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?

CNN chatted with our good friends at DLS about the news network's iPhone app (scheduled to hit an App Store near you very soon), and it actually sounds pretty premium: in-app video, breaking news live video streaming, a Coverflow-style way to browse news information, the ability to store news to read later, and social sharing through Facebook, Twitter, and the usual suspects. CNN even says they want to add more to the app in the future, including some iReport-style news delivery functions, so people with iPhones out in the world can send news in as quickly as possible.

Ok, CNN, we get it -- you care about this one. It does sound like they're making a major push in terms of making their content interactive on the iPhone, but on the other hand, maybe they're just trying to sell you on the "premium" price: $1.99, with (we're told) non-intrusive advertising included. Obviously, $2 is cheap, but on the other hand, especially with advertising both from the network itself and outside clients, the crankiest of App Store browsers will probably flinch at it a little bit. If you are interested, however, CNN would love to take your money: their app should be available in the App Store as soon as Apple lets it through.

$80 on apps? I didn't think it was that much, but after going over estimates in my head, that sounds about right, actually. A survey of 1200 App Store customers estimates that we've spent about $80 on applications so far, with an average of about 65 applications per customer. There's a little weirdness in those figures though: they also say that 65% of the apps downloaded were free, and that the average app price was $1.56. There's some extra information hidden in there: if 65% of the apps are $0, and the average price is still up above $1, that means people are spending way more than $1 on the apps that they do buy. More research seems needed there.

There's another surprising figure as well: of all the 1200 customers surveyed, altogether they only had about 15,000 unique apps on their iPhones. When you compare that to the latest figures of about 65,000 apps, that means you've got about 50,000 apps (definitely the majority) that are completely untouched by these customers. Of course, 1200 is a tiny sample when you're talking about the millions of iPhones sold overall, but if that is in fact a representative sample, that means that there are many, many more apps than people have actually downloaded and tried in iTunes.

Not hard to believe -- with iPhone developer numbers in the hundreds of thousands, tons of trashware on the store, and the relative ease it takes to crank out an app, it's no surprise that you've got way more apps than people interested in trying them. But then again, isn't that the way we want it?

Jeremy Laws at Cabana Mobile has an interesting little analysis up about mobile gaming that claims it may not be as big as it's cracked up to be. Laws says there's no way the mobile gaming market can hold up $5.4 billion, as was reported earlier this year by Juniper Research. Laws looks at the top 10 companies releasing mobile games (at retail -- that will become important in a minute), and claims that even if those companies make up 70% of total mobile games, the total amount of mobile game sales only comes up near $1.7 billion, far short of the Juniper number.

So where's the discrepancy? It's almost certain to lie in the App Store, where Juniper says growth more than made up for the dropoff of sales in other areas, like Java-based games. Laws does list companies like EA Mobile and Gameloft, whose games are selling on the App Store, but almost all of Laws' companies are old-school mobile developers, who created games for mobile phones before the App Store was ever open for business. Plus, his "retail" mention might mean the App Store isn't included in his calculations at all -- can you call the App Store "retail"? In fact, if any mobile games marketplace is going to make up over $3 billion in the mobile games market, it's got to be the App Store, right?

So this means a couple of different things: one, the App Store very well could be remaking the face of mobile gaming, to the point where old-school numbers are just plain insufficient to compare to modern App Store sales. Second, if there is a bubble, it'll likely be in the App Store: another recent report says that if you spend more than $40k on a 99 cent game, you're losing money. Laws may be underestimating the long tail of the App Store -- certainly no single developer has pulled in billions, but there are a lot of developers out there. Still, at the same time, $5.4 billion does seem high. And if games companies are convinced there's gold in the App Store hills, that's where the bubble will eventually burst.

