Tomahawk, WI 01/07/2014 (BasicsMedia) – It will surprise to many that Apple Inc. (NASDAQ:AAPL) generated $10 billion from its app store sales. After the surprise, there is now the need to look deep for investment opportunities in the stock. Apple is one the most rewarding stock in the tech industry. The question is whether it has the chance to continue this trend.

As we have seen above, the company managed to register 2013 as its best year for mobile app sales. In fact, December returned the best results in this segment where by app sales exceeded $1 billion in that month alone.

The success of Apple Inc. (NASDAQ:AAPL)’s app store is very much linked to the success of its iPhones, iPads and iPods. The store features more than 1 million different apps, most of which are created by independent developers.

It thus goes that as uptake of iPhones, iPads and all those other devices increase, the app store also stand the chance of realizing better results. In order to ensure overall positive performance of its ecosystem, Apple Inc. (NASDAQ:AAPL) must drive up sales of its various products.

Distribution deals

Apple Inc. (NASDAQ:AAPL) sales more than most of its competitors in the smartphone market because if offers cutting-edge technology. People looking for high-end smartphones almost naturally settle for iPhone. It thus means that the company can continue experiencing sales growth in its ecosystem by boost innovative edge. It is good to report that Apple Inc. (NASDAQ:AAPL) is already doing this through technology acquisition.

The company has cut deals with many distributors globally, and its latest focus has been China where it sealed a distribution deal with China Mobile (CHL). This deal exposes Apple Inc. (NASDAQ:AAPL) to more than 760 million potential customers which has the potential of boosting its ecosystem sales significantly.

Besides China Mobile, Apple Inc. (NASDAQ:AAPL) is also in a distribution deal with other two telecoms operators in China, namely China Telecom and Unicom.

It has become difficult for Apple Inc. (NASDAQ:AAPL) to penetrate the Chinese smartphone market of late due to competition from cheaper smartphone manufacturers. A lot of perception issues have also eaten into Apple Inc. (NASDAQ:AAPL)’s sales in the market. Therefore, these distribution deals are good for its survival in the market.

Android challenge

Google Inc (NASDAQ:GOOG)’s Android is the mobile platform that is giving Apple Inc. (NASDAQ:AAPL) a lot of headache. Most smartphone makers are today adopting this mobile OS, much to the disadvantage of iOS and iOS7 which are the mobile platforms offered by Apple Inc. (NASDAQ:AAPL). The company can deal with the threat of Android by inviting other smartphone makers to manufacture iOS powered devices.

This is the approach that Microsoft Corporation (NASDAQ:MSFT) is trying to employ to popularize Windows Phone. The company is offering incentives like reduced licensing fee for manufacturers who agree to its deal.

Currently Samsung Electronics is also busy working on Tizen OS which will be adopted by an association of mobile manufacturers. It thus means that Apple Inc. (NASDAQ:AAPL) could very well offer its top-notch apps which are usually exclusively available for its devices, to other manufacturers and earn from that arrangement.

Bottom line

Failure by Apple Inc. (NASDAQ:AAPL) to act on time by extending its great apps to other manufacturers can work against it. The surge of Android simply means that some of its best app developers could move to Android based system. And this move will no doubt hurt its app store revenue.

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