Application Store or App Store?
I really can’t wait for the Apple app store. It’s looking like it will be absolutely fantastic; I can’t wait to get my hands on some of the new software that will be made available.
Being a bit of an Apple geek I thought I’d do some research on the app store. It seems that Apple have big plans. It seems also that, for once, Apple hasn’t predicted what will happen in the real world.
Apple, it seems, originally planned for the situation where each app bought in the app store would cost around $10. That would bring them $3 in revenue (they will be taking a 30% cut); added up over the millions of apps likely to be served through the app store, Apple will soon make a healthy profit.
They hadn’t imagined, though, that around 71% of all apps would be offered for free through the app store; nor had they imagined that their estimate price of $10 would be so far off the mark. This is the harsh reality that is being painted by a recent survey of 20 iPhone developers at WWDC which suggested that the average cost of an app would be – gulp — $2.29.
Of course while this is fairly bad news for Apple (they’ll bounce back, I’m certain) it’s fantastic news for users like me.
[…] forward by Apple and Co. which sees them taking a 30% revenue cut from any money made out of the app store. A revenue share on free or very cheap items is not going to make anyone […]
[…] average price. When one considers that the only direct profit that Apple is due to make from the app store is in the 30% cut on anything sold there, it is easy to see the magnitude of the […]
[…] developers at WWDC. The results will have brought a tear to the collective Apple eye: around 71% of app store apps would be available for free. The 29% which would be charged for would be available at an […]