Nokia Who? In Silicon Valley, It’s iPhone, iPhone, iPhone
If you ever wanted an outsider’s view of Silicon Valley as it relates to the iPhone, check out the brutally honest essay written today by U.K.-based Ewan MacLeod, an entrepreneur, consultant and part-time writer. It explores how Valley-based entrepreneurs are approaching mobile with tunnel vision. That is, the only thing in sight is the iPhone.
The venue for MacLeod’s observations was an AdMob-sponsored event in San Mateo, where they discussed the problem of discoverability in the iTunes App Store. AdMob was there to show off a new service that allows its customers to exchange ad inventory to help advertise each other’s apps. Part of the event included a panel discussion featuring four iPhone developers, MacLeod called “iPhone Dev Rockstars.” Throughout the day, MacLeod made it his mission to take a litmus test of how these iPhone-die-hards felt about other platforms, most notably Nokia’s upcoming Ovi Store. He wondered, why are they focused on 17 million iPhones globally, when Nokia’s Ovi Store will have 400 million supported handsets by the end of 2010? The answers he got included: “Uhhhh?,” “Ovi? What’s that?,” and “Nohhhkeeeaaa?”
MacLeod wrote: “It’s a fascinating experience walking amongst these developers. They’re the cream of the cream…They’re conditioned by the Silicon Valley mentality to think big, BIG BIG. This is where the innovation is. It’s easy to see why the Valley is the centre of everything. At least it’s the centre of iPhone development.”
The really reasons included that other platforms have inferior app stores and other manufacturer’s have a very fragmented device portfolio, and one answer was a bit ironic. They said the path to cash is also unclear, unlike with the iPhone (despite many iPhone developers having a hard time making enough money). Luckily, AdMob was there to answer that question for the iPhone. It said depending on the application, a developer could reasonably expect “15 cents per customer” through advertising. Is that good? If an app costs an average of $30,000 to develop, a developer would have to achieve 200,000 downloads in order to break-even.
MacLeod’s conclusion is that iPhone-vision won’t last forever. “If Ovi, Blackberry and Windows Mobile deliver on their promise, I’m sure the majority will give them the time of day. But right now it’s iPhone, iPhone, iPhone and I don’t blame them.”
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