Lost among the hubbub at the Apple (AAPL) Worldwide Developers Conference was the huge potential market for the Apple App Store. Piper Jaffray believes this “hub for 3rd party applications on the iPhone” could eventually be a more than $1 billion market and add 1%-3% to Apple’s operating income in 2009.
(Apple reportedly takes 30% of app revenue, so $1 billion of app sales would translate to about $300 million of revenue to Apple).
Even more important that any near-term cash Apple draws from the App Store is the possibility that the iPhone could become the leading mobile development platform.
Piper reiterates BUY on Apple (AAPL).