Apps Store Online

During the keynote address at Apple’s Worldwide Developers Conference earlier this month, Phil Schiller noted that Apple’s Mac App Store, launch in early January, has rapidly risen to become the top selling distribution channel for computer software, beating out Best Buy, Walmart, and Office Depot. According to Schiller:

In the last six months, something incredible has happened. In the last six months, the Mac App Store has now become the #1 PC software channel for buying software. That’s incredible.

But questions have remained about just how successful the Mac App Store has been, given the smaller installed base compared to iOS and long-standing alternative methods for purchasing software.

Developer Martin Schultz has, however, now provided a look at sales figures for his Hard Rock Racing app, which managed to peak as the #3 paid game and #14 overall paid app in the U.S. earlier this month after being featured by Apple in the “New and Noteworthy” section on the front page of the Mac App Store. According to Schultz, that stellar ranking translated into only 743 sales on the peak day.

While that one-day performance resulted in a solid $2,500 payday for Schultz after Apple’s 30% cut of revenue, it’s clear that Mac App Store sales fall far short of those seen for iOS apps. We spoke with John Casasanta of iOS developer taptaptap, who shared that his Camera+ application typically pulls in 8,000-12,000 downloads per day when it is ranked around #14 in the overall paid apps for the iOS App Store. Of course, 743 sales on peak day may be better than Schultz might have done through traditional channels or direct online sales. The average sales price for iOS apps also appears to be much lower than Mac Apps, which may also contribute to the volume discrepancy.

Apple is of course working hard to drive adoption of the Mac App Store, opting to distribute its forthcoming OS X Lion exclusively through the store. The company has also released its new Final Cut Pro X apps and other titles such as Aperture, iWork, and iLife through the store. With the Mac App Store set to take on an even larger role in OS X Lion with the addition of such features as in-app purchases and push notifications, Apple is clearly pushing forward in its attempts to replicate the success of the iOS App Store on the Mac platform.

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Earlier this year, Apple rolled out In App Subscriptions for App Store applications, offering content providers a way to provide ongoing content within their applications. As part of that rollout, Apple required that providers offer their content via In App Subscriptions at at least the same rates as other purchasing mechanisms and also barred apps from including links to those alternative external mechanisms, such as “buy” buttons linking out to web-based stores. The regulations were set to apply to both purchased and subscribed content, and would go into effect on June 30th (today) for existing applications.

But with just a few weeks to go before the deadline, Apple backpedaled somewhat, adjusting its App Store terms to allow developers to provide content in their applications without also requiring that the content be made available through In App Purchases/Subscriptions. The company did, however, maintain its exclusion of “buy” buttons linking to external purchasing mechanisms, and presumably continued to demand a June 30th compliance date for existing apps.

Last week, Hulu Plus became one of the highest-profile apps to comply with Apple’s new rules, simply removing an external link for signing up for the Hulu Plus service. The revised app complies with Apple’s rules by playing outside subscription content without offering an In App Subscription option while also not providing users with a way to subscribe to the service linked from directly within the app.

At the time, it was noted that a number of other high-profile apps had yet to comply with Apple’s terms and that some such as Amazon’s Kindle app might have significant difficulties doing so given their focus on offering individual eBook purchases. Offering access to a catalog of eBook content with no way to link out for external purchases would mark a relatively significant inconvenience for users trying to make new purchases.

CNN Money reports that Kindle does indeed appear to be in Apple’s crosshairs, along with similar eBook services from Barnes & Noble and Borders.

The new rules explicitly prohibit apps that include “external mechanisms for purchases … such as a ‘buy’ button that goes to a web site to purchase a digital book.”

Amazon’s Kindle app prominently features a “Shop in Kindle Store” link, which takes shoppers to Amazon’s website. That’s verboten under the rules set to take effect Thursday.

Apple and the digital booksellers have remained silent on exactly what is expected to happen today as the new rules take effect, but none of the high-profile applications have yet received updates that would bring them into compliance with the rules.

Apple is not averse, however, to rejecting or removing such applications for non-compliance, as the company demonstrated by rejecting a Sony Reader application earlier this year for its ability to purchase external content without also offering In App Purchasing.

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As noted by MacStories, Apple’s App Store has reached yet another milestone, now offering over 100,000 iPad-specific applications.

Apple and third-party developers have set a new record: in 453 days since the original iPad came out on April 3, 2010, the App Store has more than 100,000 iPad-exclusive apps available. Either specifically targeting the tablet, or released as universal updates to existing iPhone apps, at the moment of writing this there are 100,161 iPad apps in the Store. How do I know? The App Store app itself on my iPad shows that.

