IT research firm
Gartner estimated that worldwide Mobile app stores revenues to reach $26
billion in 2013 compared to $18 billion in 2012 and annual downloads will reach
102 billion in 2013, up from 64 billion in 2012. 91% of total downloads are
Free apps and in-app purchases (IAPs) accounts for 48% of app store revenue by
2017, up from 11%in 2012. There is a linear relationship between the apps
download and the sales of new mobile devices as the customers who buy new
mobile phones definitely download apps and as the mobile buying cycle slows
down so does the mobile apps downloads. The industry is expected to continue
its explosive growth in future also due to upgrading of mobile networks from 2G
to 3G to 4G which will increase the speed of internet and data downloads on the
mobile phones and also the mobile phone manufacturers launching more and more
devices with powerful processors, touch screens, increase in display screen
sizes and finally developers developing more apps.
Apple iOS and Google
Android app stores combined are the dominant players in this market and are
forecasted to account for 90 percent of global downloads in 2017. Key reason
for their dominance is their advanced ecosystems and active developer
communities. Free apps currently account for about 60% and 80% of the total
available apps in Apple's App Store and Google Play, respectively. Gartner
Research highlights IAP is a major revenue contributor to Apple’s App Store
revenue fueled by the increasing numbers of iPhones and iPads. Other platforms
including Android and Microsoft stores have not been able to monetize their
apps, but analysts expect they will also see IAP contributions increase in the
future.
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
|
Free Downloads
|
57,331
|
92,876
|
127,704
|
167,054
|
211,313
|
253,914
|
Paid-for Downloads
|
6,654
|
9,186
|
11,105
|
12,574
|
13,488
|
14,778
|
Total Downloads
|
63,985
|
102,062
|
138,809
|
179,628
|
224,801
|
268,692
|
Free Downloads %
|
89.6
|
91.0
|
92.0
|
93.0
|
94.0
|
94.5
|
Source: Gartner
(September 2013)
Email and calendaring (46%), Instant Messaging (IM) (37%), and office &
personal productivity (26%) are the three most popular uses of mobile
applications today according to Gartner survey. CRM, at 19%, and ERP, at 17%,
have been predicted to grow the fastest of all enterprise applications on the
mobile over the next three years. Mobile apps are no longer a consumer
phenomenon and there has been an increase in adoption by enterprise companies
and are developing and launching mobile apps. Apps are being used to engage
with both the consumers and employees. Smartphones sales are increasing and the
companies are adopting the bring-your-own-device (BYOD) will also fuel the enterprise apps growth. But
challenges remain for the App stores in terms of monetizing the applications
and increasing their revenues. Customers are not inclining to pay for apps and
making them pay is the biggest challenge for the industry.
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