Apple's iPhone App Store is being heralded as a big success with the Wall Street Journal reporting today that in its first month users downloaded more than 60 million applications generating an average of $1 million a day for a total of $30 million for the month. If sales stay the pace, Apple will reap about $360 million a year in new revenue from the App Store.
However, Apple may not derive a lot of profit from the store. CEO Steve Jobs says that the company keeps 30 percent of the proceeds--enough to cover the expenses--with the remaining 70 percent going to the software app developers. But Jobs believes that the applications will help sell more iPhones, just as the music sold through Apple iTunes has made iPods more desirable.
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