Word: apps
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...Steve Sheraton, the magician behind Las Vegas-based Hottrix, a magic and special-effects shop that developed another (apparent) 2008 top seller, iBeer, said dropping the price on his app may have been a mistake. "I'm not selling more at $0.99 than I was at $2.99," he said of the entertaining little app that simulates a glass of beer: put the phone to your lips, tip it and you can "swallow" the beer. He dropped the price as part of a presidential sale on Election Day but said he'll raise it again soon to test his theory. Sheraton...
...winner this year was the free app Pandora, a streaming-music utility that allows users to create "customized" Internet radio stations. Since the launch of the Pandora app in July, the growth of the music site Pandora.com has "been insane," said Tim Westergren, Pandora's founder. "It doubled our growth rate the day we launched, and it's still growing." Westergren said nearly 2 million people have downloaded the iPhone app...
Since the app (and website) are free, Pandora, which has 19 million registered listeners, relies on advertising to generate revenue. While it's not yet profitable, Westergren believes the iPhone is accelerating Pandora's path to profitability, accounting for roughly a third of all new users going forward...
...that there are some 10,000 applications available at the App Store, it makes it much harder for new apps to be discovered, some developers say. Brandon Bogle, an engineer and a co-founder of the Blimp Pilots - an ad hoc group of iPhone-app creators, who are otherwise employed as game developers - said its hit app Koi Pond, which sold 600,000 copies, was simply in the right place at the right time. "We were lucky enough to get in on day one, when people could find us. There are so many good apps for the iPhone, the problem...
Indeed, iBeer's creator, Sheraton, said he's seen it all before, on the old Palm Pilot platform. His first app was E-spresso, in 1999, which created a virtual cup of espresso on the Palm, the first great PDA. "Having lived through the Palm apps market, I was able to predict what would happen here as well," he said. "There are way too many apps, and the prices will drop through the bottom...