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iPhone's Killer App: The App Store

Posted Jul 10, 2008 08:49am EDT by Aaron Task in Investing, Electronics, Software and Services, Products and Trends
Related: AAPL, RIMM, PALM, MSFT, TWX, CRM
With a "PC grade OS under the cover," the iPhone is "really a handheld computer," says Walt Mossberg, personal finance columnist for The Wall Street Journal and co-executive editor of AllThingsD.com. "I don't even call it a phone."

Certainly Apple is hoping the iPhone will be more than just a phone and it has opened up the phone to third-party software via its software developers kit. The resulting programs (certainly a big selection) will be available on the iPhone App store, which opened its virtual doors Thursday morning -- a day ahead of the 3G iPhone's launch.  

Of the first 500 applications, 25% will be free, and one-third of the first wave will be games, Steve Jobs told The New York Times, which adds: "Of the commercial applications, 90% will be sold for $9.99 or less."

Meanwhile, Jobs tells the WSJ that in addition to Kleiner Perkins $100 million "ifund," there are at least two other VC-backed start-ups that are focusing on developing software for the iPhone.   

All this development effectively means the iPhone will be constantly evolving. Ahead of the App store's opening, Mossberg says Apple has "a serious chance of turning this thing into a real platform for developers," which really would make the iPhone more than just a phone.

So what's this mean for the competition? Stay tuned for the third-part of my exclusive interview with Mossberg. (You can find part one here.)

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