Apple announces record-breaking App Store stats: $10B revenue in 2013 and more

By , Jan 7, 2014

iOS 7 (App Store teaser 004)

Apple has just announced via a press release this morning that customers have spent north of $10 billion in the App Store in 2013, including over an astounding $1 billion in sales in December alone.

It was the best year for the App Store business thus far. The more than $10 billion in 2013 revenue should be music to developers’ ears as Apple’s platform continues to lead in terms of user engagement, stickiness, profitability and other metrics that matter.

And how much money did Apple pay to its “incredible developers,” as the company put it, since the App Store’s inception nearly seven years ago? Fifteen billion dollars (not a typo) – and that’s after its customary 30 percent cut!

The company said developers really took advantage of the new iOS 7 APIs to overhaul their apps and mentioned successful App Store developers such as Evernote, Yahoo, Pinterest and a few others. The company also cast spotlight on some surprise 2013 hits such as Ellen DeGeneres’ Heads Up and hit games from international developers like Clumsy Ninja and Candy Crush Saga, which reached half a billion downloads in just a year…

The press release is right below.

CUPERTINO, California―January 7, 2014―Apple today announced that customers spent over $10 billion on the App Store in 2013, including over $1 billion in December alone. App Store customers downloaded almost three billion apps in December making it the most successful month in App Store history. Apple’s incredible developers have now earned $15 billion on the App Store.

“We’d like to thank our customers for making 2013 the best year ever for the App Store,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “The lineup of apps for the holiday season was astonishing and we look forward to seeing what developers create in 2014.”

With the introduction of iOS 7, developers were able to create stunning apps that took advantage of the redesigned user interface and the more than 200 new features and APIs.

Developers such as Evernote, Yahoo!, AirBnB, OpenTable, Tumblr, Pinterest and American Airlines re-imagined the user experience, bringing content to the forefront while increasing the overall efficiency and performance of their apps.

2013 saw surprise hits like Ellen DeGeneres’ Heads Up, ProtoGeo’s Moves, Simon Filip’s Afterlight and Kevin Ng’s Impossible Road. Many of the year’s biggest successes like Candy Crush Saga, Puzzles & Dragons, Minecraft, QuizUp and Clumsy Ninja were created by international developers, while Duolingo (United States), Simogo (Sweden), Frogmind (UK), Plain Vanilla Corp (Iceland), Atypical Games (Romania), Lemonista (China), BASE (Japan) and Savage Interactive (Australia) emerged as developers to watch in 2014.

Apple’s mobile application store is now home to over a million apps for iOS devices, half of which specifically tailored to the iPad’s bigger screen. Having opened for business nearly seven years ago, the App Store now operates in 155 countries around the world.

Despite this milestone – $10 billions in app revenue in twelve months translates to about $900 million in average monthly revenue – I’m pretty sure someone, somewhere is figuring out a way to spin this into another “Apple is doomed” story.

Microsoft, for example, made a big fuss of the fact that Windows Phone now outsells the iPhone in 24 countries, according to TechRadar.

But what Microsoft’s director of communications Christopher Flores “forgot” to mention was these were emerging markets in the sub-$400 category. Apple’s iPhone does not compete at all in that price range because the company does not have an off-contract handset priced bellow $400.

Also, Apple’s release pretty much puts analyst Gene Munster to shame, who last night wrote in a note to clients that “apps are no longer a point of differentiation” for Apple because “the app ecosystem has transitioned to where it no longer matters how many apps each OS has, but rather the satisfaction the user gets out of them”.

Correct me if I’m wrong, but I was under the impression that Apple users have been consistently more satisfied with the polish and quality of iOS apps compared to their Android counterparts.

Besides, wasn’t what Munster said always the case? Quality over quantity?

It doesn’t mattered how many apps these stores have as most folks just need a few dozen most commonly used apps, anyway.

Thoughts?

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  • Marco Lemmens

    FIRST!

    • The_Rise_Of_The_Shrimp

      to suck my dick!

      • Chris Wagers

        I hate to up your comment but I can’t stand those first comments.

      • iBanks

        I just burst out laughing at work. I needed that one. Thanks lol

      • Aneeq Naqvi

        Loads of laughter. lol :p

  • mordechai eliyahu

    does anyone know if quick reply for whatsapp will be updated ?

    • Ewwwe

      Forget that. Somebody needs to make a client for whatsapp. Like Tapwings created Boxie – Prettify your Dropboc. There needs to be. Whatsy – Prettify your Whatsapp because whatsapp is monstrously ugly on iOS 7 and terribly ugly on iOS 6.

