May 14, 2009
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1 Billion iPhone Apps!
Recently, Apple proudly strutted its feathers, pointing at the one billion iPhone free and paid apps users have installed on their little bundles of electronic joy. Now, the folks at LSVP have done the math and calculated how much revenue, approximately, that billion generated.
Short version: not that much.
Long version: Anywhere between $20 and $45 million; when you count in LSVP’s approximation that the ratio of free to paid apps, is somewhere between 1:15 and 1:40, and O’Reilly’s estimate that the mean price for paid apps is $2.65. Multiply these numbers and you get revenue of $70-$160 million; Apple’s 30%, which is how much they get from each sold application puts their chunk of the cake at $20-45 million.
Not bad considering there are only 5 million iPhones in the market. I had better start building an app!
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