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Apple: $10B In App Store Sales In 2013, $15B Paid Out To Developers To Date
- thirdsight 13y agoWell my $50 of this was blown on my wife and kids' 3 iPads buying in app upgrades for apps that were supposedly free but weren't and paying cash for apps that supposedly block ads but don't and apps that transfer files that don't work. Oh and games that crash all the time. I suspect this is the case for a chunk of that $10B. Really not impressed with the whole ecosystem and will not be investing further in it. Edit: to clarify. They didn't buy the apps, I did. No in app purchases were made at all by anyone. The reviews are hopeless - unlike amazon for example there are no reviews or ratings of the reviews so you cant determine the difference between idiot reviewers and idiot developers until you've paid for it. Ad blocking is to stop the piles of malicious and idiotic pages forcing popups and apps down on you like its 1998 again. User alexpenny found a reference to this below - thanks: http://techcrunch.com/2014/01/06/shady-app-install-ads-are-automatically-redirecting-mobile-users-to-app-store-google-play/ http://techcrunch.com/2014/01/06/shady-app-install-ads-are-a... Edit 2: it appears HN has limited my efforts to defend myself in replies... Edit 3: this is happening only on iOS devices. I don't have any android devices. This does not happen on any of my desktop machines running Firefox + AdBlock Edge. In fact I get no popups or install attempts at all and never have done.
- marknutter 13y agoThere are plenty of sensible parental controls you can put in place. You have nobody to blame but yourself.
- GotAnyMegadeth 13y agoOn them, not by them.
- bennyg 13y agoGotta' read reviews before you buy anything on the app store.
- thirdsight 13y agoI don't enforce parental controls (restrictions). They are too old for that crap. However I don't want adverts in web pages that have detected an iPad forever redirecting to the app store. Then when you switch back to safari they reload and back to the app store app again unless you are quick. It's like the bad old days of the Internet again playing banner whack a mole.
- alexpenny 13y agoThis has been a recent phenomenon, that as of yesterday started gaining public acknowledgment. http://techcrunch.com/2014/01/06/shady-app-install-ads-are-automatically-redirecting-mobile-users-to-app-store-google-play/ http://techcrunch.com/2014/01/06/shady-app-install-ads-are-a...
- ceejayoz 13y agoMalicious ads on ad networks are hardly a recent phenomenon.
- zequel 13y agoYou can download (free) browser apps, Terra for instance, that spoof the browser useragent (ie, firefox, another one iirc).
- ctz 13y agoYou have nobody to blame but yourself. Which is why Apple settled their class action on this subject, and as a direct result altered the appstore to mark free apps with IAP as such.
- norswap 13y agoI think you misunderstood the OP. The problem is not that his kids bought things behind his back.
- jbrooksuk 13y agoThe App Store states that an app "Offers In App Purchases". Parental controls are there. It's your own fault.
- thirdsight 13y agoI don't enforce parental controls. This is about banner ads and web sites forcing you to download apps from the app store.
- coldtea 13y agoNo web site "forces" you to download apps from the app store.
- janjongboom 13y agoQuora doesn't agree. http://www.hanselman.com/blog/IdLikeToUseTheWebMyWayThankYouVeryMuchQuora.aspx http://www.hanselman.com/blog/IdLikeToUseTheWebMyWayThankYou...
- ceejayoz 13y agoThat has fuck-all to do with Apple. Quora uses shitty UI dark patterns on the desktop, too.
- coldtea 13y agoSounds like there's a mysterious issue wrt your situation, because all of those things are obvious even to near tech-illiterate people. Apps can offer in app purchases (that's a feature), and they prompt you for your approval and password when you install something that costs. There are also parental controls to further restrict this. To complaint about this is like letting your 6 year old drive your car and complain that he wrecked it like it's the car company's fault. Also, why you'd even attempt to find "apps that supposedly block ads" is beyond me. Have you even read anywhere that those work with iOS? Apps are in frigging sandboxes. Plus, those apps CHOSE to be offered for free WITH ads. It wouldn't be ethical to the developer to take ads off of those apps in the first place, even if you could. Sounds like a totally cheapskate-y move. As for "games that crash all the time" you do know that there are tons of quality titles for iOS right, even for huge companies like EA? You don't have to download every el cheapo (or "free with ads" you'll then try to block) game and then complaint. If one cannot trust oneself to access an app before buying, there are review sites. Thousands of those. Plus user ratings on the app store itself and lists of top and recommended apps. >I suspect this is the case for a chunk of that $10B. A very small chunk, and I doubt a chunk that has anything to do with any hacker proper.
