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Apple's App Store reaches 40B downloads, almost half occurred in 2012

post #1 of 34
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Apple on Monday announced that more than 40 billion applications have been downloaded from the iOS App Store, with nearly 20 billion of those in 2012 alone.

There are more than 500 million active accounts on the App Store, and those users helped to drive a record breaking December in which more than 2 billion applications were downloaded. There are now more than 775,000 applications for the iPhone, iPad and iPod touch, and developers have been paid more than $7 billion to date.

"It has been an incredible year for the iOS developer community," said Eddy Cue, Apple?s senior vice president of Internet Software and Services. "Developers have made over seven billion dollars on the App Store, and we continue to invest in providing them with the best ecosystem so they can create the most innovative apps in the world."

App Store


The press release issued by Apple on Monday comes as the annual Consumer Electronics Show gets underway. CES is the biggest tradeshow in the electronics industry, but Apple does not participate.

The company used the opportunity to highlight a handful of apps on Monday that have found success among the hundreds of thousands of options on the App Store. Those mentioned include:

Among the 775,000 applications on the App Store, more than 300,000 are native to the iPad. The App Store is available in 155 countries, and options on the store fall under 23 categories.
post #2 of 34
Wow. That's insane

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post #3 of 34
If developers made $7B, can we assume apple made $3B? That's incredible! Here's hoping Microsoft Office for iPad in 2013
Edited by ifij775 - 1/7/13 at 5:54am
post #4 of 34
Astounding.
post #5 of 34
Quote:
Originally Posted by ifij775 View Post

If developers made $7B, can we assume apple made $3B? That's incredible! Here's hoping Microsoft Office for iPad in 2013

For what?

 

Maybe it has some use, but for the large majority of users MSoffice equals trash.

post #6 of 34
Quote:
Originally Posted by AppleInsider View Post


Dragonvale is from Backflip, not Supercell. Dragonvale has about 8 M users according to Game Center. The app is free and people can buy extra gems, but I doubt if the average users spends much - you can do almost everything without spending gems if you wish. It would be interesting to have the actual numbers.
Quote:
Originally Posted by ifij775 View Post

If developers made $7B, can we assume apple made $3B? That's incredible! Here's hoping Microsoft Office for iPad in 2013

'Made' implies profit. The $7 B number (and Apple's matching $3 B number) is revenues, not profit. Apple reportedly doesn't make much money on iTunes downloads because of the infrastructure cost.
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post #7 of 34
500 million accounts. I wonder how many have credit cards attached and how many Google has. Activation numbers mean square if they aren't spending in the store.

Also curious why Apple released these figures today when their earnings call is two weeks away. Could it be to steal some thunder at CES?
post #8 of 34
Quote:
Originally Posted by EricTheHalfBee View Post

500 million accounts. I wonder how many have credit cards attached and how many Google has. Activation numbers mean square if they aren't spending in the store.
Also curious why Apple released these figures today when their earnings call is two weeks away. Could it be to steal some thunder at CES?

In some countries Apple requires you to have a credit card to register for Apple ID so I guess most of these have CC or GC in their accounts.
post #9 of 34
Quote:
Originally Posted by pedromartins View Post

For what?

 

Maybe it has some use, but for the large majority of users MSoffice equals trash.

I don't know where you work, but for most companies in the US MSOffice is the standard office suite bar none. This is critical for enterprise sales.

post #10 of 34
Quote:
Originally Posted by jragosta View Post


Dragonvale is from Backflip, not Supercell. Dragonvale has about 8 M users according to Game Center. The app is free and people can buy extra gems, but I doubt if the average users spends much - you can do almost everything without spending gems if you wish. It would be interesting to have the actual numbers.
'Made' implies profit. The $7 B number (and Apple's matching $3 B number) is revenues, not profit. Apple reportedly doesn't make much money on iTunes downloads because of the infrastructure cost.

Yes, I realize that's revenue. Apple originally said they didn't see the App Store as a profit center, but I expect with increased scale it could be a profit boon. I expect the App store margins for Apple to exceed their other businesses, and a 30% cut is far more than Amazon makes off its Marketplace sellers.

post #11 of 34
Quote:
Originally Posted by ifij775 View Post

Yes, I realize that's revenue. Apple originally said they didn't see the App Store as a profit center, but I expect with increased scale it could be a profit boon. I expect the App store margins for Apple to exceed their other businesses, and a 30% cut is far more than Amazon makes off its Marketplace sellers.

No, its exactly the same, Amazon pay developers 70% of of app revenue.

 

edit - unless you don't mean the AppStore in which case you may be correct!!

post #12 of 34
And in other news Apple stock is down again today while Amazon is up 5% on an upgrade saying the stock is going to $325. Their PE is now 3,192 on EPS of 8 cents. lol.gif
post #13 of 34
Quote:
Originally Posted by ifij775 View Post

I don't know where you work, but for most companies in the US MSOffice is the standard office suite bar none. This is critical for enterprise sales.

