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this percentage could grow by leaps and bounds. Depending on the moves it makes over the next couple of years - namely getting into China and getting off of its exclusive AT&T deal in the U.S. I don’t think I have to explain how well that has worked.Īnother thing to think about is even with the success of the iPhone, Apple still has a very small percentage of the mobile market. The App Store is based around the exact same model as its parent iTunes Store, which sells music at a very small markup in order to sell iPods.
#Apple app store download statistics driver#
Sure, that may have been slightly disingenuous (again, Apple likes to set expectations low), but Apple’s stated rationale behind taking a 30% cut was to be able to keep the App Store up and running - not to make money.Īpple is a company notoriously mindful of its high margins, so why doesn’t it care about making a lot of money with the App Store? Dan Frommer of Silicon Alley Insider has this exactly right: it’s because the App Store is one of the, if not the, key driver of two products that are very high margin: The iPhone and the iPod touch. Since day one of its unveiling, Apple has said that it did not plan to make a lot of money off of the App Store. But what Liew only indirectly hints at in his report is that this is what Apple has always been expecting. But even if it’s way off, that’s just for the quarter, and it’s another sign that Liew’s numbers are probably way too low.īut even at $100 million, the App Store would still be a small drop in Apple’s bucket when it comes to revenue. That’s probably way too high for a number of reasons - namely that it’s hard to know the ratio of iTunes/App Store/iPod accessory sales, which are all clumped together. Back in March, one analyst cut into Apple’s December quarter numbers and came out with $200 million in app sales just for that quarter.
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And so if anything, this $1 million a day sales mark is probably low compared to what it’s at now.Īnd there are other numbers that suggest this as well.
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No matter what ratios changed, there are also a ton more apps being downloaded - both paid and free - than there were in the first 30 days. Yes, it seems likely that the average price of apps have fallen since August given the rise of $0.99 apps, and probably that the ratio of free-to-paid apps has grown, but that’s why the daily sales angle is an interesting one to look at. For Jobs to throw out that figure and say that the App Store could one day be a billion dollar a year industry, to me means that he thinks it will at least be that big of a business. Apple, if anything, likes to set expectations low and exceed them. And Jobs would not throw a number like this out there lightly. That’s already double Liew’s high-end estimate. Extrapolated out over 10 months (the approximate age of the App Store), that would be about $90 million. $1 million a day means that Apple would be making $300,000 a day (its 30% cut). Now, that was a long time ago, and the App Store has grown tremendously since then, but let’s go with that figure for argument’s sake. For example, back in August, none other than Steve Jobs himself said the App Store was pulling in $1 million a day in sales. But Apple has given out what are probably better numbers than the survey results numbers over the past year. He did this because Apple doesn’t release actual numbers for App Store sales beyond the big numbers like a billion downloads. While the author, Jeremy Liew, makes some good calculations, the numbers are still drawn largely from a survey. Surprising, until you dig deeper.įirst, I’m not convinced these numbers are sound.
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So it’s surprising when you see numbers like the ones Lightspeed Venture Partners published yesterday, estimating that Apple had made only somewhere between $20 and $45 million dollars in revenue off of the App Store. Just over nine months later, over 35,000 of those apps had been made which have been downloaded over a billion times. It entered a market that had been completely controlled by carriers and handed the keys over to third-party developers to make their own apps. I don’t think it’s a stretch to say that Apple’s App Store has been more successful than even Apple ever imagined.