famousringo said:
It's true that the attach rate is low, but cheap development and distribution still allow for enormous profit potential. And then you can consider the growth potential of 30 million customers. People may not be paying much for software right now, but the hardware barrier is already out of the way. You just need to make something that people feel they have to have on their iPhone. |
Actually, the attach rate is anything but low: 30 million devices and 800 million downloads equals 26.67 downloads per device, in 8 months. Even if you assume that 80% of that is free programs (which might be close to reality), it's still 5.3 paid apps. The attach rate is not low, the revenue per download is. But some apps are hits and sell huge numbers, and those success stories fuel the devs in both good and bad. The market is still taking the first infant steps, imagine where it will be when it grows up.