Critical? Only because enterprise users are as dumb as a rock, together with MSoffice's software engineers.

 

Please, just because the IT world is too stupid to evolve, it doesn't mean Apple has to obey them (they never did). Not only that, MS will find a way to make Office as shittiest as possible, like they do on the desktop. Same arguments as flash lovers... "but but but you need flash for the interwebz.".

 

Create alternatives. If the IT world mattered (to Apple), Apple wouldn't be as great as they are now, people would still use IE, the mobile arena wouldn't exist.

post #14 of 34

That's a lot of personal data being collected.   Credit, purchases, locations, media preferences.

 

With all that info and demographics available to sell targeted ad placements, it's a bit surprising that iAds isn't doing better.

 

--

 

Re: app store royalties, some interesting info:

 

 

Interestingly, a developer might make more money writing BREW apps for a flip phone, due to less competition:

 

  • $7 billion royalties across 200,000 iOS developers = average $35K per iOS developer.
  • BREW Featurephone apps = $3 billion across 38,000 developers = average $78K per developer.
post #15 of 34
Quote:
Originally Posted by KDarling View Post

That's a lot of personal data being collected.   Credit, purchases, locations, media preferences.

 

With all that info and demographics available to sell targeted ad placements, it's a bit surprising that iAds isn't doing better.

 

--

 

Re: app store royalties, some interesting info:

 

 

Interestingly, a developer might make more money writing BREW apps for a flip phone, due to less competition:

 

  • $7 billion royalties across 200,000 iOS developers = average $35K per iOS developer.
  • BREW Featurephone apps = $3 billion across 38,000 developers = average $78K per developer.

Well, iAds is doing better than anything google-Ads related on mobile (Android + iOS). That was the point, cut Google's revenue while providing competition and choice.

Apple-haters must be having a bad time lately... Even google's BS "free" and "do no evil" world that only works with lesser minds isn't enough to bring Apple down.

 

Apple was never as strong as it is, the difference in quality between Apple-products and competitors was never as big.

 

Great, isn't it?

post #16 of 34
Quote:
Originally Posted by reefoid View Post

No, its exactly the same, Amazon pay developers 70% of of app revenue.

 

edit - unless you don't mean the AppStore in which case you may be correct!!

Yea, I meant their standard product sales (ie books, furniture, media) , but you are right about software sales.

post #17 of 34

Announces 40 billion downloads; stock drops 1%. 

 

I wish a different company were the #1 stock. There's too much trader psychology weirdness at the top.

post #18 of 34
Quote:
Originally Posted by pedromartins View Post

Well, iAds is doing better than anything google-Ads related on mobile (Android + iOS). That was the point, cut Google's revenue while providing competition and choice.

 

 

 

If Apple was serious about that, it would make iAd cross platform. Apple is trying to use the program to give iOS developers a way to make money. However, I suspect most developers develop for both platforms. Apple might as well make some money from that development by under cutting Google in price on its own platform to hurt Google where it will hurt most. 

post #19 of 34
Quote:
Originally Posted by KDarling View Post

That's a lot of personal data being collected.   Credit, purchases, locations, media preferences.

 

With all that info and demographics available to sell targeted ad placements, it's a bit surprising that iAds isn't doing better.

 

--

 

Re: app store royalties, some interesting info:

 

 

Interestingly, a developer might make more money writing BREW apps for a flip phone, due to less competition:

 

  • $7 billion royalties across 200,000 iOS developers = average $35K per iOS developer.
  • BREW Featurephone apps = $3 billion across 38,000 developers = average $78K per developer.

 

The difference between Apple and Google with regards to personal information is Googles revenue is based on the information they collect and sell to third parties. Apple's revenue is from hardware and their personal data collection is more of an internal thing to help them improve their products. It's a significant difference. Companies have long tried to get Apple to release more information about their customers and Apple has refused every time. I'm not worried about what Apple knows about me nearly as much as what Google does.

 

Dividing App revenue among total developers? This has already been hashed over and it's meaningless. A large portion of Apps are free and make their developers no money at all. They are provided as a service, not a revenue generator. Think of banks as a prime example. Half of the Apps I have are for organizations, forums, sports teams or others who make no money at all from their App (not direct money, but likely money from offering customers better services).

 

Bottom line is iOS still has developers favoring it over Android by more than 2:1. So much for Eric Schmidt's prediction in Dec 2011 that this would flip and developers would favor Android since, you know, developers go where the market share is, not the money. /S

post #20 of 34
Quote:
Originally Posted by EricTheHalfBee View Post

500 million accounts. I wonder how many have credit cards attached and how many Google has. Activation numbers mean square if they aren't spending in the store.
Also curious why Apple released these figures today when their earnings call is two weeks away. Could it be to steal some thunder at CES?

