The Cupertino, California based Apple Inc seems surrendering its smartphone apps lead to Google Inc (NASDAQ:GOOG) diminishing one of the iPhone’s selling points. On February 01 Google closed at a record high while stock of Apple slumped 37 % since its September peak. In the fourth quarter sales of apps from Google doubled from the previous three months. During fourth quarter Apple’s revenue climbed 20 %.
Apple Inc. (NASDAQ:AAPL) is also losing its third party vendors to Google like Ngmoco LLC. The firm used to develop apps for Apple but now prefers to work for Google.
For a considerable period of time Apple enjoyed its leadership in the mobile magazines, games and other tools. Company’s mobile operating system was the most widely used and Apple also took pleasure in leading the smartphone market.
But now Apples seems to lose its pride to Google since the Android launch in 2010 and also getting fierce competition from Samsung Electronics. Last year Google said that in October its Google Play featured 700,000 apps just equal to the number that Apple was standing on.
The App Store was launched by late co founder Steve Jobs in 2008. Last month the company said it has more than 800,000 apps in its online store. Apple releases the update to its iOS mobile software once a year. The software also simplifies purchases by using numerous credit cards in users’ iTunes accounts.
Apple said that in January nearly 40 billion apps have been downloaded from the App Store that gave an enormous revenue of 7 billion US dollars to developers. However in June developers earned 5 billion US dollars.
App developers are making nearly 40 % of their revenue from Google as compared with about 15 % in previous year.
AAPL shares soared 0.66% to $445.25 in pre-market session on Tuesday, GOOG shares soared 0.41% to $762.14 in pre-market session on Tuesday.