App Store Holds 85-90% Share of Mobile App Dollars Says Analyst

Apple has frequently promoted how much money has been paid out to developers selling apps via the App Store. The latest pronouncement was during the iPhone 4S introduction when Scott Forstall announced that Apple had paid out three billion dollars for app sales. The point Fostall is making when sharing these totals is that developing for iOS is more profitable for developers than other platforms, most notably Android.

According to analyst Gene Munster at Piper Jaffray, Apple commands 85 to 90 percent of mobile app dollars, with Google's Android Market Place generating just 7 percent of the gross revenue of the App Store. Munster anticipates Apple will continue to hold more than 70 percent of mobile app dollars going forward.

Munster says Apple developers have made more than $3.4 billion since the App Store opened, compared to just $240 million for Google developers. As with all analyst estimates, these numbers should be taken with a little skepticism, but by all accounts the App Store is a tremendous success.

Image courtesy The Verge

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Kaibelf

97 months ago

Really? So you'd rather have the developer make less money than they deserve? What does apple do to deserve their huge chunk of the pie?

Do you seriously think that retailers pass 100% of a sales price on to anyone who creates the product on their shelves? What does apple do? They provide the entire storefront, handle transactions, push updates, and provide customer care. What DON'T they do? Make you go to a store or find an obscure website for the exact same product.

Rating: 11 Votes

Kid A

97 months ago

I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

I think you forgot to add a "Neener-neener! :p :cool:" to your post.

Seriously, though, your post puts an entirely new spin on the above story. Turns out, Apple oughta be shaking in their boots if they're banking on a successful iTMS or App Store! I mean, with you in the mix... :rolleyes:

Rating: 8 Votes

Shrink

97 months ago

I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

And you're proud as punch about it, too.

Don't compromise your principles!

Stand firm against the tide!

People who buy from the App Store or iTunes are lemmings!

March to your own drummer!

:rolleyes::D

BTW - why don't you buy anything from the App Store or iTunes??:confused:

Rating: 8 Votes

CylonGlitch

97 months ago

This is huge. From a developer stand point, you want to develop for a system that will give your software the best chance of becoming successful. If you can only write for one system, iOS is the way to go. This is just the opposite of what happened with Apple and Microsoft. With Windows being the dominate platform for desktops, developers flocked to it because that is where their customers were; Apple tried but never got nearly as many 3rd party developers. This time around, the shoe is on the other foot. We'll see what Apple does with this success.

Rating: 7 Votes

brayhite

97 months ago

It's interesting that the avg. ASP for Android is higher than iOS. I suppose smaller sample size has to do with that, but what apps on Android are expensive (and by expensive, I consider anything $9.99+ expensive for an app)?

I also wonder how they come up with that number. By number of apps with a certain price (which makes me wonder if they consider sale prices as a new "app" to affect average) or by average price paid for an app, which makes the number very deceiving.

----------

I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

And..?

Rating: 6 Votes

Icaras

97 months ago

I've been a mac user for over 10 years. I've never bought anything from the iTunes or App store and don't intend to.

And..?

I know, and...? Lol.

I'm the complete opposite. I now purchase everything media on iTunes: apps, books, music, movies, TV Shows. Same goes for the Mac App Store. I love the system and I've been moving all my software purchases to it.

Not sure why people hate it so much. It's been nothing but super streamlined convenience with excellent customer service.

Rating: 6 Votes

bigcat318

97 months ago

The developer agreed to the terms, did they not? They are making profit on software made for hardware Apple developed, are they not? Apple not only provides the medium for the software but also the distribution. Or do you think 500,000sqft data center facilities are free?

You can boycott it all you want. You just have no logical reason for doing so.

Rating: 6 Votes

nagromme

97 months ago

Pretty interesting how Android dominates hardware market share, but Apple clearly dominates the the software front. Shouldn't the software business be driving the hardware business? This is at least true in the portable handheld gaming market.

Actually, doesn't iOS dominate in hardware user base/unit sales too, last we know?

The iOS app market reaches more than just all of Apple's phones: it’s iPods and iPads too.

Whereas the Android app market reaches LESS than all Android phones: Android tablets have not taken off, and many "Android” phones are Android-based in technicality only, and may count towards Google’s market stats but can’t run Android apps. (For example: Asian OS variations, limited “feature phones” based on Android, and the Fire tablet: if Amazon sees success with that, it will boost book sales, but not Android app sales!)

Asp = ?

Average selling price.

Rating: 6 Votes

sunspot42

97 months ago

Android: The New Commodore 64

Android is running the risk of becoming the new Commodore 64 - a cheap computer that flew off the shelves due to the rock bottom price, but attracted a userbase that refused to pay for software.

Ultimately, it's the software and not the hardware that makes the platform a success. That's the reason why the IBM PC and Mac are still around, while Commodore is long-extinct. PC and Mac users were willing and able to pay for software.

Having Android hijacked by Amazon isn't doing the platform any favors, either...

Rating: 5 Votes

spazzcat

97 months ago

Please don't put words into my mouth. I never said I'm boycotting ITMS or the App store. I have no need for either and already stated that for electronic music Beatport is superior in every way. Adding my 2 cents on apples profit sharing does not mean im boycotting.

Without Apple they wouldn't made any money. Apple's cut is part of doing business. And the developer agrees to this before they write their first line of code...

Rating: 5 Votes

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