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Sat, Nov 21, 2009 - 02:51 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Apple’s iPhone, iPod touch moves herald ‘gold rush’ for developers
Friday, March 07, 2008 - 10:26 AM EST

Apple's iPhone, iPod touch developer "tools look awesome — far better and more advanced than what most Mac developers were expecting," John Gruber writes for Daring Fireball.

"The tools are, unsurprisingly, Mac-only. It’s a new version of the same Xcode and Interface Builder (and performance tuning) apps that Mac developers use today. This has the potential to do for Windows developers what the iPod did for Windows users — move them to the Mac," Gruber writes.

The iPhone/iPod touch games will "make the iPhone analogous to the Wii, in that it opens up new concepts in game UI design," Gruber writes.

"Apple’s 30/70 split with developers is steep, but initial reaction from the developers I follow on Twitter seems to be positive," Gruber writes. "The reasons developers are willing to accept a 70/30 split are simple: convenience and exposure... The $99 fee for getting your app listed in the store is a no-brainer. A bummer, perhaps, for the student set, but I suspect it’s intended as a bozo filter to keep the process from being inundated with glorified do-little “Hello World” apps. (I’m almost certain even freeware apps require the $99 listing fee — although that fee is per-developer, not per-app.)"

Gruber writes, "In short, what developers lose per-transaction from Apple’s 30 percent take, they can more than make up for in volume. This is going to be a gold rush."

More in the full article here.

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Mar 07, 08 - 10:35 am Comment from: Think

Other developers please chime in on this, but I heard other "Palm" software sites charge the same split as Apple has just done for the iPhone.
Please correct me if I am wrong.

Mar 07, 08 - 10:39 am Comment from: British Mac Head

Well if the guy listened to Mr J in the first place he would have realised that developers set the price of the App not Apple so they lose nothing if Apple takes 30%.

Think about it. If they want $100 for their App they just have to set the price at $143 and they get the $100 they wanted in the first place.

Fair enuff innit!

Mar 07, 08 - 10:46 am Comment from: Macintosh

I didn't think about the first part... Moving developers to the Mac. Damn, makes this even bigger.

Mar 07, 08 - 10:52 am Comment from: Wally Wallet

The iPhone nickle and diming us to death has officially started.

How much did your iPhone cost?
Well, with all the extra apps....$10bazillion or so.

Mar 07, 08 - 10:52 am Comment from: Spark

@British Mac Head
Of course you are right, and it seemed pretty obvious to me too. I guess some tech writers and programmers don't understand the concept of building distribution costs into the product pricing.

Mar 07, 08 - 10:55 am Comment from: Mark Onyschuk

And those newly moved developers will, by virtue of the iPhone's Cocoa API, be steps away from being Mac developers. I see potential for a large increase in Mac software alongside the tidal wave of iPhone software.

Mar 07, 08 - 10:56 am Comment from: Spark

@ Wally Wallet
What an idiotic remark. No iPhone user has to spend one nickle or dime on any of the applications. The software update is free, many apps will be free, and no one is twisting your arm to buy applications.

There... I fed the troll. Couldn't help it.

Mar 07, 08 - 11:01 am Comment from: critic

@wally wallet

Your right. Developers don't deserve to be able to buy food and shelter for their families.

Mar 07, 08 - 11:02 am Comment from: Macaday

To my friend Wally Wallet above. You take the award for the most pathetically sad post ever.

Look forward to a Mac sales bonanza...

Mar 07, 08 - 11:07 am Comment from: torn80

That 30% pays for the credit card transaction fee (usually around 5%), plus bandwidth, a store presence, etc. So it really isn't a profit making system for Apple. It's actually quite fair.

Mar 07, 08 - 11:13 am Comment from: surfcityusa

Because people can be inherently impulsive, this method of making apps available on the iPhone and iPod touch represents a tremendous opportunity for new developers. Ever notice all the crap at the checkout aisle at the market? ... that stuff is there for a reason. By making it easy to find, buy and download the apps at the Appstore, Apple is providing developers an opportunity to make [more] money than they would otherwise having to sell the same app on their own individual website.

Those who can't see this as a benefit probably never had to actually market an app or fail to take into consideration the value of the exposure it provides developers.

Gruber really got it right about ... "In short, what developers lose per-transaction from Apple’s 30 percent take, they can more than make up for in volume. This is going to be a gold rush."

