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?

Dan Lyons, the real Fake Steve Jobs, is leaving his editor's job at Forbes to join the staff of Newsweek, where he'll take over for outgoing columnist Steven Levy. (Levy left Newsweek for Wired in April.)

Lyons is leaving Forbes on good terms, with associate managing editor Bruce Upbin writing, "Saying we wish him well is an understatement." No details surrounding the financial aspects of the transition were immediately available.

Since Lyons owns the FSJ property himself, Silicon Alley Insider says he'll be bringing El Stevo with him, but it remains unclear what will change about the vast FSJ media empire.

Fake Steve, I honor the place where your funny and my bone become one. Namaste.

[Via Daring Fireball.]

Two more reviews of that loveable scamp of a cellphone are out on the Interwebs, and it's more more more of the same: Steven Levy of Newsweek and Ed Baig of USA TODAY are saying it's time to start believing the hype. Both writers, like Pogue and Mossberg, point out the iPhone's weak spots (EDGE, no one-touch or voice dialing, limited apps, no video capture) while furthering the basic premise: by and large, the iPhone experience lives up to the insane advance billing. Levy's long and thorough review states it plainly early on, as he reports on the reaction to his iPhone use during a visit to Pittsburgh, PA:

"[W]hen I showed the iPhone to people during that trip and in the days afterward-especially people under 25-the most common reaction was, "I have to have this," sometimes followed by a quick, if alarmingly reckless, consideration of what might need to be pawned in order to make the purchase.... And there it is: one of the most hyped consumer products ever comes pretty close to justifying the bombast."

Baig puts it this way: "[W]ith a few exceptions, this expensive, glitzy wunderkind is indeed worth lusting after... That's saying a lot. After months of hype, Apple has delivered a prodigy - a slender fashion phone, a slick iPod and an Internet experience unlike any before it on a mobile handset."

Interesting tidbits from both reviews: Levy got a call from Steve Jobs during his evaluation period, just to check on how he was doing (!), and he noted the new thinking behind Apple's buy-it-and-go-home iTunes activation plan. Baig's article includes a sidebar entitled "The Quest Begins" with the get-an-iPhone strategies of a few would-be buyers, and Baig encountered a feature I haven't seen mentioned anywhere else; when he finished watching A Bug's Life (it would have to be a Pixar film) on his iPhone, the device asked him if he wanted to clear the movie from memory to reclaim the space. Nice.

via Apple 2.0

I'm all for competition in the marketplace. I'm even for friendly puns between rival competitors and the camps that follow them, especially since you have to have a sense of humor about them in the first place. But don't we also need a sense of reality?

In a Vista-pimping interview with Newsweek yesterday, Bill Gates appears to be taking off the gloves with an all-out attack on the Mac. When questioned about accusations of copying Mac OS X features, Bill began accusing Apple of the exact opposite, and he also postulated that "maybe we shouldn't have showed so publicly the stuff we were doing." While he is of course referring to the 2003 demonstration of Longhorn, this isn't even the half of it. Bill also tried to turn their reputation for swiss-cheese security around on Apple, claiming:

Officially confirming what Dan reported earlier, Jobs told Newsweek (at the bottom) that the iPhone will indeed be a closed platform. He is quoted as saying: "You don't want your phone to be an open platform.... You need it to work when you need it to work. Cingular doesn't want to see their West Coast network go down because some application messed up."

He also said something similar to the New York Times: "These are devices that need to work, and you can't do that if you load any software on them," he said. "That doesn't mean there's not going to be software to buy that you can load on them coming from us. It doesn't mean we have to write it all, but it means it has to be more of a controlled environment."

I think it's interesting that Jobs is sort of blaming Cingular for the restriction (though his scenario is obviously grossly hyperbolic). Of course this simply carries over the iPod model to the iPhone, so I guess it would probably have been the case even if Cingular hadn't insisted. It doesn't mean, however, that we can't be disappointed.

[Via iLounge via Digg and Thanks to Matt for the NYT tip]