How Much Do Average Apps Make? (2024)

iOS, Android, and Microsoft are all trying to gobble up developers

The last few years have seen an unprecedented number of people rushing to develop mobile apps for iOS and Android. But looking at the installed user base on each platform and information on the payouts made by the different companies, it appears that the vast majority of developers will find themselves with little revenue to show for.

Google , Apple , Microsoft : Rich in users, developers

The consensus around the industry is that Google dominates the mobile market with 900 million users, while Apple follows with 600 million iOS devices purchased, and Microsoft comes in third place with an estimated 12 million Windows Phones sold (the vast majority of those, 81%, being sold by Nokia ).

With different forums aimed at attracting developers, each company handles announcing the size of their markets differently.

Apple, at its WorldWide Developer Conference, talked about 1.25 million apps in the app store accounting for 50 billion downloads and $5 billion paid off to developers in the last year. To the company, it is a sign of pride to be able to pay this developer community. Internal data from the app store, gathered from sources close to the company, indicate that the numbers are in line with the actual payments made to developers.

At Google I/O, the largest Android developer conference, Google touted 150,000 developers responsible for over 800,000 apps.While the company does not break out revenue numbers on their apps, recent data in their financial filings seemed to indicate somewhere around $900 million in pay-outs to developers "over the last 12 months" and discussions with external research analysts put the number of downloaded apps from the Google Play store at around 48 billion, close to what Apple has claimed.

Microsoft, meanwhile, has been claiming 160,000 apps in their store from 45,000 developers. In a recent interview, Microsoft officials claimed that the average user downloaded 54 apps, which would put their download count at 650 million to date. While the company does not break out data for its mobile division, looking at the variations in the accounts payable line of their 10-Qs over the last few quarters before and after they introduced their app store shows a variation of up to $100 million since 2011 that could be attributed to the app store.

So taking all that data into account, we can summarize it as follows:

Looking at this, it is clear that Apple is winning the game in terms of total number of apps and money paid to developers. But lost in the shuffle is how much money developers can actually make on those platforms.

Meager dollars per download

Taking the data in front of us, we can get a sense of how many apps the average developer creates and what kind of revenue a developer can expect from those apps, on average (granted, power laws dictate that a small number of developers will do extremely well while the vast majority will fail, but we're trying to look at averages here).

Based on this, the average developer on those platforms is pretty busy, developing 3 to 5 apps depending on the platform. Interestingly, Android is the big winner on downloads for a given app but this is largely offset by substantially lower revenue, with the average app download bringing in around 2 cents to its developer; Apple fairs 5 times better, bringing in a dime for every one of the 40,000 potential app downloads a developer could strive for. But the interesting thing is that Microsoft's platform may be substantially more rewarding for its developers, bringing in $.15 per download (a fact that is offset by download numbers shown to be only 10 percent of what the other platforms can offer).

With the average paid app retailing for $.99, what we see here is the direct impact of free apps on those marketplaces. Android's substantial lead in offering free apps cuts deeply into the average revenue paid out to developers while the smaller availability of free apps on the Windows platform may work to its advantage.

But what does that mean in terms of actually revenue?

Impact on developers' wallets

Multiplying the average revenue per app by its average number of downloads, we can get a sense as to what an average developer can expect to make on an app today. Taking the same number and multiplying it by the number of apps an average developer creates, we get a sense of the revenues one can pull from going that way:

What we see here is that while decent amounts of money can be made on an app, a hard-working developer on iOS will be able to get a new car, while Android and Microsoft developers will be forced into the used car market if they plan to take those earnings on the road. At $4,000 in average revenue per app, Apple has a lead but it still begs the question as to how many developers can actually make a living directly from apps on any platform. Direct revenue from the apps themselves may not be able to justify large development teams but other revenue sources (advertising, for example) may help developers increase their take.

Of course, these are average values and many hope to find the next big hit, the one that will be on the higher end of the median. But for every app that goes north of those numbers, the average for the remaining apps drop.

Where are the opportunities?

There is, however, some hope. While Apple has developed a rich market for developers, Google and Microsoft both have opportunities to improve. For Google, the focus should be on improving the numbers by helping developers monetize their apps so they can come more in line with what Apple can offer. Even if they only reached half of what Apple does in terms of revenue per download, they would be able to match the revenue developers make. For Microsoft, the story is all about the number of users. If they were to manage their average revenue per app while growing their user base, they could potentially out-earn all the other platforms.

In all three cases, however, there is much work to be done to increase monetization of free apps. And that may be the next growth opportunity for any developer as it presents an opportunity that is substantially larger than the existing one.

