iPhone Developer Tapulous Captures Sales of Nearly $1 Million Per Month

Reuters reports on iPhone developer Tapulous, the team behind the popular Tap Tap Revenge applications, noting that the small company is reportedly bringing in nearly $1 million per month in revenue. The success of Tapulous, which boasts only 20 employees, illustrates the ability of small development firms dedicated to the iPhone to carve out profitable niches for themselves in the App Store.

Tapulous -- with a mere 20 employees -- said its "Tap Tap Revenge" game series has now been installed more than 20 million times, with more than 600 million total games played.

Earlier this year, research group comScore said the game had been installed by one-third of Apple app users.

Tapulous' business model relies on a combination of revenue sources: paid application downloads, ads, and paid downloadable song content within applications.

The report notes that Tapulous has raised $2.8 million from investors and is now profitable. While the vast majority of iPhone applications come from small developers lacking the support of outside investors, a number of companies, including Smule and Ngmoco, have been able to capture the imaginations of angel and venture capital investors. With the backing of these investors, these developers have been able to create well-financed startup development houses looking to develop dedicated iPhone application pipelines and sustainable business models.

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