  • Jason Baroni

    This is amazing. Apple introduced App Store to the world almost 7 years ago and this results are huge for them and for the industry that they boost up. And also a big congrats for all the devs. 2013 was a year full of nice apps!

  • Maxim∑

    Mr.Electryifier where are you?

    • https://twitter.com/MrElectrifyer MrElectrifyer

      What you calling for? Apple claims people paid $10B on the AppStore, so what? Only proves Apple has great marketing…didn’t you know that since 2007?

  • yim.keorithy

    Despite this milestone – $10 billions in app revenue in twelve months translates to more than $800 in average monthly revenue

    • http://www.idownloadblog.com/author/dujkan Christian Zibreg

      Fixed, thanks

      • yim.keorithy

        Great.

  • s0me

    Well I dont take their word this could be marketing talk and yes the number of apps the app stores (Appstore/Play/Win) have is irrelevant because 99% of the number of apps are just CRAP. That 1% are popular apps wich everyone has heard of.

    • Rowan09

      Don’t agree. The AppStore by far has better and useful apps when compared to the Playstore. Maybe you consider useful as something you would use instead of something someone else would use to make their lives easier. I don’t own a Windows 8 device so I can’t speak about their store.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        Better in what sense? Mind sharing some example of what apps you’re referring to in the AppStore? I have a Windows 8 device and most of my apps are legacy desktop programs (e.g. emulators, Acrobat, PVSyst and MATLAB)…use the metro screen mainly for Netflix.

      • Rowan09

        I don’t own a Windows 8 device is I won’t speak about it. The Playstore is full of fan made apps, etc. Some important apps for me are Keeper, Scanner Pro which is use for work, documents, bob books for kids, Murai Spanish which my daughter uses for Spanish, and the tons of kids eduction apps. It depends on who you ask but the AppStore when to the Playstore is by far better. By the way I told you the Surface 2 and Pro 2 would flop like its predecessor.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        K, all a matter of opinion; very subjective…Regarding the Surface 2 and Pro 2, they’re considered a flop even when they’re selling out and more people are taking notice (like here http://bit ly/1acDudJ)? You seem to have a dingbat definition of the term flop…

      • Raashid

        If it doesn’t outsell the iPad, it’s instantly considered a flop in the Apple universe…

      • Rowan09

        No when it doesn’t sell it’s considered a flop. The iPad is a special case I would never say if a tablet sells 2 million in a week it’s a flop if the iPad did it in 2 days, 2 million is 2 million. The Surface is fairly new so I wouldn’t expect it to sell like the iPad but when a company doesn’t give any figures you know there’s a problem. Most commercials I see are for Windows tablets and not the Surface because normal consumers are “dumb”. Imagine making a commercial comparing the Pro with an iPad. The iPad would be inferior but they are not for the same audience so it would a useless commercial, hence the reason they make commercials focusing more on the price and Office.

      • Rowan09

        Dude come on man. Give me some numbers because everyone store I go to has tons and none of the articles released about Christmas sales said anything supporting your argument. A product flopping doesn’t mean it suck, I just believe Microsoft is competing with itself since it makes it’s own tablet which is more expensive than other Windows tablets for a fraction of the price.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        Regarding the numbers, I’m looking forward to hear what Microsoft reports. Their advertising has been improving and would like to know how that worked out. I’m predicting 1/5th the iPad sale…

        Regarding competing with itself, totally agree in terms of the Surface 2. In terms of the Pro 2, you’re comparing apples to oranges, all cheaper Windows tablets either sacrifice performance or a feature (like digitizer screen with palm rejection). So far, no so-called cheaper alternative offers everything the Pro 2 does; an i5 Macbook Air ($1000+) + iPad ($500+) + Wacom Board ($300+) merged into 1 package of ($1000+).

      • Rowan09

        I saw the price for the top of the line Surface Pro and its almost $2000. The problem Microsoft is facing is do companies actually say I don’t want traditional laptops but instead want a tablet that’s a laptop. I agree the Pro 2 has some impressive specs but a regular consumer wouldn’t pick up a Pro over the regular Surface. Lets take the Mac Pro that’s just been released, it’s for a specialized bunch of people and I don’t believe the Pro has that audience. What’s the benefit of a tablet the same size as it inferior counterpart being sold at least 2-3 times the price? Microsoft needs to convince people the Surface tablets are the best Windows tablets first before moving on to Android and IOS.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        So is the top of the line MacBook Air…what’s your point? Companies like this (http://bit ly/1gdS7Ok), (http://bit ly/1diUtxX) and this (http://bit ly/1gdSdWf) have actually done that, so, yes companies actually want more than plain laptops and plain tablets…Regarding the regular consumer, most of the students I see with a surface on my university campus have the Surface Pro. Guess they’re not considered regular consumers…Regarding the Mac Pro being for specialized people, I find the Surface pro is the perfect computing tool for a larger number audience, students; especially when you install OneNote (http://bit ly/1cIsVNs). The Mac Pro on the other hand, I just find it specialized for rear studios that are mobile.

