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Competing iPhone stores negligible, says Needham

Needham on App Str. rivals

The emergence of unofficial app stores as an alternative to iTunes does not pose a serious threat to Apple's bottom line, according to Needham analyst Charlie Wolf. Services such as the Cydia Store could in theory deprive Apple of its 30 percent commission made via the App Store, but Wolf proposes that the alternatives will be unable to sell sanctioned titles, which already number over 25,000. Instead, third parties may be limited to potentially offensive or poor-quality apps.

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Rival iPhone app stores threaten Apple hegemony

Rival iPhone stores loom

Several new online stores are threatening to challenge the current rigidity of the iPhone economy, according to the Wall Street Journal. Opening today is the Cydia Store, an extension of the software associated with browsing and downloading unofficial iPhone applications. While most apps available through Cydia have been free, some Cydia Store downloads will cost a fee, with the creator of the service reaping a commission similar to the one taken by Apple from official iPhone apps.

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PDAnet allows tethering for jailbroken iPhones

PDAnet tethering app

A new option for tethering iPhones has become available through Cydia. PDAnet allows users to connect to the Internet on their notebook through the use of a jailbroken iPhone. Carriers generally charge an additional fee for this function, but in the iPhone's case, the option is not available; people are cautioned, therefore, that tethering may be against their carrier's terms of service, such as in the case of AT&T.

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