Apple's App Store- An economy for 1 percent of developers

Apple's App Store: An economy for 1 percent of developers
Editor's note: This a guest post by Igor Faletski, whose bio is below.Since the Apple App store opened on July 10, 2008, it has paid out more than $4 billion to iOS developers--70 percent of the $5.71 billion it has booked in revenue. Pretty big numbers, right?Well, yes and no. Yes, those are big numbers that make my head spin and dwarf my personal tax return. At the same time, the real answer has to be no.In the mobile commerce world, $4 billion is significant, but it's not a headline. It's more of a line item on a table that includes some much bigger numbers.For example, in 2011 alone eBay accounted for $5 billion in mobile sales, double its 2010 mobile sales. Gartner projects mobile commerce will be a $31 billion market by 2016, with consistent growth of 39 percent compounded annually.The Apple App Store will certainly be part of the mobile commerce ecosystem, but it will be a small part that shrinks proportionally over time for the following reasons. The profitable Apps are free games Digging deeper into the numbers from the Apple App Store reveals that the apps making money are overwhelmingly free games selling virtual goods.Related storiesAll 'new iPad' coverage on CNET (roundup)Hands on Apple's new iPad (photos)Apple's new iPad: Get all the details hereApple's new iPad: Now the company competes with everyoneApple's new iPad: First takeA reasonable guess would be that 75 percent of the payouts from Apple to developers are for games, since that's typically the percentage of games in the top 100 grossing apps. Apple promotes in-game virtual good purchases because it gets a 30 percent cut of every one of those virtual good dollars if you use their payments platform.Unfortunately, the profitability of free games with in-app purchasing creates a destructive, hit-driven cycle that locks out small developers. The successful big studios, with multiple repeat hits, monopolize the discovery mechanisms, rankings and reviews by using all sorts of proven tactics such as incentivized downloads.The system works for a few big players and outlier hits, but the playing field is definitely tilted in favor of the incumbents.As entrepreneur Tony Wright says in his post How to Evaluate a (paid) iPhone App Idea, "The App Store is really mostly a game store. And a free game store at that."Apple's walled gardenThe SDK and developers tools for iOS devices are excellent. No argument. But in exchange for this boost to developer productivity, Apple expects its pound of flesh.Want to use Apple iTunes as the payment method in your app? Say goodbye to 30 percent of your revenue. This makes credit card interest rates look generous. It also makes any type of businesses without enormous margins (more than 50 percent) impossible to run in the App Store.Apple controls the App Store and runs it with an iron fist. Payments for your app may be late and you may be forced to sue Apple to get them. Your app may not make it into the store. Your app may be kicked out.And once you get the 70 percent you're owed from Apple? You now likely owe sales tax. If this is starting to sound a lot like digital serfdom, there's a reason.If developers want to see what the future looks like when you cede control to Apple, they can look at the music industry. It's now beholden to Apple as the gatekeeper to iTunes and the entity with control over access to their most coveted market. The open Web Remember the Web? Right. It was the biggest thing in the past 20 years of business. Now the mobile Web is growing eight times faster than the Web grew, according to Google.The open mobile Web is larger than the world of apps and growing faster. The mobile Web supports all the ingrained Web habits we already have. Search, e-mail and social media all just work already in the browser--the browser that everyone already has installed on their device.But the mobile Web is missing some key tools, infrastructure, libraries, and examples for developers to use and build a better future. This is the problem my company and many other companies are solving. We want to see an open world view beat a closed world view, again.


