Challenging the Apple App Store

Twenty four telecom providers have agreed to collaborate in forming the Wholesale Applications Community in order to take on the Apple App Store.

In theory, this seems like a logical move for the telecom providers, which have been losing leverage in the industry to the likes of Apple and Google. By teaming up to create a common development standard that is independent of phone-make, service provider, or operating system, the industry aims to attract app developers and build a competitive network of applications.

I believe that this collaboration will face extraordinary challenges for the following reasons:

• The companies that are working together have been long-time competitors and will find it difficult to work together. Getting 24 entities to work cooperatively and productively is difficult enough, even when they are not directly competing
• Apple benefits from a strong brand and a great deal of marketing power. It will be difficult for the Wholesale Applications Community to create a brand and a single face to customers that can rival that of Apple, especially since its identity is split between two-dozen separate companies.
  
• One can envision how app developers will be drawn to this platform. The potential market is huge. Sony, Samsung, and LG and the GSM Association all support the project. However, Apple's existing library of applications is fairly robust, and gives them a distinct advantage in defending this territory.