Apple Inc. (AAPL) Has a Big Apps Advantage: Google Inc (GOOG), Amazon.com, Inc. (AMZN)

The Valuable Apple User

Even if it has been left behind by Android on a global basis, Apple Inc. (NASDAQ:AAPL) is still the market leader in countries like the US, and according to data from several sources, iOS users are more likely to engage in activities like online shopping or watching streaming video.

Maybe it’s due to the fact that iOS devices attract more early adopters, or because they have a customer base with higher average income levels, or perhaps it has to do with design and user experience. Regardless of the causes, usability tends to be higher in iOS products.

Web browsing, watching video or shopping online are activities which are more frequent in iPhones and iPads than on any other device. In fact, Google Inc (NASDAQ:GOOG) is believed to make more money on iOS devices than on Android products, so it´s no wonder that the company makes its best effort to deliver the best possible apps for Apple users.

According to a survey by IBM, iPads and iPhones accounted for nearly 20% of Black Friday online sales, versus a paltry 5.5% for Android devices. This has some clear implications for Amazon when it comes to shopping apps availability.

Bottom Line

Google and Amazon.com, Inc. (NASDAQ:AMZN), and to a lesser degree Microsoft too, have different business models to that of Apple, that´s why it makes sense for them the make their apps available to Apple Inc. (NASDAQ:AAPL) users. Especially keeping in mind that Apple is a leading player and its customer base is particularly valuable because of its high levels of usage.

Apple, on the other hand, is in the business of selling products with integrated hardware and software, so it has no interest in making its apps available to the competition. This puts the company in a fortunate position where it gets access the majority of the apps developed by other players, but can keep the exclusivity with its own apps.

When it comes to the race for the smartphones and tablets markets, having the leadership position in terms of quantity and quality of applications is a big factor. Apple has a remarkable advantage in that aspect, and it could provide considerable leverage for the company and its investors over the next years.

The article Apple Has a Big Apps Advantage originally appeared on Fool.com and is written by Andrés Cardenal.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.