Though it hasn’t been announced on its website, Apple’s App Store for OSX iPhone applications is now online. In fact, enterprising iPhone users can allegedly upgrade their phone’s firmware to 2.0 in order to take advantage of this online software shop. As an iPod touch user, I have no such luxury. As of this moment, the firmware upgrade for iPod touch hasn’t been released. Since that upgrade will be free for iPhone and paid for iPod touch, the discrepancy isn’t surprising.

With those third-party applications, my ‘touch will become more of a PDA and the iPhone will become more of a smartphone.

Still, I was able to access the App Store using iTunes 7.7 (which I downloaded directly from Apple’s iTunes website since it wasn’t showing up in Apple Software Update). Adding the “Applications” item in the left-hand sidebar (available through the “General” tab in iTunes Preferences), I can see a list of applications already downloaded in iTunes (i.e., nothing at first launch). At the bottom of that page, there’s a link to get more applications which leads to the App Store.  There, I can browse applications, get free apps, or buy some of the paid ones (using the payment information stored in my iTunes account). Prices are the same in USD and CAD (since they are pretty much on par, it all makes sense). Searching and browsing for apps follows all the same conventions as with music, movies, podcasts, or iPod games. Application pages appear in searches for application names (say, “Trism“).

I went through a number of apps and eventually downloaded 28 free ones. I also noted a number of apps I would like to try, including Trism, Units, Things, Outliner, OmniFocus, Steps (one of the rare apps available in French), iCalorie, and one of the multiple Sudoku apps. However, I can’t put apps on a wishlist and demos aren’t available directly through iTunes (I’m assuming they’re available from the iPhone or iPod touch).

I’m actually looking forward to trying out all of these apps. I don’t tend to be an early adopter but this is one case for quick adoption, especially with free apps. I guess a small part of this is that, since Apple has sorted through these apps, I’m assuming none of them contains any malware. Not that I ever fully trust an organization or individual, but my level of trust is higher with the App Store than with, say, the usual software download site (VersionTracker.com, Tucows.com, Download.com, Handango.com). And I trust these download sites much more than the developer sites I find through Web searches.

One thing I notice very quickly is how small many of those apps were. After downloading 28 apps, my “Mobile Applications” folder is 31MB. Of course, many PDA apps were typically under 100KB, but given the size of OSX iPhone devices, I’m glad to notice that I can probably fit that I can probably fit a lot of applications in less than 1GB, leaving more room for podcasts, music, and pictures. On the other hand, filesizes are apparently not listed in the “Applications” section on iTunes (they’re specified on the individual apps’ pages).

Overall, there’s a number of obvious apps, many of which are PDA classic: to do lists, phrasebooks, clocks and timers, calculators (including tips calculators), converters, trackers, weather forecasts, and solitaire or other casual games (like sudoku). No surprise with any of these and I’ll probably use many of them. Typically, these can be difficult to select because developers have had very similar ideas but the apps have slightly different features. Typically, with those apps, free wins over extensive feature lists, even for very cheap software.

Speaking of price, I notice that AppEngines is selling 43 different Public Domain books as separate apps for 1$ each. Now, there’s nothing wrong with making money off Public Domain material (after all, there wouldn’t be a Disney Company without Public Domain works). But it seems strange to me that someone would nickel-and-dime readers by charging for access to individual Public Domain titles. Sure, a standalone app is convenient. But a good electronic book reader should probably be more general than book-specific. Not really because of size constraints and such. But because books are easily conceived as part of a library (or bookshelf), instead of being scattered on a handheld device. The BookZ Text Reader seems more relevant, in this case, and it’s compatible with the Project Gutenberg files. Charging 2$ for that text reader seems perfectly legitimate. For its part, Fictionwise has released a free eReader app for use with its proprietary format. Though it won’t transform OSX iPhone devices into a Kindle killer, this eReader app does seem to at least transfer books through WiFi. Since these books are copyrighted ones, the app can be a nice example of a convenient content marketplace.

I’m a bit surprised that the educational software section of the App Store isn’t more elaborate. It does contain 45 separate apps but several of those are language-specific versions of language tools or apps listed in other categories which happen to have some connection to learning. If it were me, I’d classify language tools in a separate category or subcategory and I might more obvious how different educational apps are classified. On the other hand, I’m quite surprised that Molecules isn’t listed in this educational section.

The reason I care so much is that I see touch devices generally as an important part of the future of education. With iPod touches being bundled with Mac sales in the current “Back-to-School” special and with the obvious interest of different people in putting touch devices in the hands of learners and teachers, I would have expected a slew of educational apps. Not to mention that educational apps have long populated lists of software offerings since the fondly remembered Hypercard days to PDAs and smartphones.

