Since Dada Labs is a company that produces iPhone and iPad applications, it's pretty easy to see why Verizon's acquisition of the iPhone is a realllly big deal to us. But, if you're still scratching your head wondering why we care, let me lay it out for you... More iPhone users, in theory, means more potential downloads of our premier application, Knotbad, as well as our future apps—the forever-coming shopping list and pirate game. (ps- Check out our Pirate naming contest on our Facebook page for a chance to win a free Pirate graphic tee!) According to the Silicon Valley/San Jose Business Journal, the "iPhone application market could more than double when all those new Verizon users get their hands on the gadget, taking app sales to $6 billion from last year’s $2.8 billion." That's a lot of money—although only a few lucky apps really profit on the iTunes store, there's no reason why Dada Labs can't dream! The average paid app makes out with $700 annually, not a ton of money, and with a free app like Knotbad, you can only imagine how difficult it is to generate steady revenue. Despite the fact we have an awesome product and diligent marketing (I say that modestly), it is a tough business to survive in.
So here's the breakdown of the approximate 600,000+ new Verizon iPhone users and what I think that means for Dada Labs:
(I found these stats on a few different blogs and websites for reference, they may not be extremely accurate.)
-14% crossovers from AT&T iPhone
-30% from Verizon Android
-25% from Verizon Blackberry
-31% others
Although the number of new downloads are not strictly dependent on how users got their hands on the Verizon iPhone, the number of new iPhone users will, however, effect the number of new app downloads. With such a low cross-over rate from AT&T, there still remains an enormous amount of users on the AT&T network, which is good news for us and every other app developer. Assuming these numbers are atleast ball-park accurate, and even if they're not, every single one of these new iPhone users are potential downloaders of a Dada Labs application.
As Sam Altman, co-founder of successful location-based social networking application, Loopt, said, "We think there will be a feeding frenzy with the Verizon iPhone, tons of people downloading apps like crazy."
We hope Sam is right. ARE YOU AS EXCITED AS I AM?? Add to the hype and get your very own Knotbad app for FREE! Thanks :)
