Blog Post

The iPhone Success Stories That Are Fueling Copycats

Last week, we asked: “Is the rush to develop iPhone apps creating the next bubble?” The question sparked a ton of debate as to whether the web traffic and application downloads from iPhone and iPod Touch users are significant enough to build a business. Now, The New York Times is poising a very similar question in a story titled “The iPhone Gold Rush: Hoping to Make iPhone Toys as a Full-Time Job.” The premise of both stories is this: Can a company, ranging from a one-man shop to a multi-million dollar corporation make money off iPhone applications over the long-term? Most analysts, investors and even the developers themselves, admit it’s unlikely and that a bubble is brewing. Still, the number of applications available for the iPhone continues to grow, and entrepreneurs and inventors believe they have what it takes to be the next Facebook or YouTube of mobile. The Times does a good job of capturing the most high-profile success stories that are fueling this trend. Here they are:

iShoot: Ethan Nicholas, a former Sun Microsystems employee, quit his job after his iPhone game sold thousands of copies. On his first day — Oct. 19. — he made $1,000. On the second day, it shot up to $2,000, but then hovered at $50 a day for weeks. In January, he released a free version, hoping that users would return to buy the full version. It worked, and on its peak day