iPhone OS: The Best Strategic Move Ever
With the release of the iPad, the iPhone OS is gaining huge momentum. With OS 4 on the horizon, Apple is working non stop to make this a great release. However Apple has a huge line of consumer electronics, why are they putting all this energy into the iPhone OS? Because of Revenue.
This is Apple’s fastest growing area and they are working on it non stop to make it the very best of the best. We now have three distinctly different yet similar devices that run this OS; iPhone, iPod Touch and iPad.
iPhone
Apple’s first device that runs this OS. This device created a revoloution in the smartphone market and now leads the way in usability and innovation. The release of the App Store in 2008 was one of the best decisions Apple ever made. Not only did this pave the way for awesome and amazing apps but propelled Apple’s revenue to sweltering amounts.
Think about it, 3 billion apps have been downloaded on the App Store since day 1 with 74% being sold. That’s in just 18 months. These apps are all created by third party developers and are totally awesome. Of every single app that is sold Apple gets a whopping 30% of each sale. That’s huge. With the average price of a paid app being $3.63, that is billions of dollars in Apple’s pockets. Apple had never expected that and it is growing by a rapid amount.

iPod Touch
Apple soon realised the huge potential of the App Store and wanted to bring it into the hands of millions users, not just the elite who have an iPhone. They looked at their product line and found their most popular product; the iPod.
Now the iPod Touch was born, the iPod has been an amazing success and has sold over 250 million units since 2001. By bringing the App Store to the iPod, not only do the sales of units grow but the revenue Apple gains from apps sold increases. What’s best is Apple does not have to do anything (create, manage or update the apps) and they still get this huge amount of revenue.
iPad
Apple’s latest device which entered the market with a WiFi only version, only in the US on April 3 has sold more than 500,000 units in just under two weeks. That is massive and Apple still hasn’t released the 3G version yet or released it internationally. Analysts estimate the iPad will sell over 7 million units in the first year.
What’s best is this device runs iPhone OS. Not only will Apple make a killing out of the units sold but the huge amounts of apps that are bought. iPad specific apps are much pricier than their iPhone counterparts. Again this means more revenue for Apple from the App Store. No wonder Apple decided to make the iPad run the iPhone OS.
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Now with the beta release of iPhone 4 for the iPhone, Apple have released iAd. This will bring intuitive ads to all devices running the iPhone OS. Again, Apple will take a
40% cut of all sales without having to do anything except manage the system. The number of apps is growing by an insane amount and iAd will take advantage of all these apps and this will put a lot of money into both the developers and Apple’s pockets.
The developers only get 70% / 60% of the cut of the sales but they still love it. Why? Because there is such a large userbase (iPhone, iPod Touch and now iPad) that they will continue to develop and make great apps which will in turn lead to a greater revenue gain.
The best thing about the iPhone OS is its potential, the App Store was only released in mid 08 and now look at these enormous numbers, this was one of Apple’s best moves ever. Apple have realised this and therefore introduced the iPad and then iAd. The potential exists and the iPhone OS will bring Apple to great heights.
Where do you think Apple is going from here? Should they stay and work on the iPhone OS line or move back and try sell even more Macs? Will the Apple line now be dominated by the iPhone OS?


26. Apr, 2010 
There is no doubt that the iPad has been a remarkable success with selling over 500,000 of the WiFi models in the US alone in the first week. However this device has been longingly waited for by Apple’s international customers and
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