Success of the iPhone App Market

Success of the iPhone App Market

Apple launched its App Store on July 11, 2008. Within the first weekend, users had downloaded ten million iPhone apps. What’s more, the Wall Street Journal reported on August 11, 2008 a month after the iPhone App Store launched that Apple had been making about $1 million per day from the site. Apple’s own CEO Steve Jobs called the site a “grand slam” and said that in the first thirty days, developers had already earned $9 million.

By September 9, 2008, VentureBeat reported 100 million iPhone app downloads. Will the trend slow anytime soon? Probably not: the iPhone App Store is projected to hit one billion downloads sometime in 2009 meaning it will have hit the one billion download mark faster than the iTunes site.

iPhone Apps Make iPhones a Pleasure

When the iPhone was first revealed, it was certainly a breakthrough in mobile phone technology. But other than looking good and showing the picture of the person who was calling you, it didn’t do all that much. The iPhone app market has changed all this. In the first few days of the App Store launch, over 900 new applications were added. The iPhone suddenly became a digital playground for its users.

New iPhone Apps Will Change the Way we Do Business

Online banking was viewed with some suspicion when it first arrived on the scene, as bank customers wondered if online banking could really be trusted to pay their bills on time. But gradually, online banking became second nature and nearly ubiquitous as all major banks adopted it. iPhone apps, like Bank of America’s iPhone application, may even make online banking obsolete as we slowly but surely begin banking from our cell phones.

Retailers are also starting to get in on the iPhone action. The Gap and Target are two of the first retailers to launch their own iPhone apps that enable customers to buy products from their iPhones, and dot com companies like Amazon also let iPhone users buy from their cells. Just as shopping online was once considered innovative and rare, but is now a common activity that millions of consumers engage in every day, so the iPhone apps of retail giants will become increasingly common and “normal.”

The iPhone App is the New Music Video

Likewise, when MTV started showing music videos in 1980, pundits wondered wouldn’t bother watching musicians on their television screens. Twenty-eight years later, generations have grown up within the MTV culture, and they expect more and more from their pop stars. Today’s pop stars not only need music videos, they also need a website, Facebook page, and MySpace page. Will the next thing that pop stars need to stay hip be an iPhone app?

Already, Nine Inch Nails, Weezer, Moby, the Chemical Brothers, and others have participated in the popular Tap Tap games created by iPhone app developer Tapulous. Meanwhile, Pink and Snow Patrol have their very own iPhone apps. These artists could turn out to be the trend setters as more and more stars rush to get a piece of the iPhone app pie.

The Success Will Only Grow

The beauty of capitalism is the innovation it inspires. As companies progressively try to one-up each other in the new iPhone app frontier, the consumer will benefit. The staggering success of the iPhone App Store means we will be seeing more and more iPhone apps with more and more innovative features as consumers demand more and business tries to fill these demands. Step aside, ‘world wide web’ here comes the iPhone app.

Steve Liem

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