Apple's iWork for iPad to generate nearly as much as Google Docs

in iPhone edited January 2014
Apple's popular iWork productivity apps have made the company the biggest developer of iPad apps. Analysis suggests Apple is set to make nearly as much money as Google does from its online Docs.

According to a report by Silicon Alley Insider, Apple's new mobile versions of its Pages, Numbers and Keynote productivity apps are on track to bring in more than $40 million in annual sales.

The figure was estimated by SAI using sales reports by other top ten developers, and makes lots of assumptions about the run rate of app sales. It doesn't figure in the iPad's international expansion or the potential for iPad sales to either level off after satiating demand, or expand dramatically over the course of the year.

SAI contrasted its estimated figures of Apple's iWork app revenues with Microsoft's $4 billion in Office revenues ($2.6 billon of which is pure profit), as well as the $50 million Google makes from its annual, global sales of subscriptions to its online Docs productivity suite.

Apple reported net software sales of $634 million in the first calendar quarter of 2010, or roughly $2.4 billion per year, making software sales and particularly the $10 iWork apps a very minor part of the company's overall business, now reaching toward $50 billion in revenues. Still, Apple's ability to deliver its multitouch productivity suite on time at the iPad launch, and its decision to take on that task itself, indicate an interesting new direction for the company.

Apple's reported earnings for software sales include Mac OS X and its own applications, sales of third party software, as well as sales of AppleCare, MobileMe and other Internet services.

In contrast to its $634 million in quarterly software sales, Apple reported $3.8 billion in Mac hardware sales, $1.9 billion in iPod sales, $5.4 billion in iPhone sales, and $472 million in peripheral sales in the first quarter. Apple also reported quarterly sales of $1.3 billion in "other music related products and services," which includes iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories.

Sales of iWork apps for iPad are therefore likely to be included in the company's reports for "other music related products and services" rather than being grouped in with its conventional retail software earnings.
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