Mobile App Store Sales Rising - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile

Mobile App Store Sales Rising

Games are the top smartphone applications, while mobile shopping, social networking, and productivity tools continue to climb.

Revenue from mobile application stores will increase steadily over the next three years, reaching nearly $29.5 billion, a market research firm said.

By 2013, application downloads will exceed 21.6 billion, compared to 2.5 billion last year, when total revenue topped $4.2 billion, Gartner said Monday. This year, paid applications will generate $6.8 billion worldwide, including $600 million from advertising, and downloads will exceed 4.5 billion.

The number of free applications on the online stores tied to smartphones will increase from 80% this year to 87% in 2013. However, many of those applications will be sponsored by advertising and will generate almost 25% of mobile application store revenue by 2013.

"Games remain the No. 1 application, and mobile shopping, social networking, utilities and productivity tools continue to grow and attract increasing amounts of money," Gartner researcher Stephanie Baghdassarian said in a statement.

High-end smartphone users today are early adopters of new mobile applications and are more trustful of billing mechanisms, Gartner said. Therefore, they are expected to continue to pay for applications they believe will be useful.

As smartphone handsets drop in price, however, they will attract a less tech-savvy mass market, and many of these users will be more reluctant to pay for applications. As a result, advertising will become increasingly important in generating revenue.

"Growth in smartphone sales will not necessarily mean that consumers will spend more money, but it will widen the addressable market for an offering that will be advertising-funded," Baghdassarian said.

Application stores are expected to be a major focus of the mobile industry this year, Gartner said. Success at attracting consumers through applications is expected to determine the winner among mobile device platforms.

"Consumers will have a wide choice of stores and will seek the ones that make it easy for them to discover applications they are interested in and make it easy to pay for them when they have to," Gartner researcher Carolina Milanesi said. "Developers will have to consider carefully not only which platform to support but also which store to promote their applications in."

Apple has the largest application store, which has driven the success of the iPhone. However, competition is heating up, particularly from Google. The search giant has launched the Android Market for applications that run on smartphones built around Google's Android operating system. This month, Google launched its own smartphone called the Nexus One.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Slideshows
Flash Poll