App Store revenue likely to double by 2018, generating $20B – IDC/App Annie

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Data from IDC and App Annie suggested that both Apple and Google are likely to see their app store revenues doubling within the next four years, reports Re/code. Based on Apple’s 2014 total revenue of $10B, this would suggest that Apple is likely to hit total revenue of $20B in 2018, with developers seeing $14B of it.

“I would consider this projection conservative,” App Annie CEO Bertrand Schmitt said in an interview, noting that the company has consistently been revising its forecasts up over the past two years as revenue has exceeded expectations.

The study also suggested that the trend toward freemium apps, which derive their income from in-app purchases, will continue–though this model is more common on Android than iOS … 

Advertising revenue is important for both platforms, said IDC, accounting for 68% of US mobile app revenue last year.

App Store revenue is likely to be boosted by the launch of the Apple Watch. The first third-party apps were added to the App Store last week in advance of the watch going on sale next month. If you’re eagerly awaiting your opportunity to buy yours, you can find everything you need to know in our Apple Watch FAQ.

Filed under: AAPL Company, Developers Tagged: AAPL, Android (operating system), App Store, App Store (iOS), Apple Inc, Apple watch, Google, Google Play, iOS

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App Store revenue likely to double by 2018, generating $20B – IDC/App Annie

hero

Data from IDC and App Annie suggested that both Apple and Google are likely to see their app store revenues doubling within the next four years, reports Re/code. Based on Apple’s 2014 total revenue of $10B, this would suggest that Apple is likely to hit total revenue of $20B in 2018, with developers seeing $14B of it.

“I would consider this projection conservative,” App Annie CEO Bertrand Schmitt said in an interview, noting that the company has consistently been revising its forecasts up over the past two years as revenue has exceeded expectations.

The study also suggested that the trend toward freemium apps, which derive their income from in-app purchases, will continue–though this model is more common on Android than iOS … 

Advertising revenue is important for both platforms, said IDC, accounting for 68% of US mobile app revenue last year.

App Store revenue is likely to be boosted by the launch of the Apple Watch. The first third-party apps were added to the App Store last week in advance of the watch going on sale next month. If you’re eagerly awaiting your opportunity to buy yours, you can find everything you need to know in our Apple Watch FAQ.


Filed under: AAPL Company, Developers Tagged: AAPL, Android (operating system), App Store, App Store (iOS), Apple Inc, Apple watch, Google, Google Play, iOS

Continue reading more about AAPL Company, iOS, and App Store at 9to5Mac.

What do you think? Discuss "App Store revenue likely to double by 2018, generating $20B – IDC/App Annie" with our community.

U.S. ITC to Investigate Apple After Ericsson Patent Infringement Claims

ipad_iphone_ios_8The ongoing conflict between Apple and Ericsson escalated this afternoon as the United States International Trade Commission (ITC) agreed to launch an investigation into claims that Apple infringed on as many as 41 of Ericsson's cellular technology patents with its iPad and iPhone devices, reports PCWorld.

Apple and Ericsson first clashed in January, after the expiration of a 2008 licensing agreement between the two companies. Despite two years of negotiations, the companies failed to establish a new agreement that would let Apple use Ericsson's cellular technology patents.

Apple filed a complaint suggesting Ericsson was both demanding excessive royalties for LTE patents and wrongly claiming its patents as essential for the LTE wireless communication standard. Ericsson responded with its own complaint, asking the court to determine whether its licensing fees were fair.

Ericsson's cellular technology patents are considered essential and are subject to fair, reasonable, and non-discriminatory terms (FRAND). According to Ericsson, the licensing deal it offered Apple (estimated to be between $250 million and $750 million annually) was reasonable, but Apple disagreed.

In February, Ericsson went on to file seven new lawsuits against Apple and two complaints with U.S. ITC in an effort to prevent Apple from selling products in the U.S., which is what led to today's ITC investigation. Companies often file complaints in district court and with the ITC simultaneously as the ITC moves faster and has the ability to block products from being sold in the United States. The looming threat of a product ban can accelerate licensing negotiations.

Should the International Trade Commission's investigation find that Apple infringed on Ericsson's patents, it could potentially lead to an exclusion order preventing the infringing products from being sold in the United States until the dispute is resolved.


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