The economics of the iPhone’s Installer application
Earlier today I upgraded the version of the Nullriver Installer that is installed on my iPhone. The biggest improvement in the new version, numbered 3.1, is search which makes it easier to find applications. In addition to that, the “Featured” page was updated to include a few additional applications, among them Kate, a commercial package of tools and toys.
This made me thinking about the economics of the “Featured” page and the Search results pages. After all, VC are investing and companies are raising money to develop iPhone applications and so distribution is going to be critical to succeed. So far, everyone has expected Apple to be the one selling applications via iTunes but I think that there is a secondary market that is already bubbling called the Nullriver Installer.
The thing with the Installer that makes it unique compared to popular software download web sites is that currently the Installer is the single entry point to get 3rd party applications for iPhone and iPod Touch. Hundreds of thousand and maybe even millions of jailbreaked iPhone users around the world access the Installer every day in order to search, install, upgrade or uninstall applications, games, utilities, themes and all kinds of tweaks for their iPhone. Every time these users start the Installer, the first thing they see is the list of featured applications, and from today they are also going to start using the search capabilities.
So, what should a company/developer do in order to get his app featured? I did some research but could not find an answer. So, for now, I am assuming that the list is compiled by an editor with some exceptions (my guess – Kate which charges users and therefore can pay for distribution). The search function is also very primitive and seems broken (a search for “Wiki” returned zero results).
But I think that this is just the first step in what is going to become an active marketplace (probably PPI – Pay Per Install) that is going to be developed around the Installer. Both the “Featured” page and the search result pages are too valuable to be kept as they are today. And seeing how fast the Installer has evolved so far, I expect this to happen sooner than you expect.
