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Oct 06
October 6, 2009 (Computerworld) While the Google-backed Android mobile operating system currently runs on less than 2% of all smartphones, Gartner Inc. predicts it will surge to 14% of the global smartphone market in 2012 — ahead of the iPhone, as well as Windows Mobile and BlackBerry smartphones.

In that year, Gartner forecasts Android will actually rank second globally, behind the Symbian OS, which is used in Nokia devices that are highly popular in Europe and many countries outside the U.S. Symbian now runs on about half of all smartphones, but will fall to 39% in 2012, Gartner says.

The Gartner forecast gives Android such an enormous surge in popularity because of a variety of factors, but chiefly because of Google Inc.’s backing of Android and the range of cloud computing functions and related applications that Google will make available in coming years, Ken Dulaney said in an exclusive interview with Computerworld.

While the first Android product release, the T-Mobile G1, only won a lukewarm response, Android 1.5 (code-named Cupcake) is well thought-out, Dulaney said. Other expected improvements in Android for its application store and development environment will be “backed by the power of Google’s search engine,” he said. “Google’s other up-and-coming consumer and enterprise products should make[Android] a dominant platform.”

And because Android and Google operate in an “integrative and open environment, [they] could easily top … the singular Apple,” he said.

Android will also run on phones from several manufacturers, helping its growth, especially when compared to the iPhone, Dulaney said. In 2010, as many as 40 models of Android devices will ship, and the next OS update, code-named Donut, will ship in the second quarter, Dulaney predicted.

As an early example of how Android should be successful, Dulaney pointed to Motorola’s Cliq, with its Motoblur interface that he said “handles communications very effectively.”

To explain, Dulaney said that smartphone interfaces seem to have headed off in two divergent ways, with iPhone’s heavy focus on applications compared to Windows Mobile’s and Symbian’s focus on smartphone tasks and communications. But Android, he said, “has blended a focus on applications and tasks pretty well.”

Android’s interface allows a user to perform frequently needed tasks without going back to the top of the logic tree to switch between tasks, he said. Makers of Android “have done a good job of knowing how you work on a phone,” he said.

Dulaney will share his smartphone forecast and views on mobile OS battles during his popular annual presentation at Gartner’s Symposium ITxpo, which runs Oct. 18-22 in Orlando.

The complete Gartner forecast for smartphone OSes by the end of 2012 puts Symbian on top with 203 million devices sold, and 39% of the market. Android will be second with nearly 76 million units sold, and 14.5% of the market.

Coming in a close third, the iPhone will ship on 71.5 million devices in 2012, giving a 13.7% market share. Windows Mobile will finish fourth, with 66.8 million units sold, or 12.8% of the market.

Very close behind Windows Mobile, the BlackBerry OS will sell on 65.25 million devices in 2012, Gartner forecasts, making it fifth with 12.5% market share.

Various Linux devices will sell 28 million units, at 5.4% market share, in sixth place. Palm Inc.’s webOS will sell on 11 million units in 2012, about 2.1% of the market, in seventh place, Gartner says.

Android will have moved up the most from 2009 to 2012, from sixth place to second. BlackBerry will have moved down the most, from second to fifth, while iPhone will remain in third position and Windows Mobile will remain in fourth position, Gartner says.

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Sep 10

By Yukari Iwatani Kane

Apple has quietly introduced a new category on its iPhone App Store, in yet another acknowledgment of a shortcoming in its otherwise successful store.

screen-shot-2009-09-13-at-114114-am

AppleAn update to Apple’s iTunes shows the top-grossing iPhone apps.

The Cupertino, Calif., company had announced at an iPod event in San Francisco earlier Wednesday that it added a Genius feature to the App Store that would make app recommendations based on those that users already have. That was meant to solve a common complaint that it’shard to find good apps in the store, which some say is cluttered with over 65,000 apps divided in just 20 categories.

Another change, which was not formally announced, adds a “Top Grossing” category in addition to existing “Top Paid” and “Top Free” categories on the store. That change responds to developer complaints that expensive apps get buried in the “Top Paid” category because that ranking is based on the number of downloads, rather than total revenue generated from distribution of a piece of software.

