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App Store Sales Hit $30M
Sunday, August 10th, 2008 at 4:00 PM - by Jeff Gamet
The App Store, Apple’s iTunes-based software distribution system for iPhone and iPod touch applications, appears to be a hit with consumers and has already sold about US$30 million in applications. Over 60 million applications have been downloaded since the App Store’s debut a month ago, and it is averaging $1 million in sales a day, according to the Wall Street Journal.
"I’ve never seen anything like this in my career for software," said Apple CEO Steve Jobs.
Apple takes a 30 percent cut for each application sold and developers get to keep the remaining 70 percent. Apple’s cut, according to Mr. Jobs, will cover the company’s App Store costs and transaction fees, but not much else. If app sales remain at their current level, however, Apple could see an additional $360 million a year in new revenue.
The market for iPhone and iPod touch looks to be on the rise now that the App Store is open and consumers have an easy way to buy and download software. "This thing’s going to crest a half a billion, soon," Mr. Jobs said. "Who knows, maybe it will be a $1 billion marketplace at some point in time."
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