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One of the greatest advantage the iPhone has over smart-phone competitors is the App store. Blackberry or Nokia, which is working on one, have nothing that even comes close to offering the applications and games of Apple's App store.
Many of the features of the App store are free [of which the Facebook and Paypal apps are the most popular], but it is still generating quite a deal of revenue for Apple. Apple has reported that millions of its iPhone users have spent at least $100 on apps. I have not spend anything near that, but have still purchased apps. The most popular purchased app is the Crush Bandicoot game.
The App store, as with iTunes, is the tie-in that builds a loyal fan base for Apple's products. And Apple knows this. That is why most of the iPhone advertisements deal not with the iPod within the phone or the phone capabilities, which are impressive, themselves. Or even the Internet. But with Apps. Apple runs one commercial after another showing an app for, say, cooking, another for FedEx, another for restaurant guides, another for reading, and so on and so forth. There are so many apps it would be ridiculous to even begin to name them.
The iTunes store revolutionized the music industry and set a standard that no rival firm, no matter the investment, has been able to duplicate. The App is doing like wise though on a larger scale. First, it provides more than just music apps; of which some exist. But Apps that have changed the way people expect services whether transferring money through their, say, Bank of American and Paypal accounts to bidding on eBay. Apple has provided a medium that firms of all stripes are eager to build apps for in order to provide convenience to customers in an ever increasing competitive world. And that is what Apple has done secondly. No one can just record to be sold on iTunes. But thousands, if not tens of thousands, of people are producing apps for the App store. The iPhone was become a online market of goods. There are over 25,000 apps.
The App store was become so widely utilized on the iPhone that soon Apple's 17 million customers in 80 countries will record their billionth App store download. Apple will award a $10,000 gift card to the person who makes the billionth download.
The Macintosh, the iPod, the iTunes, the iPhone, and now the App store. Few firms can lay claim to as many pioneering products and services.
