App Store shoppers downloading 2.2 million apps per day

[AppleInsider]

Though arguably still in its infancy, Apple's App Store has already reached a daily run rate that's seen iPhone and iPod touch users combine to download approximately 2.2 million applications every day.

Apple hasn't announced that figure outright, but CNBC's Jim Goldman drew attention to one of the company's advertisement in the New York Times today that says iPhone users have "downloaded over 300 million" applications from the App Store since it launched in July.

The last time the iPhone maker provided an update on App Store downloads was October 21st, when it noted that users would download the 200 millionth app the following day. That means that in just 45 days shoppers have downloaded another 100 million apps, or well over 2 million per day.

Meanwhile, market intelligence firm comScore said Thursday that Apple.com was the 5th most trafficked retail site on Cyber Monday -- the Monday immediately following Black Friday -- with 3.68 million shoppers hitting its store pages, a 43 percent increase from average daily traffic during the month of November.

eBay (12.9 million) took top honors, followed by big-box retailers Amazon.com (9.2 million), Wal-Mart (6.76 million), and Target (4.8 million).

[ View this article at AppleInsider.com ]

[BlackSummerNight]

That would probably double in one day if they added a MMS, video recorder, and tethering app.

[melgross]

The questions are;

How many of these are paid apps,

and,

what is the average price of those apps?

In the past we were told that it was about 50%.

If that's true now, and the average app costs, say, $3, that's about $3,300,000 a day, or about $1.2 billion a year!

That's pretty damn good for only about 12 million phones!

Imagine how many apps will go when there are 50 million out there.

I can see why the app store is considered to be much more important for apple than the iTunes store.

[teckstud]

That's a lot of free "Level" APPs-

[melgross]

Originally Posted by teckstud

That's a lot of free "Level" APPs-

25% of the apps in the store are free. The other 75% are paid apps. I paid for my level app, and it's very good, and helpful.

As I said, if it still holds up, about 50% of the downloads are paid. I've been reading that the average app sells for about $3.

[sc_markt]

Apple should consider having an app store for the shareware apps it lists. There are many that I have wanted to buy but I don't want to give some company I never heard of my personal information and credit card number. I'd rather give it to Apple and then have Apple send the company the payment.

[Kyranay]

Originally Posted by sc_markt

Apple should consider having an app store for the shareware apps it lists. There are many that I have wanted to buy but I don't want to give some company I never heard of my personal information and credit card number. I'd rather give it to Apple and then have Apple send the company the payment.

Not a bad idea. But, then the companies would have to give Apple a cut (which would be good for Apple, but not so good for the company). I wonder if they aready have to give Apple a cut to be posted on the Shareware site. But then again, if there was a "Shareware store", maybe those small companies would make more money.

[NasserAE]

So much for "closed system no one will develop for" and "Apple treat their developers so bad that no one will develop for such closed system"

[melgross]

Originally Posted by sc_markt

Apple should consider having an app store for the shareware apps it lists. There are many that I have wanted to buy but I don't want to give some company I never heard of my personal information and credit card number. I'd rather give it to Apple and then have Apple send the company the payment.

You're talking about shareware for the Mac?

[JeffDM]

Originally Posted by melgross

If that's true now, and the average app costs, say, $3, that's about $3,300,000 a day, or about $1.2 billion a year!

That's pretty damn good for only about 12 million phones!

Imagine how many apps will go when there are 50 million out there.

I can see why the app store is considered to be much more important for apple than the iTunes store.

Is it even realistic to think that there will be an average of $1000 in iPhone app spending a year? I think that's enough to suggest that the trend probably won't continue on that trajectory.

[physguy]

Originally Posted by JeffDM

Is it even realistic to think that there will be an average of $1000 in iPhone app spending a year? I think that's enough to suggest that the trend probably won't continue on that trajectory.

12 million iphones and $1.2 billion is only $100/year and doesn't account for Touches. Seems reasonable to maintain with new/good apps.

[JeffDM]

Originally Posted by physguy

12 million iphones and $1.2 billion is only $100/year and doesn't account for Touches. Seems reasonable to maintain with new/good apps.

OK, decimal point error on my part, that isn't too bad of an uptake.

[Johhny Motel]

You know, it doesn't matter that much how many are free or paid for downloads. Apple is creating a huge traction with the App Store and maybe a lot are free, but gradually developers will see this as a money spinner for them. The App Store is another Trojan Horse entering the citadel of Nokia et al, just like Apple did with the music companies. It's pretty unbelievable that Apple have got away with the same trick twice. Who cares really, Apple have stolen a huge march on the competition.