Every app developer hopes to build the next big hit but, as is the case for any hit-driven market, a large group will be left behind with little to show for their efforts. At the end of the day, the model for mobile apps is no different than any other of the past: whether it is gold in the Yukon, websites in the 1990s, or app developers today, larger amounts of revenue will go to those who enable development than to those who are doing the development. Levi Strauss made his fortune selling picks and shovels to gold prospectors; Adobe, Amazon, and Google made theirs enabling web developers; and as the mobile revolution takes hold, some new players will emerge providing tools to create apps and those may be the biggest winners.

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How Much Do Average Apps Make? (2024)

FAQs

How Much Do Average Apps Make? ›

How much money do apps make per download? The average revenue per app download varies significantly but the average is $0.60 to $1.20. How much money do dating apps make?

How much money can you make owning an app? ›

Let's understand this through the pattern of the current revenue potential of industry-leading apps. The apps that rank in the top 200 of the App Store generate about $82,500 in revenue per day. If you extend that bracket a bit and look at the revenues of the top 800 apps, the daily revenue will drop to about $3,500.

How much does a 1,000 app download make? ›

For 1000 daily usages, this is $2 per day. Generally 1 app download is at least 2 usages. So 1000 downloads is $4. The average revenue per app download is $0,004.

How much does a successful app sell for? ›

To cut right to the chase: apps typically sell for 12X – 36X the app's monthly profit. To calculate your app's profit, take the gross revenue and subtract all expenses that directly contribute to generating that revenue.

How much is an app with 1 million users worth? ›

I've recently learned that apps with 1 million active users can get $10k+ a day. There are thousands of apps on the app store with 10 million + downloads/ millions of active users.

What are the odds of an app making money? ›

Only one out of every 100 consumer apps succeed. On the other hand, 14 out of every 100 business apps are successful. While the probability of being successful financially for consumer apps is less than 1%, this rate goes up to 33% for business apps. So, business apps make a lot more money than consumer apps.

How much do small apps make? ›

How much money do apps make per download? The average revenue per app download varies significantly but the average is $0.60 to $1.20.

Are paid apps profitable? ›

Turns out not at all! According to a report by Distimo, the total App Store profit revenue from paid apps accounts for only 24%. The revenue from in-app purchases, made inside of paid apps, account for another 5%, and the revenue from in-app purchases from free apps account for 71% of profit revenue.

Can creating an app make you a millionaire? ›

So, can a mobile app make you a millionaire? The answer is- Yes! But it's not so easy. It involves a lot of market research and innovative ideation to develop a mobile application that generates millions of revenues annually.

How many apps make a million dollars? ›

The App Store saw 636 publishers reach or exceed $1 million in annual net revenue for the first time in 2020, a figure that will decline by nearly 9 percent in 2021.

Which is the highest paid app sold? ›

In this section, we cover the top grossing apps on iOS and Android.
...
Top Grossing Google Play Apps and Games 2022.
AppRevenue ($mm)
Google One891
TikTok674
Coin Master521
Candy Crush Saga502
6 more rows

What selling app sells the fastest? ›

Compare the Best Apps for Selling Stuff
CompanyTime to Receive PaymentListing Fee
eBay Best Overall1–3 business daysVaries based on items, listings
Meta Marketplace Best for Free ListingsVaries$0
Nextdoor Best for Local SalesVaries$0
OfferUp Best for BuyersTypically within 5–7 days of item delivery$0
2 more rows
Mar 8, 2023

How do free apps make money? ›

Advertising is likely to remain the most popular way to make money with free mobile apps. Mobile advertising spending has been booming over the past decade and is projected to hit $327.1 billion in 2022, up 17.2% compared to 2021. According to the latest data, it may approach an astounding $400 billion by 2024.

How many apps don't make money? ›

According to Gartner, less than 0.01 percent of all consumer mobile apps will become financially successful throughout 2018—yet apps continue to be a common development goal and product focus for new and aspiring entrepreneurs.

How many apps make no money? ›

It is estimated that only 0.5% of apps make money.

This is something to consider if you are thinking of getting into the mobile app business. Though not impossible, it is very difficult to see a profit.

How much money will my app make if it has 100000 downloads? ›

Let's say you have a total download user: 100,000

It means 1% of users will click on the ads so We consider 4000 clicks per day. Monthly Revenue: – If each CPC ad pays $ 0.01, then 4000 * 0.01 becomes $ 40per day. So it is 1200 per month. Contact us for creating your own app on the play store or app store.

Do free apps make a lot of money? ›

Ads are the easiest and most common ways to make money from free apps. If you've downloaded any free app, chances are you've encountered all kinds of ads. In this app monetization model, you get paid every time a user views the ad, clicks on it, or installs a program directly from the advertisem*nt.

