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Apple says App Store has made developers over $1 billion

post #1 of 10
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Speaking at Apple's annual developers conference on Monday, chief executive Steve Jobs said his company's industry-leading App Store has generated developers more than $1 billion in revenues while serving up over 5 billion app downloads since its inception two years ago.

225,000 apps in total on the App Store

Calling it the 'most vibrant app community on the planet,' Jobs said Apple's combined catalog of iPhone, iPod and iPad apps now totals over 225,00. During his keynote speech, he went on to highlight a few new apps making their way to the store for the iPhone, namely Netflix with 3G streaming, Guitar Hero, and Farmville from app developer Zygna.

Netflix for iPhone

The Netflix application will use adaptive technology to allow instant switching between Wi-Fi and 3G connections. Users will also be able to start programs on one device, such as an iPad, and finish them on their iPhone, or vice versa.

Farmville for iPhone

The Farmville application will be available by the end of June, and allows for in-app purchases and push notifications. It also features an exclusive Snow Leopard character only available on the iPhone. Farmville reportedly has more than 70 million active users worldwide, and the new application will allow users to access their digital farm on the go.

Guitar Hero for iPhone

Guitar Hero for iPhone arrives with a completely new experience, sporting classic rock tracks from Queen and the Rolling Stones, and allowing users to customize their 3D avatar. Available today on the App Store for $2.99, the game also includes a new strumming mechanic along with the established tapping mechanics.

$1 billion in developer payouts

Finally, Jobs said he had "a few great pieces of info to share" with developers. Last week, he said, the App Store crossed the 5 billion milestone for app downloads. With Apple granting developers 70% of revenues for apps sold on the store, those 5 billion downloads have combined to earn developers over $1 billion in revenues, he said.
post #2 of 10
Total revenue = $1.429 billion then for App store. (Apple gets about $430 million - its 30% share).

Impressive.
post #3 of 10
So is the growth curve accelerating or flattening?

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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post #4 of 10
I'd like to how that $1 billion was distributed. Who owns the top apps? How much did they make? And what do the top 10% make. That'd be more interesting stats.
post #5 of 10
Quote:
Originally Posted by Jetz View Post

I'd like to how that $1 billion was distributed. Who owns the top apps? How much did they make? And what do the top 10% make. That'd be more interesting stats.


That would be very interesting. I'd think that at an average of $0.20/sale, few developers are making serious money.
post #6 of 10
Quote:
Originally Posted by Stevie View Post

That would be very interesting. I'd think that at an average of $0.20/sale, few developers are making serious money.

Look, it's the same as anything. There are only a few movies that are blockbusters, the rest either don't make money or have an extended life as rentals... There are only a few top music acts, the rest sell the odd single here and there or have a small rabid fan base... etc., etc., etc....

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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post #7 of 10
Quote:
Originally Posted by Stevie View Post

That would be very interesting. I'd think that at an average of $0.20/sale, few developers are making serious money.

But that is only for initial sales across all apps. The majority of apps for much of the App Store's early life were free, though that has reversed now, so you take them out and you get a better average for paid apps. The proportion the 5Bn downloads that were free is undoubtedly much higher. I'm sure they revenue growth curve is increasing as installed base grows and purchasing apps becomes more prevalent and everyday. I know I buy apps like I buy tunes now - often and on a whim. I didn't when I started with iPhone - every purchase seemed like a big deal even for just 99c - a legacy of buying old expensive boxed software.

When coders can make 10s or 100s of thousands of $s from an app it may not be life altering but it is is more than they could make with any other marketplace or channel.
Also, the $1Bn doesn't count the in-app purchases and the advertising revenues too.
post #8 of 10
The irony of a 1bn profit for developers is that there are only very few developers who actually made any profit. The difference between applications featured on iTunes app store front page and the rest is stunning. Last year I made a game, and trust me, it's not the worst game on the app store.

Nuclear Waste is the name, and 4 stars out of 5 means that it is somewhat better than the fart app.

In 4 months of sales I made about $20. I am not going to receive a penny, because one has to make $150 to be actually paid. I paid $100 for developer's license. Overall - $100 loses not counting my time and effort.

I am, most definitely, not going to pay for another yearly license, because it is practically impossible to get any attention on the app store unless you are an established development house who can invest hundreds of thousands into advertising, and get featured on iTunes regularly.

So, if you are considering developing for iPhone - don't. It is waste of time and money. Sorry for my bitter post, but that's my experience.
post #9 of 10
Quote:
Originally Posted by Capnbob View Post

When coders can make 10s or 100s of thousands of $s from an app it may not be life altering but it is is more than they could make with any other marketplace or channel.
Also, the $1Bn doesn't count the in-app purchases and the advertising revenues too.

I think the $1B does count in-app purchases. Steve said they've paid $1B to app developers and in-app purchases are part of their regular payments. Advertising is separate although those using iAds in the future will get paid for ads as part of their regular payments.

I'm a developer myself (although I have a separate full-time-job). A few days ago I posted my sales to give other developers to give users an idea of what is probably typical if you write a decent app and can get a little exposure. The best advice I can give is to come up with an app that appeals to a decent sized audience and that doesn't exist. My app was the first attendance app. There are now a few competitors, but based on the ratings and iTunes reviews, most people seem to prefer mine.

http://www.dave256apps.com/blog/2010...app-sales.html

My app is Attendance and is for designed for teachers to take attendance in their classroom and can also be used for group gatherings. The sales are slow but steady. It's certainly not anywhere close to being enough to make a decent living if I were doing it full-time, but it is nice to have a little extra money each month from something I enjoy doing.
post #10 of 10
Quote:
Originally Posted by Prophet Mykola View Post

n 4 months of sales I made about $20. I am not going to receive a penny, because one has to make $150 to be actually paid. I paid $100 for developer's license. Overall - $100 loses not counting my time and effort. .

OTOH, there are people who write GOOD apps who are making thousands of dollars per week.

There are also ad revenues from the 'free' apps which are not included in the $1 B number.

Bottom line is that the better your app and the more you promote it, the more you'll make. If you're content to be 'just another app', you may not make anything - just like every other field of endeavor.

Quote:
Originally Posted by AppleInsider View Post

Farmville for iPhone

The Farmville application will be available by the end of June, and allows for in-app purchases and push notifications. It also features an exclusive Snow Leopard character only available on the iPhone. Farmville reportedly has more than 70 million active users worldwide, and the new application will allow users to access their digital farm on the go.

I guess the 'iPhone needs Flash because of all these important games we need to play' contingent is losing another argument.

Flash is becoming less relevant every day. Too bad, Adobe. Maybe you can focus on making good products for a change.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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