Think about it, would you rather have 100% of the profits on LOW volume sales (after paying all the expenses to market and deliver) or 70% of HIGHER volume sales (net).

This is a Small Developers dream. I'll focus on developing great apps and let Apple handle the marketing, delivery and transaction expenses... all for 30% and I get to set the price. Cool.

Mar 07, 08 - 11:14 am Comment from: MCCFR

Wally Wallet,

Like all of the apps from Handango or whatever it's called are available for free.

Why does everyone want a successful Apple so long as they don't have to pay for it?

Mar 07, 08 - 11:29 am Comment from: Ampar

" . . . it’s intended as a bozo filter . . ."

One of those here would eliminate 97.3% of the comments.

Mar 07, 08 - 11:38 am Comment from: Zune Tang®

Bozo filter eliminate 97.3% of the comments?

That leaves me, ChrissyOne and DL-whatsherface as the only posters who would get to post comments on this forum. I'm getting tiresome and DL is a bore. That leaves ChrissyOne as the only one worth reading.

Your potential. Our passion.™

Mar 07, 08 - 11:50 am Comment from: Steve Ballmer

Developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers developers.

I. LOVE. THIS COMPANY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Mar 07, 08 - 12:02 pm Comment from: DLMeyer

I am so totally NOT sure what ZT meant. Maybe "C1 is worth listening to cuz she lets you look at her chest"? Oh. Wait. Can't SEE her chest. Must be something else.
So ... someone else saw the reprise of the Monkey Dance. I wasn't going to mention that ... so sad!
Dave

Mar 07, 08 - 12:33 pm Comment from: Bad Tabasco

@Zung Tang Get a reawakening, make the switch, and trash can the ridiculous comments and you MIGHT have a chance to get C1 to look in your direction. And that's only if you're lucky.

Mar 07, 08 - 12:46 pm Comment from: Synthmeister

Wally Wallet…

Dang it, I bought this computer and now someone wants me to spend money for Final Cut? Or Office? Or ProTools? Or Quicken?

And that TV? Man, now I got to pay the cable company every month. And my phone? I bought that dang phone at Walmart. It's mine, mine, mine, mine. Now the phone company wants to charge me for service.

Oh yea, you're paying upwards of $50 a month for wireless service and you're worried about a few $10 - $20 programs here and there? You got the wrong phone, as in, stick to a land line phone.

Mar 07, 08 - 01:27 pm Comment from: Ampar

"You got the wrong phone, as in, stick to a land line phone."

Like two cups and a long string?

Mar 07, 08 - 02:46 pm Comment from: Kevin Gavioli

Anyone complaining about the 70/30 split is an idiot.

There is no upfront distribution cost, no going out and selling yourself, your application or even your soul. You set the price knowing apple gets 30% for hosting and distributing.

It is totally fair.

Mar 07, 08 - 05:03 pm Comment from: qka

@British Mac Head

Think about it. If they want $100 for their App they just have to set the price at $143 and they get the $100 they wanted in the first place.

For someone coming from the country where they publish The Exonomist, you are apparently ignorant of economics. I guess you've never heard of the price-demand curve; or while I might buy it at $100 dollars, I might not buy it at $143.

You are a snivelling git.

Mar 07, 08 - 05:04 pm Comment from: qka

s/b The Economist

My apologies to that publication.

However, British Mac Head is still a snivelling git.

Mar 07, 08 - 06:46 pm Comment from: Dolita

The $99 is not for listing!!

Mar 07, 08 - 07:53 pm Comment from: Zune developers

And in other news... Zune SDK... (hahaha)... yawn.

Mar 07, 08 - 11:20 pm Comment from: Semi European non steve jobs

Now now chaps, settle down.

Be nice. Everyone can have their opinion.

Even the smarmy puss-bucket qka.

Mar 08, 08 - 03:22 am Comment from: Mr. Reeee

This will be a great system.

You've got an iPhone or iPod touch. You automatically use iTunes. You go the the iTunes Store to find an app that interests you and buy it.

One place to look and buy. Simple and straightforward.

And the best thing for developers?
There's only ONE place to find your iPhone apps.
There's only ONE place to sell your iPhone apps.

I only hope there's some form of trial period for apps. Shareware-like. This would be the kicker.

Who could complain about it?

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