App Store Market Worth Nearly $2.5 Billion Per Year?

Mobile advertising firm AdMob has released its July 2009 Mobile Metrics report along with a supplemental presentation in which the company reveals the results of a survey of over 1,100 iPhone, iPod touch, and Android users to obtain data on application usage. The study reveals that iPhone users download approximately 10 applications per month on average with 25% of those being paid applications. iPod touch users download over 18 applications per month on average, with only two of those being paid applications.


The study also found that approximately 50% of iPhone users download at least one paid application per month, while only 40% of iPod touch users do likewise. Users who do download paid applications average approximately five paid downloads per month and spend an average of $9.49 (iPhone) or $9.79 (iPod touch) per month for an average application price of just under $2.00.

Extrapolating the survey data to the estimated user bases of 26.4 million iPhone users and 18.6 million iPod touch users, AdMob suggests that the total App Store market size may be nearly $200 million per month, or approaching $2.5 billion per year. In contrast, the Android market is estimated at approximately $60 million per year.


AdMob's survey method of soliciting respondents via ads within its own network, which serves 7,000 mobile web sites and 3,000 applications, may skew the survey results somewhat by attracting users more likely to be engaged in mobile applications, but the results do still provide an idea of the substantial market for App Store developers and Apple itself.

Written by Eric Slivka

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Analyst: Apple Likely to Sell 5 Million Copies of Snow Leopard This Quarter

In a note to clients released this morning, Piper Jaffray research analyst Gene Munster estimated that Apple will sell approximately 5 million copies of OS X Snow Leopard during the remainder of this quarter. Apple announced earlier this morning that the new version of the company's operating system will go on sale this Friday, August 28th.

Munster calculates an average selling price for Snow Leopard of $22, considering the product mix of Leopard upgrades ($29) and "Up-to-Date" purchases for those who have purchased a new Mac since June 8th ($9.95), yielding approximately $110 million in gross revenue for the quarter and about $66 million in net profit based on an estimated 60% profit margin. That result would add approximately $0.05 per share to Apple's earnings for the quarter, although Munster believes that that contribution is already factored into analyst's estimates for the quarter, as pricing and the estimated release date have been known for some time now.

Munster also sees OS X Snow Leopard as relatively minor upgrade, but one which that will allow Apple to position it as a value-priced upgrade for existing users and cutting-edge technology for new users against the "antiquated technology" of Windows users stuck on XP and Vista who are beginning to think about the upgrade path for Windows 7.

Apple sold two million copies of Mac OS X Leopard during its launch weekend in October 2007.

Written by Eric Slivka

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August 28th launch for Snow Leopard

It was announced today by Apple that Mac OS X 10.6 Snow Leopard will be put on sale this Friday, August 28th.

"Snow Leopard builds on our most successful operating system ever and we're happy to get it to users earlier than expected," said Bertrand Serlet, Apple's senior vice president of Software Engineering. "For just $29, Leopard users get a smooth upgrade to the world's most advanced operating system and the only system with built in Exchange support."

If you are a current Leopard user, the upgrade will cost $29 for a single use. It will cost $49 to buy the family pack. If you running Mac OS Tiger or earlier, then you will have to buy the Mac Box Set which includes Snow Leopard, iLife '0 and iWork '09 for a total price of $169.

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