App Store profits extremely difficult, developers say | iPodNN
Despite initial impressions given by Apple and the media, success stories at the App Store are actually rare, a new report suggests. Apple has enjoyed pointing to Trism developer Steve Demeter as an example of App Store profits, as well as a new egalitarian footing for independent developers. Demeter managed to accumulate $250,000 in two months through his iPhone app; while some observers believed he would be able to retire on future iPhone profits, Demeter now admits that he is only living a wealthy lifestyle because he invested in Palm stock, which jumped in value from $1.76 to $12.
Newsweek writes that after conducting interviews with consultants and programmers, it now appears that many developers are failing to turn a profit on their apps. In cases where money is being made, even popular titles are often making less money than might be expected. Trib Cubby developer David Barnard complains that in spite of good reviews and highlighting from Apple, he still ended up in debt because of his app, and having to sell his car. Only the release of a second app, Gas Cubby, has generated a profit. "But we spent a hell of a lot of money to get there," says Barnard
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