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Apple brings in $20 million - $45 million from App Store

How do you like them Apples?
Apple brings in $20 million - $45 million from App Store
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It's still a lot of money, but considering the iPhone's App Store recently crossed the one billion downloads mark, a new set of figures from Lightspeed Venture Partners suggests Apple has only made between $20 million and $45 million from its share of application revenues.

A huge number of products on the App Store are indeed free, while an equally significant number are only 59p, so there isn't a huge amount of scope for profit at 30 per cent.

Here's how Jeremy View of LVP calculated Apple's estimated profit:

  • After surveying app developers and others in the industry Liew estimated 25 million to 60 million of the billion apps downloaded thus far were paid for.
  • Using an online survey the median price per app was $2.65.
  • That equals revenue in the range of $70 to $160 million, of which Apple keeps 30 percent.

Apple insisted from the outset that its intention was to use the App Store to drive iPhone and iPod touch sales, however, and in that respect it's definitely made a huge profit.

And, with the rate that the App Store continues to grow through the economic depression, this is the kind of small gift that keeps on giving.