App store for the Mac?

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    Posted: 21 October 2010 09:37 PM #46

    The Mac App Store is nothing short of a revolution, so says Pc Magazine.


    http://macdailynews.com/index.php/weblog/comments/27146/

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    AAPL: to boldly go where no stock has gone before

         
  • Posted: 21 October 2010 10:34 PM #47

    FalKirk - 21 October 2010 05:49 PM

    Not sure I agree with this. Yes, Apple will make money, but there are significant costs associated with the administrative tasks that they will be providing to developers.

    Apple is making money off of $.99 apps. They’re going to make a boatload of money off of the app store.

         
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    Posted: 21 October 2010 11:13 PM #48

    Johnsonwax - 22 October 2010 01:34 AM
    FalKirk - 21 October 2010 05:49 PM

    Not sure I agree with this. Yes, Apple will make money, but there are significant costs associated with the administrative tasks that they will be providing to developers.

    Apple is making money off of $.99 apps. They’re going to make a boatload of money off of the app store.

    Ditto 100%... Surprised it took this long. Some questions I have:
    1. Download an App
    2. Hard drive crashes, no backup
    3. How do you get that app back?
    4. Even if you have local backup, can I just drag that app into what I assume will be an App directory in iTunes (like the Mobile Apps directory) to restore it or will there be some other mechanism?
    5. Can these Apps be shared by the 5 computers that I have associated with this iTunes account? How does that fit into 1 license per person model/family licenses?

    JUst wondering. Think this is a great idea. Now, just create a version of iPhotoshop that’s halfway decent…

         
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    Posted: 21 October 2010 11:26 PM #49

    JonathanU - 21 October 2010 04:13 PM

    This could potentially happen, though I don’t think people use their computers like this.  For instance, how many websites are there where you can go on and click a button to make a fart sound for instance?  The reason apps have done so well on mobiles is that using the full internet is very difficult, due primarily to download speeds etc.  So apps have proliferated.  However, when you can get so much through a browser, cheap freebie throw away apps become less important.  It therefore feels that the sorts of apps people want to download on their Mac’s will be things that don’t operate functionally through the web; e.g. complex programs.  This is pretty closely aligned to what people who buy software now for their Mac’s do…

    However, I could, and most likely am, be completely wrong!

    One of the differences between the phone/ipad/touch is that they’re very mobile. Even more so than a laptop. That makes many apps functional just because they’re easy to show to someone else. It’s group entertainment. People are willing to buy simple/cheap apps just because it’s fun to show to friends. There’s an immediacy to them. You will get some of those sales in the new App store but nowhere the same. I see higher priced apps doing very well though. I can’t remember the last time that I looked for software in a store. They don’t even carry much if any these days. So it’s scattered all over the Net. There’s lots of cool apps that most people don’t even know exist.

    Gravy, the infrastructure is already in place.

         
  • Posted: 22 October 2010 12:08 AM #50

    ChasMac77 - 22 October 2010 02:13 AM

    1. Download an App
    2. Hard drive crashes, no backup
    3. How do you get that app back?
    4. Even if you have local backup, can I just drag that app into what I assume will be an App directory in iTunes (like the Mobile Apps directory) to restore it or will there be some other mechanism?
    5. Can these Apps be shared by the 5 computers that I have associated with this iTunes account? How does that fit into 1 license per person model/family licenses?

    3. This could go either way. If the app is signed and they have a record of your Apple ID, they could allow you to re-download it like with iOS. But they could also do that now with iTunes and Apple has opted not to.
    4. I understand it can be managed just like any other app.
    5. I’m assuming that they’re going to have the Fairplay wrapper around it, so yes, Apple can set up these kinds of rules. They stated that you can run apps on all of your computers, which suggests a FTE license tied to your Apple ID. Apple could hook Apple ID to your user account, which would allow you to move an app to another persons machine that you have an account on. That’d be new behavior, somewhere between the current iTunes behavior and the most typical software license. I have no idea if they would do this, but they could.

    Family licenses could instead allow you to associate apps with multiple Apple IDs.

    I would have thought that the individual license was one machine/one Apple ID and the family license would allow you to authorize 5 more computers, but I’m pretty sure Apple said that a single license could follow your Apple ID to other machines.

         
  • Posted: 22 October 2010 12:20 AM #51

    I spent a number of years as an entertainment industry executive with a heavy focus on the music side of the business. Distribution is where many of the major labels that also had CD pressing plants made their money. In order to access customers independent labels needed to pay the heavy distribution fees charged by the majors.

    In addition to the distribution fees it was almost logistically impossible to produce product at a competing plant and ship it into the distribution system. It’s no wonder Apple saw an incredible opportunity in music distribution. The industry was rife with inefficiencies and heavily weighted in favor of the major labels that were able to take substantial percentages of revenue off the top with little risk exposure.

    The iTunes app store is already changing game distribution and the next step is to transforming software distribution.

    Under Apple’s model there’s no product duplication risks for developers and no inventory management risks, a much more attractive distribution fee arrangement, no holdbacks on payments for return reserves and access to in the case of the new Mac app store, immediate access to a user base of 50 million Mac users.

