Apple Revenue Share From App Store

From the outset, the numbers are pretty evident – The app developer stands to earn 70% of the price of an app and Apple earns 30%. But Steve Jobs has also mentioned in the past that the company is running the App Store at more or less break even. Is that true? A study by […]

From the outset, the numbers are pretty evident – The app developer stands to earn 70% of the price of an app and Apple earns 30%. But Steve Jobs has also mentioned in the past that the company is running the App Store at more or less break even. Is that true?

A study by analyst firm Piper Jaffrey shows that the statement is not too far from truth. If you also consider the part of the app cost that goes to credit card firms, Apple’s revenues from the app is only 14% of the app cost.

Piper Jaffrey claims that the average price of an iPhone app is $1.49. In that case, here’s how the revenues split up among the different entities

Developer : $1.04 (70%)
Credit Card : $0.22 (15%)
Apple : $0.21 (14%)
Processing : $0.02 (1%)

Also Read : How much money does Apple make from App Store