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| July 13, 2011
What Is Apple’s Actual Profit From The App Store?
Apple has recently announced that 15 billion applications have been downloaded by the 200 million iOS users in the world. How much does Apple actually take in from these downloads? The answer may surprise you. Apple has not been very open regarding their actual profit from the App Store. Now, Piper Jaffray analyst Gene Munster has put together an estimate of the profit Apple makes from all those downloads. Munster figured out that the average price for an application in the App Store is $1.55. After all the costs are factored in, Apple nets about $0.18 or 13 percent per app. So when it all is totaled up, Munster states that Apple has made a net profit of $538 million. However, Apple has to spend an additional $246 million on the storage and delivery of the available free apps, so the true profit for Apple is only $292 million. Business Insider