The expansion of the Android application store will play a key role in future demand for Android-based Smartphones, with IDC claiming that the current quality of the Apple applications along with their extensive range of free applications is still a big drawcard for consumers.
Mark Novosel, IDC market analyst, said Android applications don’t have the same “quality” feel as the Apple applications. “Apple has better games and better quality applications; however Android applications are maturing and will become very competitive with what Apple is offering”.
Piper Jaffray analyst, Gene Munster, said last night that Apple’s App Store has contributed an estimated $189 million in total gross profits since it was launched in 2008. This represents just 1 percent of Apple’s total gross profit during the same period.
The estimate was calculated based on Apple CEO Steve Jobs’ recent statements that the store has served over 5 billion apps, and paid out $1 billion to developers.
By comparison, the iTunes Store — which includes the App Store but also sells music and video — has generated $3.6 billion in revenue, 12 percent of which can be attributed to the App Store.
Apple has also said that they will delay availability of the white version of its iPhone 4 until the second half of July, contending the white models “have proven more challenging to manufacture than expected.”
