This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple iPhone Creates Own Developer Industry

BOSTON ( TheStreet) -- It's official: Apple's (AAPL - Get Report) newest iPhone is on the way. Fan boys can now sleep tight with visions of HD video dancing in their heads.

Yesterday's Apple conference in San Francisco featured cool new functions of the iPhone 4, many of which are bells and whistles to help it keep up with Google's (GOOG - Get Report) Android operating system and Research in Motion's (RIMM) BlackBerry smartphones. Among the hoopla, one thing was clear: Developers are the key to the success of the iPhone and iPad tablet. Those devices are, in turn, a gold mine for developers.

Big names from online video-rental store Netflix (NFLX - Get Report) and video-gaming company Activision (ATVI - Get Report) stood on stage with Apple Chief Executive Officer Steve Jobs to promote their apps on the iPhone, gaining access to a huge audience of customers.

Inclusion in Cupertino, Calif.-based Apple's App Store won't make those companies, but it gives them a shot in the arm. The ability to stream Netflix movies to an iPhone may seem silly because the smartphone's screen is so small, but it serves as a cool feature that could push people to subscribe to Netflix. For a company that's at the tipping point as Netflix is, every bit helps.

Activision, too, gains access to a fantastic platform to sell simple-to-develop games that can milk every cent from successful franchises such as Guitar Hero. With the addition of a gyroscope to the iPhone, developing games for the device is becoming easier and allows designers to create immersive experiences that can boost app sales to big numbers.

While this sounds great for developers, it's important to consider the pitfalls as well.

Apple controls the distribution in this format, so what Steve Jobs says, goes. That means that if you cross Cupertino, you may find yourself on the outside looking in. Being cut off from this media market could prove to be a damaging, if not fatal, prospect.

Consider Adobe (ADBE - Get Report).

As a developer of some of the most widely used and pivotal technologies around, it's hard to imagine that Apple would want to shut the company out of its devices. But that's exactly what happened with Adobe's widely used Flash code. Apple didn't like that it's a closed system, so it simply decided not to support it.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADBE $94.22 0.62%
AAPL $93.74 -1.15%
ATVI $34.47 1.68%
GOOG $693.01 0.29%
NFLX $90.03 -0.28%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs