Tuesday, August 19, 2008

Apple App Store First Month Sales of $30M

Was on vacation last week in sunny San Diego so didn't have much time to blog but wanted to highlight one bit of news that I'm sure just about everyone in the mobile content space saw - in an interview with the Wall Street Journal, Steve Jobs reported that users of Apple's new App Store have downloaded more than 60 million programs, generating a total of about $30 million in sales since the service launched one month ago.

Video game developer Sega Corp. was among the biggest earners, having sold 300,000 copies of its $9.99 Super Monkeyball game in just 20 days, fueling revenues of nearly $3 million.

This is an unbelievable accomplishment in a short period of time and truly demonstrates the potential of the next generation mobile content marketplace.

According to my calculations, Apple accomplished these 60 million downloads to a base of just over 8 million iPhone users. Here's how I come up with those numbers:

April 1-June 30, 2007: 270K iPhones sold
July 1-September 30, 2007: 1.2M iPhones sold
October 1-December 31, 2007: 2.4M iPhones sold
January 1-March 30, 2008: 1.7M iPhones sold
April 1-June 30, 2008: 700K iPhones sold
July 1-today: 2M iPhones sold

Outside of the last period, all the other numbers are "official" from Apple earnings releases.

In June, Investment banker Piper Jaffray estimated that the App Store could be worth a billion dollars to Apple by the end of 2009 (based on 60M iPhones sold in the market).

And to think that even with 60M phones sold, Apple will still have less than 2% market share of all cellphones worldwide. A lot of opportunity to sell content to the other 3.74 billion mobile subscribers.

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