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Why the App Store is working just right

by Mike Schramm Oct 7th 2009 at 11:00PM

Edible Apple has an interesting analysis up about this Newsweek article claiming that App Store developers aren't getting rich. Newsweek basically claims that all those success stories we've heard about App Store developers have a darker side: if they aren't already buried in costs from developing that hit app, they're desperately scrambling to rise above the noise and get another one's sales up on the App Store. [For a similar perspective to Newsweek's, check out this post from Ged Maheux at the Iconfactory.]

Edible Apple replies that that's true, but a closer inspection of the numbers shows that these devs are actually making plenty of money -- while their costs are going higher than they expected (one example has a developer paying over $100,000 to make $200,000) there is still money to be made. What developers are actually discovering, says Edible Apple, is that the App Store isn't a gold rush -- it's a business.

That's an interesting point. In the beginning, the App Store was a gold rush -- you could hack together a fart app and come up with a few month's worth of beer money over night. But with almost 100,000 apps, it's a different ballgame. You either need to come up with an original idea that people are interested in, or polish an existing idea until it shines so bright it's unavoidable. And as Edible Apple says, that's actually a good thing. There is money to be made in the App Store these days -- multiple developers have proven that already. It'll take work and luck to do it, but isn't that the case with any successful business?

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Edible Apple has an interesting analysis up about this Newsweek article claiming that App Store developers aren't getting rich. Newsweek...
 

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Michael Rose

"... actually, there may be soon, if this legislation goes ahead, which will hurt Mike Shramm and other disrepuable bloggers who write reviews for cash without declaring their payments."

You might want to get yourself a good lawyer, since if Mike decided to take you to court for libel he would have a pretty solid case.

Provide credible evidence that any TUAW blogger is taking cash from vendors as a quid pro quo to deliver positive reviews, and they'll be fired.

Can't prove it? Then shut the hell up.

October 08 2009 at 12:27 PM Report abuse rate up rate down Reply
andy

If selling applications on the app store isn't working out for you as a developer, there is always the option of working for someone else who needs apps developed and making a pretty decent living that way.

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October 08 2009 at 11:35 AM Report abuse rate up rate down Reply
Skoalbandit

Spending 100k and making 200k is a pretty amazing rate of return.

October 08 2009 at 10:41 AM Report abuse rate up rate down Reply
Jeff

Wow, TUAW is running out of things to write about.

October 08 2009 at 9:35 AM Report abuse rate up rate down Reply
Joey

I don't get developers complaining about not getting enough exposure in the App store. If your marketing simply consists of getting your app listed on one of Apple's top lists then you are doing it wrong. One guy commented that his games weren't selling I did a search for the title of his game and Iphone and he doesn't have a web page. wtf. You have to do build a awesome game and do your own marketing if you expect to make a lot of money in the App store. I think it is very fair. Even if Apple were to allow Apps to be sold anywhere that would still be the case except you would also be paying for the bandwidth people used to download your app, credit card processing, etc.

October 08 2009 at 8:23 AM Report abuse rate up rate down Reply
3 replies to Joey's comment
Bones3D

From the sounds of it, it seems we've reached a point where natural selection will eventually improve the overall quality of apps featured in the app store. Maybe now, Apple can let up on some of the more draconian submission review policies, allowing the market to decide for itself what it wants.

October 08 2009 at 6:59 AM Report abuse rate up rate down Reply
Ken Broughton

@joe - "nothing is stopping you from creating a blog or website with your own editorial and links to the app store. You could even earn affiliate fees for sales."...

... actually, there may be soon, if this legislation goes ahead, which will hurt Mike Shramm and other disrepuable bloggers who write reviews for cash without declaring their payments.

http://news.cnet.com/8301-13578_3-10269962-38.html

October 08 2009 at 3:15 AM Report abuse rate up rate down Reply
Max

Hi i dont understand something (i guess because i dont develop). Why the article and above developer say that costs are very high sometimes? The "tools" i know required are the iphone developer registration fee, own a mac and an iphone. Where he spent 100.000?

October 08 2009 at 2:12 AM Report abuse rate up rate down Reply
4 replies to Max's comment
d

As a developer, let me say that this is simply not true. It's working for some, but not many, costs are too high, and my apps (WordSalad and AlphaDrop, in case you were wondering) just get buried beneath every other app store out there.

October 08 2009 at 12:03 AM Report abuse rate up rate down Reply
9 replies to d's comment
Fletcher Tomalty

So you're saying 12 year olds will be able to make hundreds of thousands of dollars off of Sudoku apps, even in 10 years from now? Yikes!

Also, the app store could be a little less buggy: http://nomulous.com/blog/app-store-fail/

October 08 2009 at 12:01 AM Report abuse rate up rate down Reply
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