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Perfect Competition inSmartphone AppsFrom Zero to 75 Billion in Six YearsWhen Apple launched its App Store in July 2008,it had 10 million downloads in the first weekend.That number grew to 100 million in the first twomonths, 500 million in the first six months, and1 billion in the first nine months. By mid-2014,downloads hit 75 billion and were growing at 800apps per second.Angry BirdsAt its launch, the store had just 552 apps, butwithin six months that number had grown to15,000 and the pace of growth accelerated. Total apps passed the million mark inOctober 2013 and hit 1.2 million by mid-2014 and continue to grow at a pace of25,000 to 30,000 new apps a month.As the app market grew, so did the number of app developers, which had reached6.1 million by mid-2013 and 9 million by June 2014.Developers began to see cash flowing in. Although Apple takes a 30 percent cut, it hadpaid developers $1 billion by June 2010, $10 billion byJune 2013, and $13 billion by June 2014.Google’s app store opened three months later thanESSENCE OF THE STORYApples’, but it grew even more spectacularly to top. Apple has 1.2 million apps, a number that is1.3 million apps in 2014.growing by 25,000 to 30,000 per month.Most apps (62 percent) are free, and of those that are. 75 billion apps have been downloaded.not free the most common price is 99 cents. But one. Nine million people have registered as Applegaming app costs $999.99.app developers, up from 6.1 million a yearearlier.Games represent 18 percent of apps and education. Apple has paid $13 billion to app developers.another 11 percent.App prices range from zero (for 62 percent ofapps) to $999.99, and the most common priceSources of information: Sarah Perez, “ITunes App Store Now Has 1.2 Million Apps, Hasis 99 cents.Seen 75 Billion Downloads to Date.” Tech Crunch, June 2. 2014; Chuck Jones, “ApplesApp Store About to Hit 1 Million Appa,” Forder, December 1 1 2013: apps-world.net.Google (Android) apps are also growing andJuly 11, 2013; and statistica.com, August 28, 2014.its store offers 1.3 million apps.

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