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App Store Downloads Top 25 Million

Monday, July 21st, 2008 at 6:20 PM - by

Apple's App Store opened on July 11 along with the iPhone 3G launch, and third party application downloads have already topped 25 million. According to the company, the iTunes-based store already has over 900 applications available, and more than 20 percent of those are free.

The built-in App Store customer base has been growing substantially with over six million first generation iPhone owners and now over a million iPhone 3G owners as potential customers. The iPod touch -- one of the strong drivers in the company's third quarter iPod revenue -- is also App Store-compatible and is contributing to application downloads, too.

Application price is likely helping to drive app sales, as well. "More than 90 percent [are] priced at less than $10," according to CFO Peter Oppenheimer.

He added "Customers are really loving the App Store."

The App Store hosts Apple-authorized third-party applications for iPhone, iPhone 3G and iPod touch users. The online store offers games, productivity and business applications, music apps, social networking apps, and more.

Apple takes a 30 percent cut of every application sold, so if current App Store popularity holds, it could prove to be a strong revenue generator for the company.

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Hieronymus Murphy said:

member since 02 Apr 2007 with 10 posts, unranked, send him a message or view his profile

Tue Jul 22, 2008 9:41 am

I would wager a measurable percentage of those 25 million downloads came from people like me - who downloaded their apps of choice twice or more in order to address compatability issues.

Soon after their introduction, I downloaded seven or eight apps to my iPod Touch, and then discovered I could no longer download email. I then pulled all the new apps off my iPod Touch, and email downloading was once again possible.

Several days later, after noting that some of the apps I had previously downloaded had been updated, and there was (I believe) an update to the iPhone/iPod Touch firmware, I again downloaded many of the same apps.

Now, everything works fine ... but that's after two installations.

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