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Tech Check
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Courtesy of Apple IPhone 3G |
] ad for its online applications download store, the App Store, I noticed some pretty stunning numbers: that Apple customers had downloaded 200 million apps since the store had opened, and 100 million apps in just six weeks. Well, here we are six weeks later, and once again the fine print on an App Store ad in today's USA Today[GCI
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], Wall Street Journal [NWS
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] and New York Times [NYT
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] holds some hidden treasures.
Do the math and you'll see that a total of 500 million apps have now been downloaded, or 200 million over the past six weeks, doubling the download pace of the preceding six weeks.
Back on December 5, an ad stated that there were 10,000 apps available. Today, that figure has swelled to 15,000.
I wrote back then that Piper Jaffray expected Apple's App Store to generate $1 billion revenue in 2009, with Apple expecting to take 30 percent of it, based on its model. The potential of this store seems enormous, and its success seems to be gaining momentum far more quickly than even the most optimistic analysts out there projected.
It's probably not enough to change the mind of RBC Capital, which essentially slapped a "sell" on Apple shares yesterday with $70 target (down from $125, incidentally) but it should send the message that despite so many serious distractions facing this company, some fundamentals continue to work. And this is the kind of fundamental that separates Apple from so many of its smart phone competitors.
Sure, the revenue coming from App Store is a pittance compared to other product lines like iPod, iPhone and Mac. But, as I wrote last month, it's a not so gentle reminder of the power of the iTunes/iPod/iPhone/App Store eco-system that makes this platform so compelling. And those who thought the App Store's success was only a passing fad may be ignoring a potentially significant revenue stream not too far down the road.
Palm [PALM
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] continues to surge, as does Research in Motion [RIMM
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] . But it is hard to imagine such a robust, grassroots development community giving those alternatives the same breadth of apps that iPhone enjoys. Not all the Apps generate revenue. But that doesn't matter. Free or not, App Store becomes just another reason for consumers to choose iPhone over BlackBerry and Palm and Nokia [NOK
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].
No need to constantly buy new hardware. Just use the App Store to upgrade your phone. And in an economy like this one, that could make iPhone more cost-competitive with other handsets out there.
Apple as the "cost-effective" alternative? Who'd a thunk it?
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes