The inner and outer workings of a digital agency

Saurabh Kumar

May 17, 2010 / In Mobile Applications

A marketing enthusiast with an interest in tinkering with data and systems. 4+ years at ebookers followed by 8 years and counting at Envigo.

iPhone applications and their ROI

Every one who wants to make it big developing Iphone apps needs to know how much money the existing 200,000 applications are making. I came across a survey of 96 iphone developers and wanted to summarise the post here:

  • Average number of apps sold – 101,024
  • Price point – $0.99 (The average is higher at $5.49 because of a $49.99 outlier)
  • Average number of updates – 3.89
  • Average total development cost – $6,453 (but developers rarely included their own time spent in development, which would increase the costs a few times)

Even with a higher development cost, the app world is highly profitable. No wonder there are over 200,000 applications, but this field is set to grow further.

  • The market is top heavy, the top 10% apps would be getting the bulk of the revenue
  • Greatest contributor to sales – Being featured by Apple in some way, in place of sending out an app update

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