More than 100,000 apps are now available for download from Apple's App Store, making it the largest such retailer in the world.

The App Store launched in July 2008 with just 500 applications. The store is now available in 77 countries, which has contributed to what Apple said Wednesday is well over 2 billion downloads.

It also appears that Apple's business model is running into scalability problems:

Most notably, Apple's app approval process has caused frustration with developers, who are sometimes left in the dark about the reason an app is rejected.

As we discussed during the last session of the Model-based Invention/Innovation class, this is a hole that Google can exploit with its Android platform/distribution system. The AppStore situation can be compared to what happened to Yahoo, when they ran into problems while trying to catalog the web. Eventually, search replaced guided portal-based navigation. Most likely, AppStore will be replaced by a free distributed marketplace for mobile software.

tags: mobile, problem, 10x, apple, google, control point, evolution, distribution,  battle

No comments: