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

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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

Top Rated Comments

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114 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.
Score: 11 Votes (Like | Disagree)
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114 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:
Score: 8 Votes (Like | Disagree)
Avatar
114 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:
Score: 8 Votes (Like | Disagree)
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114 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.
Score: 7 Votes (Like | Disagree)
Avatar
114 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.
Score: 6 Votes (Like | Disagree)
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114 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.
Score: 6 Votes (Like | Disagree)

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