[solipsism]

Originally Posted by NasserAE

So much for "closed system no one will develop for" and "Apple treat their developers so bad that no one will develop for such closed system"

Originally Posted by physguy

12 million iphones and $1.2 billion is only $100/year and doesn't account for Touches. Seems reasonable to maintain with new/good apps.

Looking at the trend, it looks like we've already seen a slight slowing of App Store unit sales. 100k to 200k looks to have taken just under a month, while getting to 300k took about a month and a half. Then consider the additional iPhone sales and new apps in the last 6 weeks. (this assumes that my quick perusing of the previous articles about the App Store milestones is correct)

I'm not saying that the App Store is in trouble or dying, but that there is simply a small plateau occurring. This will likely change right after Xmas, just like every year when people get their iPods and iTS gift cards.

[Chris_CA]

Originally Posted by Kyranay

Not a bad idea. But, then the companies would have to give Apple a cut (which would be good for Apple, but not so good for the company). I wonder if they aready have to give Apple a cut to be posted on the Shareware site. But then again, if there was a "Shareware store", maybe those small companies would make more money.

They would probably make more money selling the app for 99 cents in the Apps store than they would by selling it for $5 as shareware.

[Booga]

Originally Posted by solipsism

Looking at the trend, it looks like we've already seen a slight slowing of App Store unit sales. 100k to 200k looks to have taken just under a month, while getting to 300k took about a month and a half. Then consider the additional iPhone sales and new apps in the last 6 weeks. (this assumes that my quick perusing of the previous articles about the App Store milestones is correct)

I'm not saying that the App Store is in trouble or dying, but that there is simply a small plateau occurring. This will likely change right after Xmas, just like every year when people get their iPods and iTS gift cards.

I noted in another discussion thread that this past Thanksgiving was the first big family holiday in which family members could demo their iPhones with 3rd party software to each other. I know I had a dozen people taking turns playing games on mine all Thanksgiving. One of my teenage nephews was begging my brother-in-law for an iPod Touch afterwards (Sorry bout that Eric!)

I suspect we'll see a big jump BEFORE the holidays then ANOTHER big jump afterwards. With Apple creating new ways to market the apps (you can now give out 50 free download certificates per release, etc) I expect that to continue to increase.

It's kind of a pity, though, that Apple doesn't have some sort of specific-app paid gift certificate program, though. You could go to a wall in the Apple store where cards for all the popular apps/games are hanging, buy them, and give them to your friend for Christmas. The receiver could log on and get the game. I know they have generic cards which are actually MORE useful-- but you might as well write out a check to "cash" for your gift for all the thought that kind of thing shows.

[sflocal]

But wait!!! Where are those anarchists screaming as to how Apple is the Demigod of Evil and how Android will completely make right a twisted system and teach Apple a thing or two about how to run an app store?

Those whiners seems to be a little quiet on this forum at the moment. Seems they are too busy eating their humble pie.

It's great news that the App Store is doing well. Like everything else, there are ups and downs and clearly, the App Store is on the upswing. Will probably settle down after the gift-giving holidays.

At least then, the whiners will then be dancing naked in the dandelion fields singing to Barry Manilow songs rejoicing that Apple is finally on the down-swinging path to destruction.

[Adjei]

Originally Posted by NasserAE

So much for "closed system no one will develop for" and "Apple treat their developers so bad that no one will develop for such closed system"

Hehehe..

[iVlad]

Im sure even Apple didn't expect that. "That changes everything"

[melgross]

Originally Posted by JeffDM

Is it even realistic to think that there will be an average of $1000 in iPhone app spending a year? I think that's enough to suggest that the trend probably won't continue on that trajectory.

It's not that much, as Physguy says. $100 a year isn't much, considering that much of this is likely to be games. My daughter spends several times that for games alone for her other games machines.

[melgross]

Originally Posted by solipsism

Looking at the trend, it looks like we've already seen a slight slowing of App Store unit sales. 100k to 200k looks to have taken just under a month, while getting to 300k took about a month and a half. Then consider the additional iPhone sales and new apps in the last 6 weeks. (this assumes that my quick perusing of the previous articles about the App Store milestones is correct)

I'm not saying that the App Store is in trouble or dying, but that there is simply a small plateau occurring. This will likely change right after Xmas, just like every year when people get their iPods and iTS gift cards.

