Apple Leads App Market That May Bring In $3.8 Billion in ’11
May 03, 2011, 6:24 PM EDTBy Adam Satariano
(Adds App Store information in third paragraph.)
May 3 (Bloomberg) -- Apple Inc., Google Inc. and other makers of smartphone operating systems may generate $3.8 billion this year from sales of downloadable games, organizational tools and other applications, according to researchers at IHS ISuppli.
Sales of apps from stores run by Apple, Google, Nokia Oyj and Research In Motion Ltd. will rise 78 percent this year from $2.1 billion last year, the El Segundo, California-based research firm said. The total may reach $8.3 billion in 2014.
Apple pioneered the app industry and accounts for more than three-quarters of revenue, even as Google grows faster. Apple’s App Store will bring in $2.91 billion in revenue in 2011, up 63 percent from last year, spurred by the popularity of the iPhone and iPad, ISuppli said. Google’s Android service will almost quadruple to $425.4 million, putting it on pace to be the second-biggest application store.
The surge in application sales is leading companies such as Time Warner Inc., Walt Disney Co., News Corp. and New York Times Co. to adapt their content for smartphones and tablet computers. The app market also has spawned successful startups, including Rovio Mobile, the maker of “Angry Birds.” Earlier today, Electronic Arts Inc. announced the acquisition of Firemint Pty, the Australian maker of mobile games such as “Flight Control” and “Real Racing.”
By the end of the year, total app downloads will reach 18.1 billion, ISuppli said. That’s up from 9.5 billion last year and 3.1 billion in 2009.
The popularity also has led to a legal fight over the word “app.” Apple has sued Amazon.com Inc., saying it has a trademark for “App Store” when used to sell software applications for mobile devices.
--Editors: Nick Turner, Jillian Ward
To contact the reporters on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
