APPLE'S SECRET WEAPON: App Store Sales

Apple on Tuesday reported earnings for the June quarter, but while revenue and device sales fell largely in line with Wall Street expectations, the rise in App Store sales has Macquarie Capital analyst Ben Schachter excited.

Total revenue from Apple's iTunes, software and "services" was $4.6 billion - an 11% jump year-over-year and an all-time record for any quarter, the company reported.

According to Schachter, sales from the App Store were up 35-40%, which reportedly helped make up for struggling multimedia sales on Apple's iTunes Store, which were down about 5-10%.

Apple said enterprise organizations and "offshore momentum" played a big role in driving app downloads, which have topped 70 billion cumulatively.

App store revenue. pic.twitter.com/QSHET5BS8u

- Benedict Evans (@BenedictEvans) July 22, 2014

Thanks to companies like Siemens, which has 30,000 iPhones on its network and 50 proprietary internal apps for its field service teams, Apple's App Store generated 85% more global revenue than Google play in the March quarter "despite the differences in unit market share between iOS and Android devices," according to Luca Maestri, Apple's corporate controller and the company's next CFO.

As Maestri mentioned, Android devices account for more than 81% of global smartphone sales, while iOS accounts for only about 13%. Still, Apple's mobile operating system still dominates all others in terms of mobile web traffic, particularly in the U.S., and iOS users spend significantly more and purchase more apps than Android users.