The same thing happens to the iTunes store. At certain times of the quarter, sales move up more quickly, and then down a bit, until the next speedup.

When you first buy the device, you are likely to pig out. After that, you may not buy anything for a bit, but then start buying again, abet, at a lower level. Its the average over the quarter that tells the story.

[cameronj]

Originally Posted by physguy

12 million iphones and $1.2 billion is only $100/year and doesn't account for Touches. Seems reasonable to maintain with new/good apps.

Nah, $100 per iPhone is not reasonable. I spend a lot but I'm well under that amount, and most people don't download and paid apps from my experience.

[cameronj]

Originally Posted by sflocal

But wait!!! Where are those anarchists screaming as to how Apple is the Demigod of Evil and how Android will completely make right a twisted system and teach Apple a thing or two about how to run an app store?

Those whiners seems to be a little quiet on this forum at the moment. Seems they are too busy eating their humble pie.

It's great news that the App Store is doing well. Like everything else, there are ups and downs and clearly, the App Store is on the upswing. Will probably settle down after the gift-giving holidays.

At least then, the whiners will then be dancing naked in the dandelion fields singing to Barry Manilow songs rejoicing that Apple is finally on the down-swinging path to destruction.

Wait, I thought the anarchists were the Apple fans...

[melgross]

Originally Posted by cameronj

Nah, $100 per iPhone is not reasonable. I spend a lot but I'm well under that amount, and most people don't download and paid apps from my experience.

It's certainly reasonable if millions are apparently doing it.

[Fast Fred 1]

Gee 2.2 mil, must have to throw buckets of water on the servers.

[anantksundaram]

While it sounds -- and perhaps is -- really impressive, I am unable to put the 2.2 million number into perspective.

What and who are we comparing it against? Is it really off-the-charts, or just good?

[sflocal]

Originally Posted by cameronj

Wait, I thought the anarchists were the Apple fans...

Touche!!!! Or is it "touch"????

[addabox]

Originally Posted by sflocal

Touche!!!! Or is it "touch"????

Ooh, someone should get working on the "iTouché" app for the iPhone.

You shake it and the screen provides you with a random devastating comeback, from a library of thousands.

[JeffDM]

Originally Posted by addabox

Ooh, someone should get working on the "iTouché" app for the iPhone.

You shake it and the screen provides you with a random devastating comeback, from a library of thousands.

So it's a modernized and witty Magic 8 Ball. Pretty nice idea.

[solipsism]

Originally Posted by anantksundaram

While it sounds -- and perhaps is -- really impressive, I am unable to put the 2.2 million number into perspective.

What and who are we comparing it against? Is it really off-the-charts, or just good?

Expect for comparing it to the opening to the iTMS growth I don't think I've read any comparisons. Has any other mobile app store released any sales info?

[solipsism]

Originally Posted by MacOldTimer

I don't know about the rest of the room but when I'm in iTunes or on my iPhone and check updates I always get prompted to download apps that are already up to date.

Then I go into iTunes and it Syncs there as well.

These numbers can be skewed purely by inconsistencies in the App Store software and downloading the same app for my phone and then again to synch iTunes.

I've paid for one app and upgraded about 100 times.

The math doesn't add up.

(I'm responding to the question in your heading but I'm too lazy to edit the quote.)

That is a good point and most likely what is being reported. The title of the artcle does state downloaded apps and that I help market the store fort Apple to state it as such.

[Lemon Bon Bon.]

Those whiners seems to be a little quiet on this forum at the moment. Seems they are too busy eating their humble pie.

Frightening thing? When Apple does as much business for the App store as it does through iTunes.

When Apple are on the back of 100 million iPhone sales?

Frightening.

Lemon Bon Bon.

[JeffDM]

Originally Posted by MacOldTimer

If what you are saying is correct then Apple or AppleInsider is putting out incorrect numbers.

If the growth was as expansive as the numbers say then Apple's 3rd Quarters Numbers would have been way more off the chart than it was.

Steve Jobs, get real and post the real numbers.

You're making a bigger deal out of it than it needs to be. I don't see what the problem here.

2.2M apps/day * 90 days/quarter = 198M/Q

Assuming average price of an app, including free ones, is $0.99, that's $198M gross. That's not all net profits either, 70% goes to the dev and there are expenses to be dealt with too, such as merchant fees, which can run 3-5%, servers, bandwidth and store upkeep. I get charged an additional $0.10 per card transaction on top of the credit card percent, I don't know if Apple does.

