Monday, May 18, 2009

Why isn't anyone counting "Google Search Revenue" in their "How Much Money is the iPhone Making Apple" estimates?

The revenue estimates Apple receives from the iPhone is often miscalculated because of the many facets of revenue Apple has set up. The best analysis I've seen so far is Tech Crunch's recent piece called:

About Those iPhone App Store Revenue Numbers

I posted these comments to the forum of the article mentioned above.

Don’t forget the HUGE amount of search revenue Apple receives from Google for mobile safari searches - I know I use the Google toolbar on my iPhone at least 5 times a day.

I’ve heard figures tossed around between $100,000 to $180,000 a day in Google revenue - this revenue is essentially free since Mobile Safari is (for the most part) developed coinciding stable webkit builds.

Various sources have extrapolated Mobile Safari traffic vs Apple’s projected/extrapolated Desktop WinMac Safari Google Toolbar revenue.


I also think the number of paid vs free apps is very underestimated.

The average person I know has at least 3 paid apps on their phone …

Let’s look at 3 of mine as an example:

(I have more paid apps, but for attention span we’ll look at 3)

Crash Team Racing $4.99 … In the recent “Billion Song Celebration” this was listed as one of the top 5 paid apps. Not .99 cents.

Tetris $4.99 … No gaming device is complete without Tetris … Also celebrated in “Billion Celebration” as a top 5 app downloaded not just “in all” … Not a .99 cents app.

iBird Explorer Pro $29.99 … This app is being featured on an iPhone commercial. I work in Best Buy with Apple products … greater than 50% of the over 25 crowd buying an iPhone are buying the it because of that commercial (in my store) They want that app and the compass app (which I also have and is also NOT .99 cents)

So let’s extrapolate a little bit … The apps mentioned above are very high volume downloads. For every download of these apps, 5-30 free apps could be downloaded and Apple profit.

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