Thursday, January 8, 2015

Apple's App Store Is The Secret Sauce

Apple recently announced its iPhone 6 sales and the increase in share in the smartphone market.  But whether it is the iPhone or iPad or soon to be released Apple Watch, what makes these products run are applications and content.  And with iTunes and the App Store, this software marketplace offer s the fuel to make Apple's technology that much more valuable. 

Apple certainly knew the value of the App Store and we know too.  According to Mashable, "Apple says billings for its App Store jumped 50% year-over-year in 2014, suggesting App Store sales totaled at least $15 billion for the year, based on the more than $10 billion in sales it did in 2013." How many companies would love to have a $15 billion dollar business that is growing at a rapid rate.  And with new iPhones and other new products on the way in 2015, the App Store should only continue to excel.  What is also amazing is that this little side business must have a huge margin with minimal operating costs. 

And despite not being a huge percentage of Apple's total business, it is becoming a substantial one on its own.  As more consumers embrace the Apple ecosystem, more consumers will rely on the online Apple store for software applications and content to keep running their technology.  And that is what the secret sauce is all about.

1 comment:

  1. Apple certainly knows how to do business and make money. Those software apps are definitely the secret sauce.