That Happened!

Seattle - Since opening the Apple iTunes App Store in July, users of iPhone and iPod Touch have purchases more than 300 million applications. 60 million applications are downloaded on a monthly basis, with over 2 million downloaded each day.

Other companies, link Handango, have offered applications for smart phones for years, but users were often confused and frustrated by the download process. With the streamlined use of the iTunes store, Apple has been able to take down the last hurdle for widespread use of smart phone applications.

In an interview with the Wall Street Journal in August, Steve Jobs said he believes Apple is on its way to establishing a billion dollar business. “This thing’s going to crest a half a billion, soon. Who knows, maybe it will be a $1 billion marketplace at some point in time.”

Many of the applications available in iTunes are free, and the average cost for other applications is around $3.

Silicon Vally insiders believe the competitive pricing is key to Apple’s success as well. Another key to the success is the range of applications available. From guided directions to music trivia to streaming internet radio, users have been quick to snap up the latest offerings.

The most popular application is currently Koi Pond, an application that lets the user care for virtual fish. Facebook, already a popular networking website, has created an application to let users access their accounts online.

Another popular app is Zinio’s Mobile News.  Zinio’s Mobile News stand allows iPhone users to browse their favorite magazine titles, tapping the magazine cover gives them easy access to a hi-res digital version of the print mag. The program allows zooming and easily scolling through titles.

While many applications are free, the percent of users purchasing apps has significantly increased. Currently, 22% of the 10,000 available apps are free. The most common price is 99 cents, especially in the games category. The most expensive application is a video surveillance system for $899.99. To purchase all of the applications in the iTunes store would cost $33,072.69, though the iPhone and iPod Touch can download between 129 and 148 applications each.

The success of the iTunes application store hasn’t gone unnoticed in the industry. Google and Blackberry have both started testing download programs for their smart phones. They’re hoping to attract program developers concerned with the strict rules Apple has imposed on applications.