“Why can’t all iPhone apps be free? Well, quite simply, because people are still willing to pay for them. Apple currently generates most of its revenue from up-front sales — whether it’s for MacBooks, iTunes or iPhones. And the pay approach for mobile games, ring tones and videos has long been used by other tech purveyors… ‘It is a historical business model,’ notes Kevin Burden of ABI Research. Buyers are willing to pony up, though, because of the cachet of the Apple brand,” Anita Hamilton writes for Time Magazine.
“Charging up-front for applications also gives Apple an edge with developers. “Part of getting developers to focus on your platform is making sure they will make money off of it,” says Burden. While this arrangement forces consumers to shell out for programs they may use only once, the economics of the iPhone App Store are much more attractive for developers. Normally, wireless carriers control the pricing and selection of the apps available for their handsets, paying developers no more than 40% of the proceeds. Apple, on the other hand, will give app makers 70% of all sales,” Hamilton writes.
“Few companies have figured out how to turn a profit by relying solely on mobile ads for revenue. Mobile marketing brought in less than $500 million in the U.S. in 2007; compare that to online advertising, which made $21 billion. For many developers, it’s just not worth the risk,” Hamilton writes.
Hamilton writes, “If Apple ever did decide to let all iPhone apps be free, it would be a radical departure from its typical way of doing business.”
Full article here.
Before you bang something out for Time Magazine (and before you slap it online or on paper, Time) shouldn’t you at least attempt to understand what you’re writing about? It’s simply not within Apple’s purview to decide if other companies apps are for-pay, ad-supported, or just totally freeware. Apple cannot “decide to let all iPhone apps be free.” Unless they’re going to buy out every developer in the world first. Obviously, that’d be quite impractical. Developers already have the choice to pursue the business model they feel will work best for their app.
“Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.”
Why can’t someone mow my grass for free?
They want to move more and more to a socialist/communist government.
They can’t learn from history that it just doesn’t work.
Russia- 1918 to 1970s. Everybody works for the government and the government will provide everything.
You want to stand in a line for toilet paper?
Another line for beer? Oh sorry, we just ran out today. Come back next week.
Another line for crappy potatoes?
Ya know, I think I’m gonna take it easy at work this week, cause the government don’t pay me enough. His buddies see him get away with it and then they all do it.
Vodka supplies go down. Now the lines for that are twice as long.
Journalists think if they write it, it can come true.
It just has too!
Really.
Like managers who give an artist the worst picture ever and say, “You can Photoshop that right?”
Ms Hamilton
Obvious it’s probably been a while since you bought new software, but I gather that most or your research is conducted on Googling and visiting Facebook.
Imagine going to Macy’s and only having to pay for many of their goodies but the rest were free. What a rip off that would be. Since your mag has ads in it, it should be free too. Or better yet those that advertise in your mag should give their products for free too.
Better yet, Time should start hiring more intelligent writers so we didn’t have to read such dribble. Now that would be a great bargain
Why can’t everything be free? Why can’t everybody be nice? Why doesn’t money grow on trees? Oh my… I think it’s time for my meds again…
The itunes store does allow for free apps (no charge for the creator or the downloader). I’m sure we’ll see ports of popular freeware to ipod touch/iphone.
“The itunes store does allow for free apps (no charge for the creator or the downloader). I’m sure we’ll see ports of popular freeware to ipod touch/iphone.”
yeah, but greedy Apple still charges 30% don’t they!
and 30% of nothing is….. carry the 2….. ummm…..
wait, doesn’t the software update have a scientific calculator? right, i will get back to you on that amount in about…. 2 weeks.
“for a magazine that’s bleeding like Kate Hepburn doing needlepoint”
god thats great Grok
“I guess two of my favorite axioms still hold true.
Time = Money
Time is meaningless”
Time is only Money if you have a job. Some people (eg. MDN posters) may not.
Why would Time be meaningless? That’s a stupid saying.
Unless of course, you just pulled it out of your ass to make a childish comment about the article.
Shit, I ALWAYS work for free.
Come to think of it, what’s this thing called money?
I’ve heard it mentioned from time to time…
@qka — couldn’t a developer offer in AppStore
– limited version (time or features) for free
– full version for a price
My parents have Time mag in their bathroom, which I always thought was fitting: if you run out of TP, Time mag is a second rate alternative…
You like to get paid when you go to work don’t you, you have bills to pay, so do developers. Also to do professional apps take time, people for all phases of development, and gear to test on.
It amazes me how so many thing anything that can reside on a computer should be free. Music, movies, software, just because you can’t touch or see the bits doesn’t mean they don’ t have value.
Eh, ad revenue on the web did not always make this much money, in the past it was a losing mans game.
Think to the future dumb ass things change. Here is my favorite saying of the WEEK:
The only certainty in life is CHANGE
All apps are not free because businesses have developed them.
These businesses need to make money to survive, if they don’t make money they close down and people become employed, lose their homes.
Basic laws of economy.
I would love for everything to be free, but in the real world this will never ever happen.
Must be a slow news day eh MDN? – this is a non subject, you might as well have asked why do we breathe air or why do we have skin – pretty crap article and not exactly news is it?
I DEMAND that Time Magazine be given away for FREE and that its’ ‘writers’ should not be paid at all.
Free dont pay the bills.
I will give my software away for free, the day my mortgage is free, I can feed my kid for free, gas and cars are free, my tools are free, etc. etc.
OMFG what a stupid question.
In fact, when you find a piece of software useful, you’re better off if it isn’t free (or too cheap.) Why? Because you want the person/organization behind it improving it as their day job, not their hobby.
btw, ad-supported ain’t free either… internet ads are getting more and more annoying and look how many (myself included) will gladly PAY for tv shows without ads.
Good grief, what does it take to be a journalist these days? I’ll tell you what, I’ll happily write programs for free if I can go to the grocery store and get my food for free, and watch tv for free. Heck, let’s just do away with money and let everything be free!
All apps can be free…if you jail break your iPhone or iTouch. I’ll have to see what Apple’s offering July 11th and decide whether or not I want to restore my iTouch (I like saying it that way just to make all of the purists cringe.) and go back inside Apple’s walled garden or continue to play outside of the fence.
Price, availability and ease of use is what I’ll be looking at, and I bet a lot of other people as well. I’m just glad to have choices.
But two apps and the next app of equal or lesser value is free. Happy now?
They’re also not free because the iPhone is not a smart phone – it’s a hand held computer with cellular capabilities, and as a computer we’re undoubtedly going to see a wide range of software products coming out that will include everything from high-end apps to shareware to freeware – depending on the goals and services being offered by the developer. I think the days of goofy so-called “smartphones” is beginning to come to an end. Oooo, I can take pictures and upload them – Oooo, I can actually upload my pictures – Oooo, I can “browse” the internet, even though it’s nearly useless and doesn’t conform to any standard browser interface.
Nope, now and/or soon I will be using my full blown personal financial manager, now I am using a real web browser, awesome games and lots more coming soon, remote controlling high-end production software tools like ProTools, video editing coming soon, and all of this along with the best implemented set of standard PDA-like tools of any PDA or so-called “smartphone”.
Just like the vast majority of computer using/making drones have never gotten the whole Apple thing, the same will go for a long time for the idea that: You’re not holding a phone stupid – You’re holding a computer!
If I recall correctly, Apple stated that it will host freeware iPhone apps at no charge (despite the fact that it costs Apple to do so). So Apple is doing the right thing by consumers and the prices for apps will vary by the laws of supply and demand.
Shareware approaches may be implemented eventually, but Apple has a history of starting with the simple approach and adding functionality incrementally, and only when it makes sense.