Apple's App Store said to bring in $2.4B annual revenue

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Apple's App Store is, arguably, the best thing to happen to the company in the last few years (not including the iPhone, but the two go hand in hand). It's certainly the biggest improvement to their iPhone and iPod touch platforms, and with over 40 million of those devices sold, it's no wonder that developers are keen to get their applications on the store. However, this isn't just a good place to get sales for developers... it's also a wonder for Apple itself, as, according to AppleInsider, it is bringing in nearly $200M monthly, adding up to approximately $2.4B annual revenue.

The estimation comes from the latest AdMob Mobile Metrics Report for July 2009, packing some interesting statistics. On average, an iPhone user will download about 10 applications monthly, with 2 to 3 of those being paid. To compare to this, your garden variety iPod touch owner will obtain around about 18 monthly, with 2 of those being purchased. With the normal iPhone user spending just short of $9.50 on the App Store, and iPod touch users spending slightly more, we get to our figure of about $200M a month. Some dispute the figure, though; one developer currently active on the store scoffed at the figure, believing that there's no truth to it at all.

True or not, this is certainly quite a hefty amount of cash, though it hasn't seemed to stop the various complaints that both consumers and developers have had with the store. With iTunes Connect issues, as well as appallingly long approval times for applications, there is certainly a ton of room for improvement. Recently, Apple senior vice president of Worldwide Product Marketing Phil Schiller has been responding to select developer's complaints, stating that they are actively working to improve the experience for all involved. Hopefully they make improvements soon, to save the trouble for those who keep the store afloat... the developers.

(3 replies) #1 pupdawg21 on 27 Aug 2009 - 23:19

I question these numbers. I really don't think that many PAID applications are being bought to bring in 2.4 billion in revenue to Apple. I know of all of the people I know with iPhones, NONE of them have purchased any Apps from the store. They only use the free ones. But they have purchased more Music since getting the phones but none of the apps. I guess it all depends on what subset of the population you are basing your studies on.

#1.1 Bero on 27 Aug 2009 - 23:46

i agree .. consider also the JB software which cover nearly all paid apps on the app store and more .. i won't get near paid app

#1.2 cakesy on 28 Aug 2009 - 00:30

pupdawg21 said,

If you don't know anyone to have bought any apps, then your experience is very strange indeed.

Never the less, these numbers are wrong. It may simply be that they are getting statistics on particularly active users, and then extrapolating that to everybody.

#1.3 Meconio on 28 Aug 2009 - 05:59

if only you actually knew at least 25% of the people that own either an iphone or an itouch, then your statement could have some true in it.

(1 reply) #2 jafoman on 27 Aug 2009 - 23:48

I have purchased many applications. Your experience obviously does not correlate to the real world. The type of people who won't pay for apps generally hang out with other people like them...

Then again I also buy the apps I use on my computer too.

#2.1 bobbytunda on 28 Aug 2009 - 00:08

your reply is not warranted

#3 pupdawg21 on 28 Aug 2009 - 02:24

The Apps they need/wanted were all the Free ones. I didn't say they pirated the apps they wanted and thats the reason why they didn't buy any .... thats a very different thing entirely.

(1 reply) #4 Meconio on 28 Aug 2009 - 05:57

The important thing is that many people at the beginning not only criticized but also laughed about the idea of an Apple phone and an app store, yet they managed to not only succeed but also set the new trend when it comes to smartphones and app stores, so if they finally decide to put a tablet/netbook kind of product it also will set a new trend, lets face it Microsoft is the King but Apple is catching up.

#4.1 Magallanes on 28 Aug 2009 - 13:52

Initially Apple hated the idea to allow any developers (but themself or a pretty limited list of developer) to create and install programs in their iphone. In fact, the initial idea of Apple was to allow to develop only web application (meh), this was true until iPhone 2.0, most motivated by the fact that rogue developers was able to hack their iphone and develop application with a measured success without the consent of Apple.

#5 M_Lyons10 on 28 Aug 2009 - 14:25

Wow, that's a decent amount of cash... From what I've heard developers say with regards to what they have been able to make though, it seems unrealistic... Perhaps there are a couple of apps that have been successful? My friend said that most of it is crapware...

#6 VAVA Mk2 on 28 Aug 2009 - 15:57

So thats about $1.4 B in fart apps sold....

#7 ishtar on 29 Aug 2009 - 19:46

There has to be a lot of dumb people out there Haaaaaa Haaaaaa

#8 Dannydeman on 29 Aug 2009 - 20:30

It's very easy to buy something, and I often do it. Some things are very handy, like the dutch application "trein" (which is train). It's like 2 euro's, but it's very handy for every day life since I use the train a lot. Also there are games, which are getting better and better. Some games are so good, that it's remarkable to get something that good for so cheap. The tilt controls/multirouch are so original, it adds many possibilities. Some iPhone games are even better then many popular PSP games.

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