An Estimate of Apple’s iPhone App Sales | Startup Meme - Technology Startup and Latest Tech News

Our comments and trackback policy You Link We Follow, You Comment We Promote

Dec 6 2008

An Estimate of Apple’s iPhone App Sales

Saad Ali Abbasi 

iPodTouch_Games

Apple’s has recorded sale of some 300 million iPhone Apps from its App Store for both iPhone and iPod Touch, since July. An estimate is that Apple has made $50 to $100 million in revenue in these sales. This was picked up from a blog post I happened to go through:

  • Apple has told the WSJ that "most" iPhone downloads are free apps. We don’t know how many those are, so let’s assume they’re about two-thirds of the downloads.
  • That suggests that 100 million downloads (of 300 million) were paid apps.
  • Apple recently published the top 10 most-downloaded paid apps. Their average price is about $2.80. We’ll round that up to $3.
  • That suggests Apple’s gross revenue from paid apps is $300 million.
  • Apple takes a 30% cut, and gives 70% to developers. That’s $90 million for Apple, which we’ll round up to $100 million for simplicity’s sake.
  • But this may be overstate the reality. In August, Steve Jobs told the WSJ that Apple made $30 million in gross sales for the first 60 million app downloads. Five times that (300 million downloads at that same rate) is $150 million, of which Apple would get 30%, or $45 million. We’ll round that up to $50 million.
  • Facebook
  • Digg
  • Reddit
  • del.icio.us
  • StumbleUpon
  • Twitter
  • E-mail this story to a friend!
blog comments powered by Disqus