Mobile Economics with the iPhone

How the iPhone 3.0 Will Create a New Mobile Economy

Apple announced some major updates for the iPhone OS software this week that will become available to iPhone owners in June. The iPhone 3.0 software includes the ability to copy-and-paste, a landscape keyboard, and push notifications. However, none of these updates were as revolutionary as the new features Apple offered to iPhone application developers. The one to watch however is the ability to purchase items within an application.

This is a feature that matters because of the vast opportunities that it presents to both developers and users. iPhone users have already downloaded over 800 million applications, but that download has always been the end of the interaction with the developer. With this feature, iPhone applications can sell virtual gifts, ebooks, and application upgrades. The iPhone app store was a major innovation for mobile software. The iPhone 3.0 takes it a step further. The ability for the creators of applications to build relationships with customers by selling items and create stores within applications is a bold step towards the iPhone becoming its own micro-economy.

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