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Sat, Nov 21, 2009 - 12:06 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

75 million reasons why RIM’s Blackberry App World can’t touch Apple’s iPhone App Store
Thursday, April 02, 2009 - 10:35 AM EST

RIM's just-launched Blackberry App World "provides [some] Blackberry users with a central location from which they can find, purchase and download 3rd party applications for their handhelds," Wellington Financial reports via Seeking Alpha. "The store seems to function fine… that is until it’s time to pay!"

In Apple's iTunes App Store for iPhone and iPod touch (and future devices), "with one or two clicks, an application can be downloaded and billed directly to your credit card. Not so with RIM’s App World! For some strange reason, they have decided that the only method of payment will be PayPal… yes, the payment service synonymous with (and eventually purchased by) EBay," Wellington Financial writes. "Want to buy an application? Sign-up with PayPal first… and give this service — one rife with consumer complaints over locked accounts, fraudulent charges and other malfeasance — your financial information!"

"It’s little wonder that the price of programs in the App World are significantly higher than in Apple’s App Store ($2.99 vs. $0.99 or even free!) with so many mouths to feed — developers, RIM, credit card processing fees and now PayPal... [Don't] expect user acceptance to even remotely approach the levels Apple has been able to generate to date," Wellington Financial writes.

Full article here.

MacDailyNews Take: Apple's iTunes Store, which includes the App Store, currently has over 75 million credit card accounts and adds, on average, conservatively, 35,000 new accounts per day.*

* iTunes Store celebrates its 6th year anniversary on April 28th. 6 years * 365 days = 2190. 75 million accounts / 2190 days = 34,247 accounts per day average over a 6 year period. We say "conservatively," because iTunes Store adds considerably more users these days than it did in its early years.

[Thanks to MacDailyNews Reader "Fred Mertz" for the heads up.]

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Apr 02, 09 - 09:47 am Comment from: thethirdshoe

You can trust PayPal. PayPal is your, is your ... Pal.

Apr 02, 09 - 09:57 am Comment from: M.X.N.T.4.1

If these companies can't even match the ease of use that Apple had from the start - when they were doing nothing like the volume they do now - then they don't stand a chance and don't deserve to succeed.

Apr 02, 09 - 10:10 am Comment from: Brau

So ... just how many Blackberries will be able to access their new store? A few hundred thousand of the newest models? A million? Compare that to the iPhone where all (16 million?) models have easy access, add in the Touch, and Blackberry's chances of success don't look so good. If I were a developer, I know which one I'd be targeting for potential profit.

Apr 02, 09 - 10:31 am Comment from: MacBart

I simply won't deal with PayPal. If a site requires PayPal I don't buy there!

Apr 02, 09 - 10:32 am Comment from: Dreaming

"A few hundred thousand of the newest models? A million?"

Probably closer to 80 million phones, but keep dreaming. Sounds like RIM is making it hard though. For them the logical model is to bill apps through the carrier.

Apr 02, 09 - 10:34 am Comment from: Mactaculat

Cute! My credit card was ripped off for many thousands at Paypal. They fixed it in the end but what a pain in the ass it was. I can't imagne using them for single app purchases all the time. That is essentially the benefit of the"I" universe. Complete and simple integration. BB fanboyz won't get it until they switch.

Apr 02, 09 - 10:34 am Comment from: ralph from berlin

and the one billionth app download will be reached within the next two weeks.

100 Mill: 09.09.
200 Mill: 27.10. (= 48 days for 100 million)
500 Mill: 16.01. (= 27 days for 100 million)
800 Mill: 17.03. (= 20 days for 100 million)

with the average downloads per day accelarating 30% lately the one billionth downlaod should be reached within 30 days of march 17th.

Apr 02, 09 - 10:38 am Comment from: LTD*

The whole apple ecosystem - the entire paradigm, is completely different from everyone else's.

The App Store is the iPhone is the iPod is OS X is the Mac is the App Store is the iPhone . . . and so on. The ease of use and quality of each of these ideas is interchangeable. That's the beauty of it.

No one else has that, and I doubt anyone else can match it any time soon.

Apr 02, 09 - 10:39 am Comment from: Steveeee

Don't forget that iPhone opens up lots of markets where there's no music and movie stores at present.

Apr 02, 09 - 10:42 am Comment from: LTD * Followers

@ LTD*

Thanks for the great comments without the bad language. You have a lot to add to the discussions here are we enjoy it.

Yes, I agree, it is a different paradigm and its working well. Can't wait for Snow Leopard to filter down to all devices! Apps using GCPU and CPU for regular stuff means instant speed increases for software on the same devices!

Apr 02, 09 - 11:00 am Comment from: NCMacMan

You need to understand that Apple has been in the direct retail business before the iTunes store was open. They understood retail, online and brick stores. They knew what it would take to build a successful app store. RIM however has NO retail experience and they are far behind. They threw their weight behind current processes without having to develop their own solution due to the lack of development time.

It's half baked and it just won't be that successful.

Apr 02, 09 - 11:02 am Comment from: Noodle-Armed Choir Boy

Friends don't let friends use PayPal.

Apr 02, 09 - 11:04 am Comment from: alansky

Incredibly dumb. For one thing, PayPal was never intended to be a substitute for credit cards, which offer much more iron-clad protection to consumers.

