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'App Economy' is huge US job creator: study
by Staff Writers
Washington (AFP) Feb 7, 2012


The explosion of software applications for smartphones, tablet computers and Facebook has created nearly 500,000 jobs in the United States since 2007, according to a study published on Tuesday.

The study, sponsored by TechNet, a bipartisan organization of top technology executives, found that the "App Economy" employs 466,000 people in the United States.

"The incredibly rapid rise of smartphones, tablets, and social media, and the applications -- apps -- that run on them, is perhaps the biggest economic and technological phenomenon today," the study said. "Almost a million apps have been created for the iPhone, iPad and Android alone.

"On an economic level, each app represents jobs -- for programmers, for user interface designers, for marketers, for managers, for support staff," it said.

California tops the list of US states with app-related jobs, according to the study performed by Michael Mandel, a Harvard-educated economist with the consulting firm South Mountain Economics.

One in every four "App Economy" jobs is located in California. New York is the top metropolitan area for app-related jobs although the number of jobs in San Francisco and San Jose, California, combined exceeds those in New York.

Rey Ramsey, president and chief executive of TechNet, said the rise of the App Economy, "demonstrates that we can quickly create economic value and jobs through cutting-edge innovation.

"Today, the App Economy is creating jobs in every part of America, employing hundreds of thousands of US workers today and even more in the years to come," Ramsey said.

The study dates the rise of the App Economy to Apple's 2007 introduction of the iPhone and noted that the California gadget-maker's App Store now offers more than 500,000 applications.

According to a study published in September, the ecosystem of applications built for Facebook alone has created at least 182,000 jobs.

The study by the University of Maryland's Robert H. Smith School of Business said using "more aggressive estimates" the Facebook "App Economy" has created a total of 235,644 jobs.

The Palo Alto, California-based Facebook has 850 million members and tens of thousands of applications have been developed by third parties to run on top of the social network.

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Amazon planning first real-world shop: report
San Francisco (AFP) Feb 7, 2012 - Online retail titan Amazon will open its first real-world shop in just a few months, according to a blog devoted to news about electronic readers such as the popular Kindle.

Amazon spokeswoman Mary Osako on Tuesday declined to discuss the report, telling AFP "We don't comment on rumors or speculation."

Website goodereader.com cited unnamed sources close to the project as saying that Amazon intends to open a small boutique shop in its home town of Seattle devoted mainly to books and the company's Kindle tablets.

The shop will showcase digital books as well as ink-and-paper editions printed by Amazon's publishing arm, according to goodereader.

Apple has had phenomenal success with its retail stores devoted to the California company's coveted iPads, iPhones, iPods, and Macintosh computers.

The new Kindle Fire tablet has been touted as a viable challenger to the iPad, and Amazon may be following Apple's winning model of providing a tailored buying experience that puts devices and accessories in shoppers' hands.

Amazon's fourth-quarter net profit sank to $177 million, compared to $416 million a year before, and earnings per share dropped to 38 cents from 91 cents, short of analyst forecasts.

Net sales grew 34.6 percent in the quarter to $17.4 billion, but a 37.6 percent rise in costs ate away at the Internet sales giant's margins.

Despite a hugely successful holiday season for its Kindle e-reader and tablet devices, with sales up 177 percent from a year earlier, Amazon was challenged by price cutting from rivals on the Web and those with storefronts, and many with both.

The company said to expect more of the same for the first quarter -- strong sales growth but narrowing profit margins.

It forecast at best a 69 percent fall in operating income for the current quarter, and allowed for a possible net loss.



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