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SFStateStudent

macrumors 604
Aug 28, 2007
7,496
3
San Francisco California, USA
I'm one of those iPhone people that spends $9.99 or more a month on apps, but I'm cutting back b/c some of the apps aren't everything they are cracked-up to be. Where's the trial period on some of these apps? :eek::eek::eek:

Anyone else buy Frogger for $9.99....:mad:
 

zombitronic

macrumors 65816
Feb 9, 2007
1,127
39
I'm not sure what "worth $2.5 billion" actually refers to. Total revenue? If so, because Apple gets 30% of every paid app, that's a yearly profit of $750 million. The other $1.75 billion goes to developers.

not trying to be picky or critical, but you're mixing the words Profit and Revenue together there. apple would get 30% but that's not necessarily profit.

i don't know from personal experience, only what i've read experts and apple to say, and that is that apple pretty much breaks even on the app store as well as ITMS. has anyone heard different lately?

You may be right about that. I was referring to the total $2.5 billion as revenue (what they bring in) and Apple's 30% share of $750 million as their profit (what they keep). Although, I understand that there are expenses such as hosting the App Store and paying reviewers among other things. I'm sure that $750 million helps with this, but after expenses there may not be much profit left. As long as the iTunes and App Stores help sell hardware, which they do, it's worth it.
 

sjo

macrumors 6502a
Aug 30, 2005
510
0
Extrapolating the survey data to the estimated user bases of 26.4 million iPhone users and 18.6 million iPod touch users, AdMob suggests that the total App Store market size may be nearly $200 million per month, or approaching $2.5 billion per year.

yearly revenue stream of $2.5b is should be visible in apple earnings reports. where is it hidden?
 

Jawsome

macrumors newbie
Jun 7, 2009
15
0
You are aware that you can start an app with the Spotlight feature introduced in OS3.0?

Hmm so typing is easier than swiping? I dunno. Why not expose for iPhone??? Hot corners FTW.

Or hot gestures; draw a quick circle and it takes you to a user defined set of apps, square another set...etc...
 

griz

macrumors 6502a
Dec 18, 2003
583
222
New London, NH
Hmm so typing is easier than swiping? I dunno. Why not expose for iPhone??? Hot corners FTW.

Or hot gestures; draw a quick circle and it takes you to a user defined set of apps, square another set...etc...

My biggest issue is that it just isn't easy or quick to arrange the icons on the touch screen. Why doesn't Apple give you a simple interface inside iTunes that lets you arrange the icons as you would like and sync them back to the device. New downloads go in a special place and you an then arrange them when you want to.

I would also like to see a way to have categories and even more than 16 apps per page. I could have a page that is Utilities and another page with games. I could flick up or down to access more apps inside the window. In other words, don't restrict the screen to just a single static page. Give us scrolling like we have always enjoyed on the Mac. Since Apps are already categorized on the store. Why not have them automatically drop into the appropriate category. Then when I download a game, I know to go to the games page. This seem like standard stuff. Will we need to wait for v4.0 to get better organization? Say it isn't so. With over 150 apps on the ipod, it is hard to remember where things are.
I would also like an option to define behaviors of pages. Maybe like smart pages where one is recently used apps. Another is most used apps.

Maybe make the bottom 4 apps act this way by choice in prefs. Or how about making the bottom 4 apps scrollable to access more apps. Sorta a mini version of the 4x4 apps in the main screen. Maybe give you 8 apps to grab from quickly no matter what screen you are on.

I can go on and on but my last suggestion seems like something that would have come to any UI designer at Apple when they implemented the double click option for the home button to pull up music. How about making the double click bring up a launcher from any app. Would basically make the device seem like it has background apps.
Lets say you are in a game. You decide You need to check your calendar. You pause the game. Double click the home button to pull up the launcher. The launcher would contain your most popular apps of your choosing. Lets say 9 to choose from in the middle of the screen. Could also have the standard music options come up as well. You can then jump directly to calendar.
Once in calendar you do your business and double click home again. Maybe now there is a "flip back" button so you can quickly pop back into that game which may not be on the list of 9 popular apps you have in the launcher. You are now back in your game without ever having to hit the main springboard screen or flip through all your countless apps.
The flip back button would work much like a TV remote does to jump back to the last channel you were on when you change the channel.

I would be thrilled by the idea of not having to jump out of an app before flipping across to a different one. We do it with music all the time. Why not with a bunch of other apps?

Lets see some improvements Apple. We don't want to wait years for this kind of UI improvement that seems like common sense when coming from a UI as slick as Mac OS X.
 

kernkraft

macrumors 68020
Jun 25, 2009
2,456
1
It's not a political, it's an IT site.

