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Summary:

The iPhone App Store is red hot: In its first month, more than 60 million software programs were downloaded, and it generated about $1 million a day in sales. That information comes from Steve Jobs in an interview with The Wall Street Journal. In his interview, […]

The iPhone App Store is red hot: In its first month, more than 60 million software programs were downloaded, and it generated about $1 million a day in sales. That information comes from Steve Jobs in an interview with The Wall Street Journal. In his interview, Jobs says the developers took home $21 million in the first month, of which $9 million went to the top 10 developers. One of the biggest selling app: Sega Corp’s $9.99 Super Monkeyball game, which sold more than 300,000 copies in 20 days. (iPhone as a gaming platform isn’t such a crazy idea after all!)

About 10 million apps were downloaded in the first week of the launch of the Apps Store. Jobs said that Apple takes 30 percent of the total sales and that covers the costs associated with keeping the App store running, including the cost of credit card transactions. “This thing’s going to crest a half a billion, soon…Who knows, maybe it will be a $1 billion marketplace at some point in time,” he told the Journal. Jobs said that going forward, in the world of mobile phones, the differentiating factor is going to be software.

The big question about the Apps store is whether downloads are going translate into actual and sustained usage of these apps.

Downloads Yes, Usage – Maybe

I have downloaded nearly three dozen apps: Loopt, Where, Nearby, Shozu, WordPress, Twinkle, Shazam, NetNewsWire, MLB At Bat and Facebook being amongst the most notable ones. Only Twinkle, Facebook, NetNewsWire andShozu are truly worth using on a daily basis. The MLB At Bat’s video (over 3G) is simply deplorable.

I wondered if I was the odd man out here, downloading and then not using the apps. To get some clarity, I asked Greg Yardley, founder of New York City-based Pinch Media, a startup that has developed analytics for iPhone apps.

Using the caveat that only a few app makers were using the Pinch Analytics library, he pointed out that as per their data, the ratio of free downloads to paid downloads is at least 10:1. He also said that the pace of downloads is slowing, which is expected because the early rush is behind us. According to data collected by Pinch Media, on average, less than 20 percent of an application’s overall unique users return to an application each day. Yardley also pointed out that people are using the apps for just under five minutes at a time, on average. The majority only use the applications once per day; the average number of uses per day is around 1.2.

Looks like I am not the only one who is getting bored with some of the more blah apps. Phew!

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  1. With 60 million downloads in one month, Jobs throws out the possibilty of a $1 billion App Store marketplace » VentureBeat Sunday, August 10, 2008

    [...] the downloads are happening at a rapid pace, but what about actual usage, GigaOM’s Om Malik wonders? Malik says he has downloaded some three dozen apps but only uses four on a daily basis. He has [...]

  2. disagree with you here Om

    How many apps do you use every day on your Mac? I’d wager less than 10. Yet like me you probably have at least 100 apps in your app folder. The same thing happens on the iPhone. I use about 7 apps daily but have lots more which will prove useful from time to time.

  3. “…the pace of downloads is slowing, which is expected because the early rush is behind us.”

    Nonsense.

    There are millions and millions of NEW users to be added to the iPhone phenomenon, just think XMas and 70+ new countries. What do you think they’ll do with the App Store?

    The narrow mindedness and short focus of some is remarkable.

  4. Basic Thinking Blog | Mobile Web: Der nächste Dominostein fällt Monday, August 11, 2008

    [...] GigaOM beruft sich auf ein Interview mit Steve Jobs im Wallstreet Journal und nennt folgende [...]

  5. Om,

    You’re wrong. How many applications do you use on your laptop daily? How many of those are specialty apps for once a week/month when you truly need it? See my point?

    Even though I too have a ton of apps on my iPhone, Mail and Safari are used 99% of the time. But those other apps are great for when you really need them.

  6. App Store’s First Month: $30 Million In Sales Monday, August 11, 2008

    [...] downloads appear red hot, GigaOM questions how much the apps are actually being used. Citing findings from Pinch Media, sample data [...]

  7. Jobs on iPhone apps: $30 million in 30 days | Daily Technology News Monday, August 11, 2008

    [...] maybe the frenzy will slow down after the novelty wears off. GigaOm’s Om Malik reports that he has downloaded “nearly three dozen apps” but finds only four–Twinkle, [...]

  8. Let’s face it, the apps were purchased because the whole platform is new. I don’t use ANY of them. This was a one time deal and until compelling apps come out (Loopt the exception, although more users needed), it will remain a one time deal. The phone is too big, the apps too limited.

  9. I’ve downloaded a bunch of Apps and most suck. I haven’t spent too much money, which is fortunate since many pay Apps do not offer free trials (Lite) and there’s no return option as far as I can tell, regardless of how many times an App crashes.

  10. Jobs on iPhone apps: $30 million in 30 days | mobiles4u.net Monday, August 11, 2008

    [...] maybe the frenzy will slow down after the novelty wears off. GigaOm’s Om Malik reports that he has downloaded “nearly three dozen apps” but finds only four–Twinkle, [...]

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