Thursday, September 10, 2009

iPhone Developers See Sales Slump After App Store Changes -- InformationWeek

iPhone Developers See Sales Slump After App Store Changes -- InformationWeek: "In July, Apple reported that the App Store was selling over 65,000 apps. And developers are submitting about 8,500 new or updated apps every week.

For Apple, which gets 30% of every app sold, more applications mean more revenue, assuming they're paid apps. But for developers, more applications mean more competition and more difficulty being noticed. It's a needle-in-a-haystack scenario with more hay being added daily.

iTunes 9 changed the way apps are presented, with a larger scrolling section for new and noteworthy apps and more prominent promotional spots on the App Store main page. This is likely to drive sales for apps that win, or buy, a place in these high-profile areas.

Likewise, the expansion of the top 100 list to 200 and the addition of a 'Top Grossing' list expands the potential spotlights that can shine on an app and lift it to prominence and profit. The 'Top Grossing' category addresses a long-standing concern about the pressure to make apps that are as cheap and disposable as ringtones. By providing marketing lift to the sort of higher-priced apps that are likely to come from larger development companies, the 'Top Grossing' category could become an avenue by which pricier, and ideally more professionally coded, apps see their popularity magnified."

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