Apple's App Store generated over $10 billion in revenue for developers in record 2014

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Comments

  • Reply 21 of 44
    MarvinMarvin Posts: 15,326moderator
    maestro64 wrote: »
    Marvin,

    I think you read that wrong the tech Crunch add said Apple made $10M and in told today payed out $15B up to 2013, and in 2014 alone Apple paid out $10B it does not say how much apple made in 2013 from the store.

    It must have been overall revenue, the following article says it was $8b paid to devs in 2013:

    http://www.tuaw.com/2014/01/07/the-app-store-monster-apple-in-2013-paid-developers-more-than-d/

    "In January of 2013, Apple indicated that it had cumulatively paid developers $7 billion. By January of 2014, that figure rose to $15 billion. The takeaway from these figures is astounding: During the last calendar year, Apple more than doubled the cumulative amount paid to developers during the preceding 4.5 years combined.

    From January 2013 to January 2014, Apple paid out $8 billion to developers."

    They almost reached $10b in a 12 month period by July 2014:

    http://techcrunch.com/2014/07/22/apple-has-paid-20-billion-to-ios-devs-half-of-it-in-the-past-year/

    "Of the $20 billion paid out since the App Store launched in 2008, “nearly half” of it has been paid out in the last 12 months."

    Now it's over $10b in a 12 month period.

    It's being driven by games too:

    http://qz.com/309715/apple-is-overwhelmingly-reliant-on-games-for-app-store-revenue/

    75% of income is from games. It's mainly from the microtransaction games though:

    http://www.statista.com/statistics/263988/top-grossing-mobile-ios-gaming-apps-ranked-by-daily-revenue/

    The 3 saga ones are from the Candy Crush developer and Hay Day (farmville clone) is from the Clash of Clans dev.
    gatorguy wrote:
    "At this growth, the Play Store could be more profitable by this time next year."

    Maybe next year or the year after or the year after. Let's see how all those Xiaomi buyers improve revenue stats with their cheaper devices vs Samsung.
  • Reply 22 of 44
    Quote:
    Originally Posted by SpamSandwich View Post





    Up just over 2% by my reckoning. Three percent would be even better.



    No, it was up 3.84% at close. You are probably comparing today's closing price to the opening price rather than yesterday's closing price.

  • Reply 23 of 44
    I'd love to see a breakdown of that figure. Are just 10 software companies receiving 90% of those payments?
  • Reply 24 of 44
    mdriftmeyermdriftmeyer Posts: 7,503member
    Talking of apps, won't most of the purchases be Apple ones?
    I'm thinking of iMovies, iBooks, iMagazines and iMusic.

    Speaking of apps...
  • Reply 25 of 44
    gatorguygatorguy Posts: 24,213member
    Don't buy that for a minute. At 60% of Apple that represents billions in revenue for Google. Yet they lump Google Play revenues in the "other" category on their financial statements.

    If they were actually making that much then it would deserve its own category.
    The stats are sourced from AppAnnie. A lot of developers find them pretty reliable. You of course may not.
  • Reply 26 of 44
    MarvinMarvin Posts: 15,326moderator
    I'd love to see a breakdown of that figure. Are just 10 software companies receiving 90% of those payments?

    It seems to be a little more widely distributed than that but this is older data:

    http://www.canalys.com/newsroom/top-25-us-developers-account-half-app-revenue

    The companies that make Clash of Clans and Candy Crush make $1-2b per year each (also from Android) so just under 1/5th of all the revenue goes to 2 developers.

    One thing that's quite interesting is Japan outspends the US in the App Store despite being less than half the population:

    http://blog.appannie.com/japan-spotlight-revenue-inflection-point/

    Here's a list of top grossing apps:

    http://blog.appannie.com/app-annie-japan-mini-index-may/

    http://venturebeat.com/2013/10/27/how-japans-line-became-interview/

    A significant portion of the App Store payouts will be going to Japanese gaming companies whose games don't even show up in Western charts.
  • Reply 27 of 44
    I can still hear the screams from the developers in the Tasmanian Government - IF WE DEVELOP APPS FOR APPLE OUR CAREERS WILL BE OVER - WE WANT TO DEVELOP .NET - ITS THE ONLY WAY !!!!
  • Reply 28 of 44
    asdasdasdasd Posts: 5,686member
    Marvin wrote: »
    It seems to be a little more widely distributed than that but this is older data:

    http://www.canalys.com/newsroom/top-25-us-developers-account-half-app-revenue

    The companies that make Clash of Clans and Candy Crush make $1-2b per year each (also from Android) so just under 1/5th of all the revenue goes to 2 developers.

