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The Shape of the App Store

Charles Perry, analyzing App Store revenue numbers:

To provide some context to the results, you may be familiar with the Pareto distribution. It’s the origin of the classic “80-20 rule” that’s used to explain so many phenomena that obey a power law. “Twenty percent of the people in an organization do eighty percent of the work.” “Twenty percent of the population control eighty percent of the wealth.” You hear these types of statistics a lot, but they’re usually not very accurate. Often, they are useful as a first estimate at best. So I didn’t actually expect App Store revenue to obey the 80-20 rule. In fact, I expected it to be a much sharper curve, representing even greater disparity in the distribution of revenue than the 80-20 rule would suggest — maybe a 90-10 split, or even a 95-5 split. As it turns out, the revenue distribution curve of the App Store is even sharper than I imagined.

(Via Michael Tsai.)

Monday, 26 January 2015