That’s a problem because developers need to keep apps cheap to make sure that download levels are high enough to get on the top lists, which are the most popular way of reaching users. That also gives developers less incentive to invest a lot in terms of time and money on creating higher quality apps.

If developers suspected that the lists would look different, they were right. According to the “Top Grossing” category today, the No. 1 app wasSmule’s $2.99 I Am T-Pain auto-tuning app, followed by e2ndesign’s 99-cent AppBox Pro, a set of 18 convenient app tools such as a currency converter and tip calculator, and Electronic Arts’ $7.99 Madden NFL 10 football game.

In the plain “Top Paid” category, measured by download volume, the cheaper AppBox Pro was No. 1, followed by I Am T-Pain. EA’s Madden game–the most expensive app among the three–couldn’t be found anywhere in the top 50.

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Jul 10

According to AdMob, there are many similarities between iPhone and iPod touch users in the US, especially in the demographic makeup of each group in areas such as age and household income. iPhone users are generally older. 69% of iPod touch users are between 13-24 years of age, while this same age segment represents just 26% of iPhone users. 31% of iPhone users are 35-49 years old, while only 12% of iPod touch users fall in this age segment. In total, 74% of iPhone users are over the age of 25, compared to 31% of iPod touch users.

picture-10The research also found that 5 in 10 consumers on both iPhone and iPod touch devices use the mobile Web more frequently than they read printed newspapers. More than 40% reported using the Internet on their mobile device more often than using the Internet from their computers or listening to the radio.

Loftlon Worth, vice president, comScore, concludes that “… (it is) important for marketers to understand the mobile landscape and the characteristics of the users of a particular platform or mobile device.. ”

Additional findings from the study:

  • More than 70% of users on both the iPhone and iPod touch are male
  • 78% of iPhone users have an annual household income of at least $65,000, compared to only 66% of iPod touch users with much less
  • 46% of iPhone users have children, compared to only 28% of iPod touch users

In the next six months:

  • 57% of iPhone users plan to purchase clothing, 47%, entertainment and 45%, travel
  • 61% of iPod Touch users plan to purchase clothing, 53%, entertainment and 36%, cell phones

The total sample size of iPod touch participants is 3,848, while the total number of participants in the iPhone sample is 3,454. All results were tested for statistically significant differences at the 95% confidence level.

For additional information, please go here.

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Jun 19
By A. Pawlowski

(CNN) — When Apple starts selling what it bills as the fastest, most powerful iPhone yet on Friday, the company’s latest entry will only heat up the already sizzling smartphone landscape.

Got smartphone fever? A new version of the Apple iPhone goes on sale Friday.

Got smartphone fever? A new version of the Apple iPhone goes on sale Friday.

Fans, techies and ordinary consumers eager to purchase the new iPhone 3GS may be preparing to stand in line at Apple stores around the United States and seven other countries. But they have more choices than ever when it comes to phones that act like mini-computers.

“We expect that [smartphones are] going to be the fastest growing consumer segment for quite some time,” said Ryan Reith, a senior research analyst for technology research firm IDC.

“It’s all about connecting to the outside world.”

The U.S. smartphone market grew by 68 percent last year and is projected to grow by 20 percent in 2009 and almost 25 percent next year, according to IDC. Compare four smartphones »

No wonder companies are rushing to meet the demand for sleek mobile devices that combine e-mail, data, music, photos — all in the palm of one’s hand.

Interested in something other than the iPhone? The options include the new Palm Pre, Research in Motion’s BlackBerry Storm or phones powered by Google’s Android or Microsoft’s Windows Mobile operating systems.

The key is having access to the Internet anytime, anywhere.

“Mobile Web browsing is a huge thing,” said MG Siegler, a writer for the technology news site TechCrunch. “People especially want to get on the Internet and do the things they’re doing when they are at their [home] computers, which is social networking and sharing photos.”

When it comes to mobile Web surfing, the iPhone seems to be the king. A recent report by AdMob found Apple’s device generated 65 percent of mobile HTML browsing, a statistic that didn’t surprise Siegler.

“The Web browser on the iPhone has been up to this point far superior to what it is on some of the other phones out there,” he said. “The great thing about the iPhone is that you don’t have to have a mobile specific page. You can look at the regular page and just see it perfectly fine.” Read about the new iPhone’s features

All about apps

While Apple has lots of buzz and appeal, it’s not the dominant smartphone player. The company had only about a 20 percent share of the U.S. smartphone market in the first quarter of this year, a distant second to Research in Motion’s 55 percent slice of the pie during the same period, according to IDC.

