Developers Start To Look For Work-Around To Apple App Store
By Ben Charny, Of DOW JONES NEWSWIRES
SAN FRANCISCO -(Dow Jones)- Steve Sheraton has a new magic trick: He's making
Apple Inc.'s (AAPL) App Store disappear.
The magician turned App developer has begun selling his $4.99 "iHypno" mind-
reading application for Apple iPhones and iPod Touches directly from his Web
site. That means consumers can buy the program without visiting the App Store,
the official software bazaar that operates under Apple's iTunes store.
"It's based on technology encouraged by Apple," Sheraton said during an email
interview. "It's totally legal and possibly the way you'll see other apps
delivered in a year or so."
Sheraton's action is the latest - and possibly most extreme - example of the
frustration some iPhone software developers feel as they grapple with Apple's
notoriously difficult iPhone vetting process.
App makers have begun offering their programs outside of the App Store, though
those programs generally can run only on altered iPhones or over the Web.
Sheraton's digital diversion, he says, is among the first that will work on any
of the 40 million iPhones and iPod Touches in circulation, and doesn't require a
Web connection to run it.
The more aggressive move to sell programs outside of the App Store comes as
more programmers and observers criticize Apple's approval process. The
Cupertino, Calif.-based company has barred applications for making the device
vibrate or emit a "burp," but allowed potentially offensive programs, like "Baby
Shaker," which simulated shaking a baby. Apple eventually removed the app after
a public outcry.
That's left many shaking their heads.
"I was willing to forgive Apple a few transgressions, as they were navigating
new, exciting territory," influential Apple developer Steve Frank recently wrote
on his blog. But now, he says, Apple is making "continuous bad decisions."
Apple didn't provide comment for inclusion in this story.
Any development that threatens the App Store could strike at a key
differentiator of the iPhone and iPod Touch. The software store, helped by an
effective ad campaign, has lured buyers of those pricey devices because they can
buy programs that do everything from providing mapping services to simulating
drinking a beer.
It also comes as cellphones running Google Inc.'s (GOOG) Android software
begin further populating the market. That software, which supports its own
online program store, remains a minor player, especially compared with the App
Store, but is gaining traction with developers.
The popularity of the App Store is easy to measure. In a little more than 13
months, Apple has seen more than 1.5 billion programs downloaded. Developers
love it too: They've written roughly 60,000 programs to sell through it,
according to several estimates.
The rise of the iPhone has helped propel earnings at the consumer electronics
giant. Apple stock has also outperformed many of its peers, rising about 97% so
far this year. On Thursday afternoon, Apple was up 1.6% to $167.91.
While the growth of rogue stores is unlikely to affect Apple's revenues
directly - brokerage Piper Jaffray estimates the App Store generated about $150
million in sales last year, of which just 30% went to Apple - it still could
weigh on the company. Apple is notoriously protective of its image and
thoroughly vets all third-party providers of software and peripherals.
Already, concern over the brewing backlash has prompted Apple to take some
unusual steps. Most recently, Frank reported he had received an email from Apple
Senior Vice President Phil Schiller saying that the company was taking notice of
his online vetting of the App Store's issues.
Meanwhile, another magic app purveyor, theory11.com LLC, had a "rising card"
trick application rejected by Apple, which said it created "consumer confusion,"
according to Chief Executive Jonathan Bayme.
Wednesday, Apple's Schiller emailed theory11.com developer Chris Kenner, who
wrote the app and also works with magician David Copperfield, saying he would
look into the situation, according to Bayme. Kenner and Schiller are expected to
discuss the matter Thursday.
While Bayme said he is pleased Apple's head of worldwide product marketing is
making the personal effort, he says the situation never needed to reach such
heights. "It's frustrating to us as a developer to have it just sitting there
and hoping that Phil could intervene," he said.
-By Ben Charny, Dow Jones Newswires; 415-765-8230; ben.charny@dowjones.com
(END) Dow Jones Newswires
08-13-091359ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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