Study: mobile apps will outsell CDs by 2012
TweetFollow Us on Twitter

Study: mobile apps will outsell CDs by 2012


The global mobile apps economy is set to be worth $17.5billion by 2012, according to an independent report commissioned by GetJar (http://www.getjar.com/), the world’s second largest app store.

Mobile app downloads across all types of handset are also expected to increase from over seven billion downloads in 2009 to almost 50 billion in 2012 -- a year-on-year growth rate of 92%.
This would mean that the value of apps sold would be greater than the value of CDs sold in 2012 ($13.83 billion).

To understand the potential of the “global mobile apps economy,” GetJar commissioned independent consulting firm Chetan Sharma Consulting to lift the lid on the rapidly expanding global apps market. The aim of the project was to analyze the potential and real value of the mobile apps market worldwide, using first hand data.

It is clear that by 2012, off-deck paid-for apps will be the biggest revenue generator, accounting for almost 50 per cent of all apps revenue. 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 smart phones (such as the iPhone) and feature phones. In 2009, 90% of handsets in use worldwide were so-called feature phones, while smart phones and data cards accounted for the remaining 10% of the market. In some regions such as North America, uptake of smart phones was much higher (over 20%) than other regions (3% in Middle East/Africa).

Apps economies are evolving differently worldwide, suggesting a need for greater focus on developing different apps 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 ASPs in developing markets such as South America ($0.20) and Asia ($0.10). At the same time, post 2012, app downloads in developing regions such as Asia may eventually exceed those in Western regions 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 $1.5 billion in 2009 to $8.5billion in 2012, while in North America the figure will rise from around $2.1 billion to around $6.7billion in 2012. Currently apps are most popular in Asia, with the region accounting for 37% of global downloads in 2009. However, while Asia had the highest number of downloads, users in North America spent the most money on apps, accounting for over 50% of revenue.

Other findings from the research include:

° Advertising based revenue models have become increasingly popular. In 2009, advertising contributed almost 12% of the overall apps revenue. However, this share is expected to more than double to over 28% by 2012 -- given the high proportion of prepay users in developing markets.

° The battle of the app stores is well underway. In 2009 the number of app stores leapt from eight to 38, an increase of 375%. The number of app stores is expected to further increase in 2010.

° The price of mobile applications can vary from $0.99 to $999, however the average selling price in 2009 was approximately $1.9. This is predicted to decrease by 29% over the next three years, although advertising revenue derived from apps is likely to stay relatively flat.

The model focused on apps consumption by five major regions: North America, Europe, South America, Asia, and Middle East and Africa.

 
AAPL
$126.44
Apple Inc.
-0.16
GOOG
$523.40
Google Inc.
+1.56
MSFT
$44.40
Microsoft Corporation
-0.04
MacNews Search:
Community Search:
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Rage of Bahamut is Giving Almost All of...
The App Store isn't what it used to be back in 2012, so it's not unexpected to see some games changing their structures with the times. Now we can add Rage of Bahamut to that list with the recent announcement that the game is severely cutting back on the number of events it holds. | Read more »
Adventures of Pip (Games)
Adventures of Pip 1.0 Device: iOS iPhone Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: ** ONE WEEK ONLY — 66% OFF! ***“Adventures of Pip is a delightful little platformer full of charm, challenge and impeccable level design.”4/5 – Hardcore Gamer"A retro platformer that sets itself apart with the protagonist’s... | Read more »
Divide By Sheep - Tips, Tricks, and Stre...
Who would have thought splitting up sheep could be so involved? Anyone who’s played Divide by Sheep, that’s who! While we’re not about to give you complete solutions to everything (because that’s just cheating), we will happily give you some primers on how to get started and what to expect. [Read more] | Read more »
NaturalMotion and Zynga Have Started Tea...
An official sequel to 2012's CSR Racing is officially on the way, with Zynga and NaturalMotion releasing a short teaser trailer to get everyone excited. Well, as excited as one can get from a trailer with no gameplay footage, anyway. [Read more] | Read more »
Grab a Friend and Pick up Overkill 3, Be...
Overkill 3 is a pretty enjoyable third-person shooter that was sort of begging for some online multiplayer. Fortunately the begging can stop, because its newest update has added an online co-op mode. [Read more] | Read more »
Scanner Pro's Newest Update Adds Au...
Scanner Pro is one of the most popular document scanning apps on iOS, thanks in no small part to its near-constant updates, I'm sure. Now we're up to update number six, and it adds some pretty handy new features. [Read more] | Read more »
Heroki (Games)
Heroki 1.0 Device: iOS Universal Category: Games Price: $7.99, Version: 1.0 (iTunes) Description: CLEAR THE SKIES FOR A NEW HERO!The peaceful sky village of Levantia is in danger! The dastardly Dr. N. Forchin and his accomplice, Vapor, have stolen the Emerix - a powerful amulet and all hope may be lost! Created by Picomy. Published... | Read more »
Wars of the Roses (Games)
Wars of the Roses 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: | Read more »
TapMon Battle (Games)
TapMon Battle 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: It's time to battle!Tap! Tap! Tap! Try tap a egg to hatch a Tapmon!Do a battle with another tapmons using your hatched tapmons!*How to play*Complete the limited taps before time expires.Be careful! If you tap a newborn tapmon,... | Read more »
Alchemic Dungeons (Games)
Alchemic Dungeons 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: ### Release Event! ### 2.99$->0.99$ for limited time!### Roguelike Role Playing Game! ###Alchemic Dungeons is roguelike rpg game with crafting systems!You can make Items from materials!To conquer dungeons, use items... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.