Here are two different insights from Pocket Gamer about how developers can grow the profile of their iPhone apps. The first comes to us from the wisdom of Peggle, that game that I just can't stop playing. Apparently, they've coined the term "Peggling," which means lowering the price of your app, and seeing a huge benefit from it. Whenever a game drops its price down to 99 cents, much as Peggle did soon after release, it sees a significant bump in the charts. I'm sure there are many other factors at play here -- Peggle was a great game, so you can't sell more of a crappy game just by selling it for cheaper, and I saw a lot of Twitter and blog attention when the price dropped, so it pays to have people watching the price in the first place. But under the right circumstances, dropping the price can do a lot for a game that's already selling pretty well.

But an update, apparently, won't. That's what the makers of Zen Bound told Pocket Gamer -- they say that when they released an update with new levels and new features, it didn't make a difference in their sale numbers at all. Games like Pocket God have made a reputation for themselves by providing regular and solid updates, and certainly it seems like those updates have at least spurred sales, if not made them blow up, but the Zen Bound guys say that singular updates on major products probably won't kick sales into gear.

Interesting. We're at least a few generations into App Store sales at this point, and we're started to see trends and consumer behavior in better relief; developers are getting better and better ideas every day about how to price and service their apps and customers.

If there's one software company and product line that can raise the ire of even the most mellow Mac user, it's Intuit and the Quicken line of accounting software. While the company rightfully owns the market for home and business accounting software in the Windows world, their Mac products are beset with bugs, delays, and incompatibility issues.

IGG Software has announced a "Why wait another day?" rebate program to persuade frustrated Quicken Mac 2007 owners to switch to iBank 3.5 (US$59.99). If you're a Canadian or U.S. owner who purchased iBank after July 10th, 2009, and have proof of ownership (installation disc or receipt) for either the Mac or Windows versions of Quicken or Microsoft Money, sending in a mail-in rebate form will get you a $20 incentive to switch to iBank.

iBank 3.5 requires Leopard, and has a number of features that take advantage of Apple technologies. For example, you can take a picture of a receipt using your iSight camera and include that with a transaction record. MobileMe users get the advantage of automatic backups of their financial data, as well as a way to enter transactions "on the road" with the companion iBank Mobile iPhone app (US$4.99, purchased separately).

All in all, the rebate is a great way to start saving money and begin working with an accounting application that was designed from the ground up to work on Macs.

We covered Jason Rohrer's Primrose when it first came out -- the creator of Passage, a critically-acclaimed indie game, had taken his first steps onto the iPhone with an abstract puzzle game, and in this latest interview with Edge, Rohrer says he's on the iPhone to stay. He says that when he first moved from strictly art/indie games to more commercial development on the iPhone, he worried that he was selling out: he wasn't a fan of cell phones at all or any Chinese-made gadgets sold by American companies, and yet the iPhone's platform seemed most "palatable" to him in terms of making games and a little money from them.

And yet he says the iPhone still has pros and cons -- even in an "open source, free software" world, Apple's system offers a choice: you can buy a packaged-up version of the software and throw a little money back to the developer (not a ton -- he says you've still got a better chance at making a living from Vegas than you do from the App Store), or you can still try building and installing your own version on your iPhone. As an open-source developer selling apps on the App Store, he says, "you're charging for the service and convenience, not the content."

Still, he echoes the sentiments of lots of other developers: "There is no quality filter, except for the whims of the masses." Apple's App Store offers up an intriguing system for many indie developers like Rohrer, who want to earn a little money for their games without setting up all of the complexity and burdens of a more traditional publishing channel, but it's still tough to keep from getting lost in the mix.

Did you know that after it is broken down into all of its composite metals and materials and parts, your human body is really only worth about $4.50? Yup, you're cheap in the broadest sense -- all of that oxygen, magnesium, iron, and sodium isn't actually worth all that much in the rare metals market. In fact, according to iSuppli, you're worth way less than the iPhone 3GS -- they looked at the component parts for Apple's new handset, and calculated its raw value at around $178.96. The most expensive components are the 16gb flash memory (ringing in at around $25 per part) and the display (at $19), all the way down to the audio codec board, which Apple reportedly picked up for a cheap $1.15. Of course, there was lots more cheaper stuff (we assume the screws weren't a buck each), but iSuppli didn't actually go that granular. That also doesn't include any of the non-hardware costs: shipping fees, R&D, distribution, marketing, and so on. But it's way more than you're worth, and it's $40 more than the Palm Pre costs to make, too.

