Apple iPhone Software Store generating sales

According to Apple, sales of software in the iPhone App store were $30 million in July.

“This thing’s going to crest at half a billion, soon,” Jobs told the Wall Street Journal: iPhone Software Sales take off. “Who knows, maybe it will be a $1bn marketplace at some point in time. I’ve never seen anything like this in my career for software.”

With a run rate of around $30 million a month, the App store is certainly showing that making apps easy to find and relatively easy to buy makes business possible.

Interestingly, Apple’s offering has a number of restrictions which if lifted could make it even more successful:
(1) You can’t do single click payments to your phone bill
(2) The range of apps is very limited and subject to many restrictions
(3) Apps are limited to a “one shot” pricing model (subscriptions or on-demand are forbidden)

Just as the iPhone made usability a key factor in new phone design – because customers like it – the success of Apple in selling premium content should do a lot to refocus people’s minds on selling content to users without having to place it in the “Operator Deck” or “Portal”.

We have seen many smaller businesses do very well by opening up mobile content and application stores on the mobile web, collecting payment through mobile operators (via Bango) and marketing through search and mobile ads.

Just imagine how successful Nokia might be if it got serious about an off-deck store!

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