        Benefit of the pro over the RT? How about it merges the RT (a Microsoft branded iPad with more flexibility) with a MacBook Air and a Wacom board? Speaking of benefit, what’s the benefit of a tablet limited to bastardized apps yet costing more than an Intel Atom tablet that isn’t?

        Regarding convincing people, I’m not sure what you’re referring to.

      • Rowan09

        When we hear the numbers if ever you’ll why I say convince. I hope you know the NBA, Price Water, Verizon, etc uses iPads because they make specialize apps for them and we won’t mention schools. The only business I’ve seen use the RT is UFC Gym by me. The Mac line already has it’s audience so to believe since the Mac Air sells for the same price as the Pro people would consider the Pro is laughable. Most people I know doesn’t own a Mac because of the price. I wouldn’t compare the Pro with any laptop to most people it’s a tablet. Owned a micro PC and Sony Vaio Micro PC. It was better than the IPad because it ran full windows, etc but it didn’t sell well. Specs doesn’t mean everything and that was the case with the failure of the Surface 1 and Pro 1. Regular consumers include parents, kids, non-tech people, techies usually purchase items for different regardless of specs sometimes.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        The RT I agree that’s a joke, like the iPad and other ARM tablets that cost over $200. There’s nothing justifying the purchase of a Surface RT/2 (even less the iPad) over an Intel Atom tablet like the Transformer T100 ($350). Regarding the Mac line audience, that’s been oscillating around 7% of market share for the past 4 years now, it’s normal to have such people laughing at the price of a non Apple product. People like you keep thinking the Macbook Air is more value than a Surface Pro despite it still having a hideous screen and not offering the benefits of an iPad ($500+) and a wacom board ($300+)…your logic is laughable.

        Desktop, Laptop, Tablet or SmarPhone are all current form factors of a PC (Personal Computer). The Surface Pro fills the gap between the first 3 form-factors. Whenever the technology gets there, expect to see a Surface Phone that transforms into a Surface Pro Tablet, similar to the attached image. You choosing not to compare them is just ignoramus on your part.

        Specs aren’t everything of coarse, and neither is beauty (in the case of the iPad). Functionality plays a bigger role over beauty and more and more iPad users are realizing that.

      • Rowan09

        Lol. You got be kidding. You spoke this same nonsense with the Surface Pro 1 what happened it failed and currently from what I’m seeing the 2 is failing as well. I know you remember the Zune what happened it was better than the iPod but yet it failed as well, the Dreamcast was better than the Playststion and it failed. You seem to say specs doesn’t matter but all your logic is being based on specs alone. The Pro is great because it has this and that, guess what I can buy a laptop for a fraction of the price that does the job very much the same. If Microsoft is trying to make people believe a laptop is not a laptop unless it’s a touchscreen device with no optical drive then maybe that’s why they are failing. I’ve used Netbooks and low end Atom notebooks those things are a joke, they are just as bad as a $60 Android tablet. The iPad, Galaxy Tab, Nexus, etc are great tablets, they are not laptops and maybe if you and Microsoft can understand that they’ll start selling. If it’s a Pro device it shouldn’t look the same and has the same screen size. I never hated on the Surface at all because I don’t own one and never will but you keep hating on the iPad when the Surface is trying to be its competitor and losing.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        The Surface Pro 1/2 failed/is failing? Where do you get your news? Wouldn’t be surprised if it’s from the Apple store.

        I say specs isn’t everything, never said they don’t matter…there you go again claiming BS out of thin air. You say you can get a cheaper laptop that offers everything the Pro does? Please post a link to such cheaper product that doesn’t sacrifice on performance and/or features. It’s as logical as saying I could get a MacBook Air instead of a Mac Pro, it does the job very much the same.

        Not sure where you got that conspiracy of what Microsoft is trying to make people believe a laptop is…A laptop is simply another form factor of a PC. Regarding netbooks with old atom processors, welcome to last year; Intel released the atom bay trail generation.

