Monday, May 14, 2012

iOS App Economy: Developers Receive $12 Per iOS Device Sold; 23 Cents Per Download

iOS App Economy: Developers Receive $12 Per iOS Device Sold; 23 Cents Per Download
During the last earnings conference call, Apple's CEO Tim Cook revealed that Apple had paid out a whopping $700 million to developers in the fourth quarter.

Based on that information, folks at market intelligence firm Asymco have come up with some interesting details about the iOS app economy.
Here are some of the highlights:
  • If Apple gave away $700 million to developers in the last quarter, it means that iOS apps generated $1 billion in revenues, of which Apple retained $300 million.
  • Apple posted total iTunes income of $2.027 billion, so it generated a little over $1 billion revenue from songs, videos and iBooks.
  • According to Asymco's calculations, since Apple crossed the milestone of 18 billion apps downloads on October 4th, 2011 and according to them will cross the milestone of 25 billion app downloads on February 25th, the per day download rate is approximately 48.6 million apps. This works out to an average price of 23 cents per download.
  • Apple has sold over 335 million iOS devices, so that works out to approximately 75 apps downloaded per iOS device.
  • At an average price of 23 cents per download that works out to $17 of iTunes income from Apps.
  • This means that for each iOS device sold, it results in a minimum payment of $12 to iOS developers.
Note: These numbers don't include the revenues generated by advertising or subscription for services (which bypass in-app subscription).
iOS App Economy: Developers Receive $12 Per iOS Device Sold; 23 Cents Per Download_1
That's amazing when you consider 335 million iOS devices have been sold so far. From Apple's point of view, though the revenues generated from the App Store may not be a small percentage of the overall revenues (Apple posted revenues of $46.33 billion in the last quarter), apps and the App Store drive more stickiness to the platform and encourage more hardware sales, which is priceless.
What do you think about these stats? Sound off in the comments.

[via Asymco]

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