App prices on Apple’s App Store are rebounding 14 percent in 2011 compared to an 18 percent decline in 2010 and the company’s average selling price is $1.44. Of that sum, Apple’s gets an average of 26 cents per download, according to Piper Jaffray.
In a research note, Piper Jaffray analyst Gene Munster took a look at the economics of Apple’s App Store. The revenue doesn’t amount to much—at least in terms of Apple’s overall sales—but the App Store is a competitive strength that drives device sales. Munster’s analysis didn’t guess at how the App Store factors into a device buying decision, but those figures would boost the value considerably.
Munster’s report connects the dots between Apple’s statement last week that users have downloaded more than 15 billion apps. Munster then looked at Apple’s statistics in June at the WWDC powwow to cook up some figures.
Among the key data points in Apple’s App Store economy:
- Munster estimates the average iOS user will download 83 apps in 2011, up from 51 in 2010. That’s a 61 percent gain year over year.
- Roughly 82 percent of apps on the App Store are free. The other 18 percent represent paid apps with an average selling price (ASP) of $1.44. That ASP is below the $1.61 average of Apple’s top 50 paid iPhone apps.
- Munster said that ASPs on the App Store are likely to rise as iPad apps become a larger part of the mix. The ASP of the top 30 paid iPad apps is $6.32, up 36 percent from $4.66 a year ago.
- iOS users are downloading 32.3 million apps a day, triple the 11.9 million a day rate for iTunes music tracks.
Add it up and the App Store will be about 1 percent of Apple’s gross profit, or $538 million, in calendar 2011 and be about 24 percent of iTunes revenue.
Source : Secondary Research.
Post a Comment