No matter what anybody says, we’re pretty sure the “S” in iPhone 3G S stands for “Surprise”. Technically speaking, it’s the 3.0 upgrade in conjunction with the 3G S release that we’re so excited about. iPhone 3.0 now includes an in-app purchasing tool, which makes it easier for application developers to increase sales.
The in-app tool is something mobile game makers were looking forward to for quite some time. Till now, these companies could charge just a one-time fee for every game they developed. But now they can charge in steps, and they can sell additional products and advanced versions of the games to the players. Naturally, plans are on to increase the number of games being developed.
With the help of this feature, users can make purchases using iPhone apps more easily, and consequently, developers stand to profit more from their efforts. Although this might change later, this feature is currently available only for paid apps.
The excitement has spread among various other mobile apps providers. Newspapers and authors, who are eager to sell their works in installments rather than in entirety, are a case in point. It seems to be a win-win situation for all, as Apple, iPhone users, and the app developers all gain from this development. A 70% revenue earning model, with this added advantage, is definitely a big temptation for developing more and more applications. At the same time, users want their smartphones to become even smarter. Of course, to benefit from this, the onus lies on the developers to create a steady stream of compelling new features.
While many developers will strike it rich with increased App Store revenues, the potential for innovation also increases with the prospect of additional sales. Developers will now be willing to launch apps for the costlier genres they’ve avoided till now, as users were not ready to pay so much. With the installments model possible, newer, more innovative options now become available to the developers.
But the moot point is, will users be ready to make additional purchases from applications they’ve already paid for? Watch this space for more on this development.