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iPhone 5 is UK's most popular smartphone and Apple is raking in $1b/year from app sales

Karen Haslam | June 5, 2013
iPhone 5 and iPhone 4S are more popular than Samsung in the UK. Plus: Apple has 500m registered users, makes $1b/year from App Store

By contrast, Amazon had 200 million; mobile games maker Zynga had 180 million; Paypal had 123; and eBay had 112 million registered users.

The good news for Apple is that it generates $329 per user. More than competitors Amazon ($305 per user) and eBay ($125 per user).

Huberty suggests that should Apple introduce an iRadio service, as it is widely expected to do at WWDC, it could generate as much as $1.1 billion in revenue per year by only getting 50% of its already registered users to sign up for the service.

Huberty also hints at the increased revenue possibilities if the iAd service was extended to iRadio, notes Apple Insider in its report.

£1 billion App Store profits per year
Another area where Apple is making money thanks to its extensive user base is the App Store. The iOS App Store makes £1 billion in profits for Apple every year, according to Elephant Analytics estimates.

This figure is based on the suggestion by Apple in its most recent financial results conference call that it had paid developers $9 billion for 45 billion app downloads. The analysts, writing on Seeking Alpha, suggest that this indicates that an average of $0.20 is paid to each developer per download and since developers get 70% of total app revenues, the average revenue per app download for Apple (who gets the other 30%) would be $0.0857. The report goes on to note that not all apps have a cost associated with them, but according to the report, 71% of revenue comes from in-app purchases inside free apps.

On the assumption that Apple makes on average $0.0857 per app, and has sold 50 billion apps, that would suggest it had made $4.285 billon over the years from iOS app sales.

 

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