With the launch of the Apple App Store in mid-2008, Apple managed to reinvent the smartphone application market, creating an end-to-end solution (iPhone/iPod touch, iTunes Store and applications) that dramatically improved the customer experience of application discovery, download and usage.
Since 2007, the smartphone application market has grown annually by 140%, reaching a value of US$1.94 billion (2009). However, the market is still in its early stages. The top five application stores represent 96% of the market's downloads, with Apple alone responsible for 77% of total downloads.
Independent applications stores like GetJar, Mobango, Handmark and Handango sold smartphone applications and other mobile content long before the Apple App Store's launch. These stores benefitted from Apple's boost to the market with quickly growing download numbers. In 2009, independent stores held a market share of 25%, but are increasingly threatened by the large number of new...| Read more »