Apple App Store Earned $10 Billion in 2013

Apple App Store Earned $10 Billion in 2013

Apple earned more than $10 billion on apps alone in 2013, the Apple App Store being a major cash cow for the company. They also introduced the iPhone 5S, iPhone 5C, Mac Pro, and iPad Air — 2013 was very, very good for Apple. They raked in over $1 billion on apps in December, bringing an end to a most profitable year for the company. Apple announced these figures yesterday, January 7.

Apple’s senior vice president of Internet Software and Services, Eddy Cue, stated in an Apple press release that 2013 was “the best year ever for the App Store.”

Over 225,000 new iOS apps have been added to the Apple App Store since the start of 2013, with a large number of them prompted, in all likelihood, by developers getting an expanded set of tools and over 200 new features to work with, all due to the introduction of iOS 7 by Apple.

According to the company, over 3 billion apps were downloaded from the Apple App Store in December, setting a new record. By contrast, two billion apps were downloaded from the store in December 2012. The Apple App Store offers over a million apps to choose from, some more popular than others.

Much of the money Apple earned from apps came from popular favorites like Minecraft, Puzzles & Dragons, Clumsy Ninja, QuizUp and Candy Crunch Saga. Some other apps that were somewhat unexpected hits were Kevin Ng’s Impossible Road, Ellen DeGeneres’ Heads Up, Moves and Simon Filip’s Afterlight, which is an image editing app.

From the beginning of Apple’s App Store in July 2008 to now, developers have earned $15 billion, and over $21 billion has been spent on apps by consumers making purchases at the Apple App Store. Apple takes a bite of 30 percent of all apps sold at their App Store.

Why does the tech giant want to publicize its Apple App Store earnings?

Apple, besides desiring to keep its consumers informed and supply with with the apps that they crave, has another reason for publicizing how much their earnings from apps were in 2013. Their rival, Google’s Android platform, isn’t publicizing their earnings and payout figures — at least not yet. Apple can point to these earnings and payout figures to keep up the interest of app developers. The figure of $8 billion that developers earned in 2013 indicate that the average daily payout was $27.4 million.

If you take December 2013 on its own, the figures Apple provided suggest that their iOS apps raked in an average of $32.3 million per day.

Apple praised the dedication and quality games and other apps that the iOS developers came up with that enabled the company to earn more than $10 billion in apps purchased through its App Store in 2013. In 2014, Apple is forecasting that sales of apps will continue to be a profitable part of its overall earnings.

Written by: Douglas Cobb