MusicIP plug-in deejays your iTunes

MusicIP plug-in deejays your iTunes
Late Monday afternoon, music recommendation engine MusicIP released a beta of its MyDJ iTunes plug-in for Windows (available as a free download from the company site). I've spent the last few hours playing with the plug-in, and thus far I'm impressed. Like the company's standalone program, MusicIP Mixer 1.6, the MyDJ iTunes plug-in scans and analyzes your music library to ferret out similar songs and artists. But the standalone software requires you to organize music in MusicIP, then export the playlist to your media player software. The plug-in lets you automatically generate playlists without leaving iTunes.Downloading and installing MyDJ was easy, and after the program conducted a basic analysis of my library I was ready to build my first playlist. (The "extended" analysis takes a bit longer; more on that below.) In iTunes I clicked on a track from my current musical obsession, The Helio Sequence, then moved to the MusicIP sidebar on the right-hand side of the screen. From there I could designate the length of my playlist--based on number of songs, length of time, or file size--and decide whether I wanted the list to favor the style of the song, the style of the artist, or a balance of the two. The plug-in also let me dictate the degree to which the mix matched my selected song, on a scale from zero ("tightly focused") to nine ("very diverse"). Clicking on "Make Playlist" almost instantly generated a playlist inside of iTunes. As an avid consumer of the free mp3s from CNET Download.com Music, I was thrilled to see that MyDJ had called up some really great tracks that were hidden deep in my iTunes library. The sidebar also includes a window labeled "Similar to the selected track," which lists a handful of free tunes that match your song's profile. You can click on a song to give it a listen and, if you like it, click one button to download it and add it to your library. This feature has potential to be amazing, but at this point the catalog of discoverable music seems a bit thin. It offered up the same recommendations for several dissimilar songs, and sometimes none of the recommended tracks seemed like a decent match. The more distinctive the song, of course, the more relevant the recommendations: my southern-fried alt-country tunes achieved more appealing matches than generic-sounding indie rock.Being a beta release, MyDJ for iTunes does have a few quirks. My biggest complaint lies with the user interface, which right now just sits on top of the right side of your iTunes window. There's currently no option to independently move or even resize the sidebar; instead you're forced to resize your iTunes window to leave room for MusicIP. I'd prefer to have a few display options, including placing the control panel at the bottom of the window, in lieu of the iTunes MiniStore. Also, Mac users are left out for now, though the company does plan to release an Mac OS X version "in the near future."A final note of caution: the program's "extended analysis" of music files, which presumably would bring even more accurate recommendations, definitely eats up some CPU cycles. I was glad the program let me choose among Low, Normal, or High CPU usage in the Preferences, but even the Normal level completely monopolized the ancient 1.5GHz Pentium 4 machine that I use as my music server. Those with poky processors or large music collections will likely want to run the analysis overnight. I plan to do just that and will update this post in the morning with any new insights.


Battery life battle royale- Nexus vs. iPad

Battery life battle royale: Nexus vs. iPad
With all the hoopla about the relative graphics performance of the fourth-generation iPad and the Nexus 10, it's easy to forget another important performance metric: battery life.Battery life dictates how long you can actually use the unit before it requires a recharge, so I'd say it's pretty darn important. So important in fact that it gets its own blog post. Here I pit the last two generations of iPad, the iPad Mini, the Nexus 7, and the Nexus 10 against each other in a take-no-prisoners battery blood bath! Or acid bath I guess.The results The results speak for themselves, but if you need further explanation, continue reading after the chart. table.geekbox th{background-color:#E6ECEF;text-align:left;font-weight:bold;}table.geekbox tr.even{background-color:#CCCCCC;}.ratingGood{color:#093;} .ratingAverage{color:#666;} .ratingBad{color:#C00;}iPad (4th gen)   iPad Mini   Nexus 10   Nexus 7   iPad (3rd gen)Movie battery life (in hours) 13.112.18.410.111.4How we tested battery lifeI evaluated battery life the same way I do for all tablets: by continually running a movie file until the tablet's battery dies.I set each tablet to Airplane Mode and adjusted their respective brightnesses to 150 candelas per square meter (cd/m2) or as close to that number as possible. The iPads were running version 6.0.1 of iOS; the Nexus 10 ran Android 4.2, while the Nexus 7 was running Android 4.1.2.I ran the 720p iTunes iPad version of the recent "Avengers" movie on the iPad and the Google Play version of the same movie on the Nexus 10 and Nexus 7, each movie playing through the tablet's native default video players. The final score is an average of two full runs on each tablet, with the two numbers coming within 5 percent of each other.The iPad continues its tablet-battery-life dominance.Eric Franklin/CNETAnalysisThe iPad continues its battery life dominance over all other tablets. Not the flagship iPad, but the previous-generation iPad and iPad Mini as well. At 13.1 hours, the latest and greatest iPad lasted longer than any previous tablet.The two smaller tablets on the list make a strong showing, with the Mini posting an impressive 12.1 hours. Very few Android tablets last over 10 hours, but the Nexus 7 achieved the almost mythical feat with 10.1 hours.The now 8-months-old-and-busted iPad (third generation) still manages to make an impressive showing with 11.4 hours of life.Google claimed the Nexus 10 would support 9 hours of video playback on a single charge. In CNET's test it gets close, but doesn't quite hit that target, lasting a slightly disappointing 8.4 hours; however, that's only slightly lower than the 8.5 hours we saw from the Asus Transformer Infinity.The big takeaway here is just how impressive the iPad Mini's battery is. Its screen may not be as impressive as the Nexus 7's, but the extra 2 hours of life the Mini is capable of may make all the difference, depending on your needs.Keep checking our battery-testing results chart for updates on all tablet battery life.


