While app stores are a great distribution channel for developers that want to sell applications, it is not the best monetization tool if you want to get a living.
There are some mechanisms in the current model of the stores that limit developers on how and what they can charge for the application and services and this has an impact on the quality of the applications and limit their potential.
First, the lack of trials means that genuinely superior apps are unable to charge higher prices because there is no way to demonstrate to consumers prior to purchase why they should pay more. Some apps can hack around this with in-app purchases, but purposely ruining the user experience is an exceedingly difficult way to demonstrate that your experience is superior
Secondly, the lack of a simple upgrade path (and upgrade pricing) makes it difficult to extract additional revenue from your best customers; it is far easier to get your fans to pay more than it is to find completely new customers forever. Again, developers can hack around this by simply releasing completely new apps, but it’s a poor experience at best and there is no way to reward return customers with better pricing, or, more critically, to communicate to them why they should upgrade
That there is the third point: Apple has completely intermediated the relationship between developers and their customers. Not only can developers not communicate news about upgrades (or again, hack around it with inappropriate notifications), they also can’t gain qualitative feedback that could inspire the sort of improvements that would make an upgrade attractive in the first place
“The existence of high transaction costs outside firms led to the emergence of the firm as we know it, and management as we know it….The reverse side of Coase’s argument is as important: If the (transaction) costs of exchanging value in the society at large go down drastically as is happening today, the form and logic of economic and organizational entities necessarily need to change! The core firm should now be small and agile, with a large network.”
technology and new business models have enabled a new disrupting ways to create firms.
Just got the results from 23andme. It delivered some interesting results and accurate information I already had. Despite the current discussions with the FDA, this is certainly a very important tool for the progress of medicine and science in general. It is also curious to discover whether you have ancestry from different countries.
23andMe was founded to empower individuals and develop new ways of accelerating research. The members of 23andMe have come together because we believe in the combined potential of genetics and the Internet to have a significant, positive impact.
We believe that having the means to access one’s genetic information is good.
We believe that your genetic information should be controlled by you.
We believe that people’s similarities are just as important as their differences.
We believe that the value of your genetic information will increase over time.
We encourage dialogue on the ethical, social and policy implications of personalized genetic services.
We believe in giving everyone the opportunity to contribute to improving human understanding.
I personally believe in the value of what they are doing and the future is more personalized medicine and tailored drugs. Eric Topol has written a beautiful book, The Creative Destruction of Medicine in which the importance of genomics is highlighted. However, we must also recognize the risks that genomics has regarding our privacy and personal information.
A lot of articles and analysis on Amazon, a company with increasing revenues but with low profits and operating even at loss in certain quarters. A strategy that focuses on the long term view, world domination and expansion.
The interesting fact about digital convergence is that many things can change, disrupting existing players, and industries.
Established business models are not anymore valid and are challenged.
A simple example.
Apple has just announced that the upgrade to the new version of their OS Mavericks will be FREE, and people that will buy their devices will also get the iWork productivity suite for FREE (Page, Numbers and Keynote). Money are made on the hardware.
In the meantime, Google is giving all its software for FREE and eventually selling its hardware at cost, making money with ads.
Amazon, is selling its hardware at cost, making money on the content sold through its devices.
Microsoft makes money on the software that all the others are now giving away for FREE.
And the FREE software or the FREE hardware is actually great, not bad copies of the paid versions. Let’s be clear, nothing is really FREE. They are only monetizing in a different way using asymmetrical business models, that is giving something for free, while making money with something else.
That’s the challenge for Microsoft that used to get paid for what it sold, software. And probably that’s the reason it has acquired Nokia. With hardware and software it can decide to monetize in different ways. Will it be enough?
Shipments of tablet-use application processors to the China market are set to register growth of 24.9% sequentially and 53.3% on year in the third quarter of 2013. The top-3 suppliers – Allwinner, Rockchip and MediaTek – are expected to contribute a combined 70.2% to the overall tablet AP shipments to China in the third quarter.