Our sister site AppShopper, which tracks iPhone, iPad, iPod touch, and Mac App Store apps, currently has the available iPad app count at just over 106,000, as it relies on a slightly different recording method supplied by Apple’s API for tracking App Store apps.

Apple currently offers over 400,000 total apps in its iOS App Store, and over 5,000 more in its Mac App Store.

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DigiTimes briefly reports that Apple is planning a significant increase in iPad 2 shipments for the third quarter of this year, attempting to move 12-14 million units over the period. That goal is up from the 7-9 million units reportedly shipped during the second quarter.

In order to significantly increase its shipments in the third quarter, Apple has been piling up its inventory of iPad 2 components such as panels in the second quarter to minimize the risk of facing component shortages.

Research analysts have had a particularly difficult time forecasting Apple’s quarterly iPad shipments in the face of production constraints and the transition from the original iPad to the iPad 2. While a number of research analysts and firms have pegged Apple’s total 2011 iPad sales in the range of 40 million units or even higher, Apple fell far short of expectations in the first calendar quarter with only 4.69 million units shipped. That figure only included, however, a few initial weeks of iPad 2 sales as Apple struggled to meet demand and according to Tim Cook sold every iPad 2 it made during the quarter.

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As noted by Arstechnica and iFixIt, Apple’s new $50 Thunderbolt cable is actually a “smart” or “active” cable that contains circuitry and firmware. Arstechnica explains:

A source within the telecom industry explained to Ars that active cables are commonly used at data rates above 5Gbps. These cables contain tiny chips at either end that are calibrated to the attenuation and dispersion properties of the wire between them. Compensating for these properties “greatly improves the signal-to-noise ratio” for high-bandwidth data transmission.

iFixIt tore down the new ThunderBolt cable and found two Gennum GN2033 chips in the connector, one on each side. Additional support chips and resistors were also found for total of 12 chips and “tons” of smaller electronic components.

Gennum’s chip is described as a transceiver that enables “reliable data transfer at cutting-edge speeds over low cost, thin-gauge copper cables.” Early benchmarks of Thunderbolt drive enclosures show massive improvements over FireWire 800.

One interesting benefit of this “active” cabling is that current Thunderbolt ports found in the iMac and MacBook Pro will be future-compatible with planned optical Thunderbolt cables. Optical cables were part of the original plans for Thunderbolt which promises to offer much higher speeds, but the first version released are based on traditional copper wiring. Intel still plans on upgrading to optical cabling in the future, and existing Thunderbolt devices should be compatible with new cabling. This was mentioned during the original Thunderbolt roll out.

…the port you’ll find in new MacBook Pros and storage devices can actually take an optical cable when those are cost-effective enough to roll out, because Intel will eventually bake the optical transceivers into the cables themselves.

Ars, however, suggests that the high cost and complexity of the cabling may be a hurdle to widespread adoption of Thunderbolt.

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Fiona Bligh never thought she would get a response when she sent an email to Apple CEO Steve Jobs. But, the story of her daughter Holly’s unique experience with her iPad inspired Steve so much that not only did he write back to Fiona, but Steve asked if he could share her story as well.

Fiona’s daughter has albinism. It affects pigment in her skin, hair color and also her vision. The Australian Herald Sun wrote about nine-year-old Holly, noting that her iPad has replaced the large magnifying glass she needed to read. She can quickly enlarge text and is now much more enthusiastic about reading, and can read for twice as long without getting tired.

In her email to the Apple CEO, Fiona shared that “all the other kids think it’s awesome that she gets an iPad!” Steve wrote back:

Thanks for sharing your experience with me. Do you mind if I read your email to a group of our top 100 leaders at Apple?

He signed the email “Thanks, Steve”.

Ever since Apple and Intel introduced the Thunderbolt high-speed data connectivity standard back in late February, there has been speculation about whether the standard would support booting from external disks. At that initial release on revamped MacBook Pros, Andy Ihnatko reported that booting was not supported, although Target Disk Mode was supported. But a report from The Mac Observer early last month indicated that booting from disk would be supported over Thunderbolt.

With Apple’s Thunderbolt cable and the first third-party drive systems hitting the Apple Store yesterday, Apple posted a few support articles outlining some of the Thunderbolt functionality, but failing to disclose any booting capabilities and thus leaving potential customers still in the dark about compatibility.

AnandTech’s 12 TB Promise RAID setup

It now appears, however, that we do have confirmation that booting over Thunderbolt is supported, as we received word yesterday from a reader who had received multiple confirmations from LaCie representatives that the feature will indeed be supported. Meanwhile, AnandTech has already received one of the new 12 TB RAID systems from Promise and confirms that booting over Thunderbolt is supported.

