Came across this article from Tomi Ahonen, author of one my favourite books – Communities Dominate Brands, where he does an extensive analysis of the economics of iPhone Apps development.
Some of the key points of this article are:
- Uptil June 2010, a total of 5 billion apps have been downloaded from iPhone AppStore generating $1.4 billion in revenues
- Around $1 billion of that revenue was paid to developers
- Average revenues generated, including paid and free apps, is 29 cents
- After Apple takes its 30% cut, the average income earned by all apps, paid or free, to the developer, from end-user payments, is 20 cents per downloaded app
- According to Distimo, 73% of all iPhone apps are paid
- Average paid iPhone app earned $3,050 to its developers in one year
- Average paid app price was $1.90
- Of the 5 billion paid and free app downloads, only 15% were paid apps
- Most paid iPhone apps are games
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