    One thing that's quite interesting is Japan outspends the US in the App Store despite being less than half the population:

    http://blog.appannie.com/japan-spotlight-revenue-inflection-point/

    Here's a list of top grossing apps:

    http://blog.appannie.com/app-annie-japan-mini-index-may/

    http://venturebeat.com/2013/10/27/how-japans-line-became-interview/

    A significant portion of the App Store payouts will be going to Japanese gaming companies whose games don't even show up in Western charts.

    As a one time producer of share ware I can say the Japanese are the best spenders. The U.S. was second.

    Dominating those two markets is what makes the iPhone so lucrative.
  • Reply 29 of 44



    Thanks Marvin.

     

    Not to expect you to dive off in another web search, just musing, but how many share the next 40% I wonder.

     

    I've got a few apps on there myself and expect that I'm probably in the final 0.0005% :-)

  • Reply 30 of 44
    MarvinMarvin Posts: 15,326moderator
    Thanks Marvin.

    Not to expect you to dive off in another web search, just musing, but how many share the next 40% I wonder.

    I've got a few apps on there myself and expect that I'm probably in the final 0.0005% :-)

    There was a survey done here that suggested the bottom 80% of apps make 3% of the revenue:

    http://daveaddey.com/?p=893

    These are not accurate graphs as they are just random samplings of developers who have apps in the store but all the reports say roughly the same thing. The following article says 2/3 of all apps aren't downloaded at all, which would explain the low revenue share:

    http://appleinsider.com/articles/12/07/31/23_of_apples_ios_app_store_populated_by_zombie_apps_estimate_finds

    The following says half of developers make below $500/month:

    http://www.developereconomics.com/reports/developer-economics-q3-2014/

    They also found that almost half of developers are coding in non-native languages i.e not Objective-C or Java. Probably because most titles are games and they'll use Unity or Unreal, which don't use those languages.

    The number of active app developers in the US store is over 350,000. Apple says the app economy supports 627,000 people worldwide:

    https://www.apple.com/about/job-creation/

    (That page has a note about the Mac Pro - they hired an automotive company to manufacture the enclosure for them.)

    There are 1.2m apps so each active developer would have on average 2 apps in the store. If you divided the revenue out, that would be $10b between 627,000 developers = $16k each per year but it's been reported that the top 25 developers take about 50% and this is backed up by earnings reports from the biggest developers so that cuts it in half for roughly the same number of developers down to $8k per year. You can easily assume the apps in the 'top 200' charts will be taking at least 75% of the revenue because the difference in revenue between being in the App Store or not is huge.

    To get into the chart you need downloads per day described in the following article:

    http://techcrunch.com/2013/06/27/how-do-you-break-into-iphone-app-store-top-50-try-23k-free-daily-downloads-950-paid-or-12k-in-daily-revenue/

    Companies come to forums like this one to spam their app. They go round all the forums at the same time. Forum threads get a few thousand views each so if they do that on multiple forums at the same time, they have a better chance of boosting up into the charts and then the chart takes it from there. Some developers have been gaming the charts:

    http://arstechnica.com/gaming/2014/02/pay-to-rank-gaming-the-app-store-in-the-age-of-flappy-bird/

    "I was totally SHOCKED when I heard that there were 8 apps on the Top 25 Free App store that were all promoted by [an unnamed marketing service]. At this point, I was pretty curious on how he's able to do that (I was told by an AdMob sales person before that it takes a lot of money and traffic to promote an app to the Top 10). That’s when he let loose the BIGGEST FRAUD ever; he said he had outsourced someone to build him a bot farm, and the bots will automatically download his clients' apps and drive up their rankings!!! He even told me that even though I might see my app climb up the app store, they aren’t "REAL" at first until it gets to the top, and that’s when REAL HUMAN players will start seeing my app and play it."

    I think the global App Store charts need to go away or at least be hidden from users and instead give each user their own personal chart. That way the App Store gets curated by the tastes of the customers instead of being manipulated by scammers. It would reduce the zombie app count because it would improve discoverability.

    When you visited the store, you wouldn't see a global chart, you'd see a personal recommendation section based on your tastes with popular apps that didn't have titles you owned and didn't have titles you're not interested in. Every day you'd see new apps. You would be able to blank out whole categories as well as very low ranked apps.
  • Reply 31 of 44
    asdasdasdasd Posts: 5,686member
    didnt apple say 9 million devs at the last WWDC?
  • Reply 32 of 44
    MarvinMarvin Posts: 15,326moderator
    asdasd wrote: »
    didnt apple say 9 million devs at the last WWDC?

