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Apple's App Store Tops 40 Billion Downloads; Generates $7 Billion For Developers

An anonymous reader writes "With the eyes of the tech world fixed on CES this week, Apple this morning conveniently decided to issue a press release announcing that the iTunes App Store has now topped over 40 billion downloads. That's an incredible feat, to be sure, but even more incredible is that nearly half of those downloads occurred in 2012. In December alone, iOS users downloaded over 2 billion applications, setting a monthly record in the process."

10 of 177 comments (clear)

  1. Re:Unique downloads? by samkass · · Score: 5, Informative

    or all downloads.

    They don't count updates or re-downloads in that figure.

    --
    E pluribus unum
  2. Re:How many developers? by ernest.cunningham · · Score: 4, Insightful

    7 Billion dollars.....
    What you have to realise is that is just payout form Apple.

    Many developers (including myself) make a living developing custom applications for businesses. So that figure is just for those who sell their wares.

  3. Re:RMS by homey+of+my+owney · · Score: 4, Funny

    Mmmmm, indeed. $7 billion worth of hurt.... Ouch.

  4. Re:How many developers? by Missing.Matter · · Score: 4, Informative

    A straight up average is inappropriate, as there are some massive outliers. Take a look at the top paid apps: http://www.apple.com/itunes/charts/paid-apps/

    It's overwhelmingly games. And of these top 100 apps, developers like Rovio and EA are overrepresented. Meaning if your app isn't a game and your company isn't Rovio, you're probably not making much at all. Rovio and EA on the other hand are probably making well over $700,000.

  5. Re:How many developers? by NatasRevol · · Score: 5, Informative

    Many of whom have not released an app.

    I'm a registered iOS developer, it's free.
    Nice to be able to take a look around at what is possible.

    --
    There are two types of people in the world: Those who crave closure
  6. Re:And Apple's cut... by jopsen · · Score: 4, Insightful

    Bandwidth, etc. doesn't cost anything...
    But credit card transactions is a big expenditure here... Try finding a payment provider that takes less than 30% or 30 cent?
    Maybe you can get it cheaper if you are a big player like Apple, but when both Google, Amazon and Paypal are priced at 30% or 30 cent, I imagine that VISA and MASTER card prices are pretty much up there...

  7. Re:And Apple's cut... by Paul+Slocum · · Score: 4, Informative

    Apple doesn't make a significant amount of money off the app store. Having lots of software and games available sells hardware.

  8. Re:And Apple's cut... by paulpach · · Score: 5, Insightful

    I am a game developer, and I have my game in apple store, it is called Block Story.

    I have my app in the apple store and google play. There is nothing compelling me to use google play for example, I could sell the game from my own web site but I would be crazy to do this. I still voluntarily pay that 30% to have the app in google play and apple store.

    Why do I do it? well, you really can't dismiss all the work they do for you (both stores), consider:

    • * They market your app, putting them in "most recent" list, as well as in the "people who bought this also bought" list of other apps. This marketing alone is well worth the cost.
    • * They handle international payments. I don't have to worry about the dollar conversion, I get to focus in what I am good at: game development.
    • * I don't have to deal with PCI compliance, which I would have to do with my own store
    • * I don't have to deal with refunds, they take care of it.
    • * I don't have to deal with credit card processing. Huge nightmare
    • * I don't have to deal with bandwidth. When my free app is downloaded 300K times, this is an issue.
    • * I don't have to deal with updates. I publish my update, and they take care of notifying users, and installing the updates

    They charge 30%? you know what, they earned it.

  9. Re:Citation? by Anubis+IV · · Score: 4, Informative

    Fishy? Not really. Your facts are just poorly aggregated.

    For instance, you only accounted for iPhone sales, but Apple also sells the iPad, iPad mini, and iPod Touch, all of which are also iOS devices that can download and run these apps. Through March 2012 they had announced 365M iOS device sales, and by the end of the next quarter (i.e. the quarter when iPhone sales were winding down before the iPhone 5 and iPad mini rumors were rampant, thus slowing sales) they still managed to sell 35M units, bringing them to over 400M iOS devices by the end of June. So, already we can tell that you're off by 150M units at a minimum, and that still leaves the following six months of sales unaccounted for.

    Going forward past June, Apple has since then released the iPhone 5, a new iPod Touch, the iPad mini, and the 4th gen iPad. Whether the mini is cannibalizing larger iPad sales or not will be revealed soon, since Apple is set to do their earnings announcement for the holiday quarter in about two weeks. Even if it is, however, its sales are estimated to be in the 8-10M range. Meanwhile, the iPhone 5 represented over 50% of smartphone sales as we got towards the end of the year, so it's safe to say that it's been selling well so far. Not to mention that iPad and iPod sales have traditionally picked up during the holiday season since they're not tied to contracts.

    As such, 450-500M is a perfectly reasonable expectation for where they are today, given that it's six months since their last announced numbers and they've updated every single product line that's relevant right before the biggest sales time of the year.

    And if we assume just 450M devices, then that would mean 40B/450M, which is around 89 apps on average, which is extremely reasonable, given that they're doubtless including all of those apps that people download, check out for five minutes, and then delete because they aren't what they're looking for. I did a quick sanity check, and I have 84 third-party apps currently installed on my smartphone, not to mention a few more on my tablet, and that doesn't include the dozens I've installed and deleted over the years. I wouldn't even classify myself as a heavy user; I actually think my usage is pretty close to typical for most users, since I don't use it as a geek tool or like a power user would.

  10. Re:RMS by exomondo · · Score: 4, Informative

    And that statement is downright deceitful considering you need to pay the $99 yearly license fee to get you application listed.

    Wrong, it isn't deceitful at all, nowhere near 5 million people have listed applications, in fact there aren't even 20% of that number of applications in the app store today, yet you claim 5 million people have been paying $99 a year for the past 5 years, obviously a ridiculous and baseless claim that isn't in any way even close to being conceivably accurate.

    You still need to pay for the Mac to develop on regardless of if you release anything.

    Not if you already have one, and you certainly don't need one to become a registered developer. Moreover i doubt many people are buying a mac solely for the purpose of iOS development.

    A free developer registration only gives you the right to look, not to touch (as in release an application).

    Yes and the numbers speak for themselves, the vast majority have not released any application.