Making money developing for iPhone is not very much different from
making money out of PC. The path to success is long and not an easy
one. App store provided us a way to sell applications for iPhone but
the store is restrictive, inflexible and is not enough to build a
business. We need more ways, more channels. There are some success
stories out there but those are exceptions rather than a rule. Apple
opened mobile field for us and other handset manufactures will follow
this. I hope that then we will see more ways of monetizing on mobile
phones.

As to 99c apps - they will prove unsustainable and will either raise
the price or disappear from the market :-)

I would add one more model to those 3 suggested by Keith:
- revenue generated from transactions initiated by an application



On Dec 31 2008, 6:07 am, "David Jones" <[email protected]> wrote:
> Fresh article on iphone apps making $
>
> http://www.washingtonpost.com/wp-dyn/content/article/2008/12/29/AR200...
>
> On Dec 18, 2008 2:14 PM, "Keith Ahern" <[email protected]> wrote:
>
> No one is going to retire by selling apps just to the Australian App
> store, or any non-US store. Graham of OzWeather did it for love not
> money :-)
>
> I see 3 models for making good money from iPhone applications, in
> order.
>
> - Paid apps for worldwide or US distribution - you have to have a
> 'hit' to make money.
> - Brand sponsored apps - you need a partner like Pepsi, Target, Audi
> etc.
> - Advertising supported apps - you need eyeballs, lots of them, to
> make $500 USD per day from an app with average mobile CPC rate of
> $0.25, and a click through rate of 1% you need 200,000 ad impressions
> per day - assuming a click through results in a purchase.  Very few
> iphone apps are that popular.
>
> I do agree that its too hit based at the moment, its very hard to
> bring a price back up when your competition is at 99c.  One of the big
> app developers did some testing and observed a 60% drop in sales each
> time they moved up a pricing tier. 99c -> 1.99c etc.
>
> Keith
>
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