 

Apple commonly makes announcements during electronic conferences it does not attend, so yes, that is why. 

post #21 of 34
Quote:
Originally Posted by EricTheHalfBee View Post

[...] Bottom line is iOS still has developers favoring it over Android by more than 2:1. So much for Eric Schmidt's prediction in Dec 2011 that this would flip and developers would favor Android since, you know, developers go where the market share is, not the money. /S

 

I wonder how much of the present developer weighting towards iOS is for practical reasons and how much is just inertia?

 

It's really only in the last year or less that any attention has been given to the idea of Android being a serious contender for user mindshare. That makes me wonder if development is still largely focussed on iOS at least partly because that's what developers are used to, and may shift towards Android as they see increased potential on that platform?

post #22 of 34
Quote:
Originally Posted by EricTheHalfBee View Post

The difference between Apple and Google with regards to personal information is Googles revenue is based on the information they collect and sell to third parties. Apple's revenue is from hardware and their personal data collection is more of an internal thing to help them improve their products.

 

No sir.

 

Both Apple and Google sell anonymous ad placements based on information they've gathered about us.

 

Neither Apple nor Google sell the information itself, nor would they ever want to.  It's the entire basis of their ad revenue and is guarded closely.

 

Dividing App revenue among total developers? This has already been hashed over and it's meaningless.

 

Oh, I agree totally.  That was my point :  that averages and numbers are meaningless unless you're one of the developers who got rich :)

 

Bottom line is iOS still has developers favoring it over Android by more than 2:1. So much for Eric Schmidt's prediction in Dec 2011 that this would flip and developers would favor Android since, you know, developers go where the market share is, not the money. /S

 

Edit:  that info was from one year ago.  I'm too busy to look up today's figures.  Perhaps someone else can.   Thanks!

 

Cheers!


Edited by KDarling - 1/7/13 at 10:01am
post #23 of 34
Quote:
Originally Posted by KDarling View Post

 

  • $7 billion royalties across 200,000 iOS developers = average $35K per iOS developer.
  • BREW Featurephone apps = $3 billion across 38,000 developers = average $78K per developer.

 

 

iOS. $ 7 billion over 4.5 years.

 

Brew $ 3 billion over ?? years.

post #24 of 34
Quote:
Originally Posted by piot View Post

iOS. $ 7 billion over 4.5 years.

Brew $ 3 billion over ?? years.

 

Excellent.   Thank you.  People should think about every stat they see.

 

The BREW figure was a total from 2001 to 2010, although it didn't get really popular until about 2004.   Also, up until a few years ago, it was only really used on Verizon phones, which means the customer base was much, much smaller than the Apple App Store.   Now BREW is used for AT&T non-smartphones as well, but I don't know what the figure is up to these days.

 

People tend to forget that app stores existed right on their little flip phones for years.   Ringtones alone used to be a half billion dollar a year business for US carriers until about 2007.

 

Heck, when the free Verizon BREW version of the Shazaam music identifier app came out, it took less time for it to hit a million downloads than it did when it first became available on the iPhone.   It's amazing to me that so many non-smartphone users download(ed) apps..

 

How things have changed.  20 billion iOS app downloads a year.  Wow.   Not that it matters, but I wonder how many of those were duplicates for accounts.   I, for example, use about a half dozen iOS devices, most with the same apps downloaded to each one over the air. 

 

Regards.


Edited by KDarling - 1/7/13 at 10:31am
post #25 of 34
Quote:
Originally Posted by KDarling View Post

Edit:  that info was from one year ago.  I'm too busy to look up today's figures.  Perhaps someone else can.   Thanks!

 

Cheers!

Over the Oct/11 to Oct/12 period Android app revenue as a percentage far outpaced the increase in iOS app revenue, 311% to 12.9%. That's according to AppAnnie

http://mashable.com/2012/11/29/android-beats-ios/

 

Of course there was a lot of room for revenue improvement flowing to Android app developers. Still it looks like GooglePlay downloads and thus developer revenue have picked up a lot of steam in the past 18 months.

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post #26 of 34

Quote:
Originally Posted by KDarling View Post

The BREW figure was a total from 2001 to 2010, although it didn't get really popular until about 2004

 

Nine years?

 

Apple has paid out around $3 billion in one year, and yet you posit that it could be more profitable being a BREW dev, because they received a similar amount over a nine year period.

 

What's the BREW figure for 2012? What does the the future look like for BREW devs as their potential market shrinks? 

 

If you haven't got more convincing figures why are you even mentioning it in this thread?

