Citibank: Apple’s App Store will generate $2 billion in 2011

By on Dec 31, 2010 at 11:31 AM
mobile December 31, 2010

Apple’s App Store has been a driving force behind the revitalized app economy ever since it first launched. According to Citibank, the App Store’s dominance won’t be slowing down anytime soon. In its U.S. Internet Stock 2011 Playbook, Citibank estimates that Apple will pull in up to $2 billion in gross revenue next year via the App Store. And if research firm Gartner’s forecasts are accurate, that number could be low. Gartner believes the global app market in 2010 totaled $4 billion, and that revenues will climb to a staggering $27 billion over the next two years. The growing popularity of smartphones is obviously seen as a major contributing factor to the exploding app market. According to Citibank, smartphone sales grew 53% in 2010 — though growth is expected to slow in 2011 to 29%.

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  • http://www.facebook.com/profile.php?id=1001483324 Gerry Quaglia

    Just another reason why Apple > RIM. RIM doesn’t think apps are needed and would rather rely on web apps instead.

    • Plo Koon

      Not one mention of RIM and here you are hating on RIM.

      RIM has a more profitable revenue stream. Recurring monthly revenue from 55 million customers is not chump change. Anything from the App World is just a bonus.

      • http://www.facebook.com/profile.php?id=1001483324 Gerry Quaglia

        Yeah, from cranking out cheap o phones to 3rd world countries. In U.S. they are dieing slowly.

      • guest

        at least they make PHONE CALLS!!

      • Drew

        You’re delusional….

      • Plo Koon

        That’s interesting. Which 3rd world countries are you referring to? Canada? RIM base still growing. Key markets in Europe (i.e. UK) and Middle East? Ditto. The LATAM region? Exponential growth. The Asia Pacific region? Similar trend to the LATAM region.

        So, you see, as important as the US market is (or may be), the rest of the world will be even more crucial for the success of global companies like RIM and Apple. You may scoff at “low” end products but when it comes to penetrating not-so-prime-but-will-be-in-the-near-future markets, it will be a critical advantage (and, god knows, RIM will need this advantage)

        Of course, all this makes zero sense to you because you refuse to believe that people make choices based on needs and preferences (and what they can afford).

        Try not to hate RIM too much. RIM’s successful and it fulfills needs that Apple doesn’t. Now, isn’t that good for humanity?

  • RH

    2 Billion, at 99 cents to 3-4 bucks at a time.
    Software vendors (Microsoft, Adobe) could take a cue. Pull in more money, buy reducing the price just a bit.

    • Anonymous

      MSFT revenue is over $60 billion. They should reducing their prices to get their revenue down to $2 billion? And how would that make any sense whatsoever?

  • Tee

    Norm says, “DROID market will generate 2.1 billion in 2011. Why? Because DROID Does.”

    Did I get it right Norm? ;-)

    • Norm

      Were you reading my mind? I was out to lunch…but I appreciate someone picking up the slack for me.

    • Goofan (aka Apple Hater)

      Impressed with the insight Tee! You are definitely a Goofan (aka Apple Hater)! Proud of you brother/sister!

  • Allaboutapps

    I bet pocketgear/handango is making mad money!

  • Norm

    This is nothing compared to DROID apps. DROID is selling TRILLIONS of apps daily.

    • Goofan (aka Apple Hater)

      AND…

      Apps in the marketplace find equal apps that you like and automatically installs them for you and if what you are looking for doesn’t exist, the Android Marketplace Wizard will ACTUALLY develop the app for you ON THE SPOT.

      In addition, remember, no matter if you have 5 or 5,000 applications you can run them ALL at the same time without consuming ANY battery. Try that iPhone!

    • STL

      and Droid has 150% marketshare also

  • Mgl323

    Developers will have higher interest to develop for the iOS platform if this happens.

  • VladimirPootin85

    Yikes…I need to learn how to develop apps like right now.

    • $320AShareMakesMeGrin>8-)

      Just make sure you don’t develop for Android or you’ll have to build a separate app for every vendor and carrier thanks to Android built-in fragmentation feature. Open=Chaotic

  • Scott

    And until Google can figure out how to control and lock down the purchased apps, those developers will not be seeing the kind of cash that iOS brings. I would also put that to the reason why Android games have been lacking (they’re getting better, but still behind).

    • Goofan (aka Apple Hater)

      That is because Android Marketplace is OPEN dummy! We Goofans (aka Apple Haters) understand that the OPEN model doesn’t include us (we are also developers) making money… Because Google doesn’t charge for stuff. All their stuff is FREE.

      • $320AShareMakesMeGrin>8-)

        I’m sure Google shareholders just love Google’s business strategy. Give everything away for free for a viable revenue stream. D’uh. Major fail. Goofans, no. Goofballs, yes.

  • Anonymous

    It’s crazy to think at the amount of money generated by these apps. I had an iphone 4 for about 5 months before it got stolen and I easily spent $100 on apps during that time, but it never felt like a lot of money.

    It’s all about lots of micro-transactions I guess.

  • Guest

    Isn’t it great that you can have a fancy title and make ridiculous statements about the future that are impossible to predict?

    I think it would wonderful for apple to make this goal, but it’s just idiotic to believe or care what Citibank says. I could easily come out and pick another number and it won’t matter any differently. I just don’t see the point of the announcement or article and why it deserves attention….

  • Anonymous

    27 billion is a crazy number, and doesn’t seem to make sense.
    i highly doubt it will get to 27 billion in just two years.
    best free iPad Apps

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