How developers — and Apple — will make money on iPhone software
After months of enduring whines from programmers, Apple has announced a software development kit for the iPhone and iPod Touch. Scheduled for release in February, the kit — a set of code libraries and specifications — will let them write programs that run on the iPhone instead of limiting them to Web-based applications. Apple is looking to provide an "advanced and open platform" while at the same time protecting users from malware and viruses and the like. Our guess at what's really going on here? Apple is building an iTunes-based platform to securely deliver apps to users. From movies to music to software, Apple is plotting a way to keep itself in the middle of any money-making transaction on its hardware.
Distribution through the iTunes Store, with mechanisms for purchasing and updating applications either by synching to a computer or downloading over Wi-Fi, would be the easiest way to load apps. iPod games are already purchased from iTunes and loaded onto iPods when they're plugged in.
Apple users are used to paying a premium price. This willingness to shell out bodes well for iPhone app developers. Since apps will be authenticated and acquired through iTunes, it will be easy to charge $5 to $10 for games and applications — and perhaps more for business applications. Rumors of high-level developers like Electronic Arts having access to an early version of Apple's SDK have been floating around for weeks. Look for a bunch of commercial products to be announced as available on iTunes soon — perhaps at Macworld San Francisco in January.