Something else occurred to me this morning after reading over yesterday’s lead story again. According to 24/7WallSt’s largely-invented figures, just 4% of iPhone/iPod owners use their device for piracy, yet have been responsible for actual real losses of over $450m in revenue that would have been spent were piracy not possible.
Logically, this means that the other 96% of owners must be spending the same sort of amount, (since the figure was arrived at via an allegedly-conservative notional conversion rate of 10% of pirated copies being genuinely lost sales, rather than just stuff the pirates wouldn’t have bothered downloading if they had to pay for it). Which means that the App Store must have generated an impressive $11.48bn of revenue in the last 18 months.
Since Apple have revealed that there have been a total of 3 billion downloads, which includes both paid and free apps, that would make the average price per download just short of $4. But since the 247WS figures were based on just an estimated 17% of downloads being paid apps, that bumps the average per-paid-app price up to a little over $23.50 (compared to 247WS’s claimed average of $3). If other analysts’ estimates of the proportion of paid apps to free ones is more accurate, the average price of each paid-for download could be as high as $160.
Doesn’t seem awfully likely, does it?
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