Apple’s iTunes App Store annual revenue estimated at $2.4 billion

“A new snapshot of mobile device usage offers a glimpse into Apple’s App Store, suggesting that the online service takes in nearly $200 million from users per month,” Neil Hughes reports for AppleInsider.

“The latest Mobile Metrics Report from AdMob for July 2009 shows that iPhone users download an average of 10.2 applications from the App Store per month, with 2.6 of those paid. However, iPod touch users appear to be more app-hungry, downloading an average of 18.4 each month, with two paid,” Hughes reports.

“Most users surveyed paid for their applications after upgrading from a ‘lite’ version of the same application, suggesting most prefer to try before they buy. The average iPhone user spends $9.49 per month on the App Store, bringing in $125 million from the 26.4 million user install base in total revenue each month,” Hughes reports. “Comparatively, the 18.6 million iPod touch users spend an average of $9.79 each month, capturing $73 million in sales.”

Hughes reports, “More than 90 percent of those who download applications to their phone do it directly on the phone, rather than transferring over from the computer.”

More info, along with charts, in the full article here.


  1. That’s a cow full of cash!

    30% of $2.4B is $0.72B. That’s a lot.

    If iTunes are selling an average of 4B songs etc a year with an ASP of $.99, Apple’s revenue for that is ~$1.2B.

    We know that the infrastructure costs, credit card fees etc take a toil from the 30% Apple make from iTunes. The same could be true for the App Store.

    However as Apple sell more products through their web stores their cost per unit must be going down.

    Even if Apple make on average only 5 cents per dollar spent on iTunes and App stores that equates to $0.25B in profit. App store revenue can only be increasing in the short term whilst iTunes sales are still growing too.

    All good news for Apple and I wonder if the brokers are smart enough to understand the consequences.

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