According to Citibank’s US Internet Stock 2011 Playbook, Apple will generate as much as $2 billion in gross app revenue in 2011. The report quotes Gartner who projects the total app market hit $4 billion in 2010 and should hit $27 billion by 2013.
The biggest driver now is smart phone penetration. Sales grew 53% in 2010 and Citibank expects it to grow another 29% in 2011 and stay in the mid-20% growth range through 2013. ( Editor's Note: But tablets, hybrid devices, and connected TVs will push the App market even further in 2011-2013.)
The report says Android is already making $1 billion in revenues and Citibank expects that could double next year– surpassing YouTube (and the entire online video category).
But as you'll see by the next post...some analysts think these market numbers are WAY TOO LOW...and if Citibank is not asleep, they must at least blinking to miss this.