Lest you start worrying that your spouse will start valuing their iPhone more than your body, however, there is a silver lining. If you break down to the mineral components of the human body, we're cheap, but the actual components of the body are pretty expensive, it turns out. Expensive to the tune of $45 million, if you count up all the money you could pick up from taking out your bone marrow, extracting your DNA, and selling off a lung or two. Just like the iPhone's parts, when assembled, are worth more than iSuppli's $179, you too pick up some value when assembled the right way.

[via Engadget]

As Mike mentioned in the news roundup yesterday, word is going around that the corporate overlords at Apple are planning to build a massive server farm in the state of North Carolina within the next decade or so. How do we know? Because the company is working on getting a few nice tax breaks to go along with the deal, eventually worth about $46 million if Apple fulfills their end of the agreement. Their end of the agreement being a huge investment of a whopping $1 billion (that's over 333,000 Xserves, if that is indeed what they're installing -- and we bet not) into an economy that could probably use it. What exactly will go in there? We aren't sure -- lawmakers say the investment is worth it, and obviously Apple isn't showing their cards.

[Note: the $1B investment figure is not an upfront number, but rather a total investment over the first 9 years of operation. –Ed.]

But the facility, once up and running, will start by employing at least 100 people, so that's a nice start. Google has apparently gone through the same deal with North Carolina recently, though their deal was a little smaller: $600 million investment for a server farm that opened last year.

More backend for Mobile Me? More power for the App Store or a project like it? A giant building full of Cubes running 24 hours a day? Or something we haven't even dreamt of yet?

The Wall Street Journal's Digits blog takes a look at "crap apps" -- those pieces of junk on the App Store that do one thing and do it pointlessly, whether that thing be farting or belching or making the sound of fingernails on a chalkboard (yes, really) or what have you. And they come up with a very intriguing, albeit obvious, reason that the App Store seems so filled with completely terrible and silly apps. Why? Because they sell.

Yes, even "legitimate" iPhone developers -- those people working hard to create an innovative touchscreen interface, or bring some crucial functionality to the iPhone -- are finding that of all the apps they release, the crudest and most stupid are the ones that sell. They profile a guy whose serious movie apps aren't selling, but whose cobbled-together-in-five-minutes gimmick apps are making a mint. In short, the reason our App Store is full of way more fart apps than apps like Twitterific 2.0 is because people are paying for the fart ones. The message we're sending with our wallets is that if you want to make a million dollars on the App Store, don't toil away to polish your groundbreaking award-winning puzzle game. Just give us a gag we can show to our friends.

Is it right? I'd say no, but then again, even I have been pulled in to a gimmick app or two: I bought Cat Piano (in my defense, I've gotten enough entertainment out of it to find an easter egg: shake your iPhone while playing). But next time your finger is poised over the "Get App" button on that 99-cent belching app that you just know the friend you're seeing later will get a total kick out of, think to yourself: is that two-second gag worth an App Store full of crappy apps?

This might be obvious to most of us, but the WSJ feels it's fit to print: while Steve Jobs' reimbursed budget for his private jet has been fairly considerable over the past year or so -- $580,000 for a six-month period a year ago and $30,000 during a quarter period, the past few reports have seen the budget much, much lower. For the first three months of this year they didn't pay him at all, and for the previous six months before that they've only reimbursed him for $4,000.

What does this mean? Nothing, really -- while the WSJ points to it as evidence Jobs hasn't been traveling overseas to help bring the iPhone to China and carry out other big Apple deals, we've already known that Jobs wasn't involved much in the day-to-day business anyway; besides, it's hard to recuperate at home and fly around the world simultaneously. There are lots of other reasons for the budget to be down -- that $580,000 period would have been right around the manufacturing point of the iPhone 3G, and since most of the focus lately is on software, it's not like Jobs needs to be jetsetting off exotic plants to make sure production is on schedule.

