Apple Emerges as Low-Cost Software Distributor
Email
Print
5. iTunes integration
Apple's decision to integrate the App Store into iTunes cannot be
underestimated. If nothing else, it brings consumers to a marketplace where,
besides apps, they can pick up music, movies, television shows and more.
Apple's applications have lured many more customers to iTunes, helping Apple
become a leader in entertainment consumption.
6. It's going elsewhere
Apple's App Store isn't solely a marketplace for users wishing to extend the
value of their iPhones. The store can also be used by iPod Touch owners who
want to use apps while they listen to their favorite music. And considering
Apple's iSlate might be right around the corner, it's possible that Apple's App
Store will be integrated into the company's rumored device. The App Store will
be used in more places in 2010, and that can only mean trouble for the
competition.
7. Apple, the distributor
Apple might be viewed as a hardware company first, but the App Store has
allowed it to become a distributor of high-quality applications. Make no
mistake, having that luxury is an extremely profitable business. Rather than
spend cash on developing new products, Apple simply provides the store, while
independent developers do all the hard work. If a paid application sells in the
App Store, Apple benefits at almost no cost to itself. That distribution
business will be even more successful going forward.
8. Consumers are engaged
Apple has found a way to keep its customers engaged and acquiring more and
more applications. The company's SDK (software development kit) does a fine job
of helping developers get the most out of their applications. The App Store is
intuitive, making
it easy to add several applications to a device. Best of all, many apps are
free or low-cost. All that combines to make the store appealing to customers.
9. It's not going anywhere
Like iTunes when it was only used for music sales, the App Store has quickly
become a place where Apple can generate revenue for years to come. That's great
for Apple, but it's a problem for the competition. Considering that Apple's App
Store is the gold standard in the market, how can the competition find ways to
innovate beyond what Apple has done? Worse, how can those other stores expect
to compete?
10. It's carrier-agnostic
The beauty of the App Store is that regardless of whether a user has an
unlocked iPhone, a deactivated iPhone or an iPod Touch, he or she can still
download applications, use them at will and keep adding more apps to the device
as time goes on. The App
Store is independent of all limitations, which makes it available to all
users whenever they want. That not only contributes to its success, but also guarantees
that as time goes on, Apple will increase its chances of gaining customers
rather than losing them to other stores.
