Is App Development For App Stores a Profitable Business?

When Apple announced the launch of the App Store, it was seen as a new business opportunity for many small developers. Indeed, with the iPhone being touted among the coolest brands in recent times, there will be a great demand for iPhones in the years to come. Additionally, with smartphones being the technology of the future, it was seen as a profitable area where developers could play their part.

The last two years have been very successful and have led to the creation of an entire ecosystem that did not exist until now. Today, if millions of iPhones have been sold around the world, they will serve as a viable platform to sell utility iPhone apps. In one fell swoop, the iPhone App Store created a livelihood for several small time encoders.

So how does it all work? IPhone mobile applications in the Apple App Store are not always “sold”. Many of them are also available for free. So while some app developers play on volumes – by getting a lot of people to download, then they can make money from ads. Others play on value by selling the app at a price so that, even if the volumes decrease, the company makes money on those sales. For each app sold, Apple takes a 30% commission on the value of the product. So a $ 0.99 app earns around 70 cents for the developer and 30 cents for Apple.

It is now a great business. According to a new study, with nearly 2 billion applications downloaded for some time; With 30% of them being paid apps, the total amount Apple has earned on the App Store is between $ 220 million and $ 440 million per year. This automatically means that the developers made between 560 and 1 billion dollars per year.

Source by Anand Srinivasan

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