There’s basically no money in smartphone software, says Ars Technica:
Apple may have managed 5 billion application downloads and $1.5 billion in App Store revenue (through the end of June 2010), spread over some 200,000 applications – but those aren’t really the important numbers.
50 percent of paid applications receive fewer than 1,000 downloads, at an average sales price of somewhere between $1.99 and $3.83. After Apple’s 30 percent cut, there’s not a whole lot left, maybe around $2,500.
$2,500 is certainly better than a slap in the face, but it’s not going to sustain a business. The problem for developers is that a few paid applications do extremely well, and the rest don’t. The top 10 percent of paid applications get about 75,000 downloads. The next 10 percent, just over 9,000. A handful of developers are doing good business on the App Store
But the $2,500 average per paid app isn’t enough to cover costs, especially those that require constant updates, observes Ars Technica.
What about mobile ads? PricewaterhouseCoopers predicts north of $500 million in 2010 — which also isn’t much across 200,000 plus applications.
Here’s what Apple’s newest iAd looks like. The “iAd for Developers” ads, which let iPhone developers promote their apps within other apps, cost 25 cents per click.
Since launching its iAd mobile advertising service on July 1, Apple has been slow to roll it out. Of the 17 launch partners Apple named for iAd, only Unilever and Nissan had iAd campaigns for much of July.
Overall, mobile advertising is just starting to gain steam. Revenue from ads sold on cellphones in the U.S. is expected to increase by 43% to $593 million in 2010, up from $416 million in 2009, according to research firm eMarketer.
People familiar with the matter said Apple underestimated how tough the new business would be and is still learning the best tactics for dealing with ad agencies. At the same time, ad agencies are struggling to keep pace with new ad technologies.
Gartner says Android has overtaken Research in Motion’s BlackBerry to become the top-selling operating system in the United States in the second quarter. Android’s market share surged 30% to 34.1%, while BlackBerry fell 19% to 33.3%. Apple’s iOS was third, dipping 3.2% to 22%.
Worldwide, Android expanded rapidly in the second quarter of 2010, overtaking Apple’s iPhone OS to become the third-most-popular OS.
Meanwhile, Rupert Murdoch’s News Corp is planning an entirely new national publication for the iPad and other tablets. “Unlike News Corp.’s business-centric Wall Street Journal, the new digital newspaper would target a more general readership, offering short, snappy stories that could be digested quickly,” writes the Times.
It could start publishing by the end of the year.
There are at least 32 competing tablets in the works. Technologizer has the definitive round-up.
Even though it hasn’t officially launched yet, Adobe say developers are embracing its AIR technology for building applications on smartphones and other devices. Adobe first released AIR in 2008 as a tool for creating desktop apps that are connected to the Web, but the company is positioning the new version of AIR as a key part of its mobile strategy. AIR should also work with some tablets.
Is it better to create mobile websites or dedicated apps? Adobe says mobile websites are more popular by a factor of ten.
In Map Scripting 101, author Adam DuVander delivers 73 immediately useful scripts that will show you how to create interactive maps and mashups.
You’ll build tools like a local concert tracker, a real-time weather map, a Twitter friend-finder, an annotated map of Central Park, and much more. And because the book is based on the cross-platform Mapstraction JavaScript library, everything you create will be able to use nearly any mapping service, including OpenStreetMap, MapQuest, Google, Yahoo!, and Bing.
Urban Airship, a Portland company that helps developers build mobile apps with push notifications and in-app purchases, has raised $1.1 million in funding, led by True Ventures with participation from Founders Co-op. PointAbout’s Appmakr helps you quickly build a complete iPhone application for submission to the iTunes store without knowing anything about iPhone app development.
The Texas Tribune, a non-profit news site, was launched last November to cover statewide politics. Editor in Chief Evan Smith was interviewed by Paid Content about the transition from magazine to web journalism, how Facebook and Twitter can—and should—be used for news.
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