Apple’s App Store: Paid Apps vs. Free Apps

Gene Munster, a Wall Street analyst, shares his views and thoughts about the figures released by Apple, regarding the App Store. 

The report specifies that 81% of the apps in the App Store are free, while the average selling price of the top 50 paid apps is $1.49.  Munster foresees the possibility of development leaning towards apps tailored for iPad because of the heavier price tag of $4.66 per app, allowing developers to earn more.  The current numbers indicate 16.6 million apps are downloaded per day by those using the iPod Touch, iPhone, and iPad, nearly doubling the number of iTunes daily downloads at 8.9 million.  From that, Munster has drawn the conclusion that Apple receives more or less 29 cents for every application downloaded, implying that Apple has earned nearly $428 million in revenue and a gross margin of 44% since the launch of the App Store in 2008. 

Read the full article here.

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