A is for Apple, L is for LeapFrog

By Rick Aristotle Munarriz | More Articles
April 21, 2009 | Comments (9)

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There are some applications that I am looking forward to feeding to my iPhone from Apple's (Nasdaq: AAPL ) App Store this year.

There's the Chipotle Mexican Grill (NYSE: CMG ) (NYSE: CMG-B ) mobile ordering program that came and went in January. A bug-free version was supposed to be out already. And Sirius XM Radio (Nasdaq: SIRI ) will finally release an in-house app to stream Sirius and XM Web radio streams this quarter.

It is only if I had to work my way all to the bottom of that ranked list that I would run into LeapFrog Enterprises' (NYSE: LF ) Number Rumble math game.

Yes, the same LeapFrog that rocked toddlers in the earlier half of this decade with its LeapPad educational toys made its App Store debut last week. The Leapfrog app is billed as "the first of several planned LeapFrog iPhone learning games." Let's stop right there for a quick poll.

How many kids -- between the game's target age range of 6 to 10 -- have their own iPhones? Not many, I'm sure. So how many parents want to hand over their smartphones to their children so they can "shake, tap and spin their way to math equation expertise" tonight? Not many, I'm sure.

Thankfully, despite being called a "LeapFrog iPhone" game, it's also perfectly playable on high-end iPod touch devices. There are probably more kids that own that, free of monthly AT&T (NYSE: T ) data plans, but it's hardly a toddler trinket. The exposed iPod touch screen that scratches so easily isn't exactly marketed as a gizmo for early learning.

The game is reasonably priced at just $2.99, but it's also competing against hungrier developers who are putting out free ad-based learning titles to get their feet in the proverbial door. In short, it's no surprise to see just six user reviews for LeapFrog's App Store debut.

As the App Store gets more crowded -- as tens of thousands of programs ultimately become hundreds of thousands -- it will get harder to stand out in a crowd. Is it even worth the hassle for a major toy manufacturer to spend serious coin in a program that won't be a material contributor?

Financially speaking, it's probably hard to justify. However, since the iPhone is so hot these days, it makes sense from a publicity standpoint to appear to be catering to the growing audience of iPhone and iPod touch owners.

Yes, I'm calling Number Rumble more of a publicity stunt than a legitimate moneymaker. You can "shake, tap and spin" me around, and I'll still feel that way. Investors love seeing their companies tied to successful names like Apple, but the financial reality will be a rude awakening.

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Chipotle Mexican Grill is a Motley Fool Rule Breakers recommendation. Apple is a Motley Fool Stock Advisor selection. Chipotle Mexican Grill Inc CL B is a Motley Fool Hidden Gems pick. The Fool also owns shares of Chipotle Mexican Grill Inc CL B. Try any of our Foolish newsletters today, free for 30 days.

Longtime Fool contributor Rick Munarriz is starting to see more Apple products creep into his home lately, but he does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (9) | Recommend This Article (14)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On April 21, 2009, at 6:43 PM, redbone22 wrote:

I like these little apps for when my grandson visits. He won't spend much time on it or the others, but its a chance for us to sit together and enjoy a little tech fun before he runs off to another distraction.
Report this Comment On April 21, 2009, at 6:43 PM, redbone22 wrote:

Oh, and screen protectors are priceless.
Report this Comment On April 21, 2009, at 8:58 PM, beetlebug62 wrote:

I let my 3yr old nephew play with my iPhone all the time. The screen is not easy-to-scratch. Seeing as you have one, I'm surprised to see you say that, since the iPhone and iPod touch screens are surprisingly resistant to scratching.
Certainly, these Leapster games are ideal for an iPod touch, and not the iPhone. And, it's just as easy and ultimately cheaper to hand an iPod touch to the kids in the back of the car, as it is to give them a DS or PSP or videoplayer. I don't think the first Leapster game is that good, but they may get better.
Report this Comment On April 21, 2009, at 9:23 PM, kaninbuehcibai wrote:

The tag stays at WAIT. However, the market continues to go up since
the previous SELL signal. The patterns were not agile enough to
recognize the bullish move.
You can either wait for the next signal or you may join the bullish
crowd. The decision is up to you.
Short sales are not advised given the current bullish momentum though
our signals are currently neutral about this issue.
The momentum is currently very strong upwards, indication that
previous sell was a impulse move by market
due to news or rumours.
The price will definitely rebound on price adjustments/volume.
Price will be at 0.60 - 0.75 within a week period.
End of data reports.
Report this Comment On April 22, 2009, at 8:15 AM, jdubbau wrote:

I have an iPhone and 2 children under 5.
Each child has a screen with age appropriate games, I give it to them to play when waiting at restaurants etc.
I've also considered buying a 1st Gen touch (discounted refurb) for the older child, as one commenter pointed out it's no different than giving them a DS or PSP, and potentially a lot better. Think sesame street podcasts, maths and language games and a kid not playing with the salt shakers.
I have LeapFrog products and value them and will be checking out this new app.
Report this Comment On April 22, 2009, at 11:20 AM, Successus wrote:

I could not disagree with you more.
If you have an iphone and your a parent then
you know your children are always asking for your phone. Get a nice case and a screen protector and
your fine. This is a very smart move with this software.
Report this Comment On May 02, 2009, at 10:34 PM, comogard wrote:

Rick -
The comments speak for themselves - there is a wonderful market for pre-school games and apps on the iphone.
Check out the app store and you'll fine 150 apps for preschoolers. Last time I checked 6 of the top 20 paid apps in education were targeted at preschoolers.
A community of iphone owners - parents of toddlers - is emerging: iPhoneandkids.com is just one great example.
LeapFrog iphone app may be a publicity stunt, I would know, but it's certainly not the only app for schoolers for the iphones.
And just wait until Apple announces its new generation iPhones this June - a whole generation of kids will inherit the 'old' marvel gadgets.
To top it all, a whole new category of apps and games is poised to break into the iPhone market, and preschoolers will the first beneficiaries. It's called augmented reality.
To see what I mean check out my talk at: http://gamesalfresco.com/2009/03/09/augmented-reality-today-...
Report this Comment On May 16, 2009, at 2:32 PM, tedmoroz wrote:

I think it is great to see companies like Leap Frog entering the app store market and not just a PR stunt. Hopefully there entry in the market will enlighten more parents to the realization that the iPhone and iPod Touch are devices that can be used not just as games but as learning tools too.<a href="http://www.ratcatsoftware.com"> RatCat Software</a> also has produced a successful educational based app called <a href="http://www.ratcatsoftware.com/?page_id=93">Meghan's Memory Game</a>.
Report this Comment On March 13, 2010, at 9:20 PM, carefulinvestor wrote:

Anybody (parent, grandparent, etc.) that sits in the doctor's waiting room with a young child will tell you what a great mind saver an App like this is.

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