“Ever since the Apple iPhone was launched, in 2007, investors have been able to set their phones’ clocks to a Christmas rush for apps,” Dana Blankenhorn reports for TheStreet. “The big news this Christmas was that the rush slowed down. Flurry, a mobile measurement company, reports that Christmas app downloads were up only 11% from a year ago.”
“It’s true that overall app sales were up 25% throughout December compared with 2012, but it adds up to a maturing market, at least in the Western Europe and English-speaking countries Flurry tracks,” Blankenhorn reports. “Monetization occurs when a phone or tablet owner decides to buy, not just download, a new app for their product. And when it comes to monetization Distimo, another device analytics company, has a word for you. That word is Apple.”
“Distimo’s estimates are that Apple’s app revenue rose 56% during December from a year earlier, which is even better than the 53% growth in downloads,” Blankenhorn reports. “These are global numbers. Figures were even more impressive if you look at developed countries. Apple’s app revenue was up 97% in the U.S., and 161% in the U.K… What all this tells me is that you should be buying Apple stock with both hands. Its price-to-earnings multiple, based on past earnings, remains around 14, and is less than half that for Google, now standing at 32. The chances for an upside surprise when Apple next reports earnings is high. Apple seems to be winning the second-generation phone war with Google…”
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