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Vonage Experiences App Store Bump

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If you watch TV, then you probably can’t erase the memory of Vonage (s vg) commercials from your brain, no matter how hard you try. The voiceover IP (VOIP) provider has been in business for quite a while now, but it has been losing ground to cheap alternatives by various cable TV service providers. Enter the App Store.

Today, just by announcing that its iPhone app received official approval from Apple (s aapl), and without releasing any details about what said app actually does, Vonage engineered a major stock surge for itself. Share prices are experiencing big gains based on the potential benefit an App Store presence could bring for the VOIP operator.

This phenomenon, which I like to call the App Store Bump (not to be confused with the Colbert Bump), is another indication that Apple’s mobile application marketplace is something more than just one among many. Think an App World or even an Android Marketplace announcement would have as much influence on investor confidence? Think again.

App Store presence has become a sign not just of astute trend-spotting, but one of continued relevance. It breathes new life into business models that were either questionably viable in the first place (I’m thinking satellite radio here), or have lost viability through the emergence of newer, better, shinier competitors (Vonage being the perfect example). It also offers a way for entertainment media like games to reach a new target audience, when they may have saturated their existing demographic. I’m looking squarely at you, upcoming GTA: Chinatown Wars port.

What can the App Store Bump save next? Pogs? Devil sticks? Your guess is as good as mine.

5 Responses to “Vonage Experiences App Store Bump”

  1. Vonage is horrible. I left them for Ooma and have been super happy ever since – got an extra number ( a new work number – I’m a freelancer) that rings my cell at the same time so I never miss a call. I get a text message when someone calls my home number and leaves a message – I get a link to the message sent to my email – I can listen to it on my cell thru the mail app. All of this coupled with my iPhone has been fabulous. And 4 months of Vonage pays for a year of my Ooma service, not including the hardware. And no, I don’t work for them – I’m a graphic designer ( I say this because it’s starting to sound like an ad – I’m just an enthusiastic and grateful consumer – we got rid of our 65$ am month AT&T landline finally! And the money is going straight to our new rugrat due in Feb :)

  2. I’m not sure which cable providers are offering cheap phone service, but the promo price of Comcast Digital Voice loses to Vonage — not that I’d pay one red cent for a separate landline.