July 10, 2009

A year after opening App Store, Apple sitting pretty

How can you tell that the App Store's first anniversary is a big deal? Even Apple--which normally treats milestones the same stony silence divorced couples regard their erstwhile wedding anniversaries--has acknowledged the event.

Earlier this week, Apple opened a new section at its online emporium for iPhone and iPod touch apps that marks the App Store's first year in business. That's a modest amount of hoopla, to be sure, but for a company that barely uttered a peep earlier this year to mark the silver anniversary of the original Mac's industry-changing debut, a page at the App Store is practically a ticker-tape parade.

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Apple certainly has plenty to celebrate with the App Store, which officially opened its doors on July 11, 2008. (Of course, since that opening was timed to coincide with the iPhone 3G's worldwide launch, the App Store actually sprang to life on July 10 here in the States.) The App Store debuted a year ago with 552 applications aimed at iPhone and iPod touch users.

And now? Macworld's App Guide lists more than 58,000 apps available for download. Considering that the App Store topped the 20,000-app mark in early February, it seems that the pace of iPhone app development has only picked up in recent months.

These app aren't exactly sitting untouched on the App Store's shelves, either. The store passed the 1 billion download mark in April. (Whether those app are being used much after they're downloaded is, of course, a subject for much debate.)

"Fifty thousand-plus apps and 1 billion downloads kind of speak for themselves," said Michael Gartenberg, vice president of strategy and analysis at market-research firm Interpret. "The App Store is an unqualified success. It's set the bar for the industry."

Indeed, other smartphone players have decided that they wouldn't mind an App Store of their own. As Gartenberg notes, Google, Palm, Research In Motion, and Nokia have all opened mobile application stores, with Vodafone and Microsoft planning efforts of their own. The App Store "has made everyone else scramble," Gartenberg said.

Those companies will have a hard time matching Apple's success. The App Store has thrived because, unlike many of the mobile software retail efforts that already existed, it delivered convenience to end users and app makers alike.

"Apple's App Store is successful not just because it is easy to browse but because of the processes underlying it," said Avi Greengart, research director for consumer devices at Current Analysis. "Developers know how to get to market and how much they will get paid, while consumers know there is a single place to obtain applications and a simple purchasing experience."

Gartenberg agrees: "None of the other platform providers had ever taken the step of connecting users to third-party applications and showing what they can do."

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