Back in 2008, Nokia sold 468 million phones making the company the undisputed king of the mobile phone market with over 40% market share. This same year, Apple sold little over 10 million iPhones and launched iPhone App Store with just 500 third party apps. By the end of 2010, when Apple App Store had over 300,000 apps, it became clear to all including Nokia that the number of apps is much more important than the number of devices. Apps drive demand for phones creating network effects between users and 3rd party developers. Smartphone users attract developers. Developer create apps. Apps attract more users, which attract more developers.