iPad App Market May Hit $1 Billion Per Year Within 2 Years

Apple sold more than 8 million iPhones last quarter. The recently released iPad has sold about 500,000 units since its launch on April 3. Can an app developed solely for the iPad generate a reasonable revenue even at this early stage of the iPad’s release? Based on this Business Insider article, I think the answer is “yes”.

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The article is written by the General Manager of the firm that developed the popular Weather HD iPad app. This 99 cent app hit the Paid Apps top list early and is still hanging in there at #6. Amr Ramadan reports that there were 3500 downloads (sales) on the first day. This went down to sub-1000 (600-800 per day) during the start of the second week of sales. But, downloads picked up on April 13 and seemed to stabilize around the 2000 download per day mark.

While extrapolation from early data is always a bit “chance-y”, I’m not uncomfortable in accepting Amr Ramadan’s prediction that the iPad App Store (separate from iPhone app sales) will reach $1 billion per year within 2 years.