After the launch of App Store in 2008, Steve jobs gave an interview to The Wall Street Journal. In honor of the recent anniversary of the App Store, WSJ published a full version of the conversation.
The interview was recorded in August 2008, a month after the launch of the App Store. Even then, the success of the store surprised the jobs. He said that Apple didn’t expect the App Store will be “so big”. “The mobile industry has never seen anything like it”, he added.
While the App Store had more than 1,500 applications. Most of them were paid. According to jobs, “Apple has no recommendations for developers on pricing”. Jobs himself downloaded 50 applications per day. He also noted a record number of downloads, and compared them with the downloads in iTunes.
Users have downloaded over 60 million applications from the App Store for the first 30 days. 30% more than the number of downloaded songs from iTunes for the same period.
Then he explained what it means for developers.
Total income [App Store] was 30 million USD for the first 30 days. Developers received 70% of these funds — $ 21 million.
Jobs was genuinely surprised at the success of the App Store. He was in no hurry to make long-term predictions, but was thinking that the App Store could ever achieve revenues in the amount of one billion dollars. As of July 2018, Apple has paid developers $ 100 billion.
Who knows? Perhaps at some point it will be a billion-dollar market. It doesn’t happen often.
In an interview, jobs said that he didn’t expect that the App Store will be a big profit generator. However, he was wrong. According to the financial report of Apple for the second quarter of 2018, the category of “Services”, where a significant part is the App Store, brought the company of 9.19 billion dollars. It is comparable to the size of the Fortune 100.
In addition to the story about the success of the App Store, jobs said that “the phone of the future will be to distinguish between software”. That prediction came true, because today, many smartphones have the same set of features, and distinguishes them mostly operating system.