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Report: iPhone App Market is Already Worth $2.4B?

appstoremarket

UPDATE: See Developers Call BS On $2.4B iPhone App Store Number

The iPhone App market could be worth $2.4 billion a year, reporter Om Malik of GigaOm estimates based on new numbers from the mobile advertising firm AdMob.

This is a very big number for such a new marketplace; no wonder Microsoft, Google, Palm and everyone else is trying to replicate it.

AdMob is a mobile advertising firm that serves up ads inside apps running on the iPhone, iPod touch and Google’s Android phones. In a survey of more than 1,000 users in July, Ad Mob found:

* Apple’s App Store sells $200 million worth of applications every month, a run rate of about $2.4 billion a year, according to Malik.

* Android apps are bringing in about $5 million a month, or $60 million a year.

* iPhone users download about 10 apps per month, and one in four apps is paid for.

* iPod touch users download 18 apps a month, but only two of those are paid for.

* 50% of iPhone users download at least one paid app a month.

* 40% of iPod touch users download at least one paid app a month.

* Users who download paid apps spend about $10 per month; and the average app price is under $2.00.

The upshot: Users are happy to spend money on apps, especially if they geta chance to ry them frst with a free or lite version.

About the author

Leander Kahney

Leander Kahney is senior editor of Cult of Mac, editor of two books about technology culture, Cult of Mac and Cult of iPod, and has written for Wired, MacWeek, Scientific American, and The Observer in London. Follow Leander on Twitter @lkahney and Facebook.

Email the author | Read more posts by Leander Kahney.

3 comments

    impressive bet Apple are laughing

    I’m not saying it’s wrong because I have no basis for disputing the figures, but this doesn’t exactly jibe with developers reports that something north of 95% of their apps are pirated copies running on jailbroken phones.

    This would mean that the money is more like 50 billion, which is pretty unlikely. Someone is lying here and I don’t think it’s the devs.

    [...] Report: iPhone App Market is Already Worth $2.4B? | Cult of Mac http://www.cultofmac.com/15185/15185 – view page – cached The iPhone App market could be worth $2.4 billion a year, reporter Om Malik of GigaOm estimates based on new numbers from the mobile advertising firm — From the page [...]

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