When statistics compared the App Store of the iPhone and the iTunes, both from Apple Inc. the figures revealed that the application store is currently growing faster than the iTunes since it was launched last July.
It was only last August when Apple Inc. announced that the number of downloaded applications in the App Store reached as much as 30 million downloads. But according to the recent reports, the figure doubled or even tripled this month. Apple Inc. recently reported that the downloaded applications have already reached as much as 100 millions to date. Analysts said that if the same growth
On the other hand, the iTunes store took at least two months before it reached 25 million downloads. Moreover, the iTunes did not hit 1 billion downloads not until its second year.
The iTunes and the App Store are definitely comparable. Both of these Apple Inc. products were launched after a year and a half when the devices they are associated with were released. Aside from that, both the App Store and the iTunes involve low-cost transactions and gave new approaches to the existing marketplaces.
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I don’t see how they are comparable, apps store downloads are mostly free apps, whereas all itunes downloads are paid.
The APS Store is not comparable.
Firstly, many of the applications are available for free. Secondly, Apple’s iPhone & iPod touch devices are far more ubiquitous now than iPods were at this point after their introduction to the market place.
Given these two facts, anyone would expect far faster growth from the APS store.
definitely quote BOB and quote Brendan.
It’s incredible how poor of these information (reported in the comments) the post is..How you can’t take in consideration the iPhone/iPod touch’s penetration respect of that of the original iPod and the “free apps deal” only iPhonestalk knows…
78% of Apps in App Store are paid applications according to mobclix com…
That may be the case Hubert, but what percentage of the applications being downloaded are from the 22% of free applications available?
Don’t miss the point fellas….the App Store is blowing up…it’s completely off the hook, and an entirely new paradigm that is successful by any measure or comparison.
Some apps cost $99, others cost $129, some are free.
The point is that a) the apps are amazing, and truly kickass b) the apps are easily accessible and c) the apps are being socially accepted.
“App-binging” is already a term in the hacker community for going on an app binge and buying wayyyyyyyyyy too many apps while in the john. You can spend $100 in 5 minutes!
LOVELY STUFF GENTS! And, just think when there are as many iPhones as there are iPods out there!
22% you idiot.
Ah but music plays on every model of iPod/iPhone, iTunes on Mac and Windows. The Apps only work on iTouch and iPhone.
So quite a difference in size of client base.
Steve makes a very good point here. And to add on to it further, what percentage of people’s music content is paid content from iTunes? Steve Jobs suggested that the figure is around 7%.
What’s my point? Well, if iTunes is successful when only 7% of people’s musical content is paid for, and the App Store is growing 2-4 times faster than iTunes, with a base that’s at least 10 times smaller (there have been 160 million iPods sold), and Apple has a monopoly on iPhone Apps and keeps 70% of the revenue… App Store is looking pretty profitable to me.
Let’s do the math: Let’s say that each iPhone user, on average, splurges on Apps an buys 1 App of 0.99$ per month… and let’s say that Apple has 14M iPhones sold by the end of 2008. Let’s even forget about the Touch users. That’s 14M of revenue every month, 70% goes to Apple, so $116,000,000 per year in earnings (if we place the App Store overhead at zero). Not bad for a business that started 2 months ago…
Not realistic you say: ever seen what teenagers pay for ringtones?
More importantly though, even if Apply doesn’t make a dime on the App Store, the spinoff effect is tremendous. These Apps effectively change what the iPhone can do… how many users will sign on because of a function they see on their buddy’s iPhone? Well, I’m a financial consultant and at least 3 of my colleagues decided to buy iPhones when they saw my Bloomberg App (which is free by the way).
Food for thought.
Cheers!
Peter,
70% goes to the developer not apple. Apple only takes a 30% cut. That inverts your calculations.
anyway…i will buy an iPhone