Apple Says Developers Have Earned Over $70 Billion From App Store Since It Launched

[kdarling]

Don't know anything about how stores work, do you? Before Apple implemented the now-standard 70/30 split, it was commonly the other way around. That is, you'd be lucky if you got to keep 30%.

That's true, but then there was also far less competition, and far better advertising. Your app was very likely to get written up and advertised in national magazines.

OTOH, piracy was a big issue. I used to get waay more questions about my apps than could be accounted for by the number of sold units.

And yet, we don't see that happening on Android. Developers still go to the main store because it offers the most exposure, despite the greatest commission taken. Almost every store takes 30%. Those that charge less have mini viewership.

Not necessarily. See: 10 Android App Store Alternatives

Also, there are region / culture specific Android app stores, from Russian only, to of course multiple Chinese app stores (since Google's Play Store was banned because Google wouldn't bow to Chinese censorship years ago).

The app store also gave everyone low cost apps that did not exist prior. Those who bought software in the 90's know that applications were $50 at a minimum. Of course there were outliers, but on the other side plenty were more than $100.

Not for phones. There were plenty of free apps available, both from carrier stores and from third party app warehouses like GetJar.

Paid apps were however, definitely more expensive than now. A good remote TV viewer might go for up to $30. A navigation app (this was before Google gave away free navigation) could go much higher.

And of course, just as with now, really good apps like aviation related ones, commanded a decent price.

The app store is the equalizer. The concept of getting rich off of it is a pipe dream, but at least you will be considered published and have some walking around money.

I remember back in 2011, Apple announced that $2.5 billion in royalties had been paid out for over 80,000 paid iOS apps.

By then, just Verizon's app store for DUMB phones alone had paid out $3 billion in royalties to the developers of just 18,000 apps.

 

[dotnet]

I've earned about $13 and still waiting for my money as well.

Which is your app? Perhaps we can help you out?

 

[OldSchoolMacGuy]

Not necessarily. See: 10 Android App Store Alternatives

Also, there are region / culture specific Android app stores, from Russian only, to of course multiple Chinese app stores (since Google's Play Store was banned because Google wouldn't bow to Chinese censorship years ago).

As I said, there are other stores on Android but those that don't charge a 30% commission have VERY small viewership. It's like selling your product at the tiny corner grocery store rather than on Amazon. They've got almost no audience and the massive audience is one of the biggest draws of the Apple App Store and Google Play Store.

 

[dampfnudel]

That's a mind blowing figure.

The MR forum folks that claims Apple has no "vision" since Steve Jobs passing should remember he was strongly against the App Store.

We all know it takes more than one person no matter how "visionary" that person may be to make things happen and more to the point, make things happen successfully. However, it definitely feels like something is missing at Apple these days.

 

[Eric5h5]

As for my opinion, you are right, as you are, we are all uninformed, because APPLE will never releases what their costs are for the App Store infrastructure and how much they are making off of App developers. We already know they make $100 per app developer per year on top of the 30% they take for any apps that make money. But, lets argue about what we do and don't know. You can have your opinion and I can have mine.

Except my opinion is based on logic and reality. I can make some kind of estimate for costs; you're just saying "it's pure profit" based on...nothing. Because you want it to be, for some reason. That's a worthless opinion. (Also, Apple did say at one point that the store was only breaking even for them, but that was fairly early on.)

--Eric

 

[LethalWolfe]

Those policies were at the strong behest of devs though. It's hard for devs to invest time, resources into an app that ultimately might sell for .99. But that is where the iOS app market was -- a race to the bottom. The change in policy was to keep devs from dropping iOS. Again, you see the same thing in the Android side. It's not just Apple. I'm not a fan of freemium or subscription but that is where the market is. Apple conformed to, not invented that model.

Apple blocking the traditional software sales model from their App Stores (no trial versions, no upgrade pricing, etc.,) created the need for devs to find alternate ways to generate revenue, hence the rise of ad supported, freemium, and/or subscription based business models. Apple didn't invent those things, but they made them mandatory if you wanted to sell in the App Store. On a broader note, making their OS free and adapting a 'charge once and provide free upgrades for life' policy for software like FCP X and Motion further accelerated the transition. Software is shifting from the "something of value" category into the "commodity" category in the eyes of customers. For a hardware company like Apple cheap/free software is just another bullet point to help sell their hardware. For software companies it's a sea change though.

Microsoft is pivoting away from selling perpetually licensed software into hardware and subscriptions. Adobe went subscription only with it's software. Many other companies have either added added a subscription option or gone subscription only. For better or for worse the the software business model that many of us grew up with is disappearing. As you said, that's just where the market is going these days.

 

[Moorepheus]

Except my opinion is based on logic and reality. I can make some kind of estimate for costs; you're just saying "it's pure profit" based on...nothing. Because you want it to be, for some reason. That's a worthless opinion. (Also, Apple did say at one point that the store was only breaking even for them, but that was fairly early on.)

--Eric

Ok, you win, you are smarter than me and believe everything that apple tells you.

 

[4RUNRCLB]

Congrats too all you developers out there!

 

[LethalWolfe]

(Also, Apple did say at one point that the store was only breaking even for them, but that was fairly early on.)

You might be thinking about when the iTMS first launched in 2003 and Jobs said it was basically a loss leader in order to sell iPods.

https://www.theregister.co.uk/2003/11/07/your_99c_belong/

 

[C DM]

Ok, you win, you are smarter than me and believe everything that apple tells you.

It's not about Apple per se, but just fairly fundamental business/economics and essentially common sense in play.

 

[lazard]

Congrats too all you developers out there!

you mean congrats to the .1% of developers who received 99% of the $70B payout.

 

[Eric5h5]

You might be thinking about when the iTMS first launched in 2003 and Jobs said it was basically a loss leader in order to sell iPods.

Nope, this was probably 2008, 2009. I wasn't paying any attention to Apple in 2003. There were articles/discussions about the 70/30 thing in favor of developers and questions about if that was sustainable for Apple. People seem to forget it was kind of a big deal.

Ok, you win, you are smarter than me and believe everything that apple tells you.

I don't take anyone at face value. I would strongly suggest learning to use logic and reasoning, along with evidence and research. Even the most vague, ballpark guess about the costs involved should tell you it's not possible for it to be "pure profit". Use your brain.

--Eric

 

[Moorepheus]

It's not about Apple per se, but just fairly fundamental business/economics and essentially common sense in play.

I don't take anyone at face value. I would strongly suggest learning to use logic and reasoning, along with evidence and research. Even the most vague, ballpark guess about the costs involved should tell you it's not possible for it to be "pure profit". Use your brain.

--Eric

Ok, I have a question, because I don't know the answer. Is the number that Apple released today about the number of developers, 16 MILLION. Are these the developers that pay Apple $100 every year to develop on their platform? If not, ok, just wonder what the number represents then. If it does, $1.6 BILLION is a lot of capital to apply to maintaining the APP STORE.

 

[4RUNRCLB]

you mean congrats to the .1% of developers who received 99% of the $70B payout.

Pretty much, but hey someone has to be the cream of the crop.