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Bloomberg reports that HP has expressed interest in licensing its webOS mobile operating system to other companies, potentially opening the door for another major competitor in the smartphone and tablet industries.

“We are talking to a number of companies,” Apotheker said in Beijing, declining to elaborate on details. “I can share with you that a number of companies have expressed interest. We are continuing our conversations.”

The webOS operating system was originally developed by Palm as an answer to iOS, but was not able to gain much ground against Apple’s platform and Google’s Android. With HP’s acquisition of Palm last year, webOS has undergone a transition as HP has attempted to move directly into the smartphone and tablet markets. HP is launching its TouchPad tablet device within the next few days, and has been said to be trying to launch its own cloud-based media service similar in some respects to Apple’s iCloud.

According to the Bloomberg report, Samsung is one of the companies interested in licensing webOS, presenting an alternative to the Android-based systems currently offered by the manufacturer.

A partnership with HP would allow Samsung, which uses Android for its Galaxy Tab tablet computers, to customize devices amid speculation that Google may restrict modifications for phones that use Android, said one of the people, who declined to be named because the talks are private.

If HP is able to find success with its new mobile products and Samsung adopts webOS as a leading platform for its own devices, the mobile industry could see a shakeup with webOS becoming a legitimate contender in the race to compete with iOS and Android.

Microsoft has of course been pushing its own Windows Phone operating system as yet another competitive platform, although customer adoption has appeared weak thus far. The company has, however, partnered with Nokia in a deal to drive that manufacturer’s future hardware, a deal that could make Windows Phone another major player if customers embrace the platform.

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AppleInsider notes that MacBook supplies have become “severely constrained” at a number of third-party retailers, suggesting that Apple may be drawing down stocks ahead of a refresh.

Specifically, Amazon, MacConnection, On Sale and J&R are all out of stock. In addition, inventory of the entry-level portable is low at DataVision.

In addition, one of Europe’s largest distributors is completely out of stock of the white MacBook, and lists no estimated time of arrival for new shipments. Sources indicated that this is unusual, but not necessarily a sign that the current model will be discontinued.

Shipping estimates for orders made through Apple’s online stores around the world remain at “within 24 hours”, suggesting that the shortages have not yet extended to Apple’s own distribution channels. But shortages at third-party retailers are frequently the first indications of Apple preparing to release updated models.

As noted in our Buyer’s Guide, Apple is well overdue for a MacBook refresh as judged by its usual update cycle, having last updated the MacBook in May 2010.

Rumors of updated MacBooks have been essentially nonexistent, although the Machine will presumably make the shift to Intel’s Sandy Bridge platform and include Thunderbolt support. And while no specific timeframe for an update has been offered, the line is clearly one of many including the MacBook Air, Mac Pro and Mac mini that are due for an update. Apple has been said to be holding new hardware launches until OS X Lion is ready, and so we may see a flood of new releases once the operating system debuts next month.

Update: AppleBitch reports that Best Buy’s online store and Amazon UK are also currently out of stock of the Mac mini. While the shortages are not as widespread as seen with the MacBook, they could be early signs of a drawdown for that line as well, which was last updated in June 2010 with a new design.

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With talk of Apple seeking to release a cheaper iPhone being revived in recent days, RBC Capital Markets analyst Mike Abramsky now weighs in to report that he believes that Apple will be keeping the iPhone 3GS around even after the next iPhone hardware update, offering the device for free with a two-year contract and at $399 for unsubsidized purchases. Apple currently sells an 8 GB iPhone 3GS for $49 on a two-year contract and $449 unsubsidized.

As its entry-level iPhone strategy, Apple is expected to cut iPhone 3GS to $0 (on contract, $399 unsubsidized) in conjunction with iPhone 5 launch (we continue to expect it in September). This approach is intended to target mid-market smartphone buyers and counter Android’s mid-market expansion. We expect iPhone 5 to launch at $199/$299 ($599/$699 unsubsidized), and Apple to drop iPhone 4 pricing to $99 ($499 unsubsidized).

The claimed $399 price point for the unsubsidized iPhone 3GS is a bit higher than other reports have been hinting at, with the analyst report from earlier this week suggesting that Apple would try to come in at $349 for its cheaper iPhone.

Earlier reports had claimed that Apple was working on a smaller iPhone form factor that could allow the company to offer the device for as little as $200 unsubsidized. But while some rumblings of a new, smaller iPhone option for this year continue to float around, Abramsky believes that the “baby iPhone” will not be released until 2012, in part to fully take advantage of iCloud leverage that may not be possible as the service debuts.