Monthly Archives: January 2011

App Stores Galore

The Mac App Store launched yesterday and saw more than 1m downloads on its first day. Evernote, a note taking productivity app, saw 40,000 downloads because of the Mac App Store. Clearly, a nice first day.

Nowadays, it seems everyone is launching an app store. Google Chrome has a Web Store. Amazon.com announced an App Store for Android Apps, that will compete with Google’s Marketplace. And of course, there’s the big daddy of app stores – App Store on iOS for the iPhone and iPad.

For the App Store owners the motivation is straightforward – an additional revenue stream. Apple charges 30% to App developers plus a registration fee. For everyone this is an additional way to monetize users and a platform.

But what’s in it for users? Quite a bit, I believe. Which is why I think App Stores will succeed for mobile devices, consumer apps and enterprise apps.

  1. Inventory – Why is inventory on display important for a retailer? Because customers like to have options. If I’m buying a flat screen TV I want to see different models from different manufacturers, side by side and compare. Also, importantly, inventory on display means that I can, right there and then, buy a TV that I like and take it home. It’s the same thing with Apps. Having thousands of them in one place is of great value to the user. Yes, I could go put Personal Information Manager in Google search and then 20 mins later I might have a list of PIM software. But why go to the trouble?
  2. Confidence – When I see a TV at Best Buy, I know that their merchandising team would have done some due diligence on its quality. It gives me some confidence. On an App Store too I expect that Apple or Amazon.com would have tested the product to see that it works and won’t do anything malicious.
  3. Transparency – The App Store is Apple’s, not the software company’s. They can’t keep poor reviews or ratings out (although they can load it with positive ones). There is some level of transparency. You can’t hide your warts on an App Store. Bad for the App developer, good for the user.
  4. Payment mechanism – Do you want to enter your credit card details at every app developer’s website? I don’t. Apple, Amazon.com and Google checkout all offer an easy, secure payment mechanism.
  5. Auto updates – a much easier way to keep Apps updated.

Is the 30% cut of revenues too much? It depends on how much you expect your revenues to go up by. After all, software has no marginal costs. Every dollar of incremental revenue is a dollar of incremental profit (before taxes).

For small app developers its a no brainer. For established players like Omingraffle, if a significant portion of their revenue stream gets diverted to the Mac App Store, they will need to make up for what they pay Apple in App Store fees in the form of incremental revenues. I suspect that will happen. In any case, they don’t have an option. They have to be available on the Mac App Store.

I see App Stores taking hold and becoming a fixture. Which means that making a platform successful (Force.com, Google Docs) suddenly became worth a lot more.

My Wish “Less” for 2011

A very happy new year to my readers.

A couple of years ago I had posted a New Year’s Wish “Less”. Instead of a Wish List, which is mostly about wishing for things that you don’t have, I thought that I would ask for less of things that we have too much of. (no money is not one of those things!)

Fewer natural disasters in parts of the world that can’t handle them

Haiti

Less irresponsible government spending

One word – Greece

Less than 24 hours of news coverage from 24 hour news channels

If they can’t do that then can we get them to have fewer talking heads on the screen at the same time. CNBC, I’m talking to you.

Fewer pages in the US Tax Code

Unfortunately, every change that is deficit neutral, hurts somebody who goes and lobbies their senator who filibusters until the bill is killed. Either that or the tax accountants will kill it. Simplification reduces billings. Hmmm…that’s true about IT Services too.

Less complexity in our cell phone bills, banking fees, utility bills…

I eagerly await Bank Simple

Fewer Amitabh Bachhan ads

I propose a public service ad that has Amitabh Bachhan say “I endorse all products sold by all manufacturers”. The ad loops from 2am to 4am on all TV channels. When we want to see Big B, we go to the movies. Oh wait, when did he do his last movie?

And while we are on the subject of TV ads, can we have fewer ad minutes per programming minute in India?

Less disrespect for its readers from Times of India group websites

ET and ToI start video ads with sound, as soon as you land on the website. On the other hand, I click less and less on links from ToI.

Less corruption in India

It’s not like I am hopeful or anything, but this is a Wish List after all.

Less religion in politics. Less religion in education.

Leave science alone.

My personal resolve for 2011

Spend less time with the Web of Infinite Information and more time with friends and family.

@labnol’s resolve for 2011

…type less and spend more time with speech recognition…

Week’s Tweets 2011-01-02