Monday, August 11, 2008

Updates on the 3G and Sales

Two short notes. Yesterday, I was in an Apple store in Sacramento and asked the sales guy about volume. Their resupply of product, according to him, is daily and each day, depending on a lot of things, they sell out by midday or late afternoon.
That confirms that a month after the launch of the new phone interest remains high.

Second, Apple released sales numbers from the application store for its first month in operation. Total downloads - 60 million. Total sales - just over $30 million. (Which means a lot of free applications are being downloaded.) Total take for developers - $21 million. And the top ten developers earned 43% of that. Loopt, the new social networking tool, had more than 100,000 people in its database without much advertising.

The biggest winner here seems to have been Sega (with Super Monkey Ball - 300,000 downloads) but I suspect over time that the number of downloads will continue to go apace and that income will start to go to a larger number of developers. The Washington Post describes one other strategy in this market. They describe Illusion Labs, which created a free version of the old game called Labyrinth. Illusion Labs was started a year ago by Carl Loodberg and Andreas Alptun two Swedish programmers who formed their company to build iPhone applications.

Labyrinth was a childhood favorite of mine. Illusion Labs also released a $6.99 version which has more features. I actually saw both versions on the ap store and bought the full one without trying the free one. The paid version has tons of levels with all sorts of challenges. It is also reasonably priced so that many will take the next step. It uses a lot of the capabilities of the phone to great advantage.

Like iTunes, the application store may be changing the way people look at a product, in this case not music but things to make their phones more useful.

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