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iPhone and iPod touch users have downloaded over 60 million applications from Apple's (Nasdaq: AAPL) App Store in the 30 days since it opened, according to CEO Steve Jobs. Although a great deal of the applications in the App Store are free, users have purchased US$30 million in software since the store's opening, Jobs said in an interview with The Wall Street Journal.
"I don't think those numbers are shocking," Joshua Martin, a Yankee Group analyst, told MacNewsWorld. "It's a good sign for Apple, especially with [somewhere between] 6 and 8 million iPhones out there at this point, it's about 10 apps per phone."
While apparently popular with iPhone users, the App Store has received criticism for its handling of certain applications. Though Apple reserves the right to inspect and approve of any program before it's made available, the company has backtracked on a handful of applications and pulled them from the store after initially allowing them to be distributed. Those apps' developers say they've had a difficult time obtaining an explanation from Apple as to why the programs were pulled.
Jobs also confirmed the existence of a so-called kill switch a developer discovered embedded in the iPhone's code last week. The inclusion of the kill switch, Jobs told the Journal, is to give the company the ability to monitor and remove software from the device in the event that malicious software makes its way onto the iPhone.
Raking in the Dough
At last count, the App Store includes 1,547 applications for the iPod touch and 1,647 programs for the iPhone in categories ranging from productivity enhancers to weather apps. While 428 applications are offered free of charge, others cost 99 cents and up. The most expensive, an app known as "I Am Rich," sold at $999 until it was pulled from the store by Apple. For the most part, however, the third-party software runs between $1 and $10, with a few programs listed at $29.99 or as much as $69.99.
Developers receive 70 percent of the revenue their programs generate, according to Apple, meaning iPhone app makers have raked in about $21 million. Apple keeps the remaining 30 percent.
The 10 most popular developers have raked in about $9 million in sales. Sega's "Super Monkey Ball" game sold 300,000 copies at $9.99 apiece in 20 days.
Sanctioned Apps
For about a year after its initial launch, the iPhone was limited to online applications accessible only through the phone's Web browser. Users who wanted to install natively running applications had to perform relatively complex software "jailbreaking" procedures not endorsed by Apple. With Apple's official backing, the month-old App Store could significantly propel iPhone sales.
The challenge for Apple going forward is to push applications that take full advantage of the platform. Apple can do this by shepherding the programs, promoting them and allowing users to find the things that are most appealing to them.
"Having five flashlight programs is all well and good," Yankee Group's Martin said, referring to the array of simple applications that only display a bright white screen for illumination. "But that's not going to be a long term solution for Apple. You see some of the really innovative stuff coming out now. Rating the services, rating the applications [will help these applications] find their fanbase."
