Thursday, June 12, 2008

IPhone, iPod Apps worth more then Facebook apps

According to Investment bank Piper Jaffray, Apple’s AppStore could emerge as $1.2 billion. Wow, this sounds like there is a huge potential in this arena. Now that iPhone is going to be launched in more than 70 countries. The number of user owning an iPhone shall be humongous. I always believed in the potential of iPhone apps. Despite the fact that even I don’t believe the billion dollar shit, Nevertheless, there is still a huge revenue generation potential in these iPhone apps. Well, at least its better than building apps for facebook, which has been a big failure so far .

Analyst Gene Munster predicts a billion dollar based on better of the three possible case scenarios he came up with. In total, the three scenarios have the App Store adding 1% to 3% more operating income to Apple by the end of 2009.

Here is how Munster’s arrived at the numbers; His assumption is that 77.7 million active App Store users will download two applications from the service each year at an average app revenue per sue of $10 -- one free and one costing $10 -- generating sales of about $777 million and a profit of $163 million. This is a very conservative numbers. So if you top this with higher adoption rates around 95 percent (or 80.8 million active users) -- which would bump revenues to $1.21B and profits to $254 million.

Apparently, there are conflicting iPhones sales predictions for 2009. Off course piper is way too aggressive with his numbers. Check out the picture below (courtesy techcrunch)

So folks if you are busy building apps for social networking platforms, which has not been a smooth ride; building something for iPhone should be a game changer. (I need to buy a MAC and start playing around with iPhone SDK)

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