This interview repeats the common line of thought that Apple having credit cards stored and a frictionless buying experience as key to the success of the App Store, but I don't see why that is a commonly held belief. Doesn't hurt, of course, but simple ease of payment doesn't really strike me as the main hurdle in selling software (more than willing to be proved wrong here). It seems more likely to me that the iPhone was a device that begged for software. Hand anyone an iPhone with just the built in apps and I assure you they will soon be inquiring about what else can they do with it.
A great demand seems to be the real key to the App Store success. After all, how many credit cards that were entered in 2008 are still active today?
I definitely think that the seamless buying experience is one of the key, not the only one.
Yes, the device is begging for the software but let's imagine that you have to go through a regular 'checkout' experience. I really don't think I would have bought any of those 1$ games which I buy on a whim. In fact, if there is any app which is less than 5$ and looks even slightly interesting, I click on the 'Buy Now' button. [These days, I actually hate entering my iTunes password. I wish there was a setting for it to not prompt me password at all. I am the exclusive user of my phone.]
To relate to my retail experience, let me bring up my favorite Amazon Prime service. If I am interested in any particular item and it's available on Prime, I generally order it even if I am not 100% sure. If it was on some other website, I will think 5 times before decided to purchase it. I can't count how many times I have abandoned check out when the site does not let me do 'Guest Checkout'. I simply do not have the patience to create yet another account just to buy one item. It is actually surprising to me that so many websites still don't offer guest checkout. They are leaving some serious money on the table.
The difference between having to enter my CC every couple of years vs. every couple of days is huge. I'm guilty of a lot of quick, mindless expenses in the iTunes Store that I probably wouldn't have incurred in if I had to enter the CC every time.
It's all about reducing the friction to buy stuff, when the only thing you have to do is click a button you're most likely to consume (at least on my personal experience).
I agree with Kyle in the observation that this is not the main reason for the App Store to be successful, but I think it contributes a lot. I'm only speaking from experience though so maybe other people can chime in and give us their opinions.
As a user it's often the difference between me buying and not buying (having to go through finding my card, entering the information) when buying online. If I can click "buy" and it's done then I spend much more money. I've spent what must be over $5,000 via itunes (the majority of it being music and film/tv though, not apps) and I would never have spent that much if I had to enter my information every time.
I don't think it makes a difference on desirable purchases -- things I actively decide "I want this!" and then seek out -- but on impulse buys it's the difference between a sale and no sale.
Any marketplace needs demand, ease of transaction, and trust. Arguing about which one is more important is like arguing about which leg of a tripod is more important.
A great demand seems to be the real key to the App Store success. After all, how many credit cards that were entered in 2008 are still active today?