January 8, 2014
Apps-olutely Astonishing! Users Spent $10 Billion In Apple’s App Store In 2013
Bryan P. Carpender for redOrbit.com - Your Universe Online
Apple announced today that its App Store sales hit a major milestone in 2013: over $10 billion in sales. Billion. With a B.Not only was 2013 a banner year for the App Store, but December 2013 was the most successful month in App Store history. In that month alone, customers spent over $1 billion dollars and downloaded nearly 3 billion apps.
“We’d like to thank our customers for making 2013 the best year ever for the App Store,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “The lineup of apps for the holiday season was astonishing and we look forward to seeing what developers create in 2014.”
THE APP STORE HAS GOT YOU COVERED
The proprietary App Store currently offers over one million apps to users in 155 countries around the world. Whether you’re on an iPhone, iPod Touch or iPad – there are 500,000 apps designed especially for iPad alone – you can find apps to meet just about any need imaginable.
Ranging from practical applications to help you get organized, learn a language or manage your finances, to more entertainment-focused apps and games to occupy your free time, the revolutionary app store puts a tremendous amount of power and information in the palm of your hand.
With apps across 24 categories, including business, games, sports, news, periodicals, travel, health and fitness, there’s plenty of content out there to satisfy every family member. Even with such diverse offerings, it’s no surprise that the majority of app revenues come from games such as Words With Friends, FarmVille and Angry Birds.
The App Store had humble beginnings in 2008, just one year after the debut of the iPhone, when it only offered 500 apps. By the time it celebrated its 5th birthday in July 2013, it had become a veritable one-stop shop for everything you might need to live, organize, document, capture and enhance your life.
The App Store celebrated its one-billionth download in April 2009 and reached the two billion downloads milestone less than half a year later in September. And this was all before Angry Birds appeared on the scene in February 2010, one of the most wildly successful games of all time. Fast forward to May 2013, and the App Store could boast 50 billion app downloads.
APP REVENUES AREN’T PLAYING GAMES
Those numbers add up to some serious revenue dollars for Apple and iOS developers alike. Apple takes a thirty percent cut of all app sales, with the remainder going to the developer.
Apple claims that by the end of 2012, it had paid out $7 billion to iOS developers. Those are the kind of numbers that entice new developer talent to get into the game, ensuring the App Store has a constantly flowing pipeline of fresh content offerings.
Apple credits the introduction of its iOS 7 as being partially responsible for elevating the app industry to the next level. When iOS 7 was released, it enabled developers to take advantage of the redesigned user interface, 200 new features and the application program interfaces (APIs) to step up their apps’ content and design.
Major players took advantage of this opportunity. App heavy hitters including Yahoo!, Evernote, OpenTable, American Airlines, Pinterest and Tumblr all gave their apps major facelifts, increasing overall efficiency and performance while highlighting content. It was another evolutionary step in the app timeline.
YOU CAN GET SOMETHING FOR FREE
Although free apps are the most common types of apps, most have additional options for in-app purchases. There are plenty of apps offering both a free version, and a paid version, which usually comes with more content, functionality and extras than what users get on the gratis version. The idea behind this is to give customers a taste of how an app works and what it can do and then show them what it can really do – for a price.
Will 2014 be another banner year for the App Store? We’ll see, but it’s important to note that with its tremendous market share in the devices category, Android is playing major catch-up to the App Store with its own Google Play app store.
Although the App Store still leads its rival with 63 percent of app revenue, compared with Google Play’s 37 percent, you can bet Android is aiming to close the revenue gap as it continues to pick up steam.