"There are now more than 25,000 programs, or applications, in the iPhone
App Store, many of them written by people like Mr. Nicholas whose
modern Horatio Alger dreams revolve around a SIM card. But the chances
of hitting the iPhone jackpot keep getting slimmer: the Apple store is
already crowded with look-alike games and kitschy applications, and
fresh inventory keeps arriving daily. Many of the simple but clever
concepts that sell briskly — applications, for instance, that make the
iPhone screen look like a frothing pint of beer or a koi pond — are
already taken.
The rush to stake a claim on the iPhone is a lot like what happened in
Silicon Valley in the early dot-com era, said Matt Murphy, a partner at
the venture capital firm Kleiner Perkins Caufield & Byers who
oversees the iFund, a $100 million investment pot reserved for iPhone
applications.
The mobile frenzy hasn’t gone unnoticed by other major cellphone and software companies. Last week, Research in Motion
opened an application store for the BlackBerry. Google recently began
selling applications based on Android, its operating system for
cellphones. Nokia is in the early stages of opening a store for its handsets, and Microsoft is creating a store for phones running Windows Mobile."
Here's the complete article.
Even more important than the above article comes from the NY Times technology section: "Will the iPhone 3.0 Fuel a Second Gold Rush?"
"Apple’s new version of phone software, expected to be released
publicly this summer, will allow developers to employ several new ways
to monetize content and build new business models beyond mobile
advertisements and charging a flat fee per download. In particular,
developers will be able to sell subscriptions and allow users to make
individual purchases from within the application itself.
Those changes might only benefit professional developers and larger
gaming companies like Sega and Electronic Arts with the resources to
deliver extras worth paying for, like secret gaming levels and
expansion packs, warns Erica Sadun who has authored several books about
coding for the iPhone, including one on the newest software changes.
“Right now, it’s pretty hard to make back your development cost at a $1
per application,” she said. “You have to sell quite a few applications
to do that.” With the changes, she said, developers can still entice
iPhone owners with a lower upfront price and introduce upgrades and
offers within the application that will generate additional revenue
over time."
Complete article here.