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How Much Money can you Make Selling iPhone Apps?

May 16, 2010

Tech Crunch has recently posted an excellent story discussing the profit margins in the iPhone apps market.

Many developers and pundit assume that getting into the App market is a sure fire way to get rich. With low development costs and Apple creating the Sales Channel for you its not unreasonable for many people to think that making a quick hundred thousand is out of reach.

The reality is that only 10% of developers seem to have that kind of luck.

The rest tend to fall into another category altogether, often only selling a few hundred apps and making only a few hundred to a few thousand dollars in the end.

However, when the top 10% of the most successful apps are removed from the data set, the numbers skew much lower, giving a far better impression of what the iPhone industry looks like for most developers. In this scenario, the average sales were 11,625 total units, averaging 44 copies/day. Approximately 23% of apps sold less than 1000 units from launch (ranging from 12 to 370 days in the App Store). Further, 56% of apps sold less than or equal to 10,000 units, while 90% sold less than 100,000 units, with the remaining 10% achieving sales of 127,000 – 3,000,000 units.

In any case, the beauty of the app store is that if you produce a good app it has a good chance of doing well.

From → iPhone apps

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