Apple announced today that 1 Million iPhones were sold and 10 Million Apps were downloaded in the first three days. Developers should be thrilled, right? 10 Million is a lot of apps!

When I first read the press release I was genuinely impressed until I started breaking down the stats and thinking about my own experience from the past three days. Ten third-party apps per phone, right? Wrong. Remember, all prior iPhone and iPod touch owners have the ability to upgrade to the 2.0 software which contains the App Store. Even if only 1 Million of that audience upgraded the 2.0 and explored the App Store, the average number of third-party apps per phone cuts in half to just five.

Moreover, based upon my own experience I know that app downloads do not correlate to active usage. For example, Loopt (free) and Cro-Mag (paid) remain idle on my phone. I’m not in love with either app so they are just serving to clutter my home screens.

In the case Cro-Mag got their money so they likely don’t care that I am not using their app. Loopt is different. The app that was built as a means to create a service. One they no doubt hope will be indispensable for an iPhone user thus driving up their valuation. Not the case for me so far.

The App Store is a fantastic delivery vehicle, but quality and utility will be the key to winning the hearts and minds of users.