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Seth Weintraub's picture
Seth Weintraub

Apple versus Google

Apple's App Store hits 300 million downloads at 2.2 million/day

It was certainly the biggest Apple story of 2008.  The Apple App Store has surpassed all expectations to become the preeminent way to distribute applications to mobile devices.  Blackberry, Windows Mobile, Google Android and Symbian are following suit with plans for their own application stores.  Apple, however, has them beat by at least a year.

Apple App store innovation of 2008

The App Store opened almost five months ago on July 11, 2008 with 500 apps available for download.

Today Apple released the information that it has distributed 300 million apps through the App Store.  A month and a half ago it had distributed 200 million, so it is sending out an average of over 2.2 million per day.  The numbers should only increase as more people get iPhones and iPod Touches and more Apps are released.

(macrumors)

Apple also just passed the 10,000 application mark in the App Store. At the earnings call 45 days ago, that number was at 4,500, so the number of apps has doubled in the past month and a half.

According to Silicon Valley Insider, Apple has only received between $50 million and $100 million from App Store programs, mostly because the free ones account for the lion's share of sales.  If the average price of an app is $3, Apple has sold anywhere from 14 to 33 million paid apps.  Still, not too shabby.

Apple expects to take in $1 billion from the App Store in 2009.  With the type of traction they are getting and a high probability of new products in 2009, they just might attain that.

What People Are Saying

inaccurate

inaccurate reporting...

"Apple (?) expects to make $1 billion (?) from the App Store in 2009. With the type of traction they are getting and a high probability of new products in 2009, they just might attain that."

From the original article the author refers to:
"We (Piper Jaffrays) think in '09, it's going to be a $1 billion market place and Apple will probably take about 30 percent of that."
http://www.cnbc.com/id/28070203

Symbain OS

And yet Nokia Symbian/Windows CE people complain they they can't make their own apps for the iPhone when you can buy it for $3 and save yourself time in which you could earn $30

MaciPod?

MaciPod?

does this add up?

How many devices have been sold?
How many downloads per device does it take to get 300 million?

It adds up

Not only do the iPhones run apps but all of the ipod Touches also run apps. This is a huge new computer platform since the Touches and iPhones are really mini computers. If you counted them as computers like others count netbooks, Apple's market share would soar.

App Store as paradigm shift?

The App Store is definitely Apple's success story of the year. They've introduced the iTunes model to the software industry. As Seth mentioned, the model will be duplicated on other phones and platforms such as Google's Android OS. But this concept goes way beyond phones. We will most likely see the App Store model applied to all software we buy, whether Microsoft Word or Adobe Photoshop.

Regardless of the exact number of downloads through the App Store for 2008, I agree with Seth that this is Apple's home run of the year. The App Store is definitely a major paradigm shift in the software industry just like iTunes was in the music industry. And just like the music industry, those in the software industry who adapt to the App Store model will flourish, and those who fight the new model...