Apple is the undisputed leader, however, when it comes to mobile applications — the software programs that let users do everything from play games to track their calorie consumption and everything in between. Sign up to receive information about CNN’s iPhone app

Apple’s App Store has a whopping 50,000 applications available, and a number of its competitors recently launched their own stores in the hopes of catching up. It won’t be easy: BlackBerry’s App World, Palm’s App Catalog, Microsoft’s Windows Mobile Catalog and Google’s Android Market have only a fraction of Apple’s offerings.

“It’s pretty clear that Apple has the lion’s share of people who want to develop mobile apps. It’s a great distribution platform,” said Erica Ogg, a writer for CNET News.

Some competitors are trying to lure developers to their platforms by letting them keep more of the money generated by their apps. While Apple offers a 70/30 split — with developers getting to keep 70 percent of the revenue and the company taking 30 percent — Research in Motion is offering a more favorable 80/20 split, Reith said.

Ironically, industry observers believe Apple’s success itself may eventually drive some developers to competing stores where their apps would be less likely to get lost in the crowd and have a greater chance of standing out.

“I would think that developers would want to look at a lot of these other platforms, like the Palm Pre, because they would still be so early on in the development cycle that they could get their app out there,” Siegler said.

“If the Palm Pre ends up taking off and sells millions of units then they’re much more likely to be successful.”

Speed matters

In fact, Siegler believes the Pre could be the biggest wildcard right now because it’s the first smartphone since the iPhone to use multi-touch. The feature lets users maneuver around the interface by using their fingers — double-tapping the screen to zoom in or out, for example, or “pinching” with their thumbs and forefingers to do the same thing.

Beyond the technology inside smartphones, the focus now is also on improving the infrastructure that services them.

“You’re going to start to see in the next year Verizon and Sprint, followed by probably AT&T and T-Mobile, start to increase their networks so you’ll have Internet speeds on your device that will be almost equivalent to broadband within your house,” Reith said.

All of this technology comes at a price. The iPhone 3GS, for example, starts at $199, with a required two-year contract that will have consumers shelling out at least $70 a month with AT&T. Both Reith and Siegler don’t see the monthly fees changing any time soon, which may cool some consumers’ smartphone fever.

“Definitely more people are interested in smartphones, but I think the costs of the data plans are for a lot of people prohibitive,” Ogg said.

“Especially with the way people’s budgets and finances are today, there’s still plenty of room for the free phone that comes with your plan that does basic things.”

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Jun 08

SAN FRANCISCO (CBS 5) ― In the last two years, Apple has sold 40 million iPhones and iPod touches. And it’s not just Apple that’s cashing in. Entrepreneurs are finding a way to capitalize on Apple’s success.

At the Apple Worldwide Developers Conference in San Francisco there is a sold out crowd of 5,000. In the sea of developers, Derek Burgess and Khang Toh from Pittsburgh, Pa., who were both recently laid off, pitch a game they created for the iPhone.

“Smackbots is a robot fighting game and you just fight and have crazy fun. It’s speedy and mindless. We’re selling it for 99 cents and there will be content upgrades for 99 cents. We have more game ideas. We hope to make a company out of this,” Toh said. They invested about $2,000 of their own money and are currently in talks with interested investors.

Mark Hughes doesn’t need investors. He quit his job as a java web developer and has almost matched his old 6-figure salary developing 2 iPhone video games, Perilar and Castles, in the past year. Individuals and large companies are jumping in to get a piece of the pie and Apple makes it easy.

“Apple has taken the work out of it. I don’t have to run my own store. They do my credit processing and refunds. They handle the business side of it,” he said.

And it’s why CNET’s Brian Tong said the Apple economy is booming during this recession. He said, “The barrier of entries are so small, Joe Schmo in his garage with 200 bucks and a whole lot of time can make 100s of thousands of dollars and that’s why there’s an energy for people to be part of this whole thing.”

