App Store revenue likely to double by 2018, generating $20B – IDC/App Annie

Data from IDC and App Annie suggested that both Apple and Google are likely to see their app store revenues doubling within the next four years, reports Re/code. Based on Apple’s 2014 total revenue of $10B, this would suggest that Apple is likely to hit total revenue of $20B in 2018, with developers seeing $14B of it.

“I would consider this projection conservative,” App Annie CEO Bertrand Schmitt said in an interview, noting that the company has consistently been revising its forecasts up over the past two years as revenue has exceeded expectations.

The study also suggested that the trend toward freemium apps, which derive their income from in-app purchases, will continue–though this model is more common on Android than iOS … 

Advertising revenue is important for both platforms, said IDC, accounting for 68% of US mobile app revenue last year.

App Store revenue is likely to be boosted by the launch of the Apple Watch. The first third-party apps were added to the App Store last week in advance of the watch going on sale next month. If you’re eagerly awaiting your opportunity to buy yours, you can find everything you need to know in our Apple Watch FAQ.