News
Apple's $1.2bn App Store goldmine?
Tim Green Jun 12 2008, 12:25pm
Analysts predict the Apple App Store could become a $1.2 billion business by 2009.
AppleInsider reports investment bank Piper Jaffray telling investors to give the Apple software announcement as much attention as they give Apple hardware announcements. Its analyst Gene Munster paints three scenarios in which the App Store adds between one and three per cent to Apple’s more operating income by the end of 2009.
One scenario assumes 77.7 million App Store users will buy and download at least two applications from the App Store each year at an average revenue per application of $10 (with one download being free).
This amount of usage would generate sales of around $777 million with a profit of $163 million.
Munster said: “Mobile service adoption rates show that iPhone owners are more sophisticated mobile users, likely a result of both the user profile and the device itself. The bottom line is that we expect similar adoption of the App Store to other advanced services.”