Not all of the iPhone applications are money makers. But, there are 50,000 applications now available in the Apple store. With more than a billion downloads, Apple takes about a 30 percent cut of the ones that are making money. And the two guys with Smackbots are proud to announce they are among that group making money. Smashbots was just released on the eve of the WWDC.

The good thing for consumers is, prices should stay low, because there will be more competition. Palm, Microsoft, and Nokia are all building application stores to go with phones running their own operating systems.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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May 08

Last night, along with the iPhone OS 3 Beta 5 update, Apple told developers that new iPhone apps would be tested to work properly on the new  iPhone OS 3.0.  If they don’t work with the new software, they wouldn’t be accepted into the App Store.

What’s interesting is that Apple’s upcoming 3.0 version of the OS contains Parental Controls.  Parents can now choose between several age groups: 4+, 9+, 12+ and 17+.  There is also the option to turn application restrictions off entirely.

This means that Apple’s already beleaguered Apps approvers are going to have to sift through the already thousands of applications to rate them based on how mature they think they are.

It also means that Apple won’t have to come down so hard on Applications like the Nine Inch Nails app that recently got rejected because of song lyrics.  It can just classify it as a 17+ App.

The news also brings into question whether or not Apple will be allowing adult orientated content into the App Store.  While there is probably a huge market for this type of app, it wouldn’t necessarily be worth the hit to Apple’s wholesome brand.  Nonetheless, I do expect to see more violent games and books with a lot of potty mouth language to fill up the 17+ section.

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May 03

Last month, Apple said consumers had downloaded more than 1 billion iPhone applications from its online App Store, and that software developers had filled the store’s virtual aisles with more than 35,000 programs.

Clearly, iPhone users love to deck out their phones with new games, friend-finders, restaurant guides, and business applications, which can range in price from free to $899. Most sell for 99 cents to $3.99. But for Boston-based companies developing software for the iPhone - even some that have found early success - it’s not yet certain that the increasingly crowded aisles of the App Store offer the opportunity to build a sustainable business.

Local companies sell (and give away) applications to help users lose weight, navigate the world of wine, remotely access a far-off desktop computer, or flirt with someone. Some ventures are creating tools to make it easier to develop iPhone apps, or offering custom app development services.

Apple pockets one-third of all app revenue, as it does with the music, movies, and TV shows it sells. The dynamics of the marketplace could change this summer, however, when Apple enables software developers to generate reve nue from their apps in new ways.

  • Perhaps the best promoter of the local bunch is Jason Jacobs, who sells an app for runners that tracks things like distance and speed. Last month, he ran the Boston Marathon dressed as an iPhone - displaying his company’s RunKeeper software, of course, and posting Twitter messages and photos along the way. (He finished in 3:55.) The free version of RunKeeper is on Apple’s list of the top 10 apps in the health and fitness category, but the $9.99 version is only in the top 30. Jacobs has been working full time on the company for a year, sans salary, and the rest of his team includes six freelancers working for equity and a small development shop that he pays on a project basis.

    More than 325,000 people have downloaded the app, which lets runners and bikers do things like use the iPhone’s internal GPS system to map out routes and share their stats with friends via Facebook. Of people who get the free version, Jacobs says about 6 percent upgrade to the $9.99 product.

    “We’re all kind of fumbling in the dark, but I definitely think there’s a big business to be built here,” Jacobs says. “Though you can question whether it will be done by the pioneers or the fast followers who come along after the pioneers run out of money.”

  • Lose It, which helps dieters count calories, is another locally produced app - the most popular weight-loss application. It was developed initially by serial entrepreneur J.J. Allaire, who sold his last company to Microsoft, as a kind of side project. There hasn’t yet been a paid version of the app, though recently Charles Teague, a frequent Allaire collaborator, left the Cambridge venture capital firm General Catalyst to work full time on future versions of Lose It - and possibly, other apps. Neither is saying much about the company’s plans now.
  • Brad Rosen created an iPhone collection of wine reviews and info called Drync, which also allows users to build a list of their favorite vintages. It originally sold for $9.99, but lately has been discounted to $4.99. Rosen says he has sold about 20,000 copies. Charging customers a one-time download fee and constantly striving to be on Apple’s lists of the most popular apps in a given category “makes it very hard to be a sustainable business,” says Rosen, who created the app with six freelance collaborators who share in the profits.

