Apple grapples with the competition. Was Zittrain right or wrong?
When Apple opened the App Store, it provided the building blocks so independent programmers could create software that worked on its phone. But the company said it would vet submissions to maintain quality control and to protect the user experience.
Apple, which collects a 30% commission from sellers on its store, doesn’t break out the site’s revenue. Brokerage firm Piper Jaffray estimates the site generated about $150 million in sales last year and projects total sales will grow to $800 million this year.
Apple did not respond to requests for comment. But it has said in the past that with the iPhone it was trying to strike a balance between a closed device like the iPod and an open device like the PC.
The upstart sites can carry software programs that Apple’s official store won’t, since the company tightly controls the kinds of applications it allows. Among the programs that Apple doesn’t allow is a free one called Cycorder, which turns the iPhone into a camcorder. Another program, which costs $29, dubbed PdaNET lets people use their iPhones as laptop modems to connect to the Internet.