We all know the dangers of impulse buying. You are standing at the checkout and the candy bar is in your line of vision and at $1.99 it is almost screaming at you.
You stumble upon a great book title and your Amazon Kindle is in your hand and with a couple of clicks you have just spent $7.99.
That app that a friend has mentioned to you is found in the Apple app store in seconds and without even pulling out your credit card the 99 cent purchase is facilitated in moments.
Welcome to the world of web impulse buying that is painless and convenient.. well, until you get your next credit card statement.
Apple’s business model is more about annuity income driven by impulse buying than the hardware sales. The real gold for Apple is in the sale of $1.99 apps for iPhones and iPads that are created by someone else (no R&D costs for Apple), with Apple receiving a 30% commission and distributed at almost no cost to Apple’s database of over 200 million credit card customers. (It is rumored that Apple now has the largest credit card database in the world and even surpasses Amazon’s).
So after launching just over a year ago in April 2010 where are we now with the Apple iPad.
10 iPad Facts and Figures
- Over 25 million iPads have been sold in 14 months
- More than 15 million iPad 2′s have been sold since March 2011.
- Apple’s iPad is expected to take 83% of the Tablet market in the USA in 2011
- Over 14 Billion apps have been downloaded since the App store opened on July 10, 2008 (less than 3 years ago) with the iPad app downloads estimated at 10% of daily downloads.
- There are over 65,000 apps for the iPad out of a total app database of over 500,000 apps in the Apple store
- The top 3 Free iPad apps are Soundhound, Stick Wars and Flightrack
- The top 3 paid iPad apps are Pandora, Google mobile app and Movies by Flixster
- The average iPad and iPhone user has downloaded more than 60 apps
- The median revenue for the iPad and iPhone app developer per application is estimated at $8,700
- 37 percent of all apps are free with the average price $3.64
Have you succumbed to an impulse buy on your Apple iPad and iPhone?
Image by t.miyakawa2449