Saturday, February 19, 2011

Apple "Blowing it" with the key for subscription App, analyst says

We know that the subscription application for Apple mobile devices is unpopular with publishers, but now CEO of analyst firm Forrester is overview too.

In a blog post on the official website of Forrester CEO George Colony suggests that Apple is letting the success of its iPhone and iPad devices go to his head and that there is a risk of massive hubris if it does not reduce drastically the subscription fees that charge publishers.

BACKGROUND: EU publishers blast Apple iPad subscription plan

Competition: Google payment system for publishers on Apple's competitors

Apple caused a furore among publishers and developers this week when it announced that it would be held 30% of all revenue generated from subscription sales through the iTunes Store. Publishers can still sell their subscription-based content for the iPhone and iPad regardless of Apple, but they are not permitted to undercut the price that Apple showed up on the iTunes store.

Cologne thinks that Apple is wildly overestimate the pricing of content to mobile devices and says that the correct fee for the subscription-based applications should be about 5%, or a sixth of what Apple plans to charge publishers. By charging them high subscription fees for access to the iTunes Store, Apple risks developers guide into the arms of rival mobile operating system Android, Cologne supports.

"Apple blows it," he writes bluntly. "Threatens the PC wars of the early eighties when Microsoft accepted all over their world development while Apple remained «pure» and frightened by his allies … playing this time around Apple's hostile position could result in a market of 2014 Internet that seems App something like this: 80% 10 Android, Apple, 10% other."

Mobile applications have become an increasingly popular feature of Smartphones over the past two years, especially with the high profile launch of shopping malls in application such as Apple's App Store and Google Android Market. The latest survey data from research firm ChangeWave shows that 14% of smartphone users said that applications were what they liked better than new smartphones, followed by the ease of use (12%) and Internet access (12%). In addition, a recent survey by Forrester showed that 45% of users of Tablet PCs that spend about the same time using mobile applications as they spend on a web browser, with 39% saying they spend more time on most browser applications.

Research in Motion, which traditionally has been much more selective in applications that allows its BlackBerry devices, apparently is considering whether to allow its upcoming Tablet run PlayBook applications designed for the Google Android platform. If the Android App market is used on edge devices, could give Android a boost in its efforts to get developers to spend more time developing for Android, rather than the iPhone.

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