I don't think that Apple really needs the App Store to be a money maker. In fact, if it breaks even, it would be a win since the applications themselves are adding value to the iPhone and iPod touch in the same way that third party applications for Microsoft's operating systems have created so much value for Microsoft.
The apps are quickly establishing the iPhone/iPod touch as _the_ platform in handheld computing making it very difficult for third parties to compete against Apple. With the Palm Pre coming out soon, a lot of people are going to be looking at it like people looked at Macs a few years back - sure, I could get a Pre and you can even argue that it's a better device, but everything runs on an iPhone and I have no idea whether people will port things to the Pre.
Apples knows - or at least should know - that the App Store is what will give them the Microsoft advantage in the mobile space. As everything is iPhone/iPod touch compatible, sales will keep going up which will drive even more app creation which will drive even more sales. What a wonderful cycle, unless you are on the outside trying to compete.
So how did Apple compete against Microsoft in the desktop computing space? They built an ecosystem of their own. To make sure people would come there, they saw what sucked about Microsoft, and made sure that those very weaknesses were their own strengths.
There are plenty of things that suck about the iPhone. If Palm has the insight to spot those and capitalize on them, then they'll win a place in the smartphone businesss.
The apps are quickly establishing the iPhone/iPod touch as _the_ platform in handheld computing making it very difficult for third parties to compete against Apple. With the Palm Pre coming out soon, a lot of people are going to be looking at it like people looked at Macs a few years back - sure, I could get a Pre and you can even argue that it's a better device, but everything runs on an iPhone and I have no idea whether people will port things to the Pre.
Apples knows - or at least should know - that the App Store is what will give them the Microsoft advantage in the mobile space. As everything is iPhone/iPod touch compatible, sales will keep going up which will drive even more app creation which will drive even more sales. What a wonderful cycle, unless you are on the outside trying to compete.