Apple App Store as developer business model

Summary:How to make $364 a month writing software: One good app in an app marketplace could bring in thousands of dollars a year. Imagine how this is reshaping the software industry.

In previous posts at this site, we talked about the phenomenon of "Micro ISVs" -- small software shops, enabled by service-oriented technologies and cloud -- building and posting individual services and making a few cents or dollars on each download of the service from some type of app marketplace. Soon, it all adds up.

Recently, Mark Maunder, founder and CEO of Feedjit, made an effort to add up all the possibilities, calculating the potential income a developer shop could make from posting an app at the Apple App Store.

He calculates that on average, each app posted brings in $4,000 to $8,000 to its publisher. He bases this calculation on the $3.64 average price for each paid apps, along with 244,720 paid apps, published by 85,569 unique developers.

Get up to 100 apps in the store, and you have a decent-size startup. In fact, we have the potential for creating software startups that no longer require bank loans and venture capital funding -- just a lot of micro-streams of revenue.

Apple is riding the wave of a new realm.  We're evolving into a technology economy in which companies and individuals alike are accessing on-demand services from a range of providers, including one-person development shops, small ISVs, large ISVs, systems integrators and consultants, and even the IT departments of non-IT companies.

(Photo: Wikimedia Commons.)

Topics: Apple, CXO

About

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He speaks frequently on cloud, SOA, data, and... Full Bio

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