    “It’s hard in the current model to see my way to $1 million in revenue,” he says, adding that the company is profitable. Rosen also says that his hope that Drync could make money by selling small ads hasn’t panned out: “There’s no real money in advertising.” 

  • Cambridge-based Viximo is developing its own iPhone apps, like Voodoo Doll Revenge, a $1.99 app that allows you to poke virtual pins into a photo of your enemy, and also offering tools to help others create apps. The biggest challenge, says vice president Ravi Mehta, is angling for a prominent position in the App Store. ”You have to try to talk to Apple and get them excited,” he says. “In many ways, it’s the luck of the draw.” 
  • Several small firms are starting up in Boston to help clients develop their own apps, including Rocket Farm Studios, Klick Mobile, and Apperian Corp. “Our business model is to help big brands get to the iPhone platform,” says Apperian founder Chuck Goldman, a former Apple executive. “You have apps like Lose It, but Weight Watchers has nothing in the App Store. Not having an iPhone app now is like not having a website.” 
  • Since last December, Woburn-based LogMeIn Inc. has been selling a $30 application called Ignition that allows users to remotely access files on a distant desktop or laptop machine. Ignition has benefited by being prominently featured in Apple’s iPhone advertising - at no cost to LogMeIn. 
  • The company is poised to benefit even more: This summer, Apple is expected to roll out a new operating system for the iPhone, and new business options for app developers. They’ll be allowed to charge subscription fees for continued access to apps, or give an app away but later charge for particular features or premium content directly from inside the app - without requiring the user to return to Apple’s online iTunes Store.

    “We think those new capabilities are going to be really interesting,” says Kevin Farrell, a vice president at LogMeIn. “We can create a purely free app, or a $1 app that has some add-on options that would cost extra. Those are options we’re definitely looking at.”

    The Holy Grail for anyone creating apps is to be able to write their software once, and have it run not just on the iPhone, but also on Google’s Android operating system, the BlackBerry, Nokias, and new phones that haven’t yet been released. That ability to “write once and run everywhere” is still a ways off.

    “You can make a few shekels selling a 99 cent iPhone app, if you really hit a vein,” says venture capitalist Woody Benson of Prism VentureWorks in Needham. “But it gets progressively more interesting if you can efficiently get your app onto the iPhone, Android, and the new phone that Microsoft may be working on - that’s a more compelling prospect.”

    Scott Kirsner can be reached at kirsner@pobox.com.  

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    Apr 23

    April 23rd 2009 by Mark Walsh
    The iPhone once again helped power AT&T’s earnings. While the telecom giant’s first-quarter net income fell 9%, the company managed to beat analysts’ expectations on the strength of its wireless business and the Apple device in particular. AT&T activated 1.6 million new iPhone accounts during the quarter and added 1.2 net new wireless subscribers overall, with 75% signing long-term contracts. The influx of new customers amid the economic downturn helped AT&T report net income of $3.2 billion, or 53 cents a share — down from $3.52 billion, or 57 cents a share, a year ago. Revenue fell slightly to $30.6 billion.

    The company’s wireless division had a 13% profit increase and a 9% gain in revenue. The key for AT&T with the iPhone, and other smartphone, is boosting revenue from services other than phone calls like messaging and Web access. To that end, AT&T increased mobile data revenue in the quarter 38.6% to $3.2 billion. And nearly one-third of its 61 million contract customers now own “integrated” devices.

    The continued slide in AT&T’s wireline business, with revenue dropping 5.4%, was offset by gains in its high-speed Internet and television services. It added 359,000 Internet connections — up from the fourth quarter — and 284,000 subscribers to its U-Verse TV offering.

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    Apr 05

    IS there a good way to nail down a steady income? In this economy?

    Try writing a successful program for the iPhone.

    Last August, Ethan Nicholas and his wife, Nicole, were having trouble making their mortgage payments. Medical bills from the birth of their younger son were piling up. After learning that his employer, Sun Microsystems, was suspending employee bonuses for the year, Mr. Nicholas considered looking for a new job and putting their house in Wake Forest, N.C., on the market.

    Then he remembered reading about the guy who had made a quarter-million dollars in a hurry by writing a video game called Trism for the iPhone. “I figured if I could even make a fraction of that, we’d be able to make ends meet,” he said.

