A good friend refers to the Apple App Store as the California Lottery. So I thought I’d do some rough numbers on how feasible it is to build a big software business creating apps for iPad and iPhone and selling them in Apple’s App Store.
The Apple App Store will still own three quarters of mobile app revenue by the end of 2011. It’s the place to be if you want to develop paid mobile applications.
According to Apple, they had paid out developers $2.5 billion since the creation of the app store until July this year. I’m including this as a sanity check on my numbers below.
According to this article, the combined revenue of all app stores will be $3.8B in 2011, with Apple owning 75% market share. That’s $2.85B total revenue for the app store in 2011 with 30% going to developers so total payout to devs will be approximately $1.995B for 2011 (which roughly gels with the total all time payout number above).
The app store just passed 500,000 approved apps in May 2011. (Edit: fixed a typo. Apps, not developers)
In May of this year:
- $3.64 was the average price for paid apps.
- There were 244,720 paid apps.
- There were 85,569 unique developers.
- Symantec: $6.01B
- McAfee: $2.1B
- Adobe: $3.8B
- SalesForce: $1.3B
- Amazon: $34.2B
- Groupon: $1.3 (projected for 2011 based on the revised $688M for first 6 months of 2011 after accounting method change)
- Facebook $1.86B (ad revenue for 2010)
Food for thought.