I remember telling you all that the amount Apple earns out of the 30% cut from application sales is just enough to maintain the App Store. The company claims so actually.  I am wondering about the validity of that statement. Many analysts too think on the same line of my earlier statement. I made some quick calculations and earnestly have started considering App Store more as a jackpot for Apple. 

Here is the quick thinking: The App Store as of today has more than 40,000 applications about 35% of them are free with the rest of the paid ones sold mostly for $0.99 to $2.99. There are more than 30 million iPhone and iPod touch units in use around the world. Of course all the users may not be using the App Store content as intensively as you or me, but most of them are aware of the existence of the App Store. Who would not know about App Store, if they have the iPhone or iPod touch?

Now, either these users are active or not, it simply suggest that every iPhone and iPod touch users have downloaded content from the App Store at some point of time. I put the download rate in the App Store at 3 apps per minute (this is pure presumption though). This gives us an hourly download figure of 180 applications per hour. Well, that’s not bad. Consider 25% of the downloaded applications are paid ones priced at average $1.99. Remember Apple deducts 30% from all paid applications sold. How much Apple does Apple earn per hour and how much is it earning in a day? Figure out yourself. 

Let us consider another scenario: Count the number of applications you’ve downloaded from the App Store. I have a total of 834 applications on my computer, mind you I delete applications when I am tired of any of them, Again, more than half are free ones as you must have guessed and this leaves the figure at 400 plus apps. Taking the average price as $1.99, the figure comes to more than $700. That’s huge right? No, the calculation is still unfair, let’s try to fine tune it to be fair. 

After the introduction of Promo Code system, I get most of the paid applications for free as review request. However, before the promo code came along, I have to purchase applications that I personally consider are cool. And initially developers used to sell games as high $9.99 before $1.99 became kind of the standard price cap. I bought few of those $9.99 and $7.99 games. 

To cut the long story short, I must have spent about $400 on applications and games. Apple has pocketed $120 out of my overall spending. 

I am a heavy App Store content user, there is no doubt there. However, the fact remains that Apple is pocketing that 30 %. If a developer makes a million it implies Apple has made thirty percent of that same earning. I sound like I am jealous about what Apple is earning. Not really. My only question here is; would it be true to say that the App Store revenue is just enough for maintaining the online store? I seriously doubt it now.