    Apple iPhone with Apps

    Apple iPhone with Apps

    Although he had years of programming experience, Mr. Nicholas, who is 30, had never built a game in Objective-C, the coding language of the iPhone. So he searched the Internet for tips and informal guides, and used them to figure out the iPhone software development kit that Apple puts out.

    Because he grew up playing shoot-em-up computer games, he decided to write an artillery game. He sketched out some graphics and bought inexpensive stock photos and audio files.

    For six weeks, he worked “morning, noon and night” — by day at his job on the Java development team at Sun, and after-hours on his side project. In the evenings he would relieve his wife by caring for their two sons, sometimes coding feverishly at his computer with one hand, while the other rocked baby Gavin to sleep or held his toddler, Spencer, on his lap.

    After the project was finished, Mr. Nicholas sent it to Apple for approval, quickly granted, and iShoot was released into the online Apple store on Oct. 19.

    When he checked his account with Apple to see how many copies the game had sold, Mr. Nicholas’s jaw dropped: On its first day, iShoot sold enough copies at $4.99 each to net him $1,000. He and Nicole were practically “dancing in the street,” he said.

    The second day, his portion of the day’s sales was about $2,000.

    On the third day, the figure slid down to $50, where it hovered for the next several weeks. “That’s nothing to sneeze at, but I wondered if we could do better,” Mr. Nicholas said.

    In January, he released a free version of the game with fewer features, hoping to spark sales of the paid version. It worked: iShoot Lite has been downloaded more than 2 million times, and many people have upgraded to the paid version, which now costs $2.99. On its peak day — Jan. 11 — iShoot sold nearly 17,000 copies, which meant a $35,000 day’s take for Mr. Nicholas.

    “That’s when I called my boss and said, ‘We need to talk,’ ” Mr. Nicholas said. “And I quit my job.”

    To people who know a thing or two about computer code, stories like his are as tantalizing as a late-night infomercial, as full of promise as an Anthony Robbins self-help book. The first iPhones came out in June 2007, but it wasn’t until July 2008 that people could buy programs built by outsiders, which were introduced in an online market — called the App Store — along with the new iPhone 3G. (The store is also open to owners of the iPod Touch, which does everything that the iPhone does except make phone calls and incur a monthly bill from AT&T.)

    There are now more than 25,000 programs, or applications, in the iPhone App Store, many of them written by people like Mr. Nicholas whose modern Horatio Alger dreams revolve around a SIM card. But the chances of hitting the iPhone jackpot keep getting slimmer: the Apple store is already crowded with look-alike games and kitschy applications, and fresh inventory keeps arriving daily. Many of the simple but clever concepts that sell briskly — applications, for instance, that make the iPhone screen look like a frothing pint of beer or a koi pond — are already taken.

    And for every iShoot, which earned Mr. Nicholas $800,000 in five months, “there are hundreds or thousands who put all their efforts into creating something, and it just gets ignored in the store,” said Erica Sadun, a programmer and the author of “The iPhone Developer’s Cookbook.”

    The long-shot odds haven’t stopped people from stampeding to classes and conferences about writing iPhone programs. At Stanford University, an undergraduate course called Computer Science 193P: iPhone Application Programming attracted 150 students for only 50 spots when it was introduced last fall.

    “It completely surpassed our expectations,” said Troy Brant, a graduate student who helped teach the course. Turnout has been equally strong this quarter, he said.

    As early as the summer of 2007 — a week after the iPhone first hit the market, and long before Apple let outsiders sell software for it — Raven Zachary, a technology consultant, decided to organize an informal get-together for fans of the device. The event, held in San Francisco, drew nearly 500 people.

    Since then, he said, dozens of similar conferences have taken place around the world. “The concept has spread quite far and wide,” said Mr. Zachary, who boasts on his Web site that he “directed the launch of two top-20 iPhone applications,” including one for the Obama campaign. He expects the turnout at his conference this summer to be huge. “We may have to find a larger venue and hold simultaneous satellite events to accommodate attendees,” he said.

    The rush to stake a claim on the iPhone is a lot like what happened in Silicon Valley in the early dot-com era, said Matt Murphy, a partner at the venture capital firm Kleiner Perkins Caufield & Byers who oversees the iFund, a $100 million investment pot reserved for iPhone applications.

