Source: Tom's Guide | Keywords: App, Store, Revenue | Themes: Software, Smartphones, Business
Steve Jobs has confirmed what we all knew already; the App Store is a success.
The last few weeks have been riddled with reports from various publications regarding the success of the iPhone App Store. There have been interviews left, right and centre with amateur developers who are now earning a substantial amount of money from an application (in many cases something really simple) they developed and submitted to Apple. What we haven’t heard much about, is how well Apple is doing with the App Store.
Obviously, if developers are doing well and Apple is taking a cut of the profit then Apple is doing well. The company takes 30 percent of App Store sales, which it claims just about covers the costs of credit card transactions and keeping the Store up and running
In an interview with the Wall Street Journal, CEO Steve Jobs claimed that despite a huge amount of the applications being free, the company has been making $1 million a day from the App Store. Users downloaded more than 60 million programs for the iPhone in the first 30 days it was online.
If users continue to download applications at the current pace, the App store will have garnered $360 million in its first year but Jobs expects it to grow at an alarmingly fast rate and estimates that revenue from the App Store could hit half a billion in the not too distant future.
"This thing’s going to crest a half a billion, soon. Who knows, maybe it will be a $1 billion marketplace at some point in time," said Jobs.
Jobs also thinks that the success of the App Store will be instrumental in the iPhone’s success similar to the way the iTunes proffered the iPod.
Read the full story on the WSJ.
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Think how much they could have made if they left 'I am Rich' up!
Interesting how we in cultures of individualism assume that everything will keep going as it currently is - the stock market is booming, so it will keep going up; oh no, the stock market is crashing, it will keep going down; $30 million in sales, it will continue on.
One of two things will happen. Either sales will grow at an accelerated rate as more users grab iPhones and new apps come out, or sales will slow down like a new movie as novelty and usefulness dies off.
Also, what will happen once Microsoft and other cellular manufacturers (and maybe computer system builders) decide to follow Apple's lead more aggressively?