iOS: Where the money is

February 23rd, 2011

Wow, it has been a while… if you’ve been breathlessly reloading this page for months waiting for a new post, well, your wait is over! Enjoy this… minor comment on a news item.

Amidst the recent hubbub over Apple’s decision to charge publishers 30% of revenue for in-app subscriptions, and to require that such subscriptions be the same price or cheaper as subscriptions outside the app, many online commentators are convinced developers will flock to Android instead. However, one need only look at the facts to get a different impression:

The App Store now controls 82.7% of the worldwide app market [with $1.8 billion in 2010], down from 92.8% the previous year, IHS notes. Research In Motion’s (Nasdaq: RIMM) BlackBerry App World is second with 2010 revenues of $165 million, translating to a 7.7% market share and year-over-year growth of 360.3%; Nokia’s (NYSE: NOK) Ovi Store is next at $105 million, corresponding with 4.9% market share (up 719.4% year over year), with the Android Market bringing up the rear at $102 million, accounting for 4.7% of the market but experiencing 861.5% annual growth (emphasis mine).

30% more of zero is still zero.

» Apple’s App Store Yields 83% of App Revenues in 2010 (via Apple Outsider and Daring Fireball)

It's hip to use Square

Sci-fi convention vendors, street mimes and hot dog cart owners, rejoice! Square, the mobile credit-card-swiping system announced late last year by Twitter co-founder Jack Dorsey, is now open for business. The rare company whose name, logo and product are all the same thing, Square offers a slick and simple method for accepting credit cards through an iPhone, iPad or Android phone, no merchant account or confusing accounting scheme required. That’s right, you can now accept credit cards as a buy-in at your weekly poker game, and when someone says, “Dude, I’ll give you twenty bucks for that t-shirt,” you can say, “Visa or Mastercard?”

Everything about Square screams simplicity, from the cute little card reader you plug into the headphone jack, to the service itself, which sports a beautiful and incredibly straightforward user experience, to the fee system — 2.75% + 15ยข per transaction for swiped cards, period. It also does lots of things the traditional credit card process should do, like email receipts and show the merchant a photo of the card holder for verification. You’ll want to get one just to try it out, and there’s really no reason not to — the reader, app and setup are all free, and available today. Now you just have to come up with something worth buying.

» Square Web site (and Fast Company, via Gizmodo)