Apple Inc. introduced its famous Apps Store in the hopes that it would increase iPhone Sales. But it did much more than that. In its first year of operation, the Apps Store became the first Smartphone maker to report one billion downloads. Six month later it reported another billion downloads. Three months after that they announced another billion downloads.
In spite of these incredible sales statics, the company maintains that apps are nothing more than a sideline business. But recent revenue reports all but invalidate these claims. According to the latest figures, Apple is earning a thirty percent commission on every application users download from its site. That means that the company is bringing in at least a half a billion pounds on apps each year.
At present, Apps account for nearly five percent of the company’s annual revenues. This percentage has quadrupled since the Apps Store opened in 2007. It also makes the Apps Store the company's most successful website. Its predecessor, the iTunes Store, took twice as long to post half the profit.
What is the appeal? The Apps Store was not the first website to offer Smartphone applications. However, Apple was the first company to truly embrace applications as a way to move the industry. In its first year alone, the company introduced over twenty-five thousand new apps, which is more than any other Smartphone maker offered. Today, the company has an expansive catalogue of over one-hundred thousand applications.
Apple has also done an admirable job of promoting its site. The Apps Store is a popular destination for anyone who is interested in buying a Smartphone. They also offer members over five thousand free applications.
