"Steve Demeter, developer of the vastly popular $5 iPhone game Trism, announced he made $250,000 in profit in just two months. His team? Himself, mainly, with a little bit of help from a friend and a contracted designer (whom he paid $500). If his profits continue at this rate, Demeter will earn $3 million by July 2009."

Cellphone companies lose money off the price of the phone. Apple loses money off the ipod. It's a given in business to lose on the product side but to gain on the accessories and services attached to the product. In Retail sure they will sell you on the burger but how about the fries and dessert? Telecommunication companies discount the hardware (cellphones, modems, cableboxes, etc)to get it back on subscriptions and additional services.

Apple seems to be sharing the pot though. The above guy represents the developers on the Apple App store. The more we tell each other about our favorite game or utility, the more the developer get's paid. This allows them to move out of their parent's house lease a office and hire a staff. The "closed" garden platform is actually helping the silicon valley and other places grow. Interesting, before I starting writing about tech, I was NOT an Apple fan. If I couldn't fix it, I wasn't with it. I'm starting to gain more respect and even understand Steve Job's deliberate game plan... I still won't buy an iPhone though :P

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