$2.5 Billion App Store Market Called Into Question?


Last week we linked to an AdMob estimate that the iPhone and iPod touch App Store could represent a $2.5 billion a year economy, which based the estimate off usage stats for their mobile ad network, and a survey of 1000 iPhone, iPod touch, and Google Android users. But not so fast, says Cult of Mac along with developers from Polar Bear Farms, App Cubby, and the Yankee Group.

$2.4 billion divided by the 65,000 apps in the App Store is $37,000 per app, per year. And while some developers earn that, many do not.

They figure it's closer to $250 million to $500 million, or roughly one fifth to one tenth the size.

AdMob is sticking to their original numbers, however, according to the methodology shared again with GigaOm.

To us, it just seems like they're all guestimating how big that really, really big pie is -- just stupid, or goram ridiculous.

[Thanks Icebike for the tip!]

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Rene Ritchie

EiC of iMore, EP of Mobile Nations, Apple analyst, co-host of Debug, Iterate, Vector, Review, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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Reader comments

$2.5 Billion App Store Market Called Into Question?


$37000 per app? That seems high but a few making million could offset the average. A mean amount made per app would be more tellin because I'd say most app devs are making next to nothing, or at least not enough to quit their day jobs.

Umm, are you just putting a question mark after all titles now? Cult of Mac is, in fact, calling the $2.5 billion into question, so Its not some mystery rumor that would necessitate a question mark.
-Punctuation Bit€h?

All titles? You mean the one out of ten on the front page right now? Is that what you mean? Weird?

That much per app isn't that much. For the whole year, when it's available to the whole world. And if the app is only $.99 then that really wouldn't be unforseeable. After all, 1 billion downloads happened in 9 months.

Hello! I am working for Pingo and we have a new iPhone applicaion called Pingo EZ Dial. Quite confusing with the figures.