Skip to main content

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

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.

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

Author

Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


Ben Lovejoy's favorite gear