Mobile Ad Firm Estimates iPhone App Store Market Worth $2.4 Billion a Year

August 29, 2009 by Philip Bishop
Filed under: App Store, Apps, Smartphone Market

In a report released Thursday, mobile ad agency AdMob estimates that the combined market for paid apps among iPhone and iPod Touch users is about $200 million per month or about $2.4 billion annually.

Apple allows 70% of revenues from the store to go to the seller of the app while 30% go to Apple. Based on AdMob’s figures, Apple would thus earn about $800 million annually from its App Store.

AdMob said it based its figures upon a survey of 380 iPhone and 347 iPod Touch users between August 14 and August 21.

During the same time period, the company also canvassed 390 users of Android phones and extrapolated that the Android app market is currently about $5 million monthly or $60 million a year.

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AdMob also found that:

Android and iPhone users download approximately 10 new apps a month, while iPod Touch owners download an average of 18 per month
More than 90 percent of Android and iPhone OS users browse and search for apps directly on their mobile device instead of their computer
Upgrading from the lite version was the top reason given when users were asked what drives them to purchase a paid app
iPhone and iPod Touch users are twice as likely to purchase paid apps than Android users.
Users who regularly download paid apps spend approximately $9 on an average of five paid downloads per month

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