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BREAKING NEWS & VIEWS
Apple's Exploding App Ecosystem  for publishers and advertisers, the most important details were in CEO Steve Jobs’s big pitch about the metrics for the mobile content universe. Apple did not revise its earlier report that 2 million iPads had sold in the first 59 days the device was on the market. But Jobs did say that five of the six largest book publishers now claim about a fifth of their e-book sales are already coming through the iPhone/iPad platforms. The iBooks app itself has distributed 5 million books since launch. There are now 8500 iPad-specific apps in the iTunes store, and the library has produced over 35 million downloads. On average, every iPad owner installs 17 apps. In the larger iPhone/iPod Touch universe the library of apps has expanded to 225,000 resulting in five billion downloads. Jobs says that it has paid developers and publishers over $1 billion for paid apps to date. Apple has a straight 30/70 split with developers and less than 20% of apps carry a fee. Jobs believes in cultivating and supporting the developer community around Apple products. The upcoming iAd mobile ad format for apps was designed mainly to give financial support for the further development of apps. Despite complaints about Apple’s “closed” platform, which requires its approval of any new apps into the store, the company says that 95% of submissions are approved in a week’s time. Also overlooked by many commentators on the new iPhone roll-out was Job’s revelation that the upcoming iAd mobile ad program from Apple had already secured $60 million in commitments from major brand. According to Jobs, Nissan, Citibank, Unilever, AT&T, Chanel, GE, Liberty Mutual and Target are among the major brands who plan to launch campaigns with the platform. The iAd is essentially an app within an app that gives the advertiser a rich presence within iPhone programs. Major ad agencies and consumer brands have rushed in to be a part of what some feel will be a true transformation in mobile advertising. It is still unclear how Apple's mobile advertising initiative will dove-tail, if at all, with major media brands and their in-house mobile sales efforts. The new Apple iPhone model, as expected, sports two cameras, a substantially upgraded battery and display, a faster processor and the ability to record video in HD. Perhaps the most important feature for publishers will be the multi-tasking the new iPhone 4 operating system supports. Now apps can run in background to play music or grab new data even as the user works elsewhere on the iPhone. The same capability will come to the iPad in the fall. Multi-tasking should give publishers more flexibility in extending their brands beyond the narrow confines of their individual app. Home screen widgets and background media playing now become possible under the new OS. Perhaps the most meaningful sub-text of the Apple announcement yesterday is that the company clearly feels the competitive heat from rival mobile operating system Android. Many of the features on the new phone are either catching up with or chappenging similar capabilities that other hardware manufacturers and Google have been adding into the Android platform. The new iPhone 4 will go on sale June 24 for $199. If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com COMMENTS
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