Applications & Apps Business

AT&T for Nokia Developers at CTIA

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Nokia and AT&T create a $10 million cash and prize competition for mobile developers. The 2010 Calling All Innovators – No. America developer contest is open to worldwide developers to create apps and games for the Nokia N8 and other Nokia devicesfor No. American consumers.

Finalists for each of the 17 categories will be put forward to a judges from AT&T and Nokia who select 3 winners in each category. Category prize winners will walk away with $150,000 each and grand prize winners will pick up an additional $100,000 and the equivalent $6 million of marketing promotion.

Judges will be looking for new apps which take advantage of the new Symbian OS, the Nokia N8 hardware and the APIs available. There will be six different gaming categories alongside 11 different app categories, including business, entertainment, video and imaging, social networks and location.

Go AT&T and Nokia contest

Going to CTIA in USA this week? Go "AT&T for Nokia Developer Day" free at CTIA attendees.

Having Apps and Using Apps are Not Synonymous

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The latest PEW research in USA (you can download a summary via the link) says clearly: having apps and using apps are not synonymous.

Of US adults who have apps on their phones, only about two-thirds of this group (68%) actually use that software. This means that 24% of U.S. adults are active apps users.

Older adult cell phone users in particular do not use the apps that are on their phones, and 1 in 10 adults with a cell phone (11%) are not even sure if their phone is equipped with apps.

Reading the headlines, the media has distorted this report by emphasing only the lack of use of apps. But the report is called THE RISE OF APP CULTURE.

And its conclusion is apps users are younger, more educated, and more affluent than other cell phone users. The apps user population skews male, and is much younger, more affluent, and more educated than other adults. (In USA, the apps-using population also skews slightly Hispanic when compared with other adult cell phone users.)

Those who download apps do so frequently: 53% say their most recent download was in the past 30 days ( and 33% say their last download was in the past week). Looking at all cell phone-using adults in the study, that equals 15% who downloaded apps in the past month and 10% who have downloaded apps in the past week. When you look at cell phone users under age 30, 20% downloaded an app in the past week.

While its US-based research, this free report is worth reading. There is so much to digest that we'll be using it for several news items.

Go PEW INTERNET

More Apps, Less Music Downloads at iTunes

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Finnish analyst Asymco says download rates for iOS apps on iTunes will surpass music downloads. Based on data from the updated Music and App Store, the total number of app downloads has already reached the same level as that of songs in less than half the time.

Asymco concludes it took roughly 2.2 years for the App Store to serve 6.3 billion apps. It took about 5 years for the Music Store to reach that level.

Asymco thinks app downloads will overtake song downloads by year’s end as music downloads continue to slow. Asymco says iOS users are currently downloading 17.6 million apps compared to roughly 7.5 million songs per day, on average.

Great research and a clear chart but my favorite bit is in the comment section where it reports "... when the first fart app arrived it was an epiphany for me." lol

Go Asymco

Intel Launches AppUp to Play Catch-Up

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Intel launches its own app store to help developers validate and distribute consumer software for devices built on Intel processors, whether they're smartphones, netbooks or tablet computers.

Renée James, senior VP/GM Intel Software and Services Group, says the store will distribute free and paid applications... from gaming to productivity-for-netbooks.

Intel will take a 30% cut of the revenues from app sales. Consumers will have a 24-hour test period before paying for an app.

James announced deals with Best Buy, Dixons and India's Croma to put Intel's AppUp service on netbooks sold through their outlets. Asus will put its own verson of AppUp on its netbooks in October.

Adobe Flash Platform Services, spurned by Apple recently, signed up 300 publishers for Intel and 100 already completed apps for the new Apps Up outlet.

Apple's mobile devices may rely on ARM but Intel is going for a whole handful of Apps here...

Bear in mind Intel's JV with Nokia to create MeeGo, mobile Linux... The first tablet using MeeGo, from Berlin the WeTab was launched this month.

How Much Apple REALLY Makes On An App

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Apple app sales continue to rise, but last time analyst Piper Jaffray looked in June 2010, sales had reached $1.43 billion. Apple grosses about 30%, or $429 million. Subtract cost (credit card costs, storage, delivery etc) and Apple's gross profit is $189 million.

The App Store represents only 1% of Apple's overall profits since the App Store opened in June 2008, according to Piper Jaffray. That's not much compared to Apple's total turnover, but the App Store is supposed to sell more iPhones, iPod touches, and iPads. And so far, you would have to admit it's working well.

Piper Jaffray estimated 81% of apps downloaded were free as of June 2010, and the average price for a Top 50 paid app is $1.49.

On that basis, from the $1.49, Piper Jaffray says Apple takes home $0.23 or 14% of the sale.

The credit card companies do equally as well as Apple on each sale. Processing costs about $0.02 and the Developer (as it should be) is the real winner at $1.04, about 70%.

(Note: Apps on the iPad are more expensive, with ASP of the Top 30 averaging $4.66.)