Big in Japan
Thu, Oct 2, 2008
It is tough to gauge the relative success of an iPhone application unless your app makes it to the top 100 on the iTunes App Store. Fortunately in Japan and France my most recent iPhone application, Private-I, has broken this barrier. In the last week Private-I moved into 45th ranked spot in Japan (out of over 4000 applications). In France, Private-I is teetering on the brink of top fifty at #55.
There have been several articles and blog posts over the past couple weeks calling iPhone app development a gold rush, and asserting that iPhone developers are making millions of dollars on modest applications. The potential for iPhone riches exists, but it is vastly overstated in the press. Applications in the top 100 get featured in the “most popular” applications list on within iTunes, and the top 50 get featured in the most popular list on the phone itself. Having seen the difference being in the top 100 and top 50 makes to sales, I am fairly confident that true iPhone riches will remain limited to a very small group of applications.
Despite the complaints about Apple’s arbitrary governance of the App Store, I still think it is an amazing platform for hobbyist and individual developers. The cost of creating an application is low enough that you don’t have to make hundreds of thousands of dollars to make your project a success. But it seems that there are only a small number of positions prominent enough to support a full-fledged business or recoup any significant investment in application development. While I love the low barriers to entry, I think there are so few visible spots on the iPhone deck, that there can only be a handful of true success stories. It will be interesting to see who the first company will be to build a business on the iPhone platform that achieves a decent exit for its founders.
October 8th, 2008 at 7:47 am
hey Mike, would you mind sharing with your readers the revenue generated so far by your apps?
October 8th, 2008 at 10:04 am
It has been two months and I am still waiting for my first check from Apple. In their defense, that is the deal we signed up for. My apps have done better than most, but based on the sales figures that Apple is reporting to me Direct Line and Private-I don’t generate more than a few thousand dollars a month, which I expect to drop off significantly as more apps get launched. iPhone apps tend to sell well for a short time and then drop off. This makes for a great hobby, since I find programming a fun challenge, but I am not seeing how real companies can be formed around the App Store as it is currently structured. The gold rush mentality is vastly overblown.
Thanks for the comment.
–Mike