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Mobile app downloads grow 11% in Q1 2013, revenues hit $2.2B

The overall app market for smartphones and tablets grew to $2.2 billion in revenue for the first quarter of 2013, according to new figures out from Canalys.

Canalys' App Interrogator research looked at the leading app stores in more than 50 countries, including Apple's App Store, Google's Play Store, Microsoft's Windows Phone Store, and BlackBerry World. The analysis found that downloads across the four stores were up 11 percent in the first quarter worldwide over totals in the fourth quarter. Direct app revenue — from paid-for apps, in-app purchases, and subscriptions — grew by nine percent.

In total, Canalys found that total app downloads from the four major stores reached 13.4 billion for the quarter. Total app revenue hit $2.2 billion.

Canalys' study found that developing markets — Brazil, Indonesia, South Africa, and so forth — were the sources of the strongest growth in revenues and downloads, due in part to the rapid growth of smart devices as a computing platform in those areas. North America saw significant growth as well, though, with revenues and downloads increasing by eight and six percent, respectively. Western Europe saw eight percent growth for app revenues and 10 percent growth for downloads.

The study found that Apple's iOS App Store and Google's Play Store were still the top app repositories, with BlackBerry World and Windows Phone Store remaining distant second tier competitors.



28 Comments

battlescarred1 14 Years · 74 comments

I have to say, there just isn't much interesting news coming from Apple Insider these days. Reporting the news use to be so much better. Reporters had good sources, they would really work their sources and get THE story. Either Apple has really tightened the screws on leaks or the reporting has become so mediocre. It's been several months and we really haven't heard anything concrete concerning iOS, Mac Pro update, or any other interesting information on something new that might be happening within Apple.

peter cranstone 11 Years · 10 comments

A thought.

 

How about an analysis of the exact number of mobile app developers, the average sale price and the yearly revenue generated by the app. With a million apps and an average payout of $7 billion a year that equates to $7,000 per developer if there were a million developers which their aren't. So i'd guess that the average amount a mobile app developer makes a year to be about $20k. Right around minimum wage.

tallest skil 14 Years · 43086 comments

Originally Posted by battlescarred1 
Reporters had good sources, they would really work their sources and get THE story. Either Apple has really tightened the screws on leaks or the reporting has become so mediocre. 

 

"But but but but, Tim Cook couldn't POSSIBLY have doubled down on secrecy!"

christopher126 16 Years · 4366 comments

Quote:
Originally Posted by Peter Cranstone 

A thought.

 

How about an analysis of the exact number of mobile app developers, the average sale price and the yearly revenue generated by the app. With a million apps and an average payout of $7 billion a year that equates to $7,000 per developer if there were a million developers which their aren't. So i'd guess that the average amount a mobile app developer makes a year to be about $20k. Right around minimum wage.

Not very scientific I know, but it's probably 20% (or less) of the developers are making a living and 80% (or more) aren't.

 

Just a guess.

 

I agree it would be interesting to see a breakdown of the numbers.

ericthehalfbee 13 Years · 4489 comments

Quote:
Originally Posted by Peter Cranstone 

A thought.

 

How about an analysis of the exact number of mobile app developers, the average sale price and the yearly revenue generated by the app. With a million apps and an average payout of $7 billion a year that equates to $7,000 per developer if there were a million developers which their aren't. So i'd guess that the average amount a mobile app developer makes a year to be about $20k. Right around minimum wage.

 

You simply can't do the math that way.

 

Look at a bank. They write an iOS App so people can access their accounts from a mobile device. The App is provided as a "service" to customers. They don't make any direct revenue from the App. So they would not be on the receiving end of any App payouts from Apple. However, they will have their own in-house developer(s) (for security I doubt they'd use one of the many App development companies out there). That person is going to make a hell of a lot more than $20K per year.

 

This can be applied to all the companies who supply Apps so customers can interact with their business. An App doesn't always have to make money, and Apps that make $0 could still have been created by a very well paid developer.

 

Large companies (like banks) would have developers for iOS, Android, Windows and Blackberry. As the size of the company gets smaller they support fewer platforms (maybe only iOS and Android). You keep working down the line and you're left with companies who develop for only one mobile platform, and most of the time it's iOS (with others possible added later if it's successful).

 

 

The haters like to say that of the 800,000 iOS Apps that only a few are useful and the rest are junk. Or there are only a few hundred good Apps and the rest are simply different versions (or poor copies). This is complete BS. If you look at banks, CC companies or other financial institutions you could account for perhaps 2,000 Apps right away. Add in sports teams, schools or other organizations and suddenly you've got tens of thousands of Apps. Now add in local and small businesses and you can quickly see there are a lot of Apps out there you will never hear of or use unless you live within the community that App is meant to serve. And they are all probably free and were created by a developer who got paid for their time.