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App Store Passes 2 Billion Mark

app-2-billion.jpgWhen you talk about the magnitude of a business, there’s scale and then there’s SCALE.  Apple unequivocally reached the second plateau with its App Store Monday.

In a short press release, the company announced customers have downloaded more than 2 billion applications since the store’s debut.  That’s a jump of 500 million downloads since July, or an even billion since April.

Steve Jobs has to be happy in Cupertino.

To add some color and put 2 billion downloads in context, we’ve hit the spreadsheets.  Crunching the numbers:

app store sales tableAverage Downloads Per Day – The App Store has delivered approximately 4.5m downloads per day since its debut in July 2008.  Since mid July of this year, when Apple triumphantly announced it had delivered 1.5 billion downloads, the rate’s jumped to somewhere near 6.5m per day.  (Ed. Note: averages are approximate due to inexact information about the days on which Apple crossed each download milestone.   See table).

Available Titles – Back in March, the App store had about 30k applications to offer.  Since July, the number of available titles has jumped from 65,000 to 85,000 and the number of developers has advanced from 100,000 to 125,000.

Free or Paid – According to an App Store product survey maintained by 148Apps, the App Store had 83,618 titles available for download in the U.S. on September 28th (just under Apple’s report of 85k titles). Of these 83.6k downloads, approximately 23%, or 19,514 titles were free.

Categorically – By Category, Games are the most popular genre of download, accounting for around 17% (148Apps survey data) of currently available titles.   Books and Entertainment represent the next two largest categories.  Combined, the three entertainment-centric genres (books, entertainment and games) account for 37,771, or 45%, of the App Store’s offerings.

•  Pricing – The average price for paid titles is currently about $2.51 across all titles.  The average price of  a game is $1.37.

app store revenue model table•  Revenue for Apple –  If only 20% of titles are purchased (at an average price of $2.51 per download) the App Store would generate about $3.3 million per day.  Carving 30% of that off for Apple’s share of the sale, then annualizing it, would give the company about $362m per year.  If 35% of downloads are purchased, Apple would pull in upwards of $632m per year.   (Impressive that these numbers are, they’re small when compared to the $8.34b in revenue Apple returned  for the most recent 3rd quarter).

iTunes Comparables – It’s an apples to orange comparison given iTunes doesn’t really offer free products but for perspective: it took iTunes about three times as long to reach the same downloads level, and iTunes is the dominant digital music retailer.

…in other Apple news….
The company confirmed Monday that it has hired former employee Michael Tchao as a VP of Product Marketing.   

15 years ago, Tchao was reportedly one of the developers who worked on the company’s high concept, but failed, Newton PDA tablet.  From 1990 to 1994, he served as the Group Manager, Product Planning & Strategy for Personal Interactive Electronics.

Tchao’s  return  is fueling new rounds of speculation about a tablet device believed in the works.

Tchao was most recently the general manager of Nike’s Techlab, the technology and design arm inside the company involved with Nike’s iPod partnership. 

Related Articles from Metue
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Apple Cranks Out Solid Q3
App Store Hits a Billion
Tablet by 2010? A New Round of Rumors
A Tablet in the Works?


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