September 25, 2009

Sizing up Apple's App Store

iphone_apps.jpg Bernstein Research has taken a whack at estimating App Store sales. Total Telecom reports.

quotemarksright.jpg Apple generates quarterly revenues of $60 million-$110 million from downloaded apps. That's just over 1% of total Apple revenue, if we use the high end of Sacconaghi's App Store revenue estimate.

The analyst believes the App Store contributes between 2 cents and 4 cents a share in profit to Apple a quarter (Apple's earnings per share were $1.35 for the three months ended June 27). Sacconaghi arrives at his estimates by crunching numbers from the most popular application lists on the App Store. His sales estimates are for the money Apple gets from the 30% cut it takes on App Store software sales; he estimates independent makers of iPhone software generate between $140 million and $250 million a quarter through their 70% cut of App Store sales.quotesmarksleft.jpg