Developers Look Past Apple's Jammed iPhone App Store

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At the outset, developers stuck with Apple in part because it's a hassle learning to write code for a new system. But technologies such as Ideaworks Labs' Airplay software make it easier for developers to create apps for multiple systems at the same time. That kind of software "will definitely change the game," says Will Stofega, program manager at consultant IDC.

Ideaworks recently did away with fees for independent iPhone app developers. "We want to send a message to iPhone developers: There's lots of other hardware worth looking at" besides the iPhone, says Ideaworks CEO Alex Caccia.

As other operating systems gain traction, Apple could lose part of its competitive advantage, says Charlie Wolf, senior analyst at Needham & Co. "Their whole advertising pitch is the apps," Wolf says. "The real issue is: Are developers making enough to stay loyal to the platform?"

Apple App Store: Rejection and Delay

For many, the answer is no. To start with, application prices are falling. Iconfactory's Twitterific app now costs $4.99, compared with $9.99 a year ago. Large game makers such as Electronic Arts (ERTS) can spend more on marketing than can smaller design shops. Moreover, developers are making fewer sales, with products lost among the more than 100,000 apps. Larva Labs makes iPhone apps such as PhotoTwist, which lets people warp and twist photographs, but the company can no longer break even on new apps. "Every other app we wrote after [PhotoTwist] got less interest than the previous one," says Matt Hall, co-owner of Larva. "We've spent more time on unique features for these apps." Larva Labs now focuses on Android, he says.

Frustrations over the App Store's lengthy and often arbitrary approval process are also turning developers off. In March, Ubermind received three app rejections in one week alone. Developer SMobile Systems waited a year to win approval for its iPhone app, designed to make iPhone content more secure. Recently hundreds of consumers signed a petition asking Apple to publish two DJ apps that have been held up in the review process. "We are really starting to rethink our options," says Russell Haglof, whose Pajamahouse Studios created a DJ app that's been in review for more than two months. "If you are starting to make a business with a partner that can take two months with no response, it's not a healthy relationship," he says. Unsure of when their apps would hit the store, developers can't market them in advance of release, or even advertise release dates.

Developers say Apple is trying to improve its review process and make it easier for consumers to discover new apps. The company now maintains an online system that lets developers track the status of software making its way through the review process. (No mobile app store is without problems: Developers on Android Market try to game the system by updating their apps daily, thereby boosting their rankings on the site, for example.)

As the leader, Apple has cause to keep as many developers as possible on board. If the App Store loses its allure, so does the iPhone. "It's Apple's game to lose," Wolf says.

Kharif is a senior writer for BusinessWeek.com in Portland, Ore.

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