KEY POINTS:
Apple has made it abundantly clear that the Apple Store is a significant part of its mission plan, both in the virtual world (the iTunes Store and the online hardware and software stores, like www.store.apple.com/nz) and in the real world, with its brick-and-mortar Apple Stores and through careful management of hundreds of third-party Apple resellers around the world.
Apple's retail model is complex and adds considerable depth to the Apple experience - in fact, the iTunes Store's music is part of what makes an iPod worth having, while the App Store portion of iTunes for iPhone and iPod touch applications is absolutely integral to the success and utility of those devices.
This is widely acknowledged, for example: "one of the most revolutionary advances that Apple offered up isn't in the iPhone itself: it's the mechanism the company developed to distribute non-Apple applications to iPhone and iPod touch users," said Computerworld.
Indeed - as the iPhone is a usable, rather than brilliant, cell phone. It's the other things you can do with it that make it so popular. To me the phone is the least used part, but I would rather loose my right arm than my iPhone.
As noted recently, Apple is slowing in the US as far as sales go, while international sales redeemed Apple's figures for the last quarter. This includes, of course, retails sales of iPods. Microsoft's Zune, a pretty cool media player by most accounts, is only available in the US and Canada, or online.
Adam Sohn, the Zune's director of marketing for Microsoft, recently listed several factors which have contributed to the large drop in Zune sales. This was reported in the Seattle Tech Report.
There's that international sales factor (or lack thereof), the recession of course, and Sohn also blames the Zune's product lineup this season.
But Sohn insists that's going to change and that Microsoft hasn't given up on the device category. Since Microsoft has huge muscle, not only are new Zune versions expected to ship soon, but maybe Microsoft will venture out into international markets with it, too? It's worked for Apple.
Of course, the other thing that's worked for Apple is the App Store. The App Store is great from a consumer point of view, but the app developers like it too, as it's fast to market and produces quick financial returns.
Microsoft has created a portal for Windows Mobile applications already, but will Microsoft back up the Zune with something comparable to the full-on Apple App Store? Yes. CEO Steve Ballmer said so himself, late last year in Australia during the question-and-answer portion of an event Microsoft dubbed 'Liberation Day' for Australian developers.
He said Microsoft will soon launch a service that will let programmers sell their wares directly to consumers. Presumably Microsoft will take a cut on the way through - I think Apple gets a flat 30 per cent of Apps sold on iTunes and directly into iPhones and the touch.
Since developers have been pretty convincingly enthusiastic about getting their software into the App Store, you can imagine this would have been music to the ears of those in range of Ballmer at this conference.
An online store really backs up an international sales model, of course, as long as it's coupled to good distribution.
The greatest compliment, indeed. It's not just Microsoft looking at the App Store. Computerworld says the concept is being copied by virtually every company that develops smart-phone operating systems. Google Inc has launched a store for applications for its open-source Android smart phone system, Palm launched its own app store, and RIM has announced it will develop a store for BlackBerry users.
Of course, while Microsoft is, let's say, evaluating some of Apple's successes, why not put a phone in the Zune to, a la iPhone, and be done with it? There have been rumours of that too - in fact, Sohn insisted Microsoft was ".. on track to deliver the next generation of Zune innovation in software and hardware." We'll soon see just what that means.
Meanwhile, how's the Blackberry faring compared to the iPhone? According to recent figures, Research in Motion's new Blackberry Storm sold 500,000 units in its first month on the market. That's not bad (Apple sold 2.4 million Apple 3G iPhones in the first three months on the market).
All this ends up to better service for consumers, whatever their platform of choice. Hoorah for that. But going by past history, it won't be long before people forget it was Apple that made the whole thing successful in the first place.
- Mark Webster mac.nz
