App Store Developer Payout Hits $50 Billion, July Sets Record as Biggest Month Ever

[MacRumors]

Apple CEO Tim Cook today announced on Twitter that a new App Store record was set last month, with July seeing Apple's highest ever monthly billings for the App Store and the largest amount of money paid out to developers.

According to Cook, Apple has now paid out more than $50 billion to developers over the lifetime of the App Store, which first launched for the iPhone in 2008, a year after the iPhone was released to the public.

App Store revenue has been growing rapidly over the past several years, with Apple citing its success as the reason behind its steadily increasing services category.

July was a record-breaker for the @AppStore! Highest-ever monthly billings and money paid to developers. - Tim Cook (@tim_cook) August 3, 2016

During Apple's most recent earnings call, Cook also said that Apple saw its highest quarterly App Store revenue ever, with a 27 percent growth rate year over year. Apple also set a new record for customers making purchases through the App Store, with the average amount spent per customer reaching the highest level the company has ever seen.

Cook expects that over the course of the next 12 months, revenue from Apple's services category (consisting of the App Store, iTunes Store, Apple Music, iCloud, and AppleCare) will "be the size of a Fortune 100 company."

.@AppStore developers have now earned over $50 billion! Congratulations on your success and such inspired creativity. - Tim Cook (@tim_cook) August 3, 2016

In July, the App Store's most notable release was Pokémon Go, which launched in the United States on July 5 and then in multiple other countries around the world throughout the month.

Pokémon Go set an App Store record for the most ever app downloads during its first week of availability and it is already considered the biggest mobile game in U.S. history. Pokémon Go is now estimated to have been downloaded more than 100 million times and it is said to bring in $10 million in revenue daily across the iOS and Google Play app stores.

Article Link: App Store Developer Payout Hits $50 Billion, July Sets Record as Biggest Month Ever

 

[DigitalCK]

Which by simple math means $15 Billion for Apple.

 

[thisisnotmyname]

All increases due to Pokemon?

 

[oftheheavens]

Can't believe Pokemon go has picked up so much. I see so many grown adults now walking around flicking little balls at imaginary characters its funny, cause I know exactly what they are doing. If you could walk up to your friend or stranger and battle each other I would be on it much more often I'm sure. At least it is getting people active (or actively thinking about how to avoid being active).

 

[meaning-matters]

Apple truly changed the game. As a developer I'd like to say thanks!

 

[thisisnotmyname]

Which by simple math means $15 Billion for Apple.

or is it $50BB to developers with $25BB to Apple. But now lets back out the COGS on that and spread it across 8 years of operation.

Edit: as others after me have shown and done the math that's really $21.4BB to Apple. I used 33% rather than the correct 30% share for Apple.

 

[d0minick]

which is the obvious reason they push the ipad pro line so hard. control everything and take a cut from the apps. apple has turned money hungry instead of innovation hungry.

 

[cariacou]

I wonder what that number is after the Pokemon GO refunds...

 

[fermat-au]

In a growing market, it will a record-breaker month most months. Still sounds impressive in a press release.

 

[DigitalCK]

or is it $50BB to developers with $25BB to Apple. But now lets back out the COGS on that and spread it across 8 years of operation.

Good point. If $50B is to devs then it's likely the $25B in apples pocket. Either way it's great ROI on a simple e-commerce store

 

[thisisnotmyname]

Good point. If $50B is to devs then it's likely the $25B in apples pocket. Either way it's great ROI on a simple e-commerce store

Actually my point was the inverse. I'd expect significant COGS. Not that I'd turn down that sort of revenue and it is in the black but in terms of Apple's overall profit it's small potatoes.

 

[djcerla]

July... biggest month ever! This is huge. Go imagine holidays figures.

The Verge's sponsored narrative about the death of apps has completely fallen apart.

http://www.theverge.com/2016/7/20/12231176/walt-mossberg-delete-your-unnecessary-apps

 

[Z400Racer37]

"Apple doesn't innovate anything." - Every tech friend ever

*Bookmarks article...*

 

[keysofanxiety]

which is the obvious reason they push the ipad pro line so hard. control everything and take a cut from the apps. apple has turned money hungry instead of innovation hungry.

There is literally no tech company that wouldn't swap with Apple's position right now in a heartbeat. Not one. Products and all, not just money.

 

[busyscott]

Pokemon GO refunds will be accounted for on next months "Lowest App Store month ever"

 

[keysofanxiety]

In a growing market, it will a record-breaker month most months. Still sounds impressive in a press release.

Well it's a damn sight more impressive than Microsoft's ballistic failure in the phone developer's market, that's for sure.

 

[MH01]

In orther words Pokemon launched
[doublepost=1470257308][/doublepost]

Well it's a damn sight more impressive than Microsoft's ballistic failure in the phone developer's market, that's for sure.

How is Microsoft relevant to this thread?

 

[deany]

Not the best photo of Tim on his Twitter account [looking hard faced] he should use this-

 

[2ilent8cho]

Wonder if Apple also in July broke the record of longest ever since a Mac refresh, maybe somebody should tweet Timmy to let him know.

 

[smacrumon]

What's the breakdown? Independents, majors, number of developers making little or nothing.
?

Edit:
I'd like to see any "game" resembling casino style gambling to be removed from the App Store or at the very least reclassified in a category titled "Gambling".

 

[G-News]

it was the Pokemans...

 

[usersince86]

Keep making money, but please update the Mac lineup. It's getting ridiculous.

 

[spaceballl]

Translation: "In July, Pokemon Go launched."

 

[0928001]

The math in here bothers me. $50 billion is 70% of ~$71.45 billion. So Apple has received ~$21.45 billion from app sales.

Source: Repeated attempts on a calculator. I'm sure there was an easier way to do it.

 

[thermodynamic]

Which by simple math means $15 Billion for Apple.

And

over the lifetime of the App Store

Emphasis added.

All figures in perspective, it's not much of a boast.


But people were saying it years ago:

https://gigaom.com/2010/06/22/is-investing-in-iphone-app-development-a-fools-errand/

https://www.reddit.com/r/gamedev/comments/39bzg5/is_game_dev_really_that_bad_the_career/

etc

There was also a neat article from years gone by on how developing for iPhone, Nintendo, et al, was deemed a "fool's errand" except people belittled the article solely because the source was related to Microsoft.