Apple leads the apps market

Apple Inc, Google Inc and other makers of smartphone operating systems may generate $3.8 billion this year from sales of downloadable games, organisational tools and other applications.

Sales of apps from stores run by Apple, Google, Nokia Oyj and Research In Motion Ltd will rise 78 per cent this year from $2.1 billion last year, the El Segundo, California-based research firm said. The total may reach $8.3 billion in 2014.

Apple pioneered the app industry and accounts for more than three-quarters of revenue, even as Google grows faster. Apple’s App Store will bring in $2.91 billion in revenue in 2011, up 63 per cent from last year, spurred by the popularity of the iPhone and iPad. Google’s Android service will almost quadruple to $425.4 million, putting it on pace to be the second-biggest application store.

The surge in application sales is leading companies such as Time Warner Inc, Walt Disney Co, News Corp and New York Times Co to adapt their content for smartphones and tablet computers. The app market also has spawned successful startups, including Rovio Mobile, the maker of “Angry Birds.”

By the end of the year, total app downloads will reach 18.1 billion. That’s up from 9.5 billion last year and 3.1 billion in 2009. The popularity also has led to a legal fight over the word “app.” Apple has sued Amazon.com, saying it has a trademark for “App Store”.