The iOS App Store Is Still Pulling Strong

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When Apple publicly checked in with details on its fiscal 2013 at the beginning of January, many were surprised by the continual triumph of the App Store and the record sales of mobile applications last year. Here is a recap of how the major tech company keeps up with its unrelenting success.

The iOS App Store Is Still Pulling Strong

$10 Billion in 2013

In a press release earlier this month, Apple advertised that its App Store generated $10 billion dollars in 2013. This income places the Apple’s App Store at position 238 in the rankings of publicly traded companies. It would sit between Public Service Enterprise Group and Sherwin-Williams, proving that the App Store all by itself swings some serious clout. And compared with other consumer products, Apple’s App Store sales appear comfortable just behind Starbucks and Bed Bath & Beyond and before Gamestop, the popular video game trader.

Consumers spent a tenth of this total in December alone. Perhaps this is because Christmas day equates to the Black Friday of the app world. With brand new devices opened Christmas morning, users are quick to hit the app store to start filling up their gadgets. That $1 billion from December marks a record as “the most revenue in a single month since the App Store’s debut in July 2008,” according to Information Week.  All of this goes to demonstrate the persistent appeal of native applications and Apple’s “curated software distribution model.”

The Developer’s Slice

Of course, not all of these funds accrue to Apple. The bulk of the earnings, 70 percent to be exact, go straight to the developers who “have made $15 billion to date.” Bloomberg Businessweek points out that “Apple likes to make a big deal out of how much money others can make in the App Store.”

On a regular basis, the top 200 applications for sale in the App Store account for a combined gross income of $18 million per day. Thus, nearly half of the iOS App Store’s goes to the makers of these most popular apps.

Numbers like these explain why mobile application design remains a booming business. Developers sift through hundreds of similar ideas and designs searching for the right idea that will strike gold.

The Whole Apple

The $3 billion in profit which Apple made from its App Store seems like small potatoes next to the entire company’s revenue of $171 billion in revenue, with $37 billion in profit. Information Week Editor Thomas Claburn surmises that the App Store’s comparatively puny $3 billion could be a “rounding error” for the heavyweight company.

At the start of 2014, it seems that Apple and its App Store are headed towards another year of incredible success.

Image from blog-speek.com

Jessica Socheski is a freelance writer and tech enthusiast. She also serves as an editor at The Teaching Box and can be found on Twitter.

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