- sheetjs 13y agoThe prompt and parental controls were added only after lots of complaints and a class-action suit involving minors purchasing IAPs and apps: http://www.itunesinapppurchasesettlement.com/ http://www.itunesinapppurchasesettlement.com/ Since parent didn't supply a date, it's possible he was recounting experiences before the changes were made.
- Aldo_MX 13y ago> Plus, those apps CHOSE to be offered for free WITH ads. It wouldn't be ethical to the developer to take ads off of those apps in the first place, even if you could. As a user I'm not going to allow your app to waste my limited data plan with ads, learn to cache them, or do something clever when the device is connected via wifi.
- skelsey 13y ago
- ceejayoz 13y agoRegarding your edit, did you notice it's happening on Google Play too and has nothing to do with Apple or Google? Bad ads serving malware are a problem on desktop just as much as on mobile.
- jsz0 13y ago> I suspect this is the case for a chunk of that $10B. Why? AppStore sales keep going up year after year. That would suggest most people have a good experience. I think most people might have more realistic expectations. Your gripes are basically with software in general. Occasionally you get a dud app, crashy game, or otherwise regret a purchase. This has been my experience with software for the last I dunno 25 years or so. It takes some effort to find the good software for any platform. We all put up with it because we know there is very good software out there. It's worth the effort to seek it out.
- sz4kerto 13y ago$15B paid out to developers, while the ecosystem is the one what keeps an $500B company on the top - this does not seem to be that much.
- poolpool 13y agoLook how much 20+ billion revenue is compared to other companies. The iOS division of apple could be one of the largest companies in the world on its own.
- jp555 13y ago$15B for devs since the ecosystem was created (with most of the growth recent) does not compare to the lifetime value investors place on the entire company. $15B is two aircraft carriers. In less time to build one.
- jokoon 13y agoyou just compared aircraft carriers and a electronic/software company.
- jp555 13y agoIt's not a complete comparison, just comparing the impacts of deca-billion capital expenditures. But you're right they're completely different in a lot of ways. Apple "builds" more than one aircraft carrier a year (in total cap ex spending), the US Government takes ~10 years to spend the same money to build one.
- quinnchr 13y agoWell Apple did go from a $81B market cap when then app store was first introduced to the $500B market cap of today. Arguably that was due to the success of iOS. I don't think it's ridiculous to suggest that the app ecosystem contributed to that.
- kayoone 13y agoits 30%, devs know it and agree to it. Doesnt make much sense to compare the money paid out to the hype affected stock price.
- salient 13y agoNext year Android is poised to have a 1.9 billion user base [1], or roughly three times that of iOS, and the difference is only going to get bigger as Android with its higher penetration reaches new markets. I think Apple's ecosystem will inevitably fall to second place in 2 years time, when all developers wake up to the fact that Android will be by far the world's largest platform (and yes, it should be better paid, too, by then, as it already almost caught up with Apple in revenue/app). [1]- http://techcrunch.com/2014/01/07/gartner-2-5b-pcs-tablets-and-mobiles-will-be-shipped-in-2014-1-1b-of-them-on-android/ http://techcrunch.com/2014/01/07/gartner-2-5b-pcs-tablets-an...
- sheetjs 13y agoFrom what I've seen, iOS users shell out much more money than android users. Is there any poll or survey suggesting that android users are paying more for apps and IAPs?
- skj 13y agoI think one big cause of that is that in the early days, ios was just plain better than android. Everything worked better, looked nicer, etc. I don't believe that's true anymore, so we might see some shifts.
- owenmarshall 13y agoAs of November, Android developer revenue/dollar was $.19 to the dollar compared to Apple. http://www.businessinsider.com/chart-of-the-day-the-difference-in-developer-revenue-between-android-and-ios-2013-11 http://www.businessinsider.com/chart-of-the-day-the-differen... Facebook ad revenue on iPhones yields a 1,800% ROI over Android. And Facebook ads on Android offer a negative ROI overall. http://venturebeat.com/2013/10/16/facebook-ad-profit-a-staggering-1790-more-on-iphone-than-android/ http://venturebeat.com/2013/10/16/facebook-ad-profit-a-stagg... So the Android ecosystem still looks very bad.
- poolpool 13y agoMany (most?) of those androids are the new feature phones and relatively 0 revenue upside potential for many developers. That won't change in the foreseeable future due to how free and open android is for any manufacturer to shove onto any free with contract device they want.
- mrfusion 13y agoWhat does this work out to per developer? An average? Is there still a way to make significant money selling apps?
- tannerc 13y agoYes, absolutely, but it takes hard work and a good idea. Or rare luck.
- poopsintub 13y agoThere's a way to make significant money with free apps. You just need a decent idea.
