Notice how Apple has relatively quietly slipped in the App store for Macs, as well as for iPads and iPhones? I bought an App – works really well – why would I buy software in a store anymore? Indeed, why would I buy software from an untrusted website when I can buy software for a few dollars from a trusted site – the Mac App store?
This will change everything.
To illustrate the power of Apple Apps, a recent report from Distimo provides the following statistics:
- Apple grew the most in 2010 in terms of the absolute number of applications in the United States, however the runner-up’s show more growth in terms of percentages. The Apple App Store for iPhone doubled it’s total during the past year to almost 300,000 applications, while the total number of applications available for Google Android Market today, almost 130,000, is 6 times the number of applications available one year ago. BlackBerry App World and Nokia Ovi Store showed triple digit growth in the last year as well, to nearly 18,000 applications and 25,000 applications, respectively.
- The high download volumes of free applications appear to attract developers to switch to monetization methods other than paid.
- The top 300 free applications in the United States generated, on average, over 3 million downloads each day during December 2010, while only 350,000 paid applications are downloaded daily. However, paid downloads increased almost 30% more than free downloads in the top 300 when comparing the download figures of December 2010 to those of June 2010.
- Comparing June data to that of December in the United States, we see that the share of revenue generated by in-app purchases from the most grossing free applications more than doubled for both the iPhone and iPad. At the same time, it becomes clear that the share of revenue generated by in-app purchases from free applications is much smaller on iPad (15%) compared to iPhone (34%).
- It is important to note that while the proportion of free applications grew, the average price of the applications also declined. A decline in price can be observed in the 100 most popular applications in the Apple App Store for iPhone, BlackBerry App World, Google Android Market and Nokia Ovi Store.
You can download the full report from my library here.
What makes Steve Jobs the driving force behind innovation at Apple? Is Apple’s model of innovation broken, in that they rely so heavily on Steve, or is the rest of the world’s model broken, in that they do not have a “Steve Jobs” on board?
To me Apple and Steve are anomalies. The rest of the world is heading down the connected, open innovation path, and innovation@Apple still centres around Steve.
Look at the fuss made about the following email, sent out to Apple employees on Jan 17. Its all over the press, and an email like this can dramatically affect share price.
At my request, the board of directors has granted me a medical leave of absence so I can focus on my health. I will continue as CEO and be involved in major strategic decisions for the company.
I have asked Tim Cook to be responsible for all of Apple’s day to day operations. I have great confidence that Tim and the rest of the executive management team will do a terrific job executing the exciting plans we have in place for 2011.
I love Apple so much and hope to be back as soon as I can. In the meantime, my family and I would deeply appreciate respect for our privacy.
It will certainly be interesting to see what happens to Apple once Steve retires permanently. Perhaps then we will have a better insight into the innovation engine that drives Apple – is it the ultimate innovation model we all need to adopt? Or not…….
Lots of companies talk about customer centricity. And many companies use multiple mechanisms to attempt to tap into the customer’s brain and way of thinking. One of the best examples is Procter and Gamble. They use a range of processes to understand the customer by watching, listening and observing their customers’ behavior.
Steve Jobs does it differently. Steve Jobs has, I believe, the unique gift of being able to see into the future – to predict what the customer will want 2-3 years out. And of course, what is uncanny about his ability is that, if he asked the customer today what they wanted, the customer would not be able to articulate it. Would anyone have asked Apple to create a device that would revolutionize the music industry? No way. Would a customer have been able to describe the iPhone interface for Apple to build? No way.
I am a firm believer that a very very deep understanding of customer behavior is a necessary condition for the success of any business. We are fortunate to live in the same era as Steve Jobs, who can, I believe, project the customer’s expectations into the future in a way no one else can do. And that is significantly amazing.
There is a great article on Steve in the magazine Seeds of Success. It’s worth a read.