1. Mobile Apps set to be worth $17.5 billion by 2012

Posted on June 4th, 2010 by Posted by: buongiorno

The global mobile apps market is set to be worth US$17.5 billion by 2012, according to a report commissioned by Get Jar, the world's second largest app store.

­Mobile app downloads across all types of handset are expected to increase from over 7 billion downloads in 2009 to almost 50 billion in 2012 - a year of growth rate of 92%. It is clear that by 2012, off-deck, paid-for apps will be the main revenue generator, accounting for almost half the market. By comparison, in 2009, on-deck apps available from mobile operators accounted for over 60% of all apps revenue, but this will fall significantly to just under 23% by 2012.

The study outlines opportunities for both high-end smartphones (such as BlackBerry and Android-powered handsets) and feature phones (such as the Samsung Instinct/Jet and Nokia X6).
In 2009, 90% of handsets in use worldwide were so-called feature phones, while smartphones and data cards accounted for the remainder. In North America, uptake of smartphones was much higher (over 20%) than in other regions (3% in Middle East/Africa). The line between powerful feature phones and smartphones is blurring as consumers demand powerful yet cost-effective devices, expanding apps revenue opportunities across a much broader range of handsets.

Apps economies are evolving differently worldwide, suggesting a need for greater focus on developing different business models - as opposed to a "one size fits all" approach. For instance, the average app selling price (ASP) in North America was $1.09, significantly higher compared to developing markets such as South America ($0.20) and Asia ($0.10). After 2012, app downloads in regions such as Asia may eventually exceed those in Western markets, although monetization of these downloads will require different business models (advertising, virtual currency) than those seen in developed markets.

The revenue opportunities in Europe are set to soar from $1.5billion in 2009 to $8.5billion in 2012, while in North America the figure will rise from around $2.1billion to around $6.7billion over the same period. Currently, apps are most popular in Asia, with the region accounting for 37% of global downloads in 2009. However, users in North America spent the most money on apps, accounting for over 50% of global revenue.

Source : businesswire.com



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