Top iOS apps rake in $90,000 per day on average, in-app purchases dominate sales
Apple's App Store remains hugely profitable for developers even as they transition en masse to "freemium" business models, with top apps bringing $90,000 in average revenue each day, new data indicates.
The top 200 applications in the iOS App Store are believed to post combined gross revenues of $18 million on a typical day, according to a report from analytics firm Distimo. The same grouping on Android's Google Play store, in contrast, is thought to book just $12 million.
Those amounts are up by $3 million and $8.5 million, respectively, from their places one year ago.
In a bid to increase distribution, developers appear to have begun to turn away from the traditional practice of charging for apps up front in favor of a new model that offers basic functionality for free, with paid upgrades driven by in-app purchases. This model, nicknamed "freemium," was represented in 77 percent of the apps for sale in the U.S. App Store in January --?November saw that number spike to 92 percent, the data indicates.
In addition, the report shows a slight closing of the still-immense gap in overall revenue distribution between Apple's App Store and Android's Google Play store.
Apple commanded 70 percent of the revenues from mobile app marketplaces in June, compared to just 30 percent for Google. Google has chipped away at Apple's lead in the interim, taking about 1 point per month from the iPhone maker, to finish November with a more narrow 37 percent to 63 percent split.
The top 200 applications in the iOS App Store are believed to post combined gross revenues of $18 million on a typical day, according to a report from analytics firm Distimo. The same grouping on Android's Google Play store, in contrast, is thought to book just $12 million.
Those amounts are up by $3 million and $8.5 million, respectively, from their places one year ago.
In a bid to increase distribution, developers appear to have begun to turn away from the traditional practice of charging for apps up front in favor of a new model that offers basic functionality for free, with paid upgrades driven by in-app purchases. This model, nicknamed "freemium," was represented in 77 percent of the apps for sale in the U.S. App Store in January --?November saw that number spike to 92 percent, the data indicates.
In addition, the report shows a slight closing of the still-immense gap in overall revenue distribution between Apple's App Store and Android's Google Play store.
Apple commanded 70 percent of the revenues from mobile app marketplaces in June, compared to just 30 percent for Google. Google has chipped away at Apple's lead in the interim, taking about 1 point per month from the iPhone maker, to finish November with a more narrow 37 percent to 63 percent split.
Comments
-Steve Ballmer
It's like winning the lottery!
It's like winning the lottery everyday. Except writing apps, even thinking of an app that most people would see as useful, takes much more skill than winning the lottery. Congrats to all the successful app developers out there!
'See? When we told they were selling less before we were wrong, but now they are, see??'
Huh. Didn’t know South Korea was a third world country.
Even their brothers in the North use Apple products.
Those amounts are up by $3 million and $8.5 million, respectively, from their places one year ago"
If that's true, that means the playStore is quickly catching ground in profitability.
Calling 12 million dollars with a 'just' compared to 'just' 18 is unfair too.
I hope iOS stays competitive, I couldn't stand a world where Android leads the development world.
Well, if Apple could stay in the same position it was with OSX vs Windows that'd be fine.
Most of the $90,000 a day earners are already big rich companies.
It's like winning the lottery everyday. Except writing apps, even thinking of an app that most people would see as useful, takes much more skill than winning the lottery. Congrats to all the successful app developers out there!
As an app developer, I can tell you that it's like playing the lottery. I currently have 3 apps in the app store, 2 of which I think most people would see as useful (the 3rd one is only useful if you live in Portugal). However, I'm lucky if I earn $100 in a month. I'm pretty sure that the vast majority of app developers are in the same boat. It's only a tiny fraction of indie developers who actually manage to even make a living off the app store, never mind earning serious money. The vast majority of iOS developers earn most of their money from consulting work.
The thing is, developing an app is only 20% of the way to being successful in the app store. The remaining 80% is marketing. Getting your app linked to by John Gruber or Marco Arment can make a difference of thousands of dollars. Literally.
PS: I'm deliberately not linking to my apps here as I would consider that spam.
It's like winning the lottery everyday. Except writing apps, even thinking of an app that most people would see as useful, takes much more skill than winning the lottery. Congrats to all the successful app developers out there!
Most of the $90,000 a day earners are already big rich companies.
or are about to be bought out by the big rich companies.
PS: I'm deliberately not linking to my apps here as I would consider that spam.
I feel like buying your app just because of that last line!
Yes, the "first mover" advantage ended years ago for most developers (that was the short period when the junk novelty apps sold in the millions because they were all that was available). Reviews, word of mouth, sales charts and traditional advertising (I actually see apps advertised on TV now) have become the new normal for breaking app awareness with consumers.
As an app developer, I can tell you that it's like playing the lottery. I currently have 3 apps in the app store, 2 of which I think most people would see as useful (the 3rd one is only useful if you live in Portugal). However, I'm lucky if I earn $100 in a month. I'm pretty sure that the vast majority of app developers are in the same boat. It's only a tiny fraction of indie developers who actually manage to even make a living off the app store, never mind earning serious money. The vast majority of iOS developers earn most of their money from consulting work.
The thing is, developing an app is only 20% of the way to being successful in the app store. The remaining 80% is marketing. Getting your app linked to by John Gruber or Marco Arment can make a difference of thousands of dollars. Literally.
PS: I'm deliberately not linking to my apps here as I would consider that spam.
With over a million apps in the App Store, an overwhelming majority of apps are buried and won't see a single dime. Given how much I make an hour with my regular job, my earnings from the App Store with personal apps does not come close to recouping development time. The App Store is great for personal projects but not so great for indies hoping to make a buck.
With over a million apps in the App Store, an overwhelming majority of apps are buried and won't see a single dime. Given how much I make an hour with my regular job, my earnings from the App Store with personal apps does not come close to recouping development time. The App Store is great for personal projects but not so great for indies hoping to make a buck.
Guess that's why an indie game has to have an outrageous premise to get noticed these days.
As does everything else that isn't a game of chance.
As both a developer and an end user, I really hate the freemium model. It's ruined games like Plants vs. Zombies. Unless you're willing to spend a lot of money, it turns the game into a boring grind.
I'd much rather pay $20 upfront for something like XCOM than download a game for free that nags me to buy consumables every five seconds. Sadly, I'm most definitely in the minority.
The time/cost to develop for fragmented Android is greater too (see BBC as a case study). Even scarier: support costs! Supporting all those users (plus the pirates--rampant on Android) takes more time/cost as well.