Growth of iPhone App Store: Two times faster than the iTunes

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.

App Store

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 rate will continue, then Apple Inc. would reach more than 1 billion downloaded applications anytime in 2009.
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.

Posted on Sep 18th, 2008 by Philip King in iPhone News | 12 Comments

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12 Comments to “Growth of iPhone App Store: Two times faster than the iTunes”

  1. on 18 Sep 2008 at 2:09 pm1Bob

    I don’t see how they are comparable, apps store downloads are mostly free apps, whereas all itunes downloads are paid.

  2. on 18 Sep 2008 at 4:16 pm2Brendan Jordan

    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.

  3. on 18 Sep 2008 at 5:27 pm3roger

    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…

  4. on 18 Sep 2008 at 6:18 pm4hubert

    78% of Apps in App Store are paid applications according to mobclix com…

  5. on 18 Sep 2008 at 7:55 pm5Brendan Jordan

    That may be the case Hubert, but what percentage of the applications being downloaded are from the 22% of free applications available?

  6. on 18 Sep 2008 at 10:15 pm6Shagghie

    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!

  7. on 18 Sep 2008 at 11:27 pm7Ken

    22% you idiot.

  8. on 18 Sep 2008 at 11:39 pm8Steve

    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.

  9. on 19 Sep 2008 at 12:44 am9Peter

    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!

  10. on 19 Sep 2008 at 4:26 pm10gene

    Peter,

    70% goes to the developer not apple. Apple only takes a 30% cut. That inverts your calculations.

  11. on 21 Sep 2008 at 10:15 pm11roger

    anyway…i will buy an iPhone

  12. on 29 Aug 2010 at 9:24 pm12ponds

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