Apple CEO Steve Jobs: Over 60 million apps downloaded from App Store in first month

“In the month since Apple opened an online software clearinghouse called the App Store, users have downloaded more than 60 million programs for the iPhone [and iPod touch], Chief Executive Steve Jobs said in an interview at Apple’s headquarters. While most of those applications were free, Apple sold an average of $1 million a day in applications for a total of about $30 million in sales over the month, Mr. Jobs said,” Nick Wingfield reports for The Wall Street Journal. “If sales stay at the current pace, Apple stands to reap at least $360 million a year in new revenue from the App Store, Mr. Jobs said. ‘This thing’s going to crest a half a billion, soon,’ he added. ‘Who knows, maybe it will be a $1 billion marketplace at some point in time. I’ve never seen anything like this in my career for software,’ he said.”

“Mr. Jobs is betting applications will sell more iPhones and wireless-enabled iPod touch devices, enhancing the appeal of the products in the same way music sold through Apple’s iTunes has made iPods more desirable,” Wingfield reports. “‘Phone differentiation used to be about radios and antennas and things like that,’ Mr. Jobs said. ‘We think, going forward, the phone of the future will be differentiated by software.'”

Wingfield reports, “Richard Doherty, an analyst with market research firm Envisioneering Group, says Apple has caught competitors off guard. ‘They’ve lost developers to Apple,’ he says.”

“Videogame specialist Sega Corp. says it sold more than 300,000 copies in 20 days of its $9.99 Super Monkeyball game… ‘That’s a substantial business,’ says Simon Jeffery, president of Sega’s U.S. division. ‘It gives iPhone a justifiable claim to being a viable gaming platform,'” Wingfield reports. “Mr. Jobs said developers’ share of iPhone application sales in the first month was about $21 million, of which the top 10 developers earned roughly $9 million.”

More in the full article, including an Apple spokeswoman quoted as saying that Apple made a “judgment call” to remove the US$999.99 “I Am Rich” app from the App Store, here.

[Thanks to MacDailyNews Reader “davecc” for the heads up.]

Despite the fact that Apple made the wrong judgement call on “I Am Rich,” the bloodbath obviously doth proceed apace.

Jim Goldman writes for CNBC, “Once again, Apple has seen the future, built a bridge to it, and is taking consumers along for the journey. It’s extraordinary that the company has once again seized on another electronic ecosystem, in much the same way iTunes didn’t so much as invent downloaded digital entertainment as it did re-invent it. And iPhone is the direct beneficiary of this ingenuity, proving once again that the device isn’t merely a ‘smart phone,’ but Apple’s next-generation ‘platform.'”

Goldman writes, “You just don’t see this kind of grassroots market place support and development excitement around the sector’s biggest players, like Nokia, Microsof and Research in Motion. And I’m not saying Apple will eclipse them any time soon. But when and if that does happen, Apple’s App Store is the kind of thing that can sure speed it up.”

Full article here.

[Thanks to MacDailyNews Reader “The_Wzrd” for the heads up.]

33 Comments

  1. …. and how do those folks that claimed the iPod games Apple put on iTunes (obviously a test-bed for this platform in hindsight!) was a silly side avenue and would never amount to anything feel now? Pretty damned stupid I’m guessing!

    You could see this one coming over a year ago….

  2. I wonder if they are counting initial download of an app to a unique user account, or all downloads, including updates? Because if it’s the latter, than I think I account for probably 10% of their total downloads because of the busted update mechanism in iTunes that kept reporting some of my apps as needing an update, no matter how many times I downloaded it.

    Oh, and for those who had this same problem (iTunes reporting that there are updates available and installing multiple copies in your ~/Music/iTunes/Mobile Applications folder), here is the solution:

    http://artofgeek.com/forums/viewtopic.php?f=57&t=1178&sid=d6572e9f9cfb575f917679f4aded3cae

  3. The pace of download will slow down in a while. Just as any blockbuster movie.
    ‘Cause right now, people download whatever… it’s a very very childish behaviour

    Don’t get me wrong, there’s still be lots of downloads.
    However it’ll only be for the most important apps.

    Just like in the nature, only the useful apps will survive the rest.
    Slowly, app store will be a serious success, not as the current immature one.

  4. John said:”You could see this one coming over a year ago….”

    That’s true and you can see that even when the competition is given a clear warning they still have that “deer in the headlights” look and WTF happened?! An Apple App store where did that come from?! Doe! ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

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