Apple Inc Continues US Smartphone Market Share Dominance as App Store Generates Over $10 Billion in Sales

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By Reissa Su | January 8, 2014 7:39 PM EST

Apple Inc continues to enjoy an increasing market share in the United States based on comScore's latest survey. The analytics firm reported that Apple has a 41.2 per cent market share as the leading Original Equipment Manufacturer (OEM) in the U.S. from Sept. to Nov. 2013. The figure is a 0.5 per cent increase from its previous market share in the August quarter of 2013.

Reuters
The gold colored version of the new iPhone 5S is seen after Apple Inc's media event in Cupertino, California September 10, 2013.

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Rival Samsung Electronics came in second place with a 26 per cent market share. However, Samsung had the fastest growth in the same period at 1.7 per cent compared to Apple's 0.5 per cent for the August quarter.

Other OEMs like LG Electronics, Motorola and HTC had a declining market share in the U.S.

Google's Android remained the leading OS with a market share of 51.9 per cent compared to Apple Inc's 40.7 per cent.  comScore's data is based on installed user base which means it reflects real-world usage compared to data from new handset sales.

App Store generates total sales of over $10 billion

Aside from selling more iPhones and iPads during the holiday season, the company is also selling more apps in the App Store. In 2013, the App Store sold apps worth over $10 billion. Apple takes 30 per cent of all app sales and has acquired more than $3 billion in revenue.

The latest milestone is reflective of the iPhone and iPad cycle. When an Apple device owner begins to buy apps or make in-app purchases, he or she is more inclined to buy a new Apple device in the future. Spending money in the App Store can help strengthen a user's ties to Apple's iOS.

The $10 billion from app sales is only a small fraction of the $91 billion iPhone sales generated in the fiscal year ended in September 2013. Apple Inc has previously said December was going to be the strongest month for the App Store.

Since 2008, iOS developers have earned $15 billion from the App Store which suggests total sales of more than $21 billion. The first few years of the App Store and Apple's lead in the smart phone market have prompted developers to launch their apps in the iOS platform first. Some apps were available exclusively on the App Store. This gave Apple an edge over Google's Android OS.

However, this app dynamic has since shifted since the market share of Android-powered devices continues to grow. According to Piper Jaffray analyst Gene Munster, app usability and quality are no longer critical factors when differentiating Apple iOS and Android. Mr Munster reported user experience and app quality between the iOS and Android was a "virtual tie."

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(Photo: Reuters / )
The gold colored version of the new iPhone 5S is seen after Apple Inc's media event in Cupertino, California September 10, 2013.
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