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
$100.11
Apple Inc.
-0.64
GOOG
$572.59
Google Inc.
-4.77
MSFT
$46.33
Microsoft Corpora
-0.03
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

HeroCraft Introduces Unlimited Sequel to...
HeroCraft Introduces Unlimited Sequel to WW2: Sandbox. Strategy & Tactics Posted by Jessica Fisher on October 1st, 2014 [ permalink ] | Read more »
RGB Express Review
RGB Express Review By Jennifer Allen on October 1st, 2014 Our Rating: :: DELIGHTFUL PUZZLINGUniversal App - Designed for iPhone and iPad Guide trucks along their delivery routes in RGB Express, a testing but charming puzzle game.   | Read more »
The Sagas of Fire*Wolf (Games)
The Sagas of Fire*Wolf 1.0 Device: iOS Universal Category: Games Price: $9.99, Version: 1.0 (iTunes) Description: | Read more »
BuggyFun Review
BuggyFun Review By Amy Solomon on October 1st, 2014 Our Rating: iPad Only App - Designed for the iPad BuggyFun allows children to create their own tracks for bugs to interact with for a unique open-ended experience.   | Read more »
Fold the Adventure Review
Fold the Adventure Review By Jennifer Allen on October 1st, 2014 Our Rating: :: AWKWARD FOLDSUniversal App - Designed for iPhone and iPad Fold pieces of paper to create platforms for a princely rabbit in this puzzle game; something that isn’t as beguiling as you’d think.   | Read more »
WW2: Sandbox. Strategy & Tactics (G...
WW2: Sandbox. Strategy & Tactics 1.0.0 Device: iOS Universal Category: Games Price: $9.99, Version: 1.0.0 (iTunes) Description: Sandbox is the unlimited sequel to our Strategy & Tactics: World War II. We've abandoned historical restrictions and turn limits making your task deceptively simple - take command of any European... | Read more »
apeFilter (Music)
apeFilter 1.0 Device: iOS Universal Category: Music Price: $6.99, Version: 1.0 (iTunes) Description: | Read more »
Shred It! Review
Shred It! Review By Jennifer Allen on September 30th, 2014 Our Rating: :: GORGEOUS BUT BASICUniversal App - Designed for iPhone and iPad It might look lovely, but Shred It! is a pretty shallow endless runner/snowboarding game.   | Read more »
Check Out the New Teaser Trailer forGAME...
Check Out the New Teaser Trailer forGAMEVIL’s Darkness Reborn Posted by Jessica Fisher on September 30th, 2014 [ permalink ] Darkness Reborn, by GAMEVIL< | Read more »
It Came From Canada: Angry Birds: Transf...
Anyone afraid that throwing Transformers into the Angry Birds mix would result in a Michael Bay-level of childhood pillaging can rest easy. While Rovio’s famous fowls may be a 21st century staple, Angry Birds: Transformers wears its affection for the 80s on its sleeve. But is mere retro reverence enough to justify this crossover? We find out in... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.