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Apple App Sales Ping!
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Posted on 12/30/2010 6:00:29 PM PST by stripes1776
I’ve often wondered if the early Web pioneers had it all to do over again if Web companies would have put less of an emphasis on free.
People have been conditioned against paying for services or content on the Web, and the Web elite only have each other to blame. For all the talk of Web companies getting users first and “figuring out” how to make money later, the only two jaw-droppingly, multi-billion-dollar, innovative new ways to advertise online have been Google’s paid search ads and Groupon’s solution to unlocking local ad dollars on a mass scale. Those who win big–like Google– just perpetuate the cult of free content and services as a way of spoiling would be competitors. Witness a big disconnect between popularity and money. Exhibit A: Yahoo.
...
But on the mobile Web it’s a do-over, and it’s a totally different playbook from FREE! People are conditioned to pay for stuff over phones in a way they aren’t online, and they’re not flinching. According to Citibank’s US Internet Stock 2011 Playbook released today, Apple will generated as much as $2 billion in gross app revenue in 2011. For perspective, that’s about the same size as Citibank’s estimate for the entire online video advertising market next year, nevermind way more people watch YouTube than have an iPhone and it’s been in the cultural zeitgeist longer.
(Excerpt) Read more at techcrunch.com ...
$2 billion in app sales is rather amazing for a hardware company.
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Apple could just about give away the devices, with what they probably get from the apps. Of course, why do that when you can make a good profit from selling both? lol
A good portion of it from me apparently. Got one son an ipad for Christmas/birthday and another an itouch for Christmas. I then made the big mistake of giving them my itunes password.
I still had money on my itunes from last Christmas and they managed to spend all that plus what they got in itunes gift cards this year.
I must say though they are the coolest things, can’t wait till my birthday. Is the Verizon iphone rumor true I wonder?
I do have a question for someone tech smarter than I am. I want to connect to the internet from the itouch without being in a wifi area. Can someone explain in english how I can do that without a phone plan? I don’t understand what the difference between the “regular” and 3g and 4g. Extreme flyover country here.
$2b for Apple means $6.67b for the developers for a total $8.67b for the market. Apple gets 30%.
I stopped in at a Verizon store this afternoon to ask that very thing, and the salesgirl shrugged and said "it's a rumor" regarding the February 2011 release date of the Verizon iPhone.
Hmmm and my birthday is in Feb 2011. Well, to be honest it was also in Feb in 2010 and 2009...
Excellent point. Developers will make a lot of money. I appreciate stories of prosperity.
You can't. An iPod touch only connects to the Internet by WiFi. It does not have an account with a carrier like AT&T. So you can't connect to the Internet with 3G or Edge data networks. As Steve Jobs explained recently, that is a selling feature of the iPod touch, not a defect.
I think you're stuck. Unless somethings changed in newer versions of the Touch since we got one, (and I don't think it has) the Touch is only wifi capable. Jobs called the Touch "Training wheels for the iPhone" It doesn't have the hardware to access other infrastructure, which would be 3g and 4g on celluar networks. The short easy answer for the difference between 3g and 4g is 4g is faster than 3g.
The good news is that there are lots of places that offer free wifi (don't do any sensitive stuff like banking on them)
Thank you both for your replies. Sounds like I might have to wait for the iphone. No where here has wifi, I work in a hospital and it doesn’t even have it.
Are you sure?
The (poor) way the article is worded ("Gross app revenue"), it could be what you said, or what I originally thought they meant, which was "Gross app revenue" = "Before the developer's cut is paid out".
Doesn't "gross revenue" mean "before you pay anything out" like expenses, salaries, fees, taxes, etc.?
Why doesn't the $6.7B or $8.7B figure show up anywhere?
Do you have WiFi at home? It's really easy to set up. Also you might want to use this app to find a public WiFi hot spot in your area. It's a free app.
You're right. It's not clear from the article. Either way, it's still a lot of money. Even more than I have in my checking account.
I do have wifi at home, I would go crazy being tied to the modem again. Thank you for the app, I will download it to the ipad and itouch I’m sure it will come in handy a time or two. I love living where there are no people, until I want something not available here.
Heh. Heck, you could take what's in my checking account and multiply it by the number of people in Times Square on New Years Eve and it wouldn't come up to that amount. :)
Happy New Year!
I’m not sure. I am just going off them saying Apple revenue. App store revenue goes to the developer who sets the price and Apple gets a publishing fee.
But who knows which they mean.
If you ask at an Apple store, they'll tell you the same thing. It's what they're told to say, and it's also all they really know; the salesgirl almost certainly didn't know anything more than we can get online, and neither did her boss, or his boss, or several layers of bosses up the line.
$2 billion in app sales is rather amazing"Apple will generated as much as $2 billion in gross app revenue in 2011. For perspective, that’s about the same size as Citibank’s estimate for the entire online video advertising market next year"
Yes, it is. But Apple isn't a hardware company, it's a software and hardware - a system - design house. Hardware design has much to do with packaging the components, and with configuration control to assure that the software need not accommodate more hardware configurations than it can be adequately tested on.Actual hardware production is 100% outsourced.
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