According to CEO Steve Jobs, Apple's new iPhone software business, 'The App Store', is off to a rather remarkable start. One month following Apple's (AAPL) concurrent launches of the innovative 3G iPhone and software 'App store', users have downloaded more than 60 million software programs for their iPhone/iPod Touch devices. While most of those software applications were downloaded for free, Apple's App store sales averaged $1 million a day for a total of about $30 million in sales during July. Assuming $30 million a month in sales, Apple is on pace to rack up App store sales of about $360 million over the course of a year.Per a Wall Street Journal interview with Steve Jobs, the Apple CEO seems to be pretty excited about the current success and potential business opportunity the new App store represents. According to Mr. Jobs, "This ting's going to crest a half a Billion, soon...Who knows, maybe it will be a $1 Billion marketplace at some point in time...I've never seen anything like this in my career for software...Phone differentiation used to be about radios and antennas and things like that, we think the phone of the future will be differentiated by software."
* FYI - Apple's current App store earnings-sharing model allows for the company to keep 30% of the total profits made from App store sales...the other 70% goes to the independent software application creators. According to Steve Jobs, the developers' share of iPhone application sales in July was about $21 million...the top 10 iPhone software developers accounted for roughly $9 million in sales during this time (or about 43% of the total developers' share of July sales).
Data Courtesy: Wall Street Journal
Full Disclosure: I own shares of AAPL.
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