Successful iPhone App Developer Actual Income Numbers

Apple announced that during the first week of January 2015, over $500 million was spent on app and in-app purchases. Apple takes a 30% cut, so that means $350 million was paid out to developers that week. Since inception, Apple iOS developers have earned over $25 billion. Many computer programmers idly dream about quitting their day job and making apps for a living. Marco Arment, creator of Instapaper, has decided to share his revenue stats for the newest app, Overcast (I use both apps regularly).

He also links to four other apps that shared revenue numbers, and I dug around for a few more. Here are all the links to app-specific stats:

• Overcast (podcasting)
• Unread (RSS reader)
• Dash (developer tool)
• Monument Valley (game)
• Flower Garden (game)
• My Eyes Only (personal data security manager)
• HoursTracker (time tracking tool)

It’s hard to generalize these numbers, as the revenue can be very bumpy and some apps are developed by teams instead of individuals. Based on this Forbes article, on the Apple App Store developer, the average app takes in $4,000 of revenue. I don’t know how useful that number is, given that according to this different iOS game revenue survey, the median lifetime revenue for participating developers was $3,000 while the arithmetic mean was $165,000 (only a relative few make the big bucks). The NY Times profiled a couple who would have made $200,000 from their old jobs, but instead spent the time creating apps which made less than $5,000. Then again, lots of people are just dabbling.

I certainly wouldn’t expect the average developer to reach Marco Arment’s numbers as he definitely has well above-average skills, but as with most entrepreneurial pursuits you’re going to have to take some risks to try and make it. I definitely understood the sentiment behind the last part of his post:

Overall, I’m very satisfied with Overcast’s finances so far. It’s not setting the world on fire, but it’s making good money. For most people, the App Store won’t be a lottery windfall, but making a decent living is within reach for many.

After the self-employment penalties in taxes and benefits, I’m probably coming in under what I could get at a good full-time job in the city, but I don’t have to actually work for someone else on something I don’t care about. I can work in my nice home office, drink my fussy coffee, take a nap after lunch if I want to, and be present for my family as my kid grows up. That’s my definition of success.