Om Malik breaks down a report on App Store revenue from Macquarie Capital Research, giving us some very interesting numbers. In a nutshell, as iTunes revenue stalls, app growth continues to climb at an incredible rate. While our thirst for music seems to be subsiding (or moving to streaming), we continue to spend for apps and, especially, games.

I suspect that the growth numbers reflect a continued expansion of the processing power of the iPhone and iPad. While the number of iPads and iPhones continue to expand, their processing power also increases. That extra processing power does nothing to motivate the purchase of music or enhance the experience of playing music. It does, however, directly impact the kind of games and apps we get to experience.

In addition to raw processing power, the sophisticated tools and libraries available to developers also continue to grow, meaning novel new experiences are available to users. New experiences turn into purchases, turn into revenue growth for Apple.