    They aren't all published in the App Store, that's just registered developers, the above numbers are devs who'd be getting a cut of the revenue. There are only 1.2m apps so it could be the other 8m or so registered devs are just learning to code. There's some data here from 2012 showing a breakdown of how many apps developers are making:

    http://www.quora.com/How-many-developers-companies-have-submitted-an-app-to-the-iOS-App-Store-or-Android-Market

    It said 37% had a single app, 17% had two. Over 2000 devs have over 30 apps each and 1 developer had over 3500 apps, which would amount to nearly 2 every day between 2007-2012 but they published ebooks as apps.

    I wonder how many of the 1.2m apps aren't really proper apps but books and things that should really be books. The following is a collection of books:

    https://itunes.apple.com/app/free-books-23-469-classics/id364612911?mt=8

    It'll be a lot easier to distribute that way than submit thousands of books individually but Apple should have an API to do massive collections of books and audiobooks to the proper sections instead of cluttering the app section with book collection apps. It doesn't let you find the books it has for a start.
  • Reply 33 of 44
    asdasdasdasd Posts: 5,686member
    Very interesting.

    Odd that most people never publish given that they pay $99. Some might be publishing for other companies but keeping their own account open for private use.
  • Reply 34 of 44
    asdasdasdasd Posts: 5,686member
    I still think that something is off with the 9 million figure though. I remember being struck by it watching the keynote. Is it any body who ever registered?
  • Reply 35 of 44

    Yep thats right ... also you can register teams of people under an account that could essentially be working on one game / app. But agreed there are many that also are learning to code or even working over a few years to develop a product. Also you have to take into account that games come and go from the app store.

  • Reply 36 of 44
     
    Talking of apps, won't most of the purchases be Apple ones?
    I'm thinking of iMovies, iBooks, iMagazines and iMusic.


    None of those are apps...iBooks is, but it's included in the system and didn't cost anything in the first place.

    He's talking about content.
  • Reply 37 of 44
    maccherry wrote: »
    Damn!
    But according to Apple analyst the company is on the verge a collapse! OMFG!!!
    Close to 200 billion in the bank and almost no debt but it's slipping into the darkness!
    Somebody hold me!

    I'm not sure that Apple are as close to death as you are making out.
  • Reply 38 of 44
    slurpy wrote: »
    maestro64 wrote: »
     
    More data

    http://www.techspot.com/news/58456-google-play-vs-app-store-downloads.html

    Google Android cheapskates down loaded more but developers made far less.

    What, what a toxic and unhealthy environment for developers Android is. Google loves shrieking about how much they love developers, how much freedom they give them, etc, but at the end of the day developing for Android seems to be a losing proposition, no matter how much "marketshare" the platform has. All the evidence you need is in these new product videos, where the devs of apps/products always show an iPhone being used instead of an Android phone- because they know that even though Android phones are being sold by 78,928 companies in a billion models, all those sales combined still can't touch the purchasing power of iPhone users. 

    Toxic indeed.

    A toxic hell-stew is how I would describe Android, as would the CEO of a company beginning with App and ending with le.
  • Reply 39 of 44
    Marvin wrote: »
    maestro64 wrote: »
    Marvin,

    I think you read that wrong the tech Crunch add said Apple made $10M and in told today payed out $15B up to 2013, and in 2014 alone Apple paid out $10B it does not say how much apple made in 2013 from the store.

    It must have been overall revenue, the following article says it was $8b paid to devs in 2013:

    http://www.tuaw.com/2014/01/07/the-app-store-monster-apple-in-2013-paid-developers-more-than-d/

    "In January of 2013, Apple indicated that it had cumulatively paid developers $7 billion. By January of 2014, that figure rose to $15 billion. The takeaway from these figures is astounding: During the last calendar year, Apple more than doubled the cumulative amount paid to developers during the preceding 4.5 years combined.

    From January 2013 to January 2014, Apple paid out $8 billion to developers."

    They almost reached $10b in a 12 month period by July 2014:

    http://techcrunch.com/2014/07/22/apple-has-paid-20-billion-to-ios-devs-half-of-it-in-the-past-year/

    "Of the $20 billion paid out since the App Store launched in 2008, “nearly half” of it has been paid out in the last 12 months."

    Now it's over $10b in a 12 month period.

