Anyway, now you know why I have been silent for a few days. The thing on my mind fora  good while now has been the AppStore craze. I think it is fabulous that Apple has sold 1 billion apps. But I think it’s madness for each and every one to give up their day-job in order to become an iPhone App developer (or any other platform with a newly opened appstore for that matter). Apple has been quick to use a few lucky ones as showcases of one-man shows that have had success. It is great and they really deserve it. What I am saying is that they are not the majority.

The underlying problem is still there and the appstores are just a new pain killer, possibly doing the job better than other things before them. The problem is the fragmentation in platforms. The lowest common denominator in mobile today is SMS. But it has its limitations in creating exciting experiences other than flirt SMS from that gorgeous girl on campus or delivering sports scores live.

After that we have browser based services, or mobile internet services formerly known as WAP services. It’s getting messy, but it is still manageable.

When we come to apps the fragmentations really sets in. And the entry cost to the game starts to be prohibitive. Some developers I talk to claim that they see costs as high as 50 000 USD to launch one new game app on a major US carrier. This is of course driven by demands to cover every handset ever sold by the carrier (well, almost).

The costs are dropping with the AppStores. Seems like Ovi store is the cheapest entry ticket at the moment, but it is also the most recent player with an unproven distribution power, and they are currently cutting down on resources in this area, even though they claim Ovi is becoming the platform for all their new service business to consumers. Read more about that in this Washington Post article.

So if you’re going the appstore route, think twice an make sure you do your homework. We are after all in a business with low value purchases and thin margins, so volume will always be key. And the appstores are getting crowded fast. You need to have a pretty strong marketing budget bhind you to get your app in front of real prospective buyers.

Good luck and see you next week!

Had some time over the holidays to walk through the AppStore with my iPhone. Found a few gems. This is not a “best iPhone apps of the year” post though.

My point is how smooth and easy the entire discovery and purchase experience is. There is second to none of all other channels for mobile apps that can compete. This makes me excited if we can get better discovery and shopping experiences for all mobile handsets. After all the iPhone ecosystem is a pretty closed system. Herein lies my skepticism. 10 m handsets is little in a world of 4 billion mobile users. How do we expand this to the “free mobile world”?

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For this very matter we have been very slow in developing any apps over at Acemob. We focus mainly on browser based services to be able to offer the right balance of great experience and a viable model for us. Being bootstrapped we have to earn the money we want to spend, and we have rents to pay and families to feed. But I would love to release cool apps as well but that takes some guts these days. If there was more transparency and clarity around the AppStore process and average cost to launch something there it would help. I agree with Michael as well that a proper ecosystem would probably give a huge boost to invention as well.

Happy Friday all!