Apple is on a profit run that most companies would die for. Last quarter, the company posted staggering earnings results led by the sales of their iDevice products. It’s certainly no secret that Apple is onto something with their iPhones and iPads.

But it’s not just the gadgets, Apple has built an entire ecosystem around these iOS products. An App Store, a music store, everything’s a tap away for iOS users. Have you ever wondered how much money Apple makes off of these purchases?

The math is quite simple really. Horace Dediu of asymco took the revenue generated from the sales of 200 million iDevices, and split it between an estimated 180 million users. With an average lifespan of 3.5 years per device, he concluded that each user spends roughly $150 each year.

That’s $27 billion dollars of revenue per year generated by iOS devices. And that’s only with 180 million iOS users. When that number grows (as we expect it to) to 500 million users, then we can assume that they will be worth $74 billion dollars a year in recurring revenues. Yikes.

I have an iPad and have owned several models of the iPhone over the last few years. Needless to say, each iDevice is chalk-full of music, movies and of course applications. To be honest, I’d say I fall well above that $150 mark.

What about you? Do you spend more than $150 a year on apps and music?

  • jose


  • Hussein

    I spend £300 a year on apps, but almost nothing on music thanks to my £10/month Spotify Premium subscription and I just use the Vevo app for videos.

  • Gurz

    0€ on apps and music and whatever. But if you split the cost of my iPone 4 into those 3,5 years, that would be close to that 150€/year.

  • STK10

    Apple have a huge mark up on their devices. Where i work we either sell them at a loss or make a literally a few dollars on ipods. Of course they will have huge profit when they can sell the item to retailers for whatever amount they want because the idevices are so popular.

    Its annoying for customers though because there is a lot of people who dont want an ipod but buy one just because there are so many accessories and addons for them.

    Android mp3 player anyone? ps if google steals my idea i will expect some reimbursement!

    • iPwn

      Samsung already makes an Android MP3 player.

  • BLiNK

    and yet, S. Jobs wears jeans and plain turtle necks. even crazier..

    • leo

      is he there to be a fashion model??

    • Cristian

      When you’re that rich, you don’t need to look good

    • krl

      It’s an OCD ritual. If he doesn’t wear that outfit him thinks something bad will happen. This my theory having knowledge about OCD cases. They vary greatly from touching things a certain amount of times to Steve jobs possible case of ritually wearing the same outfit each day. OCD manifistates itself typically after traumatic events. Which he has had.

      What do you think?

  • ddr

    I dunno if I spend THAT much, but maybe $100 a year? Most of my purchases are music albums from iTunes, but I do get a good game once in a while.

  • Jason

    I know for damn sure I’m well below that $150/year mark. Rarely do I play/purchase games/apps on my iPhone and as far as music goes, I dl that for free. Most apps I dl are free anyway.

  • c0edx

    I wish Steve Jobs was my dad. I’m going to email him and see if he would adopt me.

  • Abdul abaca

    $150.00 for an appl called ProTrack in 09 to control my music from my iPad plus every game GameLoft and Electronic Arts has in the appStore for iPhone & iPad I spend around $1.000 a year on my Apple device.

  • T-Mizzle

    I don’t spend money on apps. I use free ones. I bought 3 or 4 songs from iTunes last year.

  • Fi2o

    Most of my money goes to Cydia apps/tweaks/add-ons, but I’ve bought many games and apps on the AppStore, it may sum around US $150.00 during the last year or so.

  • Eddie

    That sounds about right because I absolutely LOVE my iPhone 4

  • huw

    in the last year or so ive spent more than $900 on apps and movies and stuff, so broke now

  • grdbvsbwu

    I paid $330 last year (ipod touch 2g mc model 8GB and the rest on apps). That’s a hundred and thirty dollars and then I got sick of paying so I starting hacking the App Store using my special. “payment” techniques. Thanks to iCloud, I can still redownload apps from suspended accounts.:)

  • JREB

    jailbreak and piratebay torrents, i dont pay for SHITTTT

    • iXanczy

      So you downloaded your iDevice as a torrent?

      • FrostBite