    It's being driven by games too:

    http://qz.com/309715/apple-is-overwhelmingly-reliant-on-games-for-app-store-revenue/

    75% of income is from games. It's mainly from the microtransaction games though:

    http://www.statista.com/statistics/263988/top-grossing-mobile-ios-gaming-apps-ranked-by-daily-revenue/

    The 3 saga ones are from the Candy Crush developer and Hay Day (farmville clone) is from the Clash of Clans dev.
    gatorguy wrote:
    "At this growth, the Play Store could be more profitable by this time next year."

    Maybe next year or the year after or the year after. Let's see how all those Xiaomi buyers improve revenue stats with their cheaper devices vs Samsung.

    It's amazing and unsettling to me that these huge sums are derived largely from IAPs for games, something which I hate on the whole. You know, £69.99 for a crate of apples, or the American equivalent. Unsettling, because I presume it's only children who will be suckered into such pointless purchases. It feels like Apple are preying on the weakness of children. The only provisos are that the parents let the children make those purchases, and no doubt Google are just as bad. IAPs where you simply unlock the game are fine.
  • Reply 40 of 44
    Marvin wrote: »
    Thanks Marvin.

    Not to expect you to dive off in another web search, just musing, but how many share the next 40% I wonder.

    I've got a few apps on there myself and expect that I'm probably in the final 0.0005% :-)

    There was a survey done here that suggested the bottom 80% of apps make 3% of the revenue:

    http://daveaddey.com/?p=893

    These are not accurate graphs as they are just random samplings of developers who have apps in the store but all the reports say roughly the same thing. The following article says 2/3 of all apps aren't downloaded at all, which would explain the low revenue share:

    http://appleinsider.com/articles/12/07/31/23_of_apples_ios_app_store_populated_by_zombie_apps_estimate_finds

    The following says half of developers make below $500/month:

    http://www.developereconomics.com/reports/developer-economics-q3-2014/

    They also found that almost half of developers are coding in non-native languages i.e not Objective-C or Java. Probably because most titles are games and they'll use Unity or Unreal, which don't use those languages.

    The number of active app developers in the US store is over 350,000. Apple says the app economy supports 627,000 people worldwide:

    https://www.apple.com/about/job-creation/

    (That page has a note about the Mac Pro - they hired an automotive company to manufacture the enclosure for them.)

    There are 1.2m apps so each active developer would have on average 2 apps in the store. If you divided the revenue out, that would be $10b between 627,000 developers = $16k each per year but it's been reported that the top 25 developers take about 50% and this is backed up by earnings reports from the biggest developers so that cuts it in half for roughly the same number of developers down to $8k per year. You can easily assume the apps in the 'top 200' charts will be taking at least 75% of the revenue because the difference in revenue between being in the App Store or not is huge.

    To get into the chart you need downloads per day described in the following article:

    http://techcrunch.com/2013/06/27/how-do-you-break-into-iphone-app-store-top-50-try-23k-free-daily-downloads-950-paid-or-12k-in-daily-revenue/

    Companies come to forums like this one to spam their app. They go round all the forums at the same time. Forum threads get a few thousand views each so if they do that on multiple forums at the same time, they have a better chance of boosting up into the charts and then the chart takes it from there. Some developers have been gaming the charts:

    http://arstechnica.com/gaming/2014/02/pay-to-rank-gaming-the-app-store-in-the-age-of-flappy-bird/

    "I was totally SHOCKED when I heard that there were 8 apps on the Top 25 Free App store that were all promoted by [an unnamed marketing service]. At this point, I was pretty curious on how he's able to do that (I was told by an AdMob sales person before that it takes a lot of money and traffic to promote an app to the Top 10). That’s when he let loose the BIGGEST FRAUD ever; he said he had outsourced someone to build him a bot farm, and the bots will automatically download his clients' apps and drive up their rankings!!! He even told me that even though I might see my app climb up the app store, they aren’t "REAL" at first until it gets to the top, and that’s when REAL HUMAN players will start seeing my app and play it."

    I think the global App Store charts need to go away or at least be hidden from users and instead give each user their own personal chart. That way the App Store gets curated by the tastes of the customers instead of being manipulated by scammers. It would reduce the zombie app count because it would improve discoverability.

    When you visited the store, you wouldn't see a global chart, you'd see a personal recommendation section based on your tastes with popular apps that didn't have titles you owned and didn't have titles you're not interested in. Every day you'd see new apps. You would be able to blank out whole categories as well as very low ranked apps.

    Please put your suggestions to Apple.

    There must be so many great apps I've never discovered because of the gross over-simplification of the App Store.

    Your ideas plus TS subcategories of subcategories of subcategories.
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