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Saturday, December 13, 2008

App Store Issues Get Heated, Apple Remains Silent

A slew of opinions have hit the web over the past few days directly surrounding the methods behind Apple’s App Store. Primarily focused around pricing, distribution and marketing, the debates have grown heated, and Apple has remained silent.

After established iPhone developer Craig Hockenberry wrote a personal letter to Apple CEO Steve Jobs, a discussion thread erupted on MacBlogz between some talented iPhone developers and Hockenberry himself. Some accuse Hockenberry of whining, while others understand his frustration with the App Store’s methods. Still, most of the consensus remains focused around the idea that the App Store is a distribution model, not a marketing tool.

Even though it may seem like Hockenberry’s “Dear Steve” letter is focused around the marketing problems some have faced with their apps, the underlying issues revolve around Apple’s entire policies with the way they manage the App Store. Something all too familiar to anyone that spends time inside the app store.

App Cubby (developers of Trip Cubby, Gas Cubby, and Cash Cubby) share some interesting information (via Gizmodo) in a post titled “Financial Realities of the App Store.”

“There have been a lot of uninformed people spouting nonsense about Craig Hockenberry’s “Ringtone Apps” blog post, so I thought I’d set the record straight with some real numbers from the App Cubby bank account. There are some amazing success stories on the App Store, but for every successful developer there are quite a few who haven’t come close to recouping their investment of time and/or money,” App Cubby explains.

The graph below represents App Cubby’s direct impact/revenue measured when their app “Gas Cubby” was featured as a “Staff Pick” in Apple’s app store.

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App Cubby’s total income since launch has been nearly $65,000. This comes from funds borrowed from family members ($24k), actual income from App Store sales ($32k), free AdMob advertising ($5k), and selling one of his cars to keep the company going ($4k). The total expenses also equal roughly $65,000, so it seems that so far they’ve won by breaking even. If you’re wondering, the $65k in expenses went to programmers ($29k), personal salary ($15k), marketing ($7k), infrastructure ($5k), artists ($4k), $3,200 to charity and a $360 monthly payment plan to pay back family members.

Hockenberry avoided such specifics when referring to Iconfactory’s applications, but neither developer held back sharing their personal opinions. In general, intentions are healthy and positive. Concern for Apple’s App Store is well founded, and Apple needs to take note, as we’re sure they have.

iPhone developers should not push marketing and advertising onto Apple in the hopes that their app will be chosen for “Staff Pick.” They should take measures in their own hands, just like many already have. However, Apple could do a much better job with the App Store. Aside from poor management and the lack of transparency in rejecting applications, the store needs to be much more organized. Developers need to feel like they have more of a fighting chance, without having to rely on an Apple staff member to choose a particular application as their “favorite.”

Original here

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