“Apple Inc. faces a growing threat to its iPhone business, as renegade stores spring up online to sell unauthorized software for the device,” Yukari Iwatani Kane reports for The Wall Street Journal.
“The developer behind some popular iPhone software on Friday plans to open a service called Cydia Store that could potentially sell hundreds of iPhone applications that are not available through Apple’s official store. Users must download special software that alters their iPhones before they can run these programs,” Kane reports.
“Another small company plans a store called Rock Your Phone for iPhone users who have not yet modified their devices to make it easier to download and buy unauthorized applications. A third start-up is building an online store that specializes in selling adult games for the iPhone,” Kane reports.
“When Apple opened the App Store, it provided the building blocks so independent programmers could create software that worked on its phone. But the company said it would vet submissions to maintain quality control and to protect the user experience,” Kane reports.
“Apple, which collects a 30% commission from sellers on its store, doesn’t break out the site’s revenue. Brokerage firm Piper Jaffray estimates the site generated about $150 million in sales last year and projects total sales will grow to $800 million this year,” Kane reports.
Read more in the full article here.
[Thanks to MacDailyNews Reader “oh my” for the heads up.]
