Just how big is the App Store?

Gene Munster from investment bank Piper Jaffray is predicting that Apple’s App Store could one day become an over one billion dollar industry. However, this prediction is just one part of his three case scenario in which Apple could see anywhere from a 1 to 3% operating income increase. According to Munster, one of the key reasons this may happen is that, “Mobile service adoption rates show that iPhone owners are more sophisticated mobile users, likely a result of both the user profile and the device itself. The bottom line is that we expect similar adoption of the App Store to other advanced services.”

Munster believes the App Store is going to bring tons of games, which will help make the iPhone a player in the mobile gaming market and increase the usage of the App Store. “Applying this 70% higher likelihood to the rate of game usage for smartphones, we arrive at 75% of iPhone users engaging in downloading third party applications,” he added. I have to agree. With the outstanding accelerometer in the iPhone and pretty great graphics, it looks very attractive to a certain type of gamer. Finally, he closes by saying Apple’s stock is going to reach around $250 and that you should definitely buy.

Via [AppleInsider]