ipodtouch games thumb An Estimate of Apple’s iPhone App Sales

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.