Gettin’ My App On?
It may finally be time for me to join the 1 billion people who have downloaded apps from Apple’s App Store. (And enriching Apple.)
With the passing of the 1 billion download milestone, several efforts have been made to estimate what that means in dollar terms for Apple (AAPL).
They’re well intentioned, but they miss the point.
The latest, published Wednesday by Lightspeed Venture Partner’s Jeremy Liew, estimates that Apple, which takes 30 cents of every dollar spent on the App Store, has cleared somewhere between $20 million and $45 million since the store opened 10 months ago. Liew’s calculation is based on the assumption that the ratio of free to paid apps is in the range of 15:1 to 40:1, and that the mean price per app is $2.65.
Three weeks earlier, Geek.com’s Christian Zibreg performed a similar analysis using slightly different assumptions (notably a more optimistic 10:1 free-to-paid-app ratio) and calculated that Apple is currently collecting revenue at the rate of $300,000 a day – or $110 million a year. But he adds that the costs of running the store are unknown and could actually exceed Apple’s share of the revenue.
Because it finally happened.
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