I don't know if Apple's last quarterly announcement spoke to a saturation of the high end market or not. I don't know if Samsung's reduction of the just released Galaxy S4 spoke to the same thing. But there is a change in the buying habit of the smartphone market that could be bigger than just the top end.
But looking at Apple's iTunes revenue growing of 25% to nearly $4 billion, you have to take notice. It's likely that Amazon and Google saw some kind of growth that points to a shift in how they see their apps/mobile ecosystem.
More so than Apple, at least in the beginning, Google likely saw Google Play as a source of direct revenue and profit than Apple. Apple wanted to sell iOS devices and Macs and it's iTunes ecosystem was to be an integral part of that. It was mean to operate at a break even point only. But as revenue exploded, it's like iTunes has added to the billions in cash that Apple gets every year.
For Amazon, it's Kindle ecosystem was mean to get people hooked in and continue shopping with it. More and more, its own ecosystem is valuable as an avenue to direct profitability.
This comes to my point. These operators of App Stores will rely more and more on them as perpetual sources of income so long as their mobile users, be it iPhone, Nexus, or Kindle, continue to spend $.99 for an app or $1.99 for a TV show. All of that adds up.
It'll be interesting to get some kind of color on how much each mobile user spends after buying a phone or tablet. As the market matures and the app buying experience becomes more prevalent, the revenue Apple and Google will generate from each user will only increase.
- Posted using Mobile
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