BUYING GUIDE.
Developers are making money from Apple's App Store, and one is sharing just how much success it has had developing for the iPhone -- a success story that provides a clear indication of how Apple is bearing fruits from its own labor and the labor of the developers behind its more than 100,000 apps.Developer Tapulous has raked in more than $12 million from some of its most popular applications, including Tap Tap Revenge (the first gaming franchise on the iPhone), Collage, and the music-based Weezer, according to the Palo Alto, Calif.-based company.
Tapulous has more than 17 million users, and it has been number one on the App Store three times with its Tap Tap Revenge 3. At one point the application was number one for 20 consecutive days.
Other iPhone developers, including Marina del Ray, Calif.-based Gogii, are also benefiting from their acceptance into the App Store. Gogii's app, TextPlus, has been downloaded more than three million times to date, according to Margaret Bensfield, Gogii's spokesperson. TextPlus allows several users to jump on to one texting session and communicate with one another in a chat room-like environment. The application has also maintained a Top 50 or Top 100 chart position for six months.
"Based on the metrics we've seen, it's safe to say our TextPlus app has achieved an exceptionally high degree of success compared with other apps," said Scott Lahman, CEO of Gogii. "Consider the fact that only the top five percent of apps in the Apple App Store reach 100,000 unique monthly visitors."
Majority or Minority
The privately held, angel-funded Tapulous may be generating $1 million a month in sales, but it may not be a fair example of how the rest of the iPhone developers are doing. Analysts say without Apple coming forward with more information on the financial success of its App Store, it is difficult to determine whether Tapulous and Gogii are minorities or reflect the majority of developers.
"It's hard to say these are typical results, but [they] show what's possible when creative minds tap into the power of direct distribution to the end user," said Michael Gartenberg, an Interpret analyst.
Whether developers are getting rich from their iPhone applications or simply making ends meet, the success stories of companies such as Tapulous show that Apple's store has potential.
"Despite much criticism about Apple's approval process, this shows exactly how Apple's model has been well received by developers and why developers support the platform," Gartenberg said.
Earning Potential
Since Apple has a proven success with its App Store, others have followed, giving developers several platforms from which to choose. LG launched its Application Store, Samsung launched the Samsung Application Store, and Google came out with its Android Market -- not to mention Nokia's Ovi Store and Palm's App Catalog.
With a handful of platforms to consider, developers must choose wisely. While the earning potential does not stop at writing applications for Apple's iPhone, developers say it is difficult to dedicate time to write for more than one platform, and they must select the one that makes the most sense financially.
Patricia Resende, newsfactor.
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