Smartphones changing the game

If you didn't think Smartphones (led by the iPhone, but soon followed by Android and Blackberry) were changing business then think again. And it is applications that is the real game changer.

There are now over 30m iPhones in use across the world, and over 25,000 applications available to download, a mere 18 months since launch. Developers across the world are spying big income if they can get the product right... As an example, I have a free GPS store locater app for a Canadian coffee chain (Tim Hortons), and on that app the developer is advertising the same app for Starbucks (works across the world). He’s selling that for $1 so it won’t take him long to earn some big dollars there. 

The iPhone has seemingly has its sights firmly set on the handheld gaming market, with new gaming titles being introduced by the day. Over 60% of the top 100 applications are games, and this is bound to rise as software companies rush to create iphone versions from traditional gaming platforms. iPhone sales are far outweighing sales of handheld devices DS and PSP so it is inevitable that it has quickly become a major player. Nintendo and Sony have recently opened up their platform to game operators in a direct response to the iPhone threat... 

The long running battle about music, copyright and digital is old news but smartphone applications could change the game again. US band - The Presidents of the USA have created an app for $3 that has 4 of their albums on it (4 albums, $3!). Users can download the app and enjoy the albums and access new unheard content from the band. If you want to buy a song and add it to another MP3 player you can do so. Incidentally, they give Apple 30%, which is the same deal as selling through iTunes.

Pink has recently launched a free app with previews from her upcoming album, and Snow Patrol, Nine Inch Nails are reported to be doing the same thing. Users will then be directed back to the iTunes music store to buy – winner. 

The beauty of the app route is that the band can update users with new content so they have a totally captive audience for the next album/tour/promotion/whatever. The next stage of course, is for users pay top dollar for brand new music, photos and news – straight to their handheld. Interesting developments.

Thanks for reading.

Nic