Home Business Apple’s 20 Billion Dollar Revenue Through The App Store Conceals Signs Of...

Apple’s 20 Billion Dollar Revenue Through The App Store Conceals Signs Of Slow Progress


Apple has recently declared that for the whole of 2015, its revenues through the app store have amounted to almost $20 Billion.

The biggest sales took place on the 1st of January alone, when the total earnings summed up to a whopping $144 million.

The Cupertino giant has always had a trend of having apps in its store which are generally paid apps, developed by independent iOS developers and by Apple’s in-house developers as well.

The company is said to divide revenue per app to the ratio of 30/70, where 30% is retained by the company and 70% is paid off to the developers.

Earnings are sure to come, because most of the apps in the store have a charge involved.

There are about 1.5 million apps which are so interesting and unique that people have no qualms paying for them.

This app store, that came into formation in 2008 was initially launched only to cater to iPhone customers.

The iPad apps came in later and further added to the revenue earned by the store.

Now, the store has even more apps, because they have extended scope of support to Apple Watch and the Apple TV Box as well.

More revenue has started to get generated ever since Apple let independent developers add apps to the app store.

All this looks very hunky-dory to a normal user, but the Apple insiders know that even beneath this successful façade, there lies a gradual decline in growth rates.

The revenue from the iPhone and iPad apps alone in 2013 was about $10 billion.

As compared to the number of apps in 2014, the number of apps grew in 2015.

The growth rate from the previous years was 50% in 2014.

There was a drop of 10% here when 2015 revenue was analyzed – the growth percentage was only 40%.

A ten percent drop actually should sound alarm bells to any company; at this rate, if no improvement is brought about, the growth rate will almost flatline!

Clearly, something is not right. Not only has the number of apps increased, the number of devices has also gone up. In 2014, there were sales only for iPhones and iPad apps. However, in 2015, the Apple Watch and Apple TV Box had also been added and yet the revenue has been low.