04
Aug
08

gold rush reports

Just in case you were wondering whether this iPhone thing was really going to take off, here’s a good example for you: The guys behind MacHeist have two applications up on the App Store — and they’ve posted the sales numbers for the most recent week. Let’s see how this stacks up:

1) Where To? — “makes your iPhone … find points of interest around you”

  • price: $2.99
  • number sold: 3,193
  • net sales: $9,547.07

2) Tipulator — “the tip calculator that’s actually fun”

  • price: 99¢
  • number sold: 353
  • net sales: $349.47

Let us compare to their marketing expense, which they have likewise provided — they’re just too kind, aren’t they — for us:

And for tap tap tap we put out under $2,000: $1,250 for the Daring Fireball ad, around $200 to send a mailing out, and around $300 in iTunes Music Store gift certificates sent to potential reviewers (Apple NEEDS to provide us with a better way of doing this).

This is really incredible when you think about it and calculate the margins.

Yes, indeed, “incredible” is actually an appropriate word here. I’d expected that iPhone programming would be a great opportunity, but never expected returns on this level. We are indeed in a gold rush, people; the only remaining question is if and when we’re going to have the amount of competition that something approaching normal marketing budgets become necessary again. In the meantime, full steam ahead!

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