1) Its essentially a walled garden, distribution is exclusively through the app store, so Apple owns the customer contact.
2) First mover advantage was important. If you could get there first with an OK app in front of many rabid Mac fans you were guaranteed of making some money.
3) There is a real problem with the pricing model (if you’re a developer). in order to get into the top sellers bracket people try to get as many sales as possible, so developers keep their prices real low ($0.99). This is a doubled edged sword that you need to decrease your price to make sales, but then the revenues don’t actually mean much. Unfortunately you have to sell a lot of content in order to keep yourself happy with that.
4) It’s a groundbreaking device; it can tell where you are, connect to the internet, do crazy things associated with motion. This opens up the scope considerably wrt development.
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