• Jailbreakers Beware! Pirated iPhone/iPod Apps Produce Big Numbers and Big Attention

    We all know that the "black market" for apps is big business, but now we're starting to get a better understanding of the numbers associated with content piracy in the app world. Incredibly, the "business of pirated apps" is starting to rival that of pirated films and music at an accelerating pace - but Apple doesn't seem to be overly concerned, even in the wake of some pretty lofty numbers being floated in a new report, which was chronicled today by our friends at The Big Money.

    The financial blog 24/7 Wall Street had a detailed post calculating the amount that Apple (AAPL) and developers of paid apps are losing when copies of their wares are downloaded to jailbroken, or unlocked, iPhones. On some pirate hubs, you can download nearly 1,000 iPhone apps in a single click. Their conclusion? For every paid app downloaded in the App Store, three are distributed for free through means that Apple hasnít authorized.
    Although the battle between content pirates and major Hollywood film and recording studios hasn't subsided in the least, it's all but certain that application developers will soon join the battle to help curb the loss of potential revenue they're "bleeding." But, as the article notes, Apple doesn't seem to be making too big of a fuss about the problem. Why? It's pretty clear that as long as content is played via iTunes or on iPods and iPhones, Apple will still benefit, even if the content being used was obtained legally.

    Why isnít Apple protesting? For one thing, $140 million is less than 2 percent of the $7.8 billion revenue Apple is expected to see this fiscal year. 24/7 also notes that Apple didnít make a huge fuss over music piracy either, given that it was making more revenue from iPods and iPhones, including those that were playing pirated songs.
    Call me crazy, but it seems that unless Apple starts to care about this issue, very little will likely happen with regard to the financial losses of developers that result from jailbroken iPhones and the influx of apps that users obtain without having purchased them via the App Store - which, by the way, has still suffered financially from pirated content. According to some estimates, Apple has already lost upwards of $140 million. Considering Apple has only made approximately five times that from the App Store, this number is very, very significant.

    Developers, however, have lost even more. $310 million is the figure presented in the piece.

    Developers Neptune Interactive Inc and Smells Like Donkey Inc have reported piracy rates has high as 90% for their game $1.99 Tap-Fu, and claim that it was available in a pirated version within 40 minutes of its release on the App Store.
    Image via cellphones.ca
    This article was originally published in forum thread: Jailbreakers Beware! Pirated iPhone/iPod Apps Produce Big Numbers and Big Attention started by Michael Essany View original post
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