That’s an important but little recognized part of this paradigm shift. With the App Store prices are lower because costs are lower, but also because Apple wants prices lower to gain market share for both its devices and the associated ecosystem.
None of us, even Larry, knew it would take 13 years for that vision to be realized. Remember Larry Ellison railing against the box of bits metaphor in my show Nerds 2.01: A Brief History of the Internet? That was back in 1998. Software goes from being a box of bits to a cloud of electrons.
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For Apple, the App Store destroys shrink wrapped software, eliminates product serial numbers, vanquishes piracy, and punishes competitors like Adobe. For users the App Store lowers the cost of applications, keeps them updated and synced, and allows their deployment across several computers. Both are being extended fully into the cloud next month with the release of OS X 10.7. This was followed by Apple’s App Store for OS X, which did much the same for Macs. They are greedy, of course, but as Fernando used to say, “It is better to look good than to feel (or be?) good.”Īpple’s original App store was for the iPhone - a portable and for the most part cloud based method of distributing and updating iPhone apps. The trick to making it work is to not appear to be too greedy and I think Apple is accomplishing that. Apple loves to change the game like this, simultaneously unseating previously entrenched adversaries while building for itself a defensible system for the future.
I’ve been thinking about Apple’s App Store and the industry paradigm shift it represents.
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