Apple has paid out a total of $8 billion to developers

Apple CEO, Tim Cook, has revealed that Apple paid out $8 billion to developers, up $1 billion in just one month. The $8 billion payout will net Apple around $3.5 billion in revenue, a substantial figure from a service that is just 5 years old. 

Back in October 2012, Apple paid out $6.5 billion to developers, showing an increase of $1.5 billion over 3 months, likely due to high numbers of iPods, iPhones and iPads being sold during the Christmas period. 

The numbers are especially poignant as they represent paid downloads, not free ones, showing iOS users are willing to splash their cash in the direction of developers. Apple will also be seeking to show they are still the place to go when releasing an app, rather than Android, Windows Phone or BlackBerry's new BB10 mobile OS. 

The App Store reached 775,000 apps back in September, with some apps becoming multi-billion dollar businesses. Cook couldn't resist pointing out the lack of tablet-optimised apps in rival's stores, saying: "We have over 300,000 apps custom designed for the tablet. The other guys have a few hundred." This taunt is not dissimilar to one that Steve Jobs used during one of his WWDC keynotes a few years ago. 

With iTunes bringing in a sizeable amount of money, too, Apple's online services are definitely paying off. 

Source:  The Next Web

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"We have over 300,000 apps custom designed for the tablet. The other guys have a few hundred."

And by a few hundred, they mean 40,000+ in 3 months.

I wonder if some of you are readying this wrong... What i read is : They made $11.5 billion, had $3.5 billion as their cut and paid out $8 billion to developers.

No wonder Why AppStore has best quality apps. Developers get paid more so they put more time creating better apps, consumers pay more and apple earn more. everybody happy I guess.

Unless you want your software in the Windows Store.

Not strictly true at all.

If you want to host your application on the Windows store and want MS to handle all payment processing then you enter into a revenue split with MS (70/30 or 75/25).

However there are ways to avoid that split:
1. Add a link to your app on the MS store. You're responsible for hosting it and the payments but MS will still show your app and it'll cost you nothing.

2. Use your own payment processor (paypal or w/e). MS doesn't stop you from doing that (unlike Apple) and if you do you can keep 100% of the revenue.

I didn't think you could do that for Windows Store apps (Desktop apps in the Windows Store of course are a different story).

Is there a link about it as I can't find anything on it.

Oh sorry. Metro apps have to be hosted on the MS store.

However like I said you could use your own payment processing. So you could, for example, make a free/trial app that requires an account to use. When someone signs up for an account on your website or even in the app through YOUR payment processor (paypal, or other credit card processing services) you get to keep 100% of the money.

On iOS all in-app purchases or subscriptions have to go through Apple, so you have to give them 30% of your revenue.

When someone signs up for an account on your website or even in the app through YOUR payment processor (paypal, or other credit card processing services) you get to keep 100% of the money.

You can do that (in bold) with the Apple App Store as well (that's how Amazon does it with the Kindle app). You just can't do it in-app without Apple taking a cut.

And I'll agree, that's a really stupid rule Apple have.

Unless I'm mistaken doesn't apple also have a rule that says if you sell something for your app outside it, you need to offer the same feature in-app for the same (or less) price?

So the average income for an app store app is, on average, $10 000? Not bad at all...

I wonder how that compares to the Windows and Android stores.

Majesticmerc said,
So the average income for an app store app is, on average, $10 000? Not bad at all...

I wonder how that compares to the Windows and Android stores.

That's not even close to true, the average is a few hundred dollars at best, only the really good apps make $1000 and then there are only a handful of really successful companies that have made millions. The amount of time and money needed to develop and market an app is certainly not worth $1000, and as more and more devs try to 'strike gold' by believing the myth that making apps on ios will get you rich quick the more shovelware and trash fills up the market and pushes out really good apps from the spotlight from ever really being seen by most people.

Majesticmerc said,
So the average income for an app store app is, on average, $10 000? Not bad at all...

It's not bad at all ... for Apple.

App developers, on the other hand, are discovering the difference between mean and median. The hits make the average look high.

This is a platform in which the rewards accrue disproportionately to the platform owner. Apple made $41 billion in profit just in the last fiscal year. App developers have made $8 billion *TOTAL* over five years.

Now compare to Microsoft's platforms. How much did Microsoft make off the Xbox, vs. all the game publishers combined? How much money has Microsoft made on Windows, vs. all the applications that run on top of Windows?

virtorio said,
As do Google and Microsoft.

Not through in app purchases! Also, Microsoft allow you to you your own transaction servers and you don't have to suffer any fund cuts unlike Apple who force a 30% cut on you. Not 100% sure about Google but I think they have a similar system.