Among the interesting educational apps is Faber Acoustical‘s SignalScope. At 25$, it’s somewhat expensive for an OSX iPhone app, but it’s much less expensive than some equivalent apps on other platforms used to be. It’s also one of the more creative apps I’ve seen in the Store. Unfortunately, for apparently obvious reasons (the iPod touch has no embedded audio in), it’s only available on the iPhone.

Speaking of iPhone-only software… There’s already a way to get audio on the iPod touch using a third-party adapter. I understand that Apple isn’t supporting it officially but I wonder if the iPhone-only tag will prevent people from using it. Small point for most people, I guess. But it’d be really nice if I could use my ‘touch as a voice recorder. Would make for a great fieldwork tool.

One thing I wish were available on the App Store is an alternative mode for text entry. Though I’m already getting decent performance from the default virtual keyboard on my ‘touch, I still wish I had Dasher, MessagEase or even Graffiti.

Among the apps I’ve browsed, I see a number of things which could be described as “standalone versions of Web apps.” There’s already a good number of Web apps compatible or even customized for OSX iPhone devices. The standalone versions can be useful, in part because they can be used offline (great for WiFi-less situations, on the iPod touch). But these “standaloned Web apps” also don’t seem to really take full advantage of Apple’s Cocoa Touch. In the perception of value, I’d say that “standaloned Web apps” rate fairly low, especially since most Web apps are free to use (unless tied with an account on a Web service).

I was also surprised to see that a number of apps which are basically simple jokes are put for sale on the App Store. I was amused to see an OSX iPhone version of Freeverse’s classic “Jared, The Butcher of Songs.” But I’m puzzled by the fact that Hottrix is selling its iBeer app for 3$. Sure, it’s just 3$. But I don’t see the app providing with as much pleasure as a single taster of a craft beer. Not to mention that the beer itself looks (by colour, foam, and carbonation) like a bland pilsner and not like a flavourful beer.

Overall, I’d say the Store is well-made. Again, the same principles are used as for the iTunes Store generally. All application pages have screenshots and some of these screenshots give an excellent idea of what the application does, while other screenshots are surprisingly difficult to understand. Browsing the Store, I noticed how important icons seemed to be in terms of catching my attention. Some application developers did a great job at the textual description of their applications, also catching my attention. But others use “marketingspeak” to brag about their product, which has the effect of making the app more difficult to grasp. Given the number of apps already listed and the simplicity of the classification, such details become quite important. Almost (but not nearly as much) as price, in terms of making an app appealing.

It seems pretty clear to me (and to others, including some free market advocates), that price is an important issue. This was obvious to many of us for a while. But the opening of the App Store makes this issue very obvious.

For instance, regardless of his previous work, CNET journalist Don Reisinger is probably on to something when he argues, in essence, that the free apps may outweigh the benefits of the paid apps, on Apple’s App Store. Even though Apple allegedly coaxed developers into charging for their apps, the fact of the matter is that the App Store clearly shows that no-cost software can be a competitive advantage in the marketplace. The same advantage is obvious in many contexts, including in music. But, as a closed environment, the App Store could serve as an efficient case study in “competing with free.” One thing to keep in mind, as I keep saying, is that there are multiple types of no-cost offerings. In the software world (including on the App Store), there’s a large number of examples of successful applications which incurred no purchase on the users’ part. Yes, sometimes you need a bit of imagination to build a business model on top of no-cost software. But I think the commercial ventures enabled by these “alternative” business models are more diverse than people seem to assume.

One thing I noticed in terms of application pricing on the App Store is that there either seems to be a number of sweet spots or pricing schemes come from a force of habit. Sure, Apple only has a finite list of “tiers” for amounts which can be charged for a given app (with preset currency conversions). But I think that some tiers have been used more than others. For instance, 10$ seems fairly common as a threshold between truly inexpensive apps and a category similar to “shareware.” Some apps are actually as expensive as the desktop versions, though it seems that the most expensive app so far is under 100$.

One thing to note is that several developers of those early App Store products have been involved in Mac development for a while (the Omni Group being an obvious example) but there are also several organizations which seem to be entering Cocoa development for the first time. This could be a bigger halo effect in terms of Mac sales than the original iPod or the iPhone. Profit made through OSX iPhone apps (either through software cost, through services, or even through other monetization schemes) could lead them to develop software for OSX Leopard. At least, they already made an investment in the development platform.

It’ll be interesting to observe what happens with software pricing in relation to the “apparent hand” of a constrained market.

But I’m less interested in this market than in the actual apps. When can I install the “iPhone 2.0” firmware on my iPod touch? Is it now?