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App Store Tops 40 Billion Downloads with Almost Half in 2012

Apple® today announced that customers have downloaded over 40 billion apps*, with nearly 20 billion in 2012 alone.  The App Store has over 500 million active accounts and had a record-breaking December with over two billion downloads during the month.

Apple

Context & Ripple Effects

The App Store's scale-up was already visible in its progression from 15 billion downloads in 2011 to 25 billion by March 2012. The latest figures pair that accelerating usage with a 500 million-account base, making app distribution a material part of Apple's device ecosystem rather than simply a software add-on.

First-order effects

  • Apple's 500 million active App Store accounts give developers a single distribution channel with substantial reach across Apple's devices.
  • The more than $7 billion Apple says it has paid developers reinforces the App Store as a revenue channel for software makers, not only a source of downloads.

Second-order effects

  • Developers targeting Apple's more than 50% share of the U.S. smartphone market have greater incentive to prioritize App Store releases and placement.
  • Apple can use the store's download activity and developer economics to reinforce the value of its device ecosystem for both buyers and software publishers.

Third-order effects

  • If download growth continues at this pace, control of app distribution becomes a more consequential source of ecosystem leverage for Apple alongside device sales.
  • The pattern favors mobile platforms that can combine a large account base, developer payouts, and repeat software purchases into a self-reinforcing marketplace.

The trend: Mobile software distribution is consolidating around large platform-operated marketplaces whose account bases attract developers and strengthen the underlying device ecosystem.

Related: Commercial-intent density · Apple · The App Store · Apple's App Store Downloads Top 15 Billion · Apple's App Store Downloads Top Three Billion

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