Lot of iPhone developers actually complain about the Closed business model of iPhone App Store. The complaint often is about rejection of apps.
Back in time we saw how a iPhone App made $20k in a Week, another company made Million$ in few weeks from a single Game. No doubt, this is a great way to earn, provided you are innovative (and get lucky, of course).
But here is a story that makes one developer prouder each day. The maker of the popular rhythm game: Tap Tap Revenge reports sales nearing $1 million per month by Tapulous (Download Link [iTunes])
The secret is that the app generates the revenue through sales of its games, ads and selling songs inside games.
With 50 million iPhone OS devices, one-third of them have Tap Tap Revenge installed, Tapulous’ most popular game title costing $1 in the App Store. The strategy has been working for them: give out a bit free and charge for further addons.
One can’t argue that Apple’s App Store provides a simple business model for developers to market and sell their apps. However, the store is now overflowing with more than 100,000 apps, and the app market is becoming increasingly crowded and competitive.
Every title released gets multiple clones at cheaper price beating the hell out of the original developer.
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This just goes to show you how viable the app store has become as a distribution channel. That's an amazing feat to be hitting those kinds of levels consistently.
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