The 404 338- Where we boldly go to see 'Star Trek'

The 404 338: Where we boldly go to see 'Star Trek'
We try to keep the show spoiler-free today, but in case you didn't know from the movie poster, Tyler Perry is in the movie. Overall, we think it's a great, fun film, but there are some deep plot holes you could fly the Enterprise through.Check out our video wrap-up from the opening here in New York on CNET TV.On today's show, we find out the origins of the name Twitter.Apparently, its etymology is whale-based.The Natural History Museum Whale also follows us today.In more crazy news from the Web, "DJ Hero" comes out soon to ensure that the next generation of children will not know how to play a single real musical instrument.In more video game news, Super Robot Taisen OG Saga: Endless Frontier is rated T for teen, but on the box, it contains "alcohol references, fantasy violence, mild language, partial nudity, and suggestive themes."We wonder what you have to do to get a M-rating now.Finally, if you're still living your mother's basement and playing World of Warcraft, we've got a gadget for you that will ensure that you will never get a girlfriend.It is a hut that will let players isolate themselves from the outside world, feed them, and possibly even wipe their butts.We're not sure if the last one is really a feature, but it's definitely in the same vein.Keep calling into the show at 1-866-404-CNET (2638).We love your voice mails.Next week, we've got Molly Wood joining us on the show along with the equally lovely @LizMoney from the Gadget411 and Anna David!Episode 338Download today's podcast |  Subscribe in iTunes audio Subscribe in RSS Audio |   Subscribe in RSS VideoThe 404 at the opening of 'Star Trek' in NYDJ Hero coming outNever leave your mother's basement while playing World of WarcraftT-rated "Super Robot Taisen OG Saga: Endless Frontier"Follow us on Twitter!The 404Jeff BakalarJustin YuWilson Tang


Learn to save lives with useful iPhone app

Learn to save lives with useful iPhone app
Pocket First Aid & CPR was created by the American Heart Association in collaboration with Jive Media. It's is a 65MB application (so make sure you install it via iTunes or a Wi-Fi connection) thatfeatures hundreds of pages of text and illustrations, with topics ranging from CPR andchoking to bites, bruises, burns, seizures, and diabetic emergencies. The app also features detailed and high-quality video demonstrations showing how to respond in critical first-aid situations. These include instructions for taking care of someone who is choking, giving CPR, responding to seizures, and treating cuts and wounds. I personally like the section about choking and breathing problems, as those are common emergencies that require immediate assistance.It's important to note that the application is not designed to be used in an emergency, but rather is something for you to study during idle time. Unlike the Human Atlas app that requires an active Internet connection to use, Pocket First Aid & CPR works completely offline, thus making it a useful time-killer during a long flight.The app also comes with a section in which you can enter personal medical information, such as emergency contacts, allergies, current medications, and insurance information, for quick access in an emergency. The information isstored on your individual phone only and is deleted if the application is removed from the phone.Pocket First Aid & CPR works with iPhones and iPod Touches and is available at Apple's App Store for $3.99. That price will be entirely justified the first time you are able to take the lessons in this app and successfully apply them. Saving a life: priceless.


