So this is not an Apple-bashing post...but I have been pondering for awhile how an iPod/Phone/Pad developer makes any real money. Let's do some examples with the math. We all know that Apple gets a 30% cut of the price of the app. Example: If a developer creates an app and sells 100,000 copies of the app for $.99 (I will round up for math sake), that's $100,000. Then Apple takes $30,000 which leaves the developer $70k. $70k of course is decent amount of money to earn in 2011 in 1 year, but it's certainly not a high amount and that's pretty bland for any computer programmer developer anywhere in the USA. This example also assumes, of course, that 100,000 people buy the app. Not everyone creates an app that 100k or millions want to download such as Angry Birds. In fact, I would argue that out of the tens of thousands of apps in the Apple iOS world, maybe 20 ever sell more than 1 million copies (I'm not talking about freeware apps). Those 20 lucky developers are far, far above the norm of what an "average" developer lucks out with as far as being world famous...very similar to video games or even the few toys each Christmas that are the very top of everyone's list. Then you have to factor in that the developer must also constantly support the app...field email complaints, fix bugs (if they want people to be happy or be repeat customers). If the developer is a game developer, surely he/she is not the only person creating the game...there are programmers who are excellent at graphics but horrible at music...or great at UI design, but poor in other areas...thus there is a very high chance that there must be more than 1 developer if the app is a game. What if you took my example and applied it to small companies of 2-5 developers creating apps?...how can that company pay 2-5 people when the gross income is $70k? Heck, even if 1 million copies were sold for $1 each, the total company revenue would be $700k thus giving each person between $125k and $350k depending of course on how many employees and if there is a "cut" that the President/CEO gets which would lower the developers' final cut. Then of course there's a product roadmap...is this a 1 time app (I doubt it if it's a company of 2-5 developers) or is there a roadmap to produce numerous apps that hopefully sell well? It's one thing for an individual to gross $150k+ in a single year, it's another to be out of a job on year 2. So who's actually really making true cash out there? Is anyone on this forum a developer who could chime in? Are the developers banking on each end user to own multiple iOS devices and hope each end user buys multiple copies of their app? I have 3 iOS devices and some have the same apps, but no single app is installed on all 3 devices...not by technical limitation, but because of the lack of need. There seems to be about 200 million iOS devices out there, but of course only a fraction of those devices are owned by users who buy apps in the first place (kids under 16 don't have their own credit card), folks who buy numerous apps, and folks who want to buy your app. Of course as the # of devices increases, the likelihood of selling more of your app increases. To me, the Angry Birds of the iOS world are the Cabbage Patch Kids of the 80s or the Pac-Mans...extremely high demand and also extremely lucky that the right app was made and made well. Again, out of the tens of thousands of paid apps, I have to believe that only about 20 have sold over a million copies...and I only know 1...Angry Birds. I also don't know exactly how many purchases are happening because Apple does not disclose that info in the App Store...the app author typically screams out "we've sold over 1 million of this app!" in their Descriptions but I see that statement so many times on apps that 1)have less than 1000 reviews and/or 2)have poor reviews...and thus I find it very hard to believe said app has over 1 million paid purchases. Of course you can take my $1 app example and double it for $2 apps...but I remember reading somewhere that very few folks spend more than $2 on iOS apps. Finally, maybe the answer is advertising...maybe the developers are selling these apps for $0 or $1 yet have ads embedded in the apps...which in turn yield a higher (much higher?) profit then selling the app without the ads.