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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

Yahoo! Finance User
Yahoo! Finance User - Thursday July 10, 2008 12:57PM EDT

Well said grakinfrak. Truth is the haters are envious of Apple and how well it's done, and the market share it's finally taking back from the MSFT/Windows crowd. They just can't stand it. The iPhone and App Store will be a huge success, the only problem Apple will have is keeping enough 3G iPhones in stock and speeding up the buying process for them (since it now requires in-store registration).

Paul
Paul - Thursday July 10, 2008 04:53PM EDT

So... is the stock worth buying... or not?

darryl365
darryl365 - Thursday July 10, 2008 11:45PM EDT

It's really sad of you that wish to hate anything Apple just for the sake of hating Apple. Anyone found here reading this article and taking the time to comment is obviously geek enough to appreciate technology, it's growth and what the development of a platform is. I don't wish to chastise anyone but, you guys have to try and be honest with yourself. This does change the expectation of what con be done with your mobile device. To deny that fact, simply because you hate Apple, shows a brat like stubbornness that's quite unbecoming. Once again, we're all aware of the fact that apps and games have existed for mobile devices for years. No one is saying that that Apple inventd these things. The strength in Apple products has always been seamless intergration and user friendlines. That's what this is about. Be honest with yourselves and set aside your Apple biglotry and admit what's right before your eyes and stop trying to convince others that they don't what's in fron of them.

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