Time for the App Store to focus on quality, not quantity

Apple's App Store celebrated its first anniversary on July 11, and in celebration of the milestone the computing giant announced [1] that consumers have downloaded more than 1.5 billion iPhone and iPod touch applications to date--no less significant, the virtual storefront now offers over 65,000 total apps. In late January, Apple reported [2] the number of available iPhone and iPod touch apps at a mere 15,000--it's staggering to consider that developers have added roughly 50,000 new apps in less than six months, and there's no end in sight. There is some question about just how the App Store inventory grew so quickly, however: According to a new study [3] published by hybrid location system developer Skyhook Wireless, the App Store contains thousands of mass-produced, bargain-priced "bulk apps" (i.e., template-based mobile applications sold at the same price point with the same look and feel but different content), noting one unnamed developer sells more than 850 travel applications based on the same template, with each individual app swapping out content based on specific vacation destinations. These local search and travel guide applications now account for around one third of total iPhone LBS apps, Skyhook adds.

Developers have long vented their frustration over how increasingly difficult it's become to earn attention in the App Store, especially given the massive number of 99-cent applications--bulk and otherwise--that inevitably rise to the top of the iTunes bestseller list. During Apple's quarterly earnings call Tuesday, COO Tim Cook hinted that the relief could be sight. Asked by Needham analyst Charlie Wolf whether the company plans steps to help consumers "separate quality applications from the garbage," Cook responded "We are always looking for ways to categorize applications differentially. We realize there is an opportunity there for further improvement, and we are working on that." However, Forbes reports [4] Apple is unlikely to discourage the trend towards low-cost applications--according to Cook, competition is the reason behind the abundance of 99-cent downloads. "I would think as the installed base grows more and more and more it makes more sense to have lower prices, but that's totally up to the developers," he said.

So what does Apple have up its sleeve, then? Perhaps the company is planning to finally introduce the premium App Store boutique first rumored [5] in late January.  At that time, speculation centered on a new premium games section offering a range of titles priced at $19.99 each and limited to select large publishers, effectively guaranteeing that firms willing to make the investment necessary to create more sophisticated and expensive titles don't get overlooked in the landslide of lower-priced releases. Or maybe Apple is zeroing in on the location-aware App Store buzzed about [6] back in early March after it filed United States Patent Application 20090063293 [7], entitled Dynamic Presentation of Location-Specific Information, which outlines "improved approaches to allow a portable electronic device to dynamically present location-specific information while the portable electronic device is at a predetermined location." The concept, similar to the recommendation principles behind Nokia's Ovi Store, also calls to mind Apple's own "Now Playing" feature, introduced for iTunes in late 2007 and enabling consumers visiting Starbucks coffeehouses to log into the digital music service via iPhone, laptop or iPod touch to instantly browse a location-specific iTunes menu displaying information on the song currently playing in-store and purchase music from the Starbucks playlist.  

Or perhaps Apple will simply revamp the App Store's present categorization and sorting structure to better incorporate user feedback and other metrics that emphasize application quality, innovation and usefulness over pricing.  That alone would represent a significant step in the right direction, because at 65,000 applications and counting, it's becoming more and more difficult for users to separate the wheat from the chaff. After all, as Apple's omnipresent television commercials remind us, there's an app for just about everything--except for an app to help consumers more effectively navigate the App Store, that is.  -Jason [8]