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 IPHONE NEWS

Analysts: iPhone piracy costs Apple and developers $450 million

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Product: iPhone news | Manufacturer: Apple
 
iPhone news iPhone, thumbnail 1
According to the 24/7 Wall St. report, it’s estimated that Apple and its App Store developers have been duped out of a combined total of roughly $450 million in pirated versions of applications.

Despite their having been over 3 billion downloads since the App Store's launch in July 2008, it’s estimated that only 17 per cent of these were paid applications.

Current paid applications have a piracy rate of roughly 75 per cent, with some developers reporting as much as 90 per cent - notably Fishlabs’s Rally Master Pro, which suffered a 95 per cent piracy on its first day.

Considering the average price for an application is $3, Bernstein analyst has Toni Sacconaghi estimated a total loss of $4.59 billion dollars split between Apple and developers.

However, this number comes with the highly dubious assumption that those pirates who downloaded the application for free would’ve also paid for the app if a pirate version wasn’t available.

A more reasonable estimate of those who would’ve spent money in the App Store is 10 per cent, leaving an entirely more plausible loss in revenue of $450 million.

Despite the loss in revenue, Apple has been uncharacteristically stoical on the subject, taking no major steps towards a solution.
 

Reviewer photo
Tom Love 14 January 2010
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Anonymous | 01:35 - 15 January 2010
just because people pirate a game does not mean they would have bought the original. Scaremongering by apple. They have not released how much they have made but you can be assured it is in the high billions. It they were losing so much they would make it so it doesnt happen..FACT.
Joined:
Dec 2008
Post count:
1339
klouud | 16:36 - 14 January 2010
@ William

True bad is better than worse... but bad is still... BAD. There is always room for improvement.

The bottom line is that Apple needs to protect developers better.
Anonymous | 15:38 - 14 January 2010
@klouud: no use since the apps are not from the appstore anymore when cracked. even better you dont need a appstore account to use those pirated apps.

@mad finger games: good point and true. But people will always find a way, as everyone knows.
Joined:
Dec 2009
Post count:
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MADFINGER Games | 14:22 - 14 January 2010
You know Tim when people are not able download ANY warez game, they will be "forced" to buy at least some of them...

Joined:
Dec 2009
Post count:
8
MADFINGER Games | 13:46 - 14 January 2010
They shoud ask sony, what they did with PSP 3000 and ask for help ...
Anonymous | 13:32 - 14 January 2010
i know how the cracked apps work. all pirated applications and games wouldnt work anymore if they changed the way of security in the app store. make a more advanced system, like cd keys in online games...
Almost impossible to crack.

But it seems apple does not believe in locking piracy up.

Although they do try to improve security to prevent jailbreaking in every new iphone/ipod.
 
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