Take home: Touch users are cheapskates.

iPhone free to pay ratio: 2.9 free to every pay app
iPod Touch free to pay ratio: 8.2 free to every pay app

...or the average iPhone user buy ~ 3X as many apps then does the average iPod Touch user.

It's really a shame that children have less money than adults. Life is really cruel, isn't it?

'Full of win' must be the most political commenter on Macrumors. I only have one thing to say - Obama and his family use a number of Apple products. In fact, no president before him was as much Apple as he is. Now, what's the point of being political (and republican) on Macrumors?
 

awmawm

macrumors newbie
Sep 15, 2008
27
0
Double counting?

Since an application can be loaded on several iPhones or IPod Touches with the same user account, I am wondering how that survey avoided double counting...
 

spillproof

macrumors 68020
Jun 4, 2009
2,028
2
USA
This data is surprising to me.

I would also like to see a way to have categories and even more than 16 apps per page. I could have a page that is Utilities and another page with games. I could flick up or down to access more apps inside the window. In other words, don't restrict the screen to just a single static page. Give us scrolling like we have always enjoyed on the Mac. Since Apps are already categorized on the store. Why not have them automatically drop into the appropriate category.
...

I think you need to look at getting a job in the iPhone OS Development team.
 

Bjohnson33

macrumors 6502
Mar 4, 2006
265
1
This is a huge success for Apple. The App Store is only 13 months old... think of how much room this thing has to grow.
 

Almy

macrumors 6502
Sep 27, 2008
251
0
I'd love to see numbers on their actual take home. But using the $750 million guess is still nice. And there's no way their upkeep takes too big a chunk out of that kind of cash.

Dear users, apple isn't just into hardware.

Love
Almy
 

nippyjun

macrumors 68000
Jul 26, 2007
1,638
323
The more apps users buy the more likely they are to keep using apple's products that support the apps in the future rather then switching to another device.
 

bghoward

macrumors newbie
Apr 13, 2009
19
7
These numbers are completely out of line with reality.

There is no way the market size is anywhere near 200 million a month. That would mean the average app (assuming 65k apps) is making $2,000+ a month and that's including free apps!

It took apple almost a full year to hit the first 1 billion downloads. If you use the claimed 8 to 1 free-to-paid ratio that would mean 125 million app downloads of the 1st billion were paid apps. You're telling me that those 125 million app downloads are somehow going to generate $2.5 billion dollars?

I know from experience having an app that hit the #1 spot on iTunes (I Dig It) that even if every app on the top 100 was making as much as we were at #1 the combined total would still be several orders of magnitude below these claims.

It's these ingenuous pseudo-reports like this that fuel the current iTunes app store gold rush. I would venture to guess the true iTunes app market size is more like $50 million a year.

Brian Howard
InMotion Software
 

sjo

macrumors 6502a
Aug 30, 2005
510
0
developers are getting 70% of it. and the other 30% is to pay for the maintenance of the app store itself.

even if the store operated at 0 profit margin or in the red, the revenue stream should be somewhere to be found in the financial reports. $2.5b just cannot disappear from the accounting, not in a publicly traded company with good reputation.

as no new items are to be found in the latest report, there should be growth of approximately 400m in revenues in some of the exiting ones compared to the year ago numbers.

software and services sales would be logical place, but those revenues are up 27m, so it can't be that.

another logical place would be iPhone and Related Products and Services, and the revenue is up sufficiently, but apple states that those sales are "derived from handset sales, carrier agreements, and Apple-branded and third-party iPhone accessories", so doesn't sound right.

going further "Other Music Related Products and Services" consists of "iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories" so this could be it, but the revenues are up by $140m, so that doesn't match either.
 

deconstruct60

macrumors G5
Mar 10, 2009
12,306
3,900
And think of how much ground the competiton has to make up. Yikes!

Ground to make up on what? Building a network that is substantially geared toward downloading free applications that generate no revenue?????

These numbers clearly show that there is a relatively SMALL number of paid applications you need to fill user needs they are willing to give up money for. If one of the competitors can go to market with a better density of worthwhile apps they would be very competitive. [ remove all the "free" stuff from the graph. You have 1 vs. 2.6 per month of paid apps on phones. 12-36 apps and the user is getting "paid for" utility out of the phone. Just need the right 40-100 apps, not the 10,000 random ones. ]


Similarly the huge revenue numbers are driven by number of platforms deployed. Again to bet Apple... deliver onto networks with lower costs. Android and iPhone download volume is about the same. Slightly higher "paid for" rate but that is certainly fixable with targeted effort. If Motorola, Samsung, and HTC all come out with better "generation 2" phones and pop up on larger wireless supplier networks it is a viable platform. Over time with a bigger ecosystem.

Competing to compose and deliver the highest number of free apps. That is chasing after fool's gold.
 
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