- deleted 13y ago[deleted]
- collyw 13y agoThat's is the opposite of what one usually hears on HN. "Ideas are a dime a dozen, its the execution that counts stupid...."
- kerbs 13y agoI'd be more curious in dollars per developer-hour. Numbers would get screwy throwing in every curious person who got skin-deep into UIKit enough to pop out a 3 hour TODO app.
- CmonDev 13y agoThere is a known 80/20 ratio: most profit is taken by a few companies. This makes sense as you would by "the app" not "an app" in any category.
- davidjgraph 13y agoI think there's two, pretty obvious, ways to look at any marketplace, as the consumer or the producer. Yes, consumers complain about the x,y and z aspect of everything and anything in every marketplace. But as a creator of software, you can't deny the figures. Compared to all other marketplaces, both business to consumer and business to business, far more revenue flows through Apple's, that's clear to see. You have to be affected by this as a producer. Although, there's clearly heavy competition and marketing is tough and expensive, there's a lot of money that can technically be made. I suspect the total Android marketplace revenues are accelerating quite hard also, but this underlines another thing I'm beginning to see with marketplaces, B2C can work, B2B seems much, much harder. I've seen in two B2B marketplaces, Atlassian's [0] and the Google Apps Marketplace [1] that the majority of customers of the core products stick to that core product and avoid third-party products from the respective marketplaces (that's a gut feeling for GAM, there are some figures for Atlassian I saw end of last year confirming that). I seem to remember Atlassian saying about $10M had been paid out to devs up to last October. Yes, I know that businesses have far higher thresholds to trust third-party additions, but I can't help feeling that if you're creating a product whose main channel will be a marketplace, to favour B2C over B2B. I'm always saying to think about B2B sales more, the margins are way better, generally, but this is the first exception I've found. The AWS marketplace [2] is something of a hybrid of the two modes. Anyone have much experience of it? I've never used it myself. [0] https://marketplace.atlassian.com/home/confluence https://marketplace.atlassian.com/home/confluence [1] https://www.google.com/enterprise/marketplace/ https://www.google.com/enterprise/marketplace/ [2] https://aws.amazon.com/marketplace https://aws.amazon.com/marketplace
- jokoon 13y agoLook how awesome apple is, and to argue about that, I'll just show how much money it's passing around ! I don't really understand how relevant that is to the HN crowd, really. People already have a $400 iPhone, with an expensive data plan, of course they'll buy whatever it's compatible with. If you sell glitter, there's no limit but the stars. People will buy anything if it's under $10, so no surprise if so many people have iPhones. What I'll always criticize, is the real amount of innovation that surrounds the iPhone and the software that it runs. Of course it pays developers, but an iPhone is just a very small wirelessly internet connected computer, with a dedicated software store, and a short battery life. The software is the same if not worse. The only difference is that Apple just had a business model for an app market, and to be honest, compared to what freeware and open source already offers, it doesn't feel attractive.
- skywhopper 13y agoIn what world is 9-10 hours of active use "short" battery life?
- jokoon 13y agoyeah try that with a 2 year old battery
- smackfu 13y agoThe rise of in-app purchase seems like quite a threat to Apple's ecosystem. If the app is free and cross-platform, and you can buy the in-game currency on whatever device, Android or iOS, where'd the lock-in go? And since pretty much the whole top-grossing list is free with in-app-purchase, that is definitely where most of this money is.
- kayoone 13y agocan you ? that would only work if you can use the same account on multiple platforms, but most times its bound to gamecenter/google/steam etc.
- smackfu 13y agoAnd that's a very good reason for a developer not to use platform specific account systems. It seems relevant that the top grossing app on iPhone (Candy Crush Saga) prominently has this on their homepage: "Start your game on Facebook or mobile and seamlessly continue your saga between platforms. Your game play will be fully synched across all devices."
- jbigelow76 13y agoIf the cost of In App currency is the same between iOS and Android what is the incentive for the user to put down their iOS device, pickup an Android device to make the purchase, and then switch back? Even if the developers segment their customers and make In App currency "cheaper" on Android because Android users have a reputation of not paying as much as iOS users it still sounds like a pain in the ass for marginal gain on the end users part. I can't imagine this happening often enough to threaten platform lock in or meaningfully skew platform monetization statistics.
- smackfu 13y agoI'm talking about the kind of platform lock-in where your next phone needs to be an iPhone because your last one was, or where you buy an iPad because you have an iPhone and you don't have to buy the apps again. That's the kind of lock-in that is threatened by platform neutral IAP. You play Candy Crush on your iPhone when you are out, but when you are home you play on the cheap Android tablet you got because it has a bigger screen.