iPhone App Revenue: Despite the fact that Apple Inc. (NASDAQ:AAPL) may not own as much of the mobile phone market share as it would like, there is one thing that will never change: the Cupertino-based company is responsible for the growth of the global app market.
Apple is actually the smart money’s second favorite publicly traded company (see why it’s important to pay attention to hedge fund activity).
This industry is doing big things, and it is safe to say that things are going to stay this way well into the future.
It has been just about five years since Apple Inc. (NASDAQ:AAPL) got things started. This is often times hard to believe when you consider how far things have come in a relatively short period of time. For example, both Apple and Google have an app store with more than 700,000 each.
According to a story in the Wall Street Journal, app revenue is taking off:
“With so many apps to choose from, consumers are estimated to spend on average about two hours a day with apps. Global revenue from app stores is expected to rise 62% this year to $25 billion, according to Gartner Inc.”
AppleInsider took things one step further by analyzing additional data reported by Gartner, Inc. They found that there is “some churn in the app market as well, with 63 percent of daily used apps being different from daily used apps from a year ago.”
In other words, it appears that a lot of people are chasing after the next big thing. The apps they use today are not going to be the same ones they use tomorrow.
Five years ago, it would have been hard to imagine that global app revenue would be closing in on $25 billion. However, this is the direction the industry has gone and continues to head.
What are your thoughts on this? Do you think Apple Inc. (NASDAQ:AAPL) is well positioned to take advantage moving forward? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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