From Bernard Chen and TechCrunch, an interesting summary about the economic implications of the Apple App Store for developers.
For all of you App developers (Amy!), TechCrunch had a great article describing sales numbers for AppStore products. Of particular note:
Across 96 developers who responded, the average app sold 100k copies over 261 days with a median price of $0.99 at a development cost of $6.5k.
Removing the top 10% of products, the numbers drop a lot, which is a common in competitive markets. The numbers for the remaining 90%: 11k copies over 44 days. That’s a big difference. The lesson there: Go big. The smaller apps don’t get the same amount of time in the spotlight (44 days vs 261) and don’t make as much money ($11k vs $100k).
About staying in the spotlight, the author suggests providing a compacted, bunched marketing campaign when the spotlight is on your app instead of spreading the campaign out over time. Use any press to springboard your way into other press and maintain your marketing momentum.
That final bit is a good takeaway for any of you who are entrepreneurs/indie developers. Developing a good product is an important part of the business, but harnessing the powers of marketing and P/R (mostly PR for indies) is what drives the revenue that allows you to develop a version 2 and 3.