The Business Of Mobile Applications

18 months ago, when Apple decided to enter the cell phone market, we knew they would have a big impact on that industry. Apple is well known to be the company that sets its own standards and elevates the bar when it comes to user experience and the first version of the iPhone did not disapoint in that regard. Some of those innovation, like at-home activation unfortunately didn’t stick, but many did.

One thing we didn’t expect though, was that a year later Apple would be revolutionizing the market again, this time with the iTunes Application Store. Ever since the store went online in mid 2008, it has become the new standard every other manufacturer are rushing to get up to. While it’s nice for Apple (we’re big fans) to set the bar again, what especially nice is that the market for custom application is enormous right now. Even ridiculous and useless apps are making tons of money nowadays and Apple is proving that even a 0.99$ application can be quite worthwhile. The gaming market in particular seems to be exploding with sales being quite encouraging and businesses like NGcomo making a name for themselves after only a few short months of existence.

With the economy being what it is, a business model centered on selling micro applications for less than 2$ makes a lot of sense to me. It’s not about making a lot of money on one license, it’s about selling a ton of licences of a software you created in a matter of weeks (instead of months or years) for a few dollars.

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