Do apps make money if they are free? ›

Free apps are monetized through various means, including advertising, in-app purchases, sponsorship, and affiliate marketing.

How much does it cost to maintain an app? ›

A ballpark average that an app owner will need to spend could be around $250 and $500 a month initially to keep the app functioning perfectly. You can budget 20% of the cost of initial development when calculating the cost of maintaining software.

What simple apps make money? ›

Best and Simple App Ideas to Make Money
  • Online Medical Check-up and Appointment App. This idea is at the top of our best app ideas to make money list because it has a huge audience and massive growth potential. ...
  • Exercise and Diet Application. ...
  • Virtual Trial Room App. ...
  • Voice Translation Application. ...
  • Best Deals/Discounts App.
Mar 23, 2023

Which type of app is in demand? ›

5 Types of Apps in demand
  • Social Media.
  • Food Delivery.
  • Transportation.
  • Healthcare.
  • Gaming.
Aug 30, 2021

What kind of apps are most popular? ›

Most Popular Google Play Apps 2022
AppDownloads (mm)
TikTok460
Instagram445
WhatsApp297
Snapchat255
6 more rows

Can you make a living making apps? ›

To keep it short, yes, free mobile apps make money. You just need to apply a free app monetization strategy. Mobile apps don't need to be complicated to be profitable. You can build a free app and monetize it using any of the strategies listed above.

Who is the youngest app developer? ›

A girl named Hana Muhammad Rafeeq has developed a storytelling app called Hanas and she shared the app features in a mail to Tim Cook.

What app sold for $30 million? ›

In March 2013, D'Aloiso sold Summly to Yahoo! for approximately US$30 million, according to allthingsd.com, but price wasn't officially disclosed. He joined Yahoo! as a product manager the same month.

What apps have 1 billion users? ›

Google has 9 products with more than 1 billion users, they are:
  • Google Search - 3.6 billion+
  • Android - 3 billion+
  • Chrome - 2.65 billion+
  • Gmail - 1.8 billion+
  • Google Drive - 1 billion+
  • Google Maps - 1 billion+
  • Google Play Store - 2.5 billion+
  • You Tube - 2.1 billion+
Oct 10, 2022

Who is the richest app developer? ›

Here are the 10 richest software developers in the world.
  • 9 Jeff Bezos - $165 Billion. ...
  • 8 Bill Gates - $118 Million. ...
  • 7 Larry Page - $106 Billion. ...
  • 6 Sergey Brin - $102 Billion. ...
  • 4 Steve Ballmer - $99.3 Billion. ...
  • 3 Larry Ellison - $96.1 Billion. ...
  • 2 Satoshi Nakamoto - $45.8 Billion. ...
  • 1 Patrick Collison - $9.5 Billion.
Aug 22, 2022

What is the most owned app? ›

FAQs on Most Downloaded Apps of All Time

Answer: TikTok has been the most downloaded app, and it is indeed the most used app so far, closely followed by Instagram, Facebook, and WhatsApp. Q #3) How many users are on TikTok? Answer: TikTok has over 1 billion active users worldwide.

What is the fastest in money making apps? ›

Best Money-Making Apps- Survey Edition!
  • Swagbucks.
  • Survey Junkie.
  • Pawns.App.
  • InboxDollars.
  • Opinion Outpost.
  • Toluna.
  • Google Opinion Rewards.
  • MyPoints Surveys. Cash Back Apps and Shopping Apps.

How many apps are sold a day? ›

General Mobile App Industry Statistics

Well, our extensive research shows that, in general: Between 2019-2020, there were over 250 million apps downloaded daily. That equates to over 91 billion apps downloaded each year, and that number is only expected to increase.

Which app has the most in-app purchases? ›

According to SensorTower, US subscription app revenue grew 21% in 2019 to $4.6 billion. The top non-gaming apps by revenue, including Netflix, Hulu, Pandora, and Tinder, all leverage the subscription model. Among subscription apps, Tinder tops the charts in overall revenue for purchases made in-app.

How to make money selling apps? ›

  1. In-App Advertising. This is probably the easiest and the most popular way to make some money with your app. ...
  2. In-App Purchases. This feature is more relevant from the users' perspective. ...
  3. Subscription. ...
  4. Paid Apps. ...
  5. Sponsorship. ...
  6. Affiliate Program. ...
  7. Selling merchandise. ...
  8. Crowdfunding.
Mar 14, 2023

How much does it cost to put an app on the Play Store? ›

How Much Does it Cost to Put an App on the Play Store? There is only a one-time fee of $25 which you pay when you publish your first application. After this, all the apps you publish on google app store for android are cost-free.