And of course gas prices are back down quite a bit, and companies are under a little more scrutiny and pressure in this economy, so teleconferencing may be just as good as a plane ticket these days. Apple is still saying Jobs is expected back in June, and though these plane figures are interesting, the fact that Apple is still confident of his return says more about the company's future.

In the never-ending battle of where to spend your George Washington's (the paper ones, that is) some battles are won and some battles are lost. In this case, however, it's turned into a bit of a draw. As we previously mentioned the day hath befallen on which iTunes now "features" a variable pricing structure. The three flavors available are $0.69US, $0.99US, and $1.29US with, according to Apple, "many more songs" available at the $0.69US price point.

The idea of a DRM-free iTunes is definitely a popular one that has been requested for years. The unfortunate side-effect, as imposed by the record labels, is that more popular songs are going to be charged a premium over the tried-and-true $0.99US price point. On the other side, however, is the $0.69US price point for songs that nobody wants are less popular. This is unfortunate because, as Victor mentioned, a single dollar is an easy impulse buy to swallow. I'll add to that the fact that it's easy to understand that 3 songs = 3 dollars; while a price of $1.29US is a little bit more challenging for those of us without calculators in our brains.

In my opinion, record labels are going to see a decrease in sales due to this decision. Many people have iTunes account balances and gift cards that are now going to get them less "tune for their buck." The result of that is consumers will buy less (they have less to spend) and they will be more meticulous in deciding what to purchase. DRM-free, iTunes Plus tracks are a novel idea, but the main benefit will be lost on many consumers. The only change they will notice is that the bill has gone up.

Via Macworld

This seems like bad news for Apple, to say the least. A few Chinese websites are now selling $200 gift certficates to iTunes for less than a few bucks, which means that it's likely hackers have figured out the algorithm to determine gift codes on Apple's music store. As with most online codes, iTunes gift certificate numbers are generated by a formula somewhere -- figure out the formula, and you can generate your own codes (though it's of course tough to do and highly illegal).

The good news is that this might be an easy fix for Apple: they'll just have to re-figure the formula. The tougher thing to do will be to determine which of the old codes to honor -- they'll want to make sure to approve all of the cards on the shelves at Best Buy right now, while still trying to catch all of the illegal codes generated by hackers.

But then again, we're talking about a digital store that's already making cash hand over fist. Maybe even if one hacker on a shady website has figured out how to generate iTunes codes, Apple isn't too concerned about losing a few thousand dollars when they're still selling millions of dollars worth of music and content legitimately.

Many Mac users have been using Cha-Ching to manage their bank accounts for some time. The guys at Midnight Apps are at it again, and this time their money management software is on the iPhone.

Just like the Mac version, Cha-Ching mobile allows you to create multiple account and manage your budget, schedule payments, and add payees. Probably the most amazing feature is the ability to sync all of the data from the Mac version of Cha-Ching wirelessly to your iPhone/iPod touch.

When you tap on the Budget icon in the toolbar, you have the ability to see at a glance your current budget. At the top is your overall budget showing how much money you have left on a scale. If you tap on the Budget icon a second time, a history of your budgets for each month will come up. When you're ready to set your budget, tap on "Edit" at the top. You can add or remove categories in the app settings.

New to Cha-Ching is the scheduler section of the app. In this area, you can easily track upcoming bills. You can set the frequency, amount, category, account to subtract it from, and any notes that you might want to include.

Cha-Ching mobile is also location-aware. When you add a payee you can have the app remember the location. When you sort by locations, the nearest payees will show up near the top. This is a great way to track your payees based on where you are. The app will also remember the category, location, and other details about the payee; this makes creating new payments simple because most of the details will be automatically filled in for you.

In the settings section, you can easily see all of your accounts, set user-created categories, secure your Cha-Ching app with a 4-digit passcode, sync with Cha-Ching 2.0 on your Mac, and set scheduler options.

Cha-Ching mobile should be on the App Store soon. It has a sale price of $2.99US. You can visit their teaser page for a quick movie demo of the app.