Apr 02, 09 - 11:05 am Comment from: Mac Daddy

PayPal? My lord, how fscking stupid. They think this is competition? Sigh.

Apr 02, 09 - 11:05 am Comment from: LTD*

@ LTD Followers:

Well I appreciate the support. I've been known to use bad language now and then, but if I do, I make sure it's nestled in something that's otherwise well-formulated.

Your comment reminded me of something:

http://www.youtube.com/watch?v=upzKj-1HaKw

The key here is "taste" - or rather, the lack of it. The tragedy that occurs when function is surrounded by poor form. You use a "computer" every day. Why shouldn't you take pleasure in using that tool? Why shouldn't it conform to a particular aesthetic.

Notice that Jobs talks about proportionally spaced fonts, which comes from typesetting and typography - which are forms of art, which come from beautiful books. Jobs is acknowledging the importance of an aesthetic source, which inspires his products.

Notice that some of the comments in that video - the more disparaging ones, say that he said that when his company was "getting whipped" in the marketplace. That isn't the point. Everything eventually comes out in the wash. With the kind of thinking Jobs employed at the time, Apple's rise was an inevitability.

This is what most Windows enthusiasts and the anti-Mac crowd (which is apparently the anti-ease, anti-beauty, anti-productivity crowd) will never understand: That a tool is not simply a tool. It is a reflection of the beliefs, craftsmanship, and culture of its maker. It therefore has to live up to standards that are much more than meeting assembly line specs.

Apr 02, 09 - 11:06 am Comment from: cptnkirk

@ Dreaming

Well, RIM may have 60 million 'phones' in users' hands, but only a handful of the newest models can access the store or the apps.

Apr 02, 09 - 11:09 am Comment from: Penelope Pickles

@ Dreaming

Better check again, Blackberry App World will only be available to newer phones with a trackball, not the trackwheel. This cuts that target audience down by quite a bit.

Apr 02, 09 - 11:28 am Comment from: HolyMackerel

The BIGGEST killer is yet to be found by BB users - you cannot store your AppWorld purchases on your removable SIM, only on the BB internal flash.

Limits the number of apps you can install and updating your phone with the same model means re-buying your apps. Get a new BB model and you will have to re-buy the apps for that model.

Apr 02, 09 - 11:30 am Comment from: JoshtheiMacGuy

I wonder why the Blackberry people keep up the effort. The iPhone dominates the market and silly, newbies like RIM would have been better off not trying to enter the market.

Apr 02, 09 - 11:36 am Comment from: Synthmeister

And the App store is available to 13 million iPod touch users as well, for a total of 30 million users. Apple could ditch the iPhone tomorrow and still have a hugely profitable iPod touch AppStore ecosystem. That's one thing no one else gets. The phone aspect of the iPhone is almost secondary at this point. The iPhone is a mobile computing device that happens to make phone calls too.

Apr 02, 09 - 12:03 pm Comment from: Anonymous©

I didn't realize that Paypal had such a bad rep! Anyway, there's a Verisign app for the iPhone that gives you a security key for things like Paypal, eBay, AOL, etc.

Apr 02, 09 - 12:13 pm Comment from: Cleetus

Paypal's brand is tarnished. Yes they were there early but they suffered the slings and arrows that come with first movers...and in my mind, and others, they've never recovered. I'll never use them. Can't!

Apr 02, 09 - 12:54 pm Comment from: ml

i'm getting rid of my blackberry when Iphone 3.0 comes out in July.

Apr 02, 09 - 04:26 pm Comment from: Dreaming

"only a handful of the newest models can access the store or the apps."

If by that you mean every currently shipping Blackberry device and every model launched in the last five years, I guess that's a "handful".

Apr 02, 09 - 05:43 pm Comment from: douka70

PAYPAL SUCKS BIG TIME.
I tried using it it and had nothing but problems.
Why add another level of complexity and cost on top of my existing
credit card? Is not life complex enough with everything else that we now we need Paypal?
I will NEVER NEVER NEVER use Paypal even if something is free.
I do not use Ebay either.
I love Graigslist and hate Ebay and Paypal.

Apr 03, 09 - 02:34 am Comment from: ken1w

I don't have any problem with PayPal. I believe you can even link your iTunes Store account to PayPal (instead of a credit card) if you so please. I think my PayPal password has something like 20 characters, and I have to look it up each time I have to use it because I can't remember it. And I delete any email that supposedly comes from PayPal. It works fine for me when I need it.

But to make it the only payment option is crazy and amateurish. What was RIM thinking and smoking, up there in Canada...?

Apr 03, 09 - 04:39 am Comment from: twilightmoon

"If by that you mean every currently shipping Blackberry device and every model launched in the last five years, I guess that's a "handful"."

The problem is not the number of units that can run the new Apps. It's that the OS is a crippled "baby software" mobile OS.

That on top of the fact that RIM screwed up their store launch in about a dozen ways. It was not a well managed, or well conceived effort. It was a slap-it-together-with-ductape-and-get-it-out-the-door-quickly sort of effort.

Apr 03, 09 - 07:26 pm Comment from: Dreaming

"It was not a well managed, or well conceived effort. It was a slap-it-together-with-ductape-and-get-it-out-the-door-quickly sort of effort."

Sure looks that way, but it doesn't change the fact that there are tens of millions of Blackberrys out there ready and able to use the store.

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