 

 

 

 

Quote:

Excellent.   Thank you.  People should think about every stat they see.

 

Obviously.

post #27 of 34
Quote:
Originally Posted by Gatorguy View Post

Over the Oct/11 to Oct/12 period Android app revenue as a percentage far outpaced the increase in iOS app revenue, 311% to 12.9%. That's according to AppAnnie
http://mashable.com/2012/11/29/android-beats-ios/

Of course there was a lot of room for revenue improvement flowing to Android app developers. Still it looks like GooglePlay downloads and thus developer revenue have picked up a lot of steam in the past 18 months.

That's a rather pointless single statistic to mention don't you think?

Android developers could be as little as $100 increased to $411. While iOS developers could be $1,000,000,000 to $1,129,000,000.

Growth is good news for android but that article is nothing but click bait.

EDIT: I don't mean to sound condescending to you, the article is one of the weaker links you usually contribute.
Edited by Fillie - 1/7/13 at 4:48pm

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post #28 of 34
Quote:
Originally Posted by Gatorguy View Post

Over the Oct/11 to Oct/12 period Android app revenue as a percentage far outpaced the increase in iOS app revenue, 311% to 12.9%. That's according to AppAnnie

http://mashable.com/2012/11/29/android-beats-ios/

 

Of course there was a lot of room for revenue improvement flowing to Android app developers. Still it looks like GooglePlay downloads and thus developer revenue have picked up a lot of steam in the past 18 months.

 

You seem to have missed a bit from that link. Even after 311% Android app revenue growth, Apple is paying out four times as much cash per month.

 

Even so... it's good to see you and Darling teaming up. Keep up the good work.

post #29 of 34
Problem with the report is they go in detail on Apple iOS figures, but where are google android revenue figures over the same period?

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post #30 of 34

For a paltry $15K AppAnnie will give you all the details. 

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post #31 of 34
Quote:
Originally Posted by Gatorguy View Post

For a paltry $15K AppAnnie will give you all the details. 
Paltry indeed :P

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post #32 of 34
Well nearly 20 billion downloads this year, over 40 in all of course doesn't this match the criteria for 100 downloads per device.
post #33 of 34
Quote:
Originally Posted by KDarling View Post

That's a lot of personal data being collected.   Credit, purchases, locations, media preferences.

 

With all that info and demographics available to sell targeted ad placements, it's a bit surprising that iAds isn't doing better.

 

--

 

Re: app store royalties, some interesting info:

 

 

Interestingly, a developer might make more money writing BREW apps for a flip phone, due to less competition:

 

  • $7 billion royalties across 200,000 iOS developers = average $35K per iOS developer.
  • BREW Featurephone apps = $3 billion across 38,000 developers = average $78K per developer.

 

You'd think so but back in the day when the Mac was a minority platform and there weren't many Mac apps (they had more syllables though), most developers still chose to go for the saturated Windows world. The allure of the biggest platform is the riches that ensue if you break out of the pack.

 

It's also interesting how once a platform is seen as mainstream, making big money out of games is OK. The early Mac was specifically not targeted at games developers to avoid the perception that it was a toy.

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post #34 of 34
Quote:
Originally Posted by piot View Post

Nine years?

 

 

I had hoped you'd read it closer.  That's going back when it first got started, not when it got popular on more than one carrier.    

Quote:

Apple has paid out around $3 billion in one year, and yet you posit that it could be more profitable being a BREW dev, because they received a similar amount over a nine year period.

 

I found more closely time related figures:

 

  • iOS app revenue 2007 to 2010:  $2.7 billion
  • BREW app revenue 2007 to 2010:  $2 billion

 

Considering iOS had something like five times as many developers, we can see where the best average developer money was during that particular time period.

 

 

What we're missing is this:  how much revenue went to top developers on all systems.  
 
For example, when we say Apple paid out $7 billion, but $3.5 billion of that went to just 25 developers... well, then suddenly the per-developer average for all the rest of the store is cut in half.
 
Quote:

What's the BREW figure for 2012? What does the the future look like for BREW devs as their potential market shrinks? 

 

Good point.  Depending on smartphone adoption rates, I agree that it's not necessarily a good longterm choice :)
 
Or maybe it is.  Certainly the competition is far smaller.  That might appeal to some.  I think that feature phones will still be around for a long while, due to not having to pay a data plan.
 
Quote:

If you haven't got more convincing figures why are you even mentioning it in this thread?

 

lol.   I'm not trying convince anyone to change jobs.  I just find it interesting that there have been other app ecosystems that did quite well.  Usually others find it interesting as well.  So  I presented the figures more for fun than anything else.  Sorry if that wasn't clear.
 
Cheers!

Edited by KDarling - 1/10/13 at 8:15am
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