    “People are realizing that by developing in their garage with a couple dollars, they could be the next Facebook,” he said. “It’s still early days for mobile development, but those days are coming.”

    This time, however, the scale may be smaller. While iShoot is never going to be the next Google or Facebook, it is the type of program that people with minimal expertise view as within their reach. The fact that Apple handles the financial side of the transactions makes it particularly easy for mom-and-pop developers to sell their homemade software all around the world. (Apple keeps 30 percent of the revenue from each sale and gives the rest to the developer.)

    “Even if you’re not a programming guru, you can still cobble something together and potentially have great success,” said James Katz, director of the Center for Mobile Communications Studies at Rutgers University.

    If there is ever an iPhone hall of fame, Mr. Nicholas’s portrait might hang next to that of Kostas Eleftheriou, a young Greek entrepreneur who lives in London. He and two friends wrote a program in seven days called iSteam, which fogs up the face of an iPhone like a bathroom mirror. They made more than $100,000 in three months.

    It is little more than a party trick. When someone swipes a finger across the phone’s surface, iSteam’s pretend moisture is wiped away with a realistic-sounding squeak. When the phone is tipped on its side, droplets of condensation roll as if pulled by gravity. “It’s quite a good illusion,” Mr. Eleftheriou said. “Everyone wants to show their friends.”

    The application hit the App Store in late December, and already Mr. Eleftheriou, who is 25, has decided to postpone graduate school and seek his fortune as an iPhone developer. He and his friends Vassilis Samolis and Bill Rappos, both 22, have set up a company called GreatApps and have hired two more developers.

    “We don’t want to stop with iSteam,” Mr. Eleftheriou said. “Our next step is to establish ourselves as a big player in the application store.”

    Both the iSteam team and Mr. Nicholas were spurred by the success of Steve Demeter, an inspiration for starry-eyed iPhone developers. Mr. Demeter, who is 30, wrote the game called Trism, which involves aligning rows of brightly colored triangles; he released it into the App Store last July and says he made $250,000 in the first two months. He immediately quit his job writing software for Wells Fargo and started his own iPhone game development company, Demiforce.

    It doesn’t take much money to write these programs, Mr. Demeter said, and a larger budget doesn’t always mean more success. “Novel concepts that come out of left field are going viral,” he said. “These are the kinds of applications that will endure.”

    The mobile frenzy hasn’t gone unnoticed by other major cellphone and software companies. Last week, Research in Motion opened an application store for the BlackBerry. Google recently began selling applications based on Android, its operating system for cellphones. Nokia is in the early stages of opening a store for its handsets, and Microsoft is creating a store for phones running Windows Mobile.

    As for Mr. Nicholas, he has sprung for a family vacation to Washington, hired a nanny and founded a company called Naughty Bits Software to keep developing iPhone programs (so far he is the only employee). “Oh, and I bought myself a new laptop,” he said. “I figured I deserved that.”

    He is in talks to adapt iShoot to systems other than the iPhone, and says that investors and big video game companies have approached him about financing his sophomore effort. He is also in full-swing inventor mode, working on a new game that he will not describe for fear that another developer might poach it.

    “I’m going to milk the gold rush as long as I can,” Mr. Nicholas said. “It’d be foolish not to.”

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    Apr 03

    As consumers embraced mobile technologies like never before, last year the channel began to catch up with its hype. 2009 may actually be the point when advertisers start shifting to include mobile.

    The Mobile Advertising and Usage report analyzes the (finally) accelerating mobile opportunities opening up for both consumers and marketers.

    The true turning point for the industry was the introduction of the smartphone, heightened by Apple’s iPhone launch in mid-2007. The development of third-generation (3G) mobile phones led to better connection speeds, Wi-Fi connectivity and the rise of mobile Internet browsing.

    Another critical factor was pricing plans that took the mystery out of data usage and encouraged unlimited mobile content consumption.

    In light of the heightened activity and interest, eMarketer forecasts that advertisers will spend $3.3 billion on mobile advertising in 2013, up from $648 million in 2008.

    US Mobile Advertising Spending, 2008-2013 (millions and % change)

    Mobile Advertising and Usage

    Mobile Advertising and Usage

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