Steve Jobs talks App Store with Wall Street Journal
Wall Street Journal reporter Nick Wingfield had a chance to talk with Steve Jobs a bit about the success of the App Store, Apple’s iTunes-based store for iPhone and iPod Touch applications.
Everyone knows that the App Store is a success but just how much of a success is a bit mind boggling.
In the first month it was open for business, 60 million applications were download. Sure, many are free, but quite a few others cost from 99-cents to a few dollars. Roughly $1 million worth of paid apps have been downloaded so far, meaning the App Store has raked in around $30 million in just one month.
If the the pace of $1 million per day continues, that means $360 million each year of additional revenue.
It’s important to point out that the majority of this revenue won’t be staying with Apple, and will instead be going back to the developers who write the applications.
For example, of the $30 million from the first month of sales, $21 of that will be going back to the developers.
“I’ve never seen anything like this in my career for software,” said Jobs.
“Phone differentiation used to be about radios and antennas and things like that…we think, going forward, the phone of the future will be differentiated by software.”
Not revenue related but still worth noting, if an application is found to pose privacy and security issues Apple does have the ability to remotely disable it just in case.
Says Jobs, “hopefully we never have to pull that lever, but we would be irresponsible not to have a lever like that to pull.”
For the full story check out WSJ here.