A new report from AdMob shows that Apple’s iPhone AppStore is big business, bigger than you could imagine. Official numbers are staggering. Apple’s own stats show that the AppStore is home to some 65,000 iPhone apps that have apparently been responsible for over 1.5 billion app downloads since its inception last year. But, that’s just the tip of the iceberg. AdMob estimates that Apple sells somewhere around $200 million worth of iPhone apps… per month. That has Apple moving something like $2.4 billion a year through the AppStore – 70% of which goes to developers. Apple is also responsible for 60% of US smartphone usage, according to AdMob.
AdMob’s report compares Apple’s numbers for the iPhone AppStore to Google’s Android Marketplace to hammer home the sheer size of Apple’s AppStore cash-cow. And, seeing as how Android is the second-most used smartphone (13%) in the US, behind the iPhone (60%), the Android Marketplace is a logical comparison to the AppStore.
While the iPhone AppStore moves $2.4 billion per year, Android Marketplace sees just $60 million per year. Interestingly, Android and iPhone users download 10 new apps per month. Both Android and iPhone users download eight free apps every month. The difference, however, is in paid apps. Almost 50% of iPhone users buy at least one iPhone app per month, compared to just 19% of Android users. iPhone users are apparently more open to buying mobile apps.
But, as impressive as the AppStore’s cashflow numbers are, it’s prudent to keep in mind that Android handsets have yet to hit market with full force. Motorola is expected to announce their first Android smartphone next month in San Francisco, which should blaze a path for other manufacturers to bring more Android to the smartphone space.