App Store Success Reportedly Overwhelms Even Apple's Expectations

In the first of a three-part series on Apple's App Store, the Financial Times reports that the phenomenal success of the iPhone application marketplace has topped even the initial expectations of those within Apple.

Already, the app eruption has superseded all the sober predictions of Apple executives and outside champions like Kleiner Perkins Caufield & Byers, the venture capital firm that created the first investment fund aimed solely at backing iPhone app developers.

"We had no idea there would be 2bn downloads by October," says Kleiner Perkins partner Matt Murphy, manager of the then $100m fund. "Most people within Apple, if you had told them it would be a fifth of that by now, they would have been pretty happy."

Part one of the series primarily serves as an introduction to the App Store, detailing its evolution as an an outgrowth of iTunes, which had already helped remake the music industry and provided an entry point into the larger community of Windows users. Beyond that, the report points to Apple CEO Steve Jobs' ability to negotiate eye-popping iPhone subsidies from wireless carriers and the rights to distribute application content to iPhone users as setting the stage for the Apple's tremendous success in the industry.

He argued that the iPhone was a computer, not a phone, and that consumers expected to be able to do many things with computers.

History had shown that this kind of freedom was what drove the more profitable "ecosystems" of computers - where sales of hardware were dependent on a wide variety of useable software.

The conclusion of the report, however, hints at some of the pitfalls of the App Store set to be discussed in the second installment tomorrow, citing the "gold rush mentality" that has made it increasingly difficult for developers to create hit applications that stand out from the crowd.

Popular Stories

iPhone 14 Dummies 1 Feature

Everything Rumored for Apple's September Event: iPhone 14, Apple Watch Pro and More

Friday August 12, 2022 2:34 pm PDT by
There's just about a month to go until Apple holds its annual September event focusing on new iPhone and Apple Watch models. We thought we'd take a quick look at everything that's rumored for Apple's September event to give MacRumors readers a rundown on what to expect when the first fall event rolls around. iPhone 14 The iPhone 14 can probably be described more as an "iPhone 13S" because...
airpods pro black background

AirPods Pro 2: Five New Features and Improvements to Expect

Sunday August 14, 2022 3:28 pm PDT by
Apple's second-generation AirPods Pro are finally nearing launch, with a release expected later this year. If you are considering upgrading to the new AirPods Pro once they are released, keep reading for a list of five new features to expect. In addition to all-new features, the second-generation AirPods Pro will likely adopt some features added to the standard AirPods last year. H2 Chip ...
z fold 4 1

Hands-On With Samsung's Latest Foldable Smartphones, the Galaxy Z Fold and Z Flip

Friday August 12, 2022 12:46 pm PDT by
Samsung this week launched its fourth-generation foldable devices, the $1,000 Galaxy Z Flip and the $1,800 Galaxy Z Fold. Though there's no sign of a comparable Apple foldable device on the horizon, rumors suggest prototypes are in the works, so we thought we'd take a look at Samsung's newest smartphones to see what Apple needs to measure up to when a foldable iPhone does come out. Subscribe ...
top stories 13aug2022

Top Stories: New Battery Percentage Icon in iOS 16, USB-C AirPods Rumor, and More

Saturday August 13, 2022 6:00 am PDT by
This week brought some shocking news for iOS 16 beta testers, with Apple bringing back the iPhone battery percentage to the status bar after a number of years. Other news and rumors this week included word that Apple has started recording portions of its media event planned for next month to introduce the iPhone 14 and Apple Watch Series 8, claims about iPhone 14 Pro pricing and Apple's...
iCloud General Feature

Apple Remains Silent About Plans to Detect Known CSAM Stored in iCloud Photos

Saturday August 13, 2022 1:52 pm PDT by
It has now been over a year since Apple announced plans for three new child safety features, including a system to detect known Child Sexual Abuse Material (CSAM) images stored in iCloud Photos, an option to blur sexually explicit photos in the Messages app, and child exploitation resources for Siri. The latter two features are now available, but Apple remains silent about its plans for the CSAM...
apple watch se

Apple Watch SE vs. Apple Watch Series 8: New Features to Expect If You've Waited to Upgrade

Monday August 15, 2022 2:44 am PDT by
The Apple Watch SE was announced in September 2020 and has been a popular Apple Watch model for customers looking for their first smartwatch or an affordable Apple Watch. Apple Watch SE customers may be wondering, however, what's in store for them with the upcoming Apple Watch Series 8 and what new features they can expect. Continue reading to find out. Apple Watch SE vs. Apple Watch Series ...