Filed under: Gaming, Software, iTunes, Developer, App Store
Why the App Store is working just right
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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Reader Comments (Page 1 of 2)
ramkanda said 11:15PM on 10-07-2009
The problem is with the limited space on the iPhone app store. What's New, What's Hot, and Genius are Ok, but there's definitely room for improvement. I understand that Apple may not want to editorialize, being the gatekeeper, but something should be done so that I can stumble into more applications at point of purchase. Maybe the rotation on the front pages needs to be more frequent.
I'm also not crazy about Apple's tight control over content of apps and their foggy rejection reasons. Just put in a rating system and let people download what they want. Apple changed the iPod mini when it was their most successful iPod. I think they should make this improvement while they're at the top with the app store.
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joe said 3:01AM on 10-08-2009
@ramkanda - 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.
The app store is no worse than walking into a Fry's and looking at 1000's of boxed PC/Mac apps and trying to decide what to buy.
And @d-man, you just seem to think you write an app and it should sell. Have you ever heard of marketing and PR? What's your budget for that? You are playing right into the author's post that the thought was 'gold rush.'
Just like the book or music industry, it's a jungle out there.
Harkonian said 3:43PM on 10-08-2009
I agree that it would be helpful for publishers and consumers if apps in the app store were more discoverable. While the new "your recommendations" group helps, it still needs work. For example, I recently published a sake tasting app called--appropriately enough--Sake. With a test device that has 10 other alcohol and tasting related apps on it, the Sake app is still not recommended in "your recommendations." So, while I do believe that Apple is improving discoverability, it still needs some work.
Jordan said 11:23PM on 10-07-2009
The app store may work, but it's just filled with crap
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Ken Broughton said 3:15AM on 10-08-2009
@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
Michael Rose said 12:27PM on 10-08-2009
"... 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.
Fletcher Tomalty said 12:01AM on 10-08-2009
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/
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d-man said 12:03AM on 10-08-2009
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.
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Florian said 12:13AM on 10-08-2009
Agreed. I do independent game development and I have worked on my latest game (Irides) for a long time and spent a significant amount of time polishing and responding to user feedback. Yet, my profits do not even remotely cover the budget. Just like you said, my app "gets buried beneath every other app out there".
Matt Jones said 1:17AM on 10-08-2009
App devs need to get over themselves - they're facing the same tail distribution and marketing issues that musicians have dealt with for years. See this article:
http://cdbaby.org/stories/09/01/15/8158752.html
Relevant info: 150k artists on CDBaby; $34 million paid out, but less than 5000 artists received $1k or more.
mex said 4:14AM on 10-08-2009
the point is that in the start every app get spot lights and reviews, 'cause the appStore was a "new" thing... now it's just the old know buddy appStore and you have to find a way to promote your application.
Recently one of my applications (iTifo) was sitting forgotten in the appStore, soon as was able to get it reviewed from 2 italian website (I'm italian developer) and in 1 day from nowhere my app is now in the TOP50 of Enterteinment in the Italian appStore...
So, now you have to fight for that damn spotlight that rise you up... in the start the iLight application of Erika got milion donwloads, but, it was other times :D
iDev said 6:40AM on 10-08-2009
Yes, we are also not able to recover our costs because the app is just one among 87000 apps out there. I was able to make lot of money with a simple app last year (when there was less than 10,000 apps) but now it doesn't seem to be a viable form of business.
KeynoteKen said 7:53AM on 10-08-2009
Isn't this akin to saying "Apple's not selling my app for me? I wrote it, posted it to the store, but now apps that sell more than mine are SELLING more than MINE!"?
d-man said 8:06AM on 10-08-2009
I'm not saying apple needs to promote my app. I am saying that the app store is the only place most people go to get apps (except for us geeks) so if Apple doesn't, no one will. Also, in the music industry, there has always been a good place to get great indie music: college radio stations and indie cd stores. I guess one could say that these are the same as enthusiast app sites, but only if the indie record store put the big apps in the spotlight (like the app store itself) instead of the indie stuff, because that's what a lot of sites do.
SpinThis! said 11:48AM on 10-08-2009
d-man you should hire a professional and/or look into better self promotion tips. Especially your web pages, they look a bit amateur and your SEO is terrible. I googled your apps and they should show up in Google on page 1... I had to dig to find your site (I think it was on page 2). With a little web page cleanup (eg proper html markup... yes that stuff really does help) you should be able to get into the top 10 of Google easily.
And consider making a lite versions of your free apps so people can try them first.
Stephen Lang said 12:25PM on 10-08-2009
"I'm not saying apple needs to promote my app. I am saying that the app store is the only place most people go to get apps (except for us geeks) so if Apple doesn't, no one will. Also, in the music industry, there has always been a good place to get great indie music: college radio stations and indie cd stores."
Not to discount the problems you've faced, but isn't your analogy more like this-
App store:Best Buy as Web Sites for Geeks:Indy Record Stores
I don't think most indy music bands make money either.
d-man said 4:17PM on 10-08-2009
@SpinThis: yeah, my site is pretty damn bad... I haven't put a too much work into it. but we do have lite versions. thanks for your constructive feedback, those are rare on the internet.
@Stephen Lang: yeah, indie bands don't make much either... but the App Store hasn't worked for me, and there are many high quality apps out there that most people haven't heard of, and a lot of apps that look and feel great but aren't making money. With so many apps out there, it's almost impossible to get long term success without apple's help. That's why I don't think the app store works (aside from the fact that I can't sustain myself on the money I get from app sales).
Max said 2:12AM on 10-08-2009
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?
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TIm said 3:25AM on 10-08-2009
Even if you are the only person working on your program, you still need to pay rent, eat, pay a computer, car .. but in a more serious scenario you have to pay developer, graphic designers, for marketing, possibly rent for office space, computers .. that's where the real money goes.
To produce a hit in the app store you need to spend a serious amount of time developing and polishing your product, which is not something you could do "after work/school". And you probably want to hire specialist for certain task as the fewest know about development, graphics and marketing enough to actually come up with a hit app.
On topic. I think there is a lot to be improved in the app store (especially representation and app approval) but i admit it gives me a certain satisfaction that all these stupid fart app authors are not getting rich.
Tim
Keynoteken said 7:52AM on 10-08-2009
"To produce a hit in the app store you need to spend a serious amount of time developing and polishing your product..."
Isn't this true regardless of if you're selling through the app store OR, as would have been customary in the old days, selling a download from your own website? I still hold the old fashioned notion that, if the app is great (not just the best the dev can do, but GREAT), then it will sell by people telling other people about it. If your app is well done with all the polish you can muster, and still doesn't attract purchasers, then maybe the app doesn't have the wide appeal the developer thinks it has.