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The economics of Apple's App Store

Apple's App Store average paid app price is $1.44, of which it's reported the company gets an average of 26 cents per download. Larry Dignan offers more details.

ZDNet Editor in Chief Larry Dignan writes in a Between the Lines blog post:

App prices on Apple's App Store are rebounding 14 percent in 2011 compared to an 18 percent decline in 2010 and the company's average selling price is $1.44. Of that sum, Apple's gets an average of 26 cents per download, according to Piper Jaffray.

Read Larry's post to get the key data points of a research note by Piper Jaffray analyst Gene Munster, who looked at the Apple's App Store economics, which includes the estimate that the average iOS user will download 83 apps in 2011, up from 51 in 2010.

Larry concludes:

Add it up and the App Store will be about 1 percent of Apple's gross profit, or $538 million, in calendar 2011 and be about 24 percent of iTunes revenue.

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Mary Weilage is a Feature Editor for CBS Interactive. She has worked for TechRepublic since 1999.

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