Apple's Tim Cook called on to sub for Jobs again

Apple's Tim Cook called on to sub for Jobs again
As Apple CEO Steve Jobs takes another medical leave of absence, he again leaves the company he founded in the care of his chief operating officer, Tim Cook. So who is Cook?A reserved and private man, Cook has been thrust into the spotlight for the third time in eight years, taking over temporarily for what many would say is the irreplaceable Jobs.A former Compaq executive, Cook joined Apple in 1998 as a senior vice president of worldwide operations. He was promoted to chief operating officer in 2004. Before Compaq, Cook also spent 12 years at IBM, where he ran manufacturing and operations for the company's PC business.Known for completely restructuring Apple's manufacturing operations, Cook insisted that Apple shut down its overseas factories and farm out the work to third-party manufacturers. As a result, the company has cut down its inventory and improved margins on its entire product lineup. He's intensely focused on cutting costs as well, and though far from the leading computer maker in the world by volume, Apple is known for reaping the most profits per computer it produces.Since Cook's last time subbing for an ailing Jobs two years ago, Apple has better than doubled its cash reserves to more than $50 billion.Though Apple refuses to publicly comment on its eventual succession plans for who will head the company after Jobs leaves someday, Cook is regarded by some as the logical choice. He doesn't have Jobs' charisma or knack for knowing what customers want in a phone or computer product, but he runs the company in the way Jobs has long envisioned. Cook's profile has grown steadily in the last few years. He is Jobs' right-hand man at shareholder events, and has completely handled earnings calls with analysts for last few years. Recently he has played a more prominent role at product launches. Perhaps foreshadowing today's news, it was Cook and not Jobs who flew to New York last week to join Verizon COO Lowell McAdam at the high-profile launch of the first iPhone on Verizon's network.Apple is scheduled to report its first-quarter fiscal 2011 earnings tomorrow after 1 p.m. PT.


Apple's Thunderbolt cable gets a price drop, shorter version

Apple's Thunderbolt cable gets a price drop, shorter version
Apple has quietly dropped the price of one of its most expensive accessory cables, along with releasing a shorter, cheaper model. The company now sells its $49, 2-meter Thunderbolt cable for $39. There's also a new 0.5 meter version (that's 1.64 feet) for $29, notes 9to5mac. Thunderbolt is the input/output technology that brings transfer speeds that exceed what is currently available with USB 3.0 (though not for long), as well as extending that speed across several devices at once. The port was introduced following a collaboration between Apple and Intel in early 2011, and is now found on nearly all of Apple's computers, save the Mac Pro tower. One of the most expensive aspects of creating the cables is that they make use of active electronics, something that's proved difficult for third parties to create less expensive versions of at competing lengths. Kanex, for example, makes four sizes of Thunderbolt cable up to 3 meters but had its 2 meter version on sale for the same $49 price as Apple.The price changes, while minor, come at a time when third-party companies are gearing up mass production of optical Thunderbolt cables that promise to deliver lengths of up to 30 meters. That's as opposed to the current, copper Thunderbolt technology, which must remain shorter but that can supply 10 watts of power to connected devices. Worth noting is that those newer optical cables will require optical Thunderbolt ports.


Apple's Taiwanese App Store gets refund policy

Apple's Taiwanese App Store gets refund policy
To comply with local consumer-protection laws, Apple has rolled out a new refund policy in the Taiwanese versions of its App Store, Mac App Store, and iBookstore. The changes, reported by IDG News this morning, give app buyers the option to get a refund on paid applications and e-books within seven days of buying them from one of Apple's digital storefronts. As part of the new policy, Apple is requiring that users delete all downloaded copies of the content. Apple's updated terms and conditions document now spells out the change right up near the top:You may cancel your purchase within seven (7) days from the date of delivery and iTunes will reimburse you for the amount paid, provided you inform iTunes that you have deleted all copies of the product. Upon cancellation you will no longer be licensed to use the product. This right cannot be waived. News that Apple had agreed to the local policy, and was unofficially offering such a refund program emerged late last month in a story by the WantChinaTimes (via Macrumors), which said controversy had erupted after a number of customers found themselves unable to get refunds on a phone-tracking app that didn't work as advertised.Refunds on digital goods continue to be one of the big differences among digital application stores. While Apple, Microsoft, and Research In Motion all maintain an "all sales are final" policy, Google gives buyers a short grace period after making a purchase. Google's Android and Chrome Web Store efforts offer users a 15- and 30-minute window, respectively, to return an application for a full refund from the time they downloaded it. Application developers on the two Google platforms are also able to issue refunds to buyers after the window has closed. Despite the grace period and developer return options, Google's policy has proved to be a problem in Taiwan, IDG says, with the local city government requiring a similar timeframe to the one Apple has instated. "The two groups are still in talks," IDG noted, with Google having been fined last month for not amending its sales policy to comply.


