Facebook Is Building A Massive New Business That Exploits A Key Weakness At Apple And Google

Business Insider ^ | 03/13/2013 | Jim Edwards

[SeekAndFind]

A long time ago, Facebook launched an app store. If you didn't know that fact, don't be alarmed. People don't talk much about the Facebook App Center any more. That's because almost everyone downloads the apps they need from Apple's App Store and the Google Play store on Android.

It's a powerful duopoly, and everyone is used to it.

Apps and downloads are one of Apple's fastest-growing, least-talked about businesses. They generate $4.4 billion per quarter, and are projected to be more profitable than iPads and Macs. Android and the Google Play store that supplies it run on up to 80% of smartphones in some markets.

Counterintuitively, Facebook CEO Mark Zuckerberg seems to regard Apple and Google's dominance of app distribution as a weakness that he can now exploit.

Apple and Google are lousy at promoting apps. The non-obvious chink in the armor is that while Apple and Google dominate the supply of apps — and take a cut of each paid download — they are lousy at promoting and marketing apps.

The marketplace for apps is surprisingly dysfunctional, given that all the players in it are self-described innovators and disruptors of dinosaur capitalism.

[humblegunner]

The non-obvious chink in the armor

[Patriot95]

[DarkSavant]

Apple and Google are lousy at promoting apps. The non-obvious chink in the armor is that while Apple and Google dominate the supply of apps — and take a cut of each paid download — they are lousy at promoting and marketing apps.

They probably don't consider it their job to promote apps they don't control.

I can see a good revenue model for Facebook in charging to advertise in the app store. IS it substantial enough to compete with Google and Apple, that have their app stores strongly embedded in their devices? I doubt it.

[cuban leaf]

cell phone companies and the internets must hate me. I’ve had a smart phone for 4 years now and have purchased one app: I paid five bucks for winamp so I could listen to odd formats.

I do a lot of mail order via the internet because I live in the sticks but I don’t do ads. At all. I google search for an item in chrome and when I find what I want, I cut and paste the company’s address in Firefox.

[Tzfat]

Nonsense. Facebook is an app that seems necessary (to some), but it is quickly becoming a victim of its own success. When it became ubiquitous, it became uncool. Over time, it will become even less cool with everyone who values any privacy.

[AFreeBird]

A Facebook App Store? For what? I can see android users installing everything under the sun regardless of provenience. But IPhones have to go throughh Apple’s App Store.

[Swordmaker]

mark Zuckerberg's Facebook thinks that Apple doesn't promote Apps enough so Facebook should step into that "weakness" —PING!

Apple Weakness (?) Ping!

If you want on or off the Mac Ping List, Freepmail me.

[roadcat]

In other words, iPhone users can only see 0.02% of all available apps at any one time. And Apple's App Store search tool is comically dysfunctional. It won't surface new apps for several days, even if you search for their exact brand names.

After reading the article, I have to agree. Lots of apps, but the app store interface makes it difficult to see more than a handful at a time. I love the apps I found and downloaded, but I have to wonder about all the thousands of apps I probably need but will never find.

[Wyatt's Torch]

Facebook is not a social media company. They are a mobile company.