How much is Apple earning from apps?
There is an app for almost every conceivable task that you can perform using a gadget. This is the USP of the iPhone. The apps enhance its utility to the users for various reasons. The varied apps could well be the main reason for its burgeoning sales. A question often asked is how much are Apple’s earning through the apps?
Analyst Toni Sacconaghi has estimated the revenue at $150 million per year. However this could look small when compared to a six monthly sales figure of $2.8 billion in the six months of iPhone sales. The first point to note is that the earnings are by way of commissions and there are no overheads since software development costs are borne by the developers.
The basic advantage Apple has over its competitors is the large number of apps, almost 50,000 that are already being marketed when just a few thousand are in use by RIM and others. The apps enhance the utility of the phone and also act as ambassadors for the iPhone.
This may also be a reason as to why Apple spends the least on Research and Development when compared to RIM, Microsoft, Motorola as well as Palm. The apps make its R & D more focused and narrowed down to implementation. So the app industry appears to be heading for big time ahead.
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