Category: Software

Analysts make up numbers on Apple piracy

Figures on how much cash that Jobs’ Mob lost to application piracy seem to have been obtained by thinking about a really big number, dividing by your shoe size and adding a couple of zeros.

Analyst outfit 24/7 Wall Street hit the headlines yesterday, claiming that Apple and third-party developers have lost $450 million due to App Store piracy since the store launched in July of 2008.

All great for a Thursday, but on Friday many of us are wondering how this figure was reached.

24/7 Wall Street takes a realistic number, which is based around an estimate from a Bernstein analyst that 510 million of the three billion applications downloaded from the App Store were paid downloads, and that the average application on the store costs $3.

The outfit then reasons that since there are 7.5 million jailbroken phones and iPod Touches,  40 percent of those use pirated applications.

Then using a figure which appears to have come from thin air, the report estimates that, for every one application downloaded legally, three are pirated.

Where did this come from?  The 75 percent piracy rate was apparently based on a “handful of developer accounts”, which in this magazine is a term which means “we asked a bloke in a pub”.

The report adds that 1.53 billion applications have been pirated at an average of $3 per unit, equalling $4.59 billion in lost sales.

24/7 realises that not every pirate would buy the application if it had not been otherwise available for free and thinks that 10 percent of pirates would have purchased, resulting in in $450 million in lost sales.

What is wrong with this is assuming that all applications are popular enough to pirate.  Some might be cracked while others are sitting inside Apple’s App store in the corner, getting drunker and not being looked at twice even by pirates.

Ballmer hops in bed with HP

The rather understated Microsoft CEO Steve “Marcel Marceau” Ballmer appears to be running short of ideas for his cloud product.

Microsoft has been seen wining and dining the maker of printer ink, which is more expensive than blood.

Sauces say that the pair have been working out a winning strategy to make money out of cloud based computing when no one really knows what it is or really cares.

The press release which came out of the meeting talks a lot about something called an “extended partnership”, which is handy because Steve  could do with extensions.

Steve Ballmer, Microsoft's CEOHowever it appears that the Mighty Microsoft Machine needs HP to provide stack integration and a check of $250 million over the next three years.

The press release says Ballmer’s vision will eliminate complexities of IT management, automate existing manual processes, lower costs and bring about peace in our lunchtime.

Next up HP and Microsoft will design an engineering roadmap to build data management machines.  The Roadmap will point the way to  “converged, pre-packaged application solutions”, “comprehensive virtualization offerings”, integrated management tools and any Happy Eaters on the way.