Apps Generate Most Sales on iTunes

Apps Generate Most Sales on iTunes

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Apps now generate the most money of all the content on offer in the iTunes store, according to the latest estimates from Asymco analyst Horace Dediu.

The analyst looked at Q2, 2007 – the quarter prior to the iPhone launch, when there were no iOS apps and the majority of money was spent on music – up to Q4 last year.

Since the App Store first opened in Q2, 2008, apps have gone from having less than five per cent share of revenues ($4 per year) to 35 per cent ‘share of wallet’ ($16) at the end of 2012. Music, by comparison has dropped from a 40 per cent share ($39) down to 27 per cent ($12).

It's worth noting, however, that although the number of iTunes accounts has now passed 500m, the ARPU has more than halved since its launch, from $99 to $45 per iTunes account.

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