iPhone apps to be sold through iTunes store
Back in October we hypothesized that Apple was going to use iTunes to securely deliver apps to iPhone and iPod Touch users. We thought this would work in the same way that users currently buy and download ringtones, songs and TV shows: "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." Greg Joswiak, Apple's iPod and iPhone marketing VP confirms our hunch in an interview with Fortune.
"Of course what we want to make sure we've done is keep the phone safe and reliable, and that's why it's taken us a little while to get this SDK out," Joswiak said. These security concerns are significant in a phone that can't crash as frequently as our Macs do. I suspect the vetting process that apps will need to pass to be released to the general public will be necessarily strict — I have personal experience with a Windows Mobile phone crapping out on me because of badly written apps.
The article doesn't mention our theory of Apple taking a cut on revenue from app purchases, but we stand by that analysis. Apple gets a small percentage of everything else. The iTunes Store — it dropped "Music" from its name some time ago — would be a one-stop-shop for music, movies, TV shows and applications, and give easy access to apps from the Wi-Fi store. Selling apps would be a further strengthening of the tripod of revenue Apple has set up for itself. We should learn more details of the February SDK rollout at Macworld Expo in mid-January.
