The original iPhone, as innovative as it was, did not fully grow into the device we know it today until July 2008, when iPhone OS 2.0 was released. The free software update, compatible with the first generation iPhone and preinstalled on the iPhone 3G, let the App Store.
The new service provided developers with an avenue and tools for building apps or games and selling them directly to users on Apple's mobile platform. As at that time, iPhone and iPod touch were.
Until today, millions of iOS users visit Apple's App Store to download apps and games every single day. The downloaded software has the ability to completely change how a person uses iPhone or iPad, and in some cases it may change the person's life. It's hard to remember iOS without the App Store.
What's even more impressive is Apple's internal view of the App Store only 30 days after it was released. About that time, Apple co-founder Steve Jobs Nick Wingfield invited a Wall Street Journal reporter to Apple's Campus to talk about the App Store.
Jobs agreed to let Wingfield record nearly 50 minutes of interview. On Wednesday, Wall Street Journal and The information published a transcript and the original sound of the interview for the first time.
The entire interview is full of interesting treats and insights into Jobs and Apple's overall approach to the App Store. At the end of the interview, it was clear to me that although bullish on the future of mobile phones, even Jobs did not predict just how much impact the App Store would have on not only Apple but the entire industry. 1
At the same time as Apple launched the App Store, Google was ready to release its first Android devices and announced its Android Market, reaching the Google Play Store at the same time. Apple's app store launched in October 2008 and took years for Google's store to get apples to Apple in terms of quality and app selection. Other phone manufacturers at the time tried to replicate the App Store, which all failed.
On the 30th day, the App Store had $ 30 million in revenues that exceed Apple's internal forecast and expectations. Asking about the App Store's first month had exceeded the company's revenue, Jobs wondered about the future. "Perhaps there will be a billion dollar marketplace at a time. This does not happen very often. A whole new billion dollar market opens: 360 million [yearly run rate] in the first 30 days, I have never seen such a thing in my career for Software, said Jobs.
In June, just before the 10th anniversary, Apple CEO Tim Cook announced that App Store has exceeded $ 100 billion in revenue for developers.
The demand for music over the app
Jobs never came out and said that, but listening to the interview, you get the feeling that Jobs thought iTunes will always be more successful than the App Store.
When asked about the App Store's revenue that exceeds iTunes, Jobs turns down the App Big's growth, says: "Music is a two and a half billion dollars-dollar a year for us. I'm excited about $ 360 million a year round. We dance on the roof if we go over half a billion. Perhaps one day we come to one billion. "
Apple combines revenue from iTunes and the App Store under Services in its revenue reports, making it difficult to definitely compare the two revenue streams. But with users spending $ 300 million on New Years Day 2018 alone, it's safe to say that the App The store has exceeded iTunes.
Part of this may be due to Jobs who believes that there was still a dedicated music player needed, and said "I think there will be two types of devices in the music area. One should only be the clean-developed music apparatus. People want music, maybe music videos, maybe occasional movies, but they really want music. "
Software As Differentier
App Store was built as a means of separating iPhone from the competition, with Jobs Viewer as the selling point for Apple products.
" Well, our theory on iPhone is that phone differentiation used to be about radios and antennas and such things. We believe in future that the future's phone will be differentiated by software, "he says.
This statement was absolutely true at that time. I remember to review BlackBerry phones and compare call quality and signal strength compared to older BlackBerry phones and imported Nokia phones, while no software was mentioned, if not at all. In 2008, software was really what put iOS (then iPhone OS) apart from Android, BlackBerry or Nokia.
By 2018, however, we have come full circle. Software differences are now divided into where app icons can be placed on the device's home screen and how many apps can run at the same time. Instead of radios and antennas, we now compare cameras, display quality and battery life.