Thursday, February 17, 2011

Unique (first mover) Vs. Distinctive (competitive)

In all my commercialization efforts, from shampoo bottles to molecules to wireless antennas to software, I always look at whether there is an opportunity to have the first mover advantage, in some cases it is merely marketing based perception.

Apple has charged its app publishers 30% for AppStore (article here). Google is countering with 10% cut. Apple made 20% more by entering the market first and delivering a consumer value and winning them while earning from the customer and enabling the customer to reach the consumer.

Just to emphasize what this means, Apple earned 30% of $250MM AppStore sales in December 2010 only. Unique (or first mover) advantage $50MM!!

Please see the very nice work done by GigaOM folks here in detailing the number of AppStore users and their application buying behavior and data.

I have taken the liberty to publish their information graphic below. The comments to the article are insightful as well.

Click to enlarge

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