Apple's stock crosses the $700 barrier

Apple's stock crosses the $700 barrier
Apple's stock ended on a high note, crossing $700 mark at the end of day, capping off a strong run over the summer. Its share price closed up 1.2 percent to $699.78. In after-hours trading, it hovered above $700 for a few minutes. It last traded at $699.80.Apple gave investors another reason to cheer today when it said the pre-orders for the iPhone 5 topped 2 million in the first 24 hours, more than doubling the 1 million iPhone 4S pre-orders from nearly a year ago. AT&T chimed in to say it saw record pre-orders over the weekend, while Sprint Nextel told CNET that its orders had quickly hit expectations.The announcement already has some analysts scrambling to raise their estimates for iPhone sales. While the $700 mark is a significant psychological benchmark, it doesn't mean much to the value of the company, which is measured by its market capitalization. Apple is worth $654.81 billion, and last month set the record for being the most valuable company of all time.Apple's stock has largely ignored the convention of selling on the news, continuing to rise after the announcement of the iPhone 5. After a brief dip heading into the summer, the stock has had a strong run over the last few months and is up by roughly a third since May. The stock could also be rising in anticipation of a smaller iPad, which some had expected to be announced last week. Instead, many believe that the company will unveil the so-called iPad Mini next month.Flash Player 9 or higher is required to view the chartClick here to download Flash Player nowView the full AAPL chart at Wikinvest


Apple's stock buyback not a lasting tonic, says analyst

Apple's stock buyback not a lasting tonic, says analyst
Apple may have pleased investors with its recent stock buyback, but analyst Mark Moskowitz doesn't see the news as a big cause for celebration.Speaking with The Wall Street Journal this week, Apple CEO Tim Cook revealed that the company had taken advantage of the recent price drop to repurchase $14 billion of its own shares. Activist investor Carl Icahn and others have been pressing Apple to move more aggressively to buy back stock. However, the buyback doesn't do much to address other problems facing the company, according to JP Morgan's MoskowitzThe analyst said he would rather see Apple spend more of that money to invest in new technologies and services, especially given the increasingly saturated smartphone market and the growing threat to the company from the competition."We do not think this buyback activity overcomes the slowdown in the all-important iPhone business," Moskowitz said in an investors note released Friday. "The last two iPhone launches have not resulted in multi-quarter sales growth spurts as previously seen. We think this lack of follow-through indicates end users are slowing their refresh rates, and recent technology advancements have not been enough to change that."Moskowitz also said he thinks Apple should spread its wealth to bump up the dividend and invest in more acquisitions. In the interview with the Journal, Cook said Apple is open to buying the right company as long as such a deal would be in its best long-term interests.The future isn't all gloomy, though, according to Moskowitz."We think Apple still has 2014 catalysts that could restore meaningful, above-peer revenue growth to the model," the analyst said. "The China Mobile launch stands to set the stage for a larger-sized iPhone rollout later this year, which could boost unit sales. Another silver lining is that we think Apple's crossover to 64-bit processors, ahead of the competition, could usher in new features, potentially jumpstarting growth in the next 12 to 18 months."


CNET Mobile Phones iPhone 6, 6 Plus available unlocked and SIM free iPhone 6, 6 Plus available unlocked and SIM free

iPhone 6 and 6 Plus buyers in the US can now buy an unlocked and SIM-free model to use on any carrier here or abroad. As listed on Apple's iPhone 6 page, the SIM-free version sells for the full retail price, which means the 4.7-inch, 16GB iPhone 6 costs $649, while the larger 5.5-inch, 16GB iPhone 6 Plus runs $749. Opting for the 64GB version costs an extra $100, while the 128GB edition adds $200 to the base price. Why go unlocked and SIM-free? The option is geared for people who don't want to be stuck with the standard, two-year contract with a specific carrier. This means you can activate the phone on any carrier in the US, including major carriers AT&T, T-Mobile, Verizon or Sprint, according to an Apple representative. You can also use it with a local carrier if you travel outside the US. To activate the phone, you simply need to get a SIM card from the carrier. Otherwise, the unlocked and SIM-free phones have the exact same features and functions as the subsidized versions that are tied to a specific carrier. Apple has already been selling unlocked versions of the iPhone 6 and 6 Plus for T-Mobile subscribers. That model comes with a T-Mobile SIM card installed, according to Apple, and supports only GSM carriers, such as T-Mobile and AT&T. The unlocked, SIM-free versions of the iPhone 6 and 6 Plus ship in three to five business days.