Apple’s App Store did $US10 billion in gross revenue last year. Of that, Apple keeps $US3 billion and the rest goes to developers.
To put that big number in context, we’ve charted out the growth of App Store revenue versus mobile ad revenue, using data from BI Intelligence.
The overall mobile ad market is bigger, but not by much — $US15 billion versus Apple’s $US10 billion in App Sales last year. But if you drill down, the non-search part of the mobile ad market is $US7 billion. That’s exactly the same as what Apple is paying out to developers.
This is good for Apple as it wants to keep developers on its platform. It can say that it is paying out $US7 billion in sales to developers. Presumably, they can make a decent amount through ads, as well. This keeps them on iOS, despite it having a smaller share of the overall smartphone market than Android.
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