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Originally Posted by snipenekkid
neat info. there is little doubt the App Store is a winning investment that is certainly not a black hole in terms of revenue, or even profit.
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I don't think Apple would put up with something running at a loss for any significant amount of time.
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I did have do a fast guesstimate on the total payouts vs a best guess at the number of paid apps. Anyway, there are in excess of 400,000 iOS apps in the store (http://en.wikipedia.org/wiki/App_Sto...pplications)so I just pared that down to a nice round 250,000 paid apps. This works out to a mere $4000/developer-app. Given that the payouts are skewed by more popular apps such as Angry Birds and a few other super $0.99 apps that makes the pot a LOT smaller for the rest of the iOS developer world.
To be honest I was surprised at such a low estimated average payout per app.
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A more recent estimate of app store revenue is
$1.78Bn. But yes, I would imagine that a relatively small number of apps are taking the bulk of that. Worth remembering though that many developers may be making more from in-app advertising revenue than from app sales. Even free apps may actually be making them a lot of money. They can also make a significant amount of money
from in-app purchases.
I'm not sure this is a huge surprise though, I think you will always get a long tail in these sorts of situations.