Smule's hottest program, Ocarina, is billed as the first musical instrument for the iPhone. For 99 cents, users can make flutelike music by blowing into the microphone and fingering on-screen "holes." This past November, Ocarina was the best-selling iPhone app in the U.S. and 10 other countries. Wang says the product made "hundreds of thousands of dollars" in its first month, even after the 30% cut that Apple (AAPL, Fortune 500) takes on all iPhone software sold through its store.
Wang founded Smule last June with Jeff Smith, a veteran of two successful Silicon Valley startups. Smule's seven full-time employees and seven part-timers have developed four iPhone applications so far.
"You don't need to be a big development company," Wang says. "It doesn't take a lot of time to try ideas on this thing." Ocarina was built in just two weeks.
Selling via the iPhone store "can make you some serious money in a short space of time," agrees Iain Gillot, president of iGR Inc., a wireless-technology research company. "But there's a danger of becoming a one-hit wonder and not being able to sustain a company."
Wang is working on more apps, convinced that the market will grow in tough economic times. "In a downturn," he says, "people will stay home and buy $1 apps for their iPhones."
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