However, the limited revenue that Apple generates from the App Store doesn't imply that it's irrelevant - rather, analysts argue the App Store and the apps inside are an essential element of Apple's offering. That means Apple's cut is somewhere around $10bn - a significant sum but tiny compared to what Apple makes from selling mobile phones: the company reported revenue of nearly $24bn from iPhone sales in its last financial quarter alone. That might sound like a hefty slice, but developers don't have to pay credit card fees or for hosting, which is covered by Apple.Īpple has paid out $25bn to developers over the last six and a half years. Developers keep 70 percent of the sales of their apps through the App Store, Apple keeps the other 30 percent. "This is the best deal going to distribute applications to mobile platforms," Jobs said when he unveiled the App Store.
For developers, access to the iPhone's premium audience is extremely attractive, especially as Apple isn't much interested in making much money off the apps, unlike mobile operators who had been the gatekeepers, deciding how apps were distributed and sold at that point.
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