    This is sweet money with developers thanking Apple for the opportunity to actually have a chance to make some dollars on their work. For Apple there’s virtually no risk other than the marginal costs of expanding capacity and handling the administration for the anticipated increase in revenue activity and volume.

         
  • Posted: 22 October 2010 12:21 AM #52

    Johnsonwax - 22 October 2010 01:34 AM
    FalKirk - 21 October 2010 05:49 PM

    Not sure I agree with this. Yes, Apple will make money, but there are significant costs associated with the administrative tasks that they will be providing to developers.

    Apple is making money off of $.99 apps. They’re going to make a boatload of money off of the app store.

    Well, not really. If you’ll look at this chart kindly provided by Asymco, you’ll see that almost all of Apple’s money comes from hardware sales and almost none of it comes from music, peripherals and software.

    http://www.asymco.com/2010/10/19/60-percent-of-apples-sales-are-from-products-that-did-not-exist-three-years-ago/

         
  • Posted: 22 October 2010 06:28 AM #53

    Falkirk - you’re right, even selling 7bn apps on the App store to date hardly registers given most of the apps downloaded are free or cost $.99 etc.

    However, it all depends on whether the average price for apps that are downloaded in the Mac App store increase dramatically, as posited by a number of people in this thread already.  If this occurs, then it could prove to be pretty profitable for AAPL.  It won’t be huge, but it could well be material.

    Also, lets not forget iAds.  By expanding Apps to the Mac, the installed base of devices for which free apps and hence iAds are now available on has just gone up dramatically.

         
  • Posted: 22 October 2010 06:34 AM #54

    Well, as to ASP for apps on the Mac store, here’s my guess:

    * iPhone apps tend towards “a dollar”
    * iPad apps tend towards “a few dollars”
    * Mac apps will tend towards “ten to twenty dollars”

    I intend to start my app out at 19.99, and see where it takes me. I expect to end at 9.99 pretty soon.

         
  • Posted: 22 October 2010 10:25 AM #55

    JonathanU - 22 October 2010 09:28 AM

    Falkirk - you’re right, even selling 7bn apps on the App store to date hardly registers given most of the apps downloaded are free or cost $.99 etc.

    However, it all depends on whether the average price for apps that are downloaded in the Mac App store increase dramatically, as posited by a number of people in this thread already.  If this occurs, then it could prove to be pretty profitable for AAPL.  It won’t be huge, but it could well be material.

    Also, lets not forget iAds.  By expanding Apps to the Mac, the installed base of devices for which free apps and hence iAds are now available on has just gone up dramatically.

    I’m not saying Apple won’t make money. I think they make a billion off of the current iTunes/App Store set up. I’m saying that Apple’s primary goal is to provide a service that will encourage people to buy Apple hardware and encourage people to continue using Apple hardware.

    As an aside, one of the things I admire about Apple is that they insist on making money on what should be loss leaders. They are a very well run organization.

    I hadn’t thought about iAds. Perhaps we’re entering a new and untested paradigm, at that.

         
  • Posted: 22 October 2010 06:52 PM #56

    FalKirk - 22 October 2010 03:21 AM

    Well, not really. If you’ll look at this chart kindly provided by Asymco, you’ll see that almost all of Apple’s money comes from hardware sales and almost none of it comes from music, peripherals and software.

    Different perspective. I didn’t mean that Mac App Store would add significantly to revenues/profits. I meant that if Apple can turn a profit on a $.99 product, they’ll turn a hefty profit on a $99 one. They’ve already got the administrative costs baked into the $.99 one - they’ll be comparable for the $99 one, scaling only for bandwidth, which is cheap enough that Netflix can stream unlimited video for $9 a month.

    Per sale, Apple will make a boatload, but yeah, it’ll be a drop in the bucket next to iPhone hardware. Should have been clearer about that.

         
  • Posted: 22 October 2010 09:22 PM #57

    Johnsonwax - 22 October 2010 09:52 PM
    FalKirk - 22 October 2010 03:21 AM

    Well, not really. If you’ll look at this chart kindly provided by Asymco, you’ll see that almost all of Apple’s money comes from hardware sales and almost none of it comes from music, peripherals and software.

    Different perspective. I didn’t mean that Mac App Store would add significantly to revenues/profits. I meant that if Apple can turn a profit on a $.99 product, they’ll turn a hefty profit on a $99 one. They’ve already got the administrative costs baked into the $.99 one - they’ll be comparable for the $99 one, scaling only for bandwidth, which is cheap enough that Netflix can stream unlimited video for $9 a month.

    Oh, I absolutely agree. I’m sorry if I misunderstood your earlier post.

         
  • Posted: 26 October 2010 05:32 PM #58

    Sorry for the random post (my speciality). But I’m about to go to a meeting. The last time I went, I took an iPad and tried out a note talking program called “Soundnote”. I enjoyed the experience.

    I was getting ready to pack up my MacBook and I thought to myself: “Why isn’t there a ‘Soundnote’ for the Mac?” And then I thought, “There isn’t a Soundnote program for the Mac now, but there will soon after the Mac store opens.”

    And then I REALLY began to see the true potential for the Mac store. I thought is was going to be big before. But now, I think it may turn the Mac into the must have computer for all those that must have a computer. ESPECIALLY businesses.