Also there are over 40,000 apps for Windows 8 - Metro which are all optimized for touchscreen tablet devices. Maybe tim crackhead was talking about android with hundreds of apps but the Windows store is definitely catching up to that 300k ipad number.

The app store is useless. We had a puzzle game there that was an Apple Staff Pick, was in the top 10 free and top paid charts (back in 2009) and made a total of about $5000 usd. The development costs and advertising we did were much higher than that. Now that there are ton of more games and apps most devs see at best $1000 from a pretty polished app.

It is the allure of making it rich that attracts so many developers only for them to find out there is really no money on the iOS platform. Sure you can pop together a crappy game but you won't even make any sales that way, but if you put in hard work and with the ton of apps out there your app is just drowned out unless you are willing to spend tens of thousands in advertising money and even then theres no guarantee you will make back any money.

Apple never touts the real figures which are how much on average each developer is making and that the real profits are going to the bigger companies = ea, ubisoft, rovio where as only 5% of the rest of the money is going to the thousands of other developers to fight amongst.

The problem is at $1 you can't make enough money unless you shift enough units or you decide to use adware to offset the costs = yuk.

Someone like Marco Arment (founded Instapaper) or Loren Brichter (made Twitter for iOS, Letterpress) are doing pretty well and they don't have huge corporate sponsors. You have to find a gap and exploit it. Rovio was just three university grads, not a huge corporation; that came after they made it big.

maxslaterrobins said,
Someone like Marco Arment (founded Instapaper) or Loren Brichter (made Twitter for iOS, Letterpress) are doing pretty well and they don't have huge corporate sponsors. You have to find a gap and exploit it. Rovio was just three university grads, not a huge corporation; that came after they made it big.

So basically only a handful of people have made any real money on the platform. That's not really a viable business for most developers - that was my point. The real stats are out there, the majority of money on the app store is not made by mid or small developers and when they do make money it is usually $1000 or less for 2-3 months of work on a quality app. It's just not worth publishing mobile apps.

And what market is everyone making loads of money? Because whatever market it is I want to set up a business in it.

Personally it just sounds like sour grapes because your attempt didn't work

pgxl said,
The app store is useless. We had a puzzle game there that was an Apple Staff Pick, was in the top 10 free and top paid charts (back in 2009) and made a total of about $5000 usd. The development costs and advertising we did were much higher than that. Now that there are ton of more games and apps most devs see at best $1000 from a pretty polished app.

Yes, i did the same estimation and found that, in average, a lousy developer earn a lot more than a seasoned developer for ios and android.

The best strategy is to, instead of launch 1 applications x 4 month is to launch 3 apps every month.

You mean Apple took $3.5 billion from developers, and consumers paid $8 billion for apps. It's not as though Apple has suddenly become some developer charity.

If by "checks" you mean "ensures they're not competing with their own products", and if by "maintains" you mean "makes it incredibly difficult for developers to push updates" then yes, I agree.

maxslaterrobins said,
Apple hosts the apps, maintains them and checks them. The bandwidth required for 500,000 people downloading a 1GB game simultaneously is expensive.

$3.5b should cover that I would imagine...

maxslaterrobins said,
Apple hosts the apps, maintains them and checks them. The bandwidth required for 500,000 people downloading a 1GB game simultaneously is expensive.

I can tell you write now that the cost is not $3.5 Billion, not even close.

virtorio said,
Neither are Microsoft or Google, which also take a 30% cut (Microsoft take 20% after a certain threshold, $250,000 I think.)

Yes but they aren't pretending to be some developer charity and both MS and Google allow for applications to use their own in app purchase system without sending 30% profits their way.

virtorio said,
Neither are Microsoft or Google, which also take a 30% cut (Microsoft take 20% after a certain threshold, $250,000 I think.)

20% after the first $25,000.

By "checks" I mean "prevents malicious software entering your $500 smartphone" and by "maintains" I mean "makes sure the service is there to deliver the app with no down time and no issues the developer has to deal with". Both of those things cost money, which Apple takes. They aren't just taking without giving.

ingramator said,

I can tell you write now that the cost is not $3.5 Billion, not even close.

Well, you know, there's a markup on everything...

threetonesun said,
If by "checks" you mean "ensures they're not competing with their own products", and if by "maintains" you mean "makes it incredibly difficult for developers to push updates" then yes, I agree.

The also check the apps are doing what's advertised, and are not crashing all over the shop. Which is more than can be said for apps on the other platforms

This is a shameful practice, Imagine if Microsoft took 35% of adobe's sales just for hosting the master collection.

Madness and its spread to all platforms, But everyone is too busy with their hands in the cookie jar to do anything.