$459 Million Worth Of iPhone Apps Pirated Till Date

News | Friday January 8 2010 10:46 AM | Comments (0) Tags: , , , , , ,

Back in September of last year, Toni Sacconaghi, an analyst with Bernstein Research
to be between $240 million to $440 million a year for Apple . The sale of
also brought a cumulative revenue of nearly $560 million to $1 billion to the developers. Since then a lot of things have changed – The number of iPhone apps downloaded have nearly
today. Also, with
, the revenues the developers stand to make from their apps is much higher.
However, this only constitutes the tangible part of the app economy. As with the producers of any other digital content like music or video, iPhone app developers too have been victims of piracy. An analysis conducted by the folks at
reveals the extent of impact that piracy has been causing to these small time app developers. According to their study, there are nearly 7.5 million
in the world today and close to 40% of these devices make use of pirated software.
In their study, the authors point out that paid applications have an average piracy rate of 75% which would mean that the total value of pirated apps today stand at $4.59 billion. Conservatively assuming that only 10% of these users would have actually purchased the app in the absence of piracy, the revenue lost comes close to $459 million.
While it is to be noted that most of the information used for the study are from secondary sources, the numbers still depict the stark reality of piracy of iPhone apps and the harm that it has caused to the app developers. As the folks at 24/7 WallSt point out, Apple loses close to $150 million of these in their own revenues which is not very significant when compared to the revenues from the App Store and handset sales put together. However, considering that a lot of app developers earn their livelihood from the App Store, it is high time Apple intervened to bring an end to piracy.
What do you think? Is it right to put the onus of eliminating piracy on Apple ? How do you think the company can help? Please tell us in the comments.

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