Given those numbers, I'm not seeing anything that raises a red flag here.

[melgross]

Originally Posted by MacOldTimer

I don't know about the rest of the room but when I'm in iTunes or on my iPhone and check updates I always get prompted to download apps that are already up to date.

Then I go into iTunes and it Syncs there as well.

These numbers can be skewed purely by inconsistencies in the App Store software and downloading the same app for my phone and then again to synch iTunes.

I've paid for one app and upgraded about 100 times.

The math doesn't add up.

I've never had that happen.

[melgross]

Originally Posted by solipsism

(I'm responding to the question in your heading but I'm too lazy to edit the quote.)

That is a good point and most likely what is being reported. The title of the artcle does state downloaded apps and that I help market the store fort Apple to state it as such.

Nevertheless, the numbers being reported have always showed that about half the downloads were for apps being bought.

Possibly, if what you two are saying is true, then a fair amount of the "free" apps being downloaded are for the reason you state, and the actual number of apps that are being downloaded by "choice" is therefore less than the total being shown, then the percentage of apps being bought would be higher than 50%.

So the same amount of payments would be the same.

It's not even clear if updates are being included in these numbers.

[solipsism]

Originally Posted by melgross

It's not even clear if updates are being included in these numbers.

It's not clear, but if we take the statement "2.2M being downloaded daily" at face value then every update to an app, paid or free, could be counted as a DL since you do update the app by DLing a new version. If it were me I would market the DLs that way without feeling like I'm being deceptive since it directly points to the popularity of the App Store as downloads aren't automatically had, but require user interaction to initiate.

[melgross]

Originally Posted by MacOldTimer

If what you are saying is correct then Apple or AppleInsider is putting out incorrect numbers.

If the growth was as expansive as the numbers say then Apple's 3rd Quarters Numbers would have been way more off the chart than it was.

Steve Jobs, get real and post the real numbers.

I don't think you understand the situation here that well. It doesn't matter whether some apps are being counted more than once insofar as paid apps are concerned. Ever since the beginning, apps have been updated. I've had most of the apps I have updated several times.

But, as I've already said several times here, about 50% of the apps being downloaded are paid for apps at the time of their downloading.

Since these numbers have been consistent, and repeated several times as download numbers have came out, it's likely true with this number as well.

Therefor, no matter where the total number comes from, about 50% of it is for apps that are being bought.

Apple isn't concealing anything of financial importance, and there's no evidence that they're concealing anything. They must report income on their balance sheets. There isn't a way they could conceal it.

Conspiracy theorists need not apply.

[melgross]

Originally Posted by solipsism

It's not clear, but if we take the statement "2.2M being downloaded daily" at face value then every update to an app, paid or free, could be counted as a DL since you do update the app by DLing a new version. If it were me I would market the DLs that way without feeling like I'm being deceptive since it directly points to the popularity of the App Store as downloads aren't automatically had, but require user interaction to initiate.

Perhaps they should try to separate out the updates from the new downloads, but it doesn't really matter in the long run. If people aren't uping the programs, don't like them, and so don't download the updates, that tells us something as well about thse apps.

The fact that people would bother, is telling us that they probably like the programs, and want to be bothered to update them. So that's something.

But, again, if about 50% of that number, whatever it represents, are for paid apps, it remains a viable number.

So, if updates are being counted, then by taking them out, it's possible that 75% of the downloads are for paid apps, which would match the 75% of apps in the store that are paid apps.

I don't see the problem here.

[solipsism]

Originally Posted by melgross

I don't see the problem here.

Neither do I, and didn't mean to give that impression.

[macarena]

... just wait till Apple announces an extension of the App Store for the Apple TV. When people can develop "full" size and complexity apps, that can be viewed on your large screen TVs!

I sure would hate to be Nintendo, or Sony, if Apple comes out with 99 cents, or even Free games that can be downloaded and played using the Apple TV, using the iPod Touch as the multi-function remote control (each game throws up a specific control pad onto the pre-registered iPod Touch, that can be used to control the game - use 2 or more iPod Touches, for multi-player gaming).

Not just for Gaming, the whole concept of PC usage will change. This will be the BEST way for Apple to dumb down the PC and make it into an appliance. Just download the specific app that you want, and use it.

This will be the big game changer for the Apple TV. And you can bet it will happen, just because it simply makes zero sense for Apple not to extend the App Store to the Apple TV.