        Those are great but overpriced ARM tablets. They got nothing to offer me over an intel atom tablet; all they do is limit me to bastardized apps…thanks but no thanks. My SmartPhone is sufficient for that.

        Regarding differentiating the pro, that’s fixed in the Surface 2 (different color). Just ’cause Apple does it a certain way, doesn’t make it the only logical way.

        Regarding hating on the iPad, I know what it’s got to offer ’cause I know how to do research before purchasing a product. In addition, I watch on reviews. Based on those and a bit of deductive reasoning, it’s easy to come to the conclusion it’s the tablet that least justifies it’s price tag; lacking loads of functionality compared to the competition and offering no function over the competition…

      • Rowan09

        The Surface 1 failed and since the news for Christmas didn’t even mention the Surface I can use deductive reasoning to assume based on the lack of sales figures as well that it’s failing. Please tell me something the Surface Pro can do that I can’t get on an Android Tablet or iPad? Now when I say something I need to know what it can do that’s not possible on any other tablet besides of course Office.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        That’s a rehtorical question, right? Wasn’t expecting such question from a so-claimed “technician” but, you’ve posted so many unexpected (from a technician) things that I’m gonna assume you’re not kidding. Can your iPad/Android tablet currently do the following:
        – Run the entire eclipse programming environment
        – Build, compile and test an iOS+OS X+Android+Windows+Windows Phone app from scratch all on the same device
        – Play Battle Field 4 and other Steam games
        – Play XBox 360 games
        – Run the entire adobe creative suite/cloud collection
        – Run the full fledged MATLAB programming and simulation environment without an internet connection
        – Run the full ETAP simulation environment
        – Run the full PVSyst simulation environment
        .
        .
        .
        And so on, there’s a lot more iOS can’t do that the other two can, but I’m sure you know that’s what jailbreak fixes…Regarding surface christmas news, try looking outside the Apple world for such stuff (http://bit ly/19ZqgAk)

      • NSA

        Don’t waste your time with MrElectrifyer

      • s0me

        I’m talking about the top 100 apps that are common in all the stores, those apps that have the same dev/publisher that makes them popular, apps that are getting promoted everywhere, apps that everyone downloads, apps that IDB covers when they get an update. Thats the 1% that matters in every app store there is. I’m not talking about indie apps made just for the AppStore.

      • Rowan09

        I really don’t download most of those apps so its subjective but the Playstore is a mess.

      • s0me

        Well if you pull your head out of Apple’s ass, you will see that I was talking in general about these app stores. Ofcorse everyone is using apps that they like and find usefull but the quality of those apps is in that 1% I was referring to. This reply was writting before your reply because you are predicible, ppl like you dont see and dont want to see the reality.

      • Rowan09

        Give me the 1% since you obviously went through the 99%? Every heard of an App called iSwifter? I didn’t until finding it by accident, popular doesn’t equal usefulness so you’re speculating because I can guarantee you haven’t tried most of the Apps on the AppStore. Why is my head in my ass I own a note 2 and can attest to the play store being a mess? Good try buddy stop trying to make your opinion something more than it is.

      • s0me

        Do you know what 1% of a big number like 1 mil is? 10k are a lot of apps BUDDY. What about “general speaking” ?

      • Rowan09

        I was with you when you said generally speaking and now you say 99% are mostly useless clones. When you use the word “most” you should have some facts to back it up. Nevertheless this will never end so I’m ending it.

      • s0me

        You are incredible, ” mostly usless clones” “bad remakes” let me add a new one “fake apps” ( yes Apple seems to hire trolls who check code) but most of the damn apps are clones, for example Angry Birds clones, Tiny Wings, Clash of Clans(bad bad clones) etc. Now dont ask me for the names because I’m not a robot, just check the categories in the AppStore and see if you want proof. Weather apps that look the same, with minor changes between them and use the same radars and satelites, tons of photoediting apps that are literally the same as the photo gallery editor, tons of wallpaper apps, Whatsapp mess/Viber clones that noone is using. Yes I am generally speaking.

  • Jonathan

    For the millionth time, in ya face, Android!

    • cybersat

      Wow!! I see your contribution go to Apple executive’s bonuses.
      Well done.
      I wonder when you’ve ever learned.

  • :(

    So so sad that trash like candy crush generates such revenue.

  • cybersat

    Thanks for iFan contribution so they can get more bonus and you got broke

  • mav3rick

    Market not so impressed…