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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
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.)

23 Comments

- Thursday July 10, 2008 09:13AM EDT

I'm a SW developer. How am I going to get paid?

Yahoo! Finance User
Yahoo! Finance User - Thursday July 10, 2008 09:14AM EDT

SaEiD.TnT

Yahoo! Finance User
Yahoo! Finance User - Thursday July 10, 2008 09:25AM EDT

In the world of change, here I am Tryin to have some thangs So what you need is some game, to get your money man Ohh baby, in the world of paper, paper

- Thursday July 10, 2008 09:30AM EDT

The Applications is why consumers will buy the iPhone. Reviewers should have waited until after the App Store launch. The iPhone was built to surf full internet not Mobile Web like other smartphones. iPhone is meant to be a portable internet device above the cellphone or iTune usage. With a worldwide launch, the iPhone should sell more than 10 million units this year. More carriers will be added. China will be the most important because Chinese tend to buy the newest and best cellphones and China has the most cellphone users in the world. Russia and possibly India will be major carriers to add. No analyst has projected the revenue from the App store. The App store and iPhone Applications have not been allowed to be marketed by Apple, because Apple wants it to be a surprise. The App store and iPhone applications will start to be marketed aggressively a few weeks after the 3G iPhone launch. You’ll see iPhone games on TV and in magazines. Also iPhone business and other applications on TV and periodicals. 3G isn’t wide spread in the USA and some countries with old cellular networks. But 3G is wide spread in Japan, and some Asian and European countries, that was why other countries wanted 3G. 3G is still new in the USA. The App store and Full Internet will be the reason why the iPhone will be better than other smartphones. There are 4,000 approved developers so there should be 4,000 new applications. Thousands of other developers have not been approved but might be approved later. The iPhone will have applications from 3rd party developers that will make it better than the Blackberry. The Blackberry costs more to use and operate than the iPhone, so reviewers who say the iPhone is expensive don’t know what they are talking about. TomTom is rumored to have a navigational software for turn-by-turn with the iPhone GPS. iPhone owners will have to pay about $10 for the TomTom software. The iPhone GPS is the same with all other smartphones with GPS but the iPhone offers a cheaper price.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 10, 2008 09:30AM EDT

This sounds like a ad.? Are yahoo and apple in bed together? They should call this Apple tech.

- Thursday July 10, 2008 10:31AM EDT

This is exactly what I have been telling my friends!

- Thursday July 10, 2008 10:47AM EDT

iPhone users beware! I don;t know if they have fixed this iwith the new launch, but if you go to Europe, even with the International Data paid option, you are toast! I came back to THOUSANDS of DOLLARS in charges on my phone bill, just from sending emails to my buddies, and using the phone normally. Unlike my blackberry, which handled the same trips in the past very cheaply, the iPhone acutally seeks data (weather, etc) when you are not even using it, and as a result, you get hosed on the ill, unless you turn ff data roanming (and then, what good isi it??) It sounds like an AT&T issue that needs to be dealt with. In 3G, you'll incur charges even faster!

- Thursday July 10, 2008 10:53AM EDT

Hey Aaron, how about being a hero and talking about "Criminal Probe of Apple Options Is Ended". You are pretty good talking about the negatives, how about the positives.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 10, 2008 11:22AM EDT

Aaron, candidly, you are starting to sound like an Apple cheerleader. This is shameful.

- Thursday July 10, 2008 11:25AM EDT

Man, ho BIASED is this??? C'mon guys, do you research a bit more thoroughly before putting out these "divulgative articles" that are actually nothing more than advertisments. Please, show a bit of seriousness Yahoo.

- Thursday July 10, 2008 11:29AM EDT

Listen to Mossberg desperately trying to spin this like it's something new. Iin what way is the idea of selling apps for your mobile device remotely new? Here's a little newsflash for Apple zealots: The iPhone is not a platform. It has no cut and paste. (laugh?). It has the world's worst / most unusable keyboard. (Just race anyone with a Blackberry and see who wins). The iPhone is a very, very pretty toy. Apple has not won this game by any stretch of the imagination.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 10, 2008 11:29AM EDT

Needs all the Electronic Arts Java Games PLEASE!!!

- Thursday July 10, 2008 11:30AM EDT

Listen to Mossberg desperately trying to spin this like it's something new. Iin what way is the idea of selling apps for your mobile device remotely new? Here's a little newsflash for Apple zealots: The iPhone is not a platform. It has no cut and paste. (laugh?). It has the world's worst / most unusable keyboard. (Just race anyone with a Blackberry and see who wins). The iPhone is a very, very pretty toy. Apple has not won this game by any stretch of the imagination.

- Thursday July 10, 2008 11:46AM EDT

If some ppl think I'm a "cheerleader" for AAPL and others think I "only focus on the negatives," I must be doing something right. But ykovelman, yes, the end of criminal probe against Jobs/AAPL is undoubted positive for the co. that has been lost in the 3G iPhone/App store focus (here and elsewhere). - Aaron Task

- Thursday July 10, 2008 12:18PM EDT

AT&T as the only user network and the Iphone, a marriage made in in Hell. No thanks Steve, until you allow me to pick my own carrier. TT

- Thursday July 10, 2008 12:20PM EDT

Among the long list of things that were going to "change the world" one word comes to mind - Newton. Ok, Iphone is a cool phone, but these persistant suggestions that it's going to create undiscovered new markets is just flat out fantasy. Getting excited about applications on a handheld device shows a lack of perspective about the history of the industry. Email, Phonebook, Calendar, Telephone, Calculator, Messaging, Web browser, GAMES. That's 99.9% of it. How many duplicates do we need? As a game machine, the IPhone is far inferior to other platforms. What are all these new apps that everyone is going to buy? Get real.

- Thursday July 10, 2008 12:28PM EDT

Wow, what is up with all these Apple Haterbois? Do you people just exist to crap on Apple, or what? Stamp your little feet and pull out your hair with frustration if you must, but Apple has done something awesome here, the developer community is psyched, and it would be bad journalism to pretend otherwise.

- Thursday July 10, 2008 12:39PM EDT

When will we see Steve Jobs stomping up 'n down at a conference screaming "Developers, developers, developers, developers, developers, developers, developers!!!!" ?

- Thursday July 10, 2008 12:40PM EDT

GEAT!!!

- Thursday July 10, 2008 12:40PM EDT

You can't predict the next killer app until it arrives. Most of you kids are too young to remember the first CP/M PCs, but Lotus 123 is what made the IBM/Microsoft combo the dominant platform over its more entrenched competition (CP/M). -- Games? How about treasure-hunt, paintball, or D&D type games where you can monitor and interact with your competition!! Use the GPS in combo with the other phone,graphics, and hosting features. By opening the platform, Apple has changed the game, now we just need to figure out what it is going to be.

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