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Why BlackBerry App World offers a better profit opportunity

By Raj Choudhury

Mobile application developers have yet another opportunity to be first to market again with the launch last week of Research In Motion's BlackBerry App World store at the CTIA Wireless show.

The storefront for downloading mobile applications to BlackBerry handheld devices is RIM's answer to Apple's App Store, which, per one estimate, will generate $800 million in sales this year.

Nokia, Palm, Samsung, Microsoft and Google are among other players that recently unveiled application storefronts or intend to do so this year.

But Apple grabbed first dibs on developers when it opened its network of iPhone and iPod touch users to third-party software last July. Since then the Apple App Store has held 27,000-plus applications and delivered more than 800 million downloads.

But BlackBerry App World could be bigger for developers.

Size is not the only the reason I would want my application to be on BlackBerrys, although RIM does have 21 million subscribers to Apple's 17 million.

The real reason I would want a shot at BlackBerry App World is it offers more opportunity for users to find my application and a better chance for my software to be profitable.

Consider that users of the iPhone are on the younger side among consumers ages 18-34 who typically download games and entertainment apps. These applications they download tend to be either free or cost 99 cents.

However, BlackBerry users skew a bit older, frequent offices and corporate boardrooms and earn more income. They use their devices to edit documents and presentations and access emails on the fly.

The business suit demographic could gravitate to applications that increase productivity or offer some kind of utility for their workday.

Arguably, they might be willing to pay at least $2.99 -- the minimum price RIM has set for purchases, although free applications also will be available -- for a worthwhile application.

Additionally, I might be able to make money in a store where developers can charge higher prices or display applications that are subsidized by advertisers.

Consider that creating an enterprise quality application can cost from $80,000 to $225,000 for more complex software. A 99-cent application would have to be downloaded more than 115,000 times just to break even.

So, developers avoid risk by creating less complex and less expensive software. That's why bloggers complain that there are too many ringtones, games and junk out there. Imagine how their frustration will grow if they have to comb through hundreds of choices when storefronts swell to 50,000 applications or more.

My application would win more attention on BlackBerry App World because the minimum price will keep much of the fluff out of that store.

Applications at the Apple App Store are placed on the virtual front window because they are either staff-picked favorites or ranked based on popularity, which works in favor of the free software.

But BlackBerry App World could have an edge if it offers sorting that renders browsing more productive for users.

The storefront could have Amazon-like recommendations based on purchase history or even ratings from other users which could be grouped based on their usefulness as graded by other visitors or categorized according to segments of people who have a similar purchasing or rating history.

Such innovations could make my application easier for users to find and increase downloads.

There are potential hiccups due in store for the BlackBerry App World.

Running applications on a mobile device requires a lot of memory, and iPhone has gigabytes of it compared with megabytes for many older BlackBerrys.

Plus, the market will have to see if consumers' appetite for applications will continue to grow.

But for developers, getting their application into a store for devices that have a 41 percent share of the handheld business in the United States is another chance to be first to market.

Raj Choudhury is vice president of digital services at Engauge Digital, Atlanta. Reach him at .