Posts Tagged 'business models'

Widgets, applets, snippets, games – the future for Apple iPhone

Apple took $1m per day in sales of apps at its Appstore on iTunes since launching the new 3G iPhone. Steve Jobs says it’s going to create a $1billion business… well, he said it’d ‘crest at half a billion soon’, which is a nice way to describe the run-rate of takings…

What is significant about this new marketplace isn’t just the valuation positive for Apple, it’s the way it gives a new lease of life to a whole load of entrepreneurs. Last.fm looked to be killing Pandora (which drew its horns in and went US-only). But, there’ve been a million downloads of Pandora’s iPhone radio station stuff. It’s mentioned by the FT’s tech correspondent here.

 

ReadWriteWeb put it like this:

The App Store: Soon To Be A Billion Dollar Marketplace?

Anyone who has the iPhone or iPod Touch can tell you that one of the best things about owning the device is the ability to add apps from iTunes App Store. Although many of the apps that we talk about here are the free ones like the social networking appsthe instant messaging apps, and the blogging apps, it’s the paid apps that are making the store a financial success.

According to today’s Wall Street Journal, in the month since the Apple App Store opened, users have downloaded over 60 million programs for their iPhone or iPod Touch. Out of those that were downloaded, Apple sold an average of $1 million per day in paid applications, which brought in around $30 million over the course of the month.

If they stay the course, the App Store will make at least $360 million a year, but Steve Jobs isn’t setting for that:

“This thing’s going to crest a half a billion, soon,” he told the WSJ reporter. “Who knows, maybe it will be a $1 billion marketplace at some point in time.”

However, it’s worth noting that Apple won’t be raking in those millions just for themselves – they only keep 30% of the proceeds, a good portion of which go to cover the costs of credit card transactions and help keep the App Store up-and-running. It’s really the apps’ creators who stand to gain, as they keep 70% of the proceeds.

What sort of paid apps are doing well? A quick glance at the App Store reveals that answer: games. Sega can back that up, too. They sold more than 300,000 copies of their Super Monkeyball game ($9.99) in only 20 days. According to Simon Jeffery, president of Sega’s U.S. division: “It gives iPhone a justifiable claim to being a viable gaming platform.”

But with numbers like these, we would argue that the iPhone goes beyond just being a gaming platform – they’re a computing platform now…and a profitable one at that.

iPhone changes online dynamics?

So, I was a CEO and now I’m a nomad. Initially, I snatched time on the iStore Macs to check my Gmail. Next, I hang out at the FrontlineClub to hook to their wifi.

I’m not the only person doing this. Indeed, London is full of FreeAgents – freelancers, agency folk, knowledge workers. But, now I’ve bought my iPhone… what next?

A fully functioning pocket device will, I suspect, take the flexibility even further. Push Gmail (and RSS Reader). Web in my pocket. iPod for music, film. And Tom-Tom-style satnav. And, almost forgot, voice and sms of yore.  (Some of the uniques blogged by tech analysts from Jupiter… and IanFogg/Jupiter)

iPhone is a big step for the ‘Always On’ paradigm giving people useful digital stuff in a fabulous user experience. As the Jupiter analysts scream… it’s not about the hardware, it’s about the software…

Big… bigger… biggest? (I note that ‘iPhone 11 July‘ has 34million google page returns, compared to 56,000 for ‘Charlie Hoult’)

Why have a dongle? Why have a landline? More to the point, with 500 apps already available for the new 3G iPhone… what business models will prosper for this connected new economy?

Next question will be the value of luck and judgement in business building. With the power of the devices and the potential of the tools… you still need proven experience. But proven in what, these days? Or, do you just need freedom and hunger?

Dan Pink is a US commentator who coined the name Free Agent in his book Free Agent Nation. He’s blogging and writing about the entrepreneurial spirit in a series of best seller books. 

So, bigger than iPhone is the unleashed crowds ‘doing stuff’.


Charlie’s Twitter status

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