According to an expert in the industry, with the overwhelming success of Apple in the mobile technology sector, its growth will go on until it dominates this sector. Despite the introduction of the so-called iPhone killers into the market last year, Apple continued to maintain its overall dominance of the sector of mobile technology worldwide, particularly in the market of mobile applications.
Its Application Store garnered a total revenue of USD 1.8 B for 2010. This is equivalent to an 82.7% total market share. The year previous to this was a bit higher at 92.8%, although Apple is still in the lead despite this decrease discount software .
In the past decade Apple has propelled itself into the same league with the world’s largest technological entities in oem software and hardware. It will likely preserve its present pace by holding on to its tight grip on the mobile technology sector. Apple will ultimately overtake every one of its competitors with its current pace.
In a Bloomberg interview conducted recently, George Colony of Forrester Research, a market analysis company, said that Apple will take advantage of the momentum it made with its perennial 50% and above growth in sales. This is with the view to overtake other big companies in the technology industry that have occupied for decades the top of the food chain, like Microsoft with its cheap windows 7 platform.
Colony reckons that by next year, Apple will overtake IBM, and it will outrun even HP a year after that. Its sales growth was fifty two percent last year. This pace will make it a two hundred billion-dollar revenue entity before long.
Apple has released within the past four years the iPhone and the iPad. The former garnered more than 90 million dollars in sales, while the latter netted sales of almost 15 million dollars in less than a year.
And while Google currently holds a lead over Apple in the market with its smartphone operating system, Apple still has an advantage because it produces and as well as distributes its own mobile devices that are based on its own operating system. In contrast, Google is reliant on the strength of the sales of the original equipment manufacturers of smartphone, such as Motorola, Samsung and HTC, to maintain a significant market presence.
The competitors of Apple managed to catch up a little by introducing user interfaces that are compelling. Nevertheless, Apple still takes a big lead due to its singular success in producing user revenues. This may be due to the fact that the applications of its competitors are mostly free, while those of Apple are not. Apple leveraged its tight control over its environment. It combined compelling content and hardware with the capacity to offer its customers an integrated, simple and trusted billing service through iTunes.
The introduction of the iPad into the market was such a big benefit as well. Although its installed base was small last year in comparison to iPhone, its applications cost higher, thus giving Apple a disproportional share of revenues. It is predicted that within three years, around fifty percent of the revenues of Apple in the U.S. will come from users of iPads.