Why do most apps fail? ›

The performance of an app depends on many factors that can range from competition to marketing budgets to sheer luck. But beyond these factors, poor research and poor process execution are common reasons why apps fail when launched.

How hard is it to make a successful app? ›

Launching a successful app is highly difficult, and it certainly isn't for the easily shaken. Although many app ideas will fail on their journey to success, a few will survive. Yes, you can be a part of that few. The key is to know what it takes to build an app startup and prepare yourself for the journey.

What percentage of mobile apps fail? ›

In fact, about 80 percent of mobile apps get abandoned after their first use, according to CIO.

How much is an app idea worth? ›

1) How Much Is an App Idea Worth? The worth of an app idea solely depends on the execution done on your app idea. If you don't act upon the app idea, the value is $0, but if you gather a team and work towards making it a reality, it can even reach a million-dollar value, e.g. Angry Birds, Tinder, Uber, etc.

How many downloads does the average app get per month? ›

As of May 2020, apps from U.S. publishers generated an average of 1.24 million downloads per app.

How long does it take to build an app? ›

The average time to develop an app with Discovery, Design & Development, and Pre-launch stages is around 7 - 12 months. We found out what stages it takes to develop an app and team size doesn't often mean a shorter app development timeline. However, there's always a way to speed up the process.

How to get 1 million downloads for your app? ›

How to get 1 million downloads for your Android app?
  1. Excellent ASO. ASO means App Store Optimization. ...
  2. Use A Different App Store. The Android app market is dynamic. ...
  3. Use Influencers. ...
  4. Email Marketing. ...
  5. App Network. ...
  6. Use A Website. ...
  7. Showcase Your App In A video. ...
  8. Connect.
Nov 24, 2022

How much does 1 million downloaded mobile game earn? ›

So, the earnings with $0.05 CPC you get: 1,000,000*0.05 = $50,000 per day. That's sweet $1.5M per month.

How to get 100k app installs? ›

10 Quick Tips To Get 100k App Downloads
  1. Leverage Popups. ...
  2. Localize in Multiple Languages. ...
  3. Think of Search Engine Optimization (SEO) ...
  4. Consider App Store Optimization (ASO) ...
  5. Leverage Social Media. ...
  6. Get Positive Reviews. ...
  7. Write Clear App Title and Description. ...
  8. Press Release Your App.
Aug 10, 2022

How do app owners get paid? ›

The majority of top-grossing apps combine ads with in-app purchases for revenue generation. Purchases of in-app resources, subscriptions, and freemium upsell are among the highest-earning monetization methods. Transaction fees, online sales, or sponsorships may complement these.

Can you create an app and make money? ›

There is definitely plenty of money to be made with mobile applications. Even free apps make money. Lots of factors play a role in how much money your app can make. It depends on the platform, the type of app, and your revenue strategy.

How much money will my app make if it has 100 000 downloads? ›

Let's say you have a total download user: 100,000

Consider that the average click-through ratio is 1%. It means 1% of users will click on the ads so We consider 4000 clicks per day. Monthly Revenue: – If each CPC ad pays $ 0.01, then 4000 * 0.01 becomes $ 40per day. So it is 1200 per month.

How much do app owners make per download? ›

Interestingly, Android is the big winner on downloads for a given app but this is largely offset by substantially lower revenue, with the average app download bringing in around 2 cents to its developer; Apple fairs 5 times better, bringing in a dime for every one of the 40,000 potential app downloads a developer could ...

Does making a free app make money? ›

Free apps are monetized through various means, including advertising, in-app purchases, sponsorship, and affiliate marketing.

Are money making apps worth it? ›

Are Money-Making Apps Real and Safe? Most money-making apps provide only a small amount of cash in exchange for completing simple tasks like taking surveys, watching videos, or making purchases. Legitimate apps will also have a wealth of information available about how they pay and protect users.

How many apps fail to make money? ›

Only 0.5% of apps are successful.

9,999 out of 10,000 apps will fail for various reasons. Here are the most common ones cited by experts: Below 1,000 downloads: 67.8% Below 1,000 active users: 17.9%

Can you sell an app for millions? ›

To make an app idea worth millions, you need to put in a lot of work into market research, project management, capital raising, development work, and mobile app marketing. And it's those things that give your amazing app idea, its value. If you know how to do all of that then you can make money from an app.

Do you get paid if someone downloaded your app? ›

Neither Google Play nor Apple App Store pays for app downloads, even though there are millions of users who completed this action. Instead, stores take some share from an app's earnings (30% from in-app purchases). Thus, to receive money from a free app it is necessary to set up revenue streams.

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