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
$97.99
Apple Inc.
-0.39
GOOG
$585.57
Google Inc.
-0.04
MSFT
$43.50
Microsoft Corpora
-0.39
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

Take Note! Noteshelf Has Recieved a Big...
Take Note! Noteshelf Has Recieved a Big Update. Posted by Jessica Fisher on July 30th, 2014 [ permalink ] iPad Only App - Designed for the iPad | Read more »
Cubama Review
Cubama Review By Nadia Oxford on July 30th, 2014 Our Rating: :: TETRIIIIIS IIIIIN SPAAAAACE!Universal App - Designed for iPhone and iPad With its addictive challenge and interesting premise, Cubama is frantic screen-tapping fun.   | Read more »
Become a Guardians of Galactic Peace Wit...
Become a Guardians of Galactic Peace With the New Spacefaring Sim, Kairobotica. Posted by Jessica Fisher on July 30th, 2014 [ permalink ] | Read more »
Soul Guardians: Age of Midgard Review
Soul Guardians: Age of Midgard Review By George Fagundes on July 30th, 2014 Our Rating: :: SO MUCH GRIND IT CRUNCHESUniversal App - Designed for iPhone and iPad Swords and trading cards are fun, right? So is Soul Guardians: Age of Midgard. Mostly fun, anyway.   | Read more »
NFL Fantasy Football App Redesigned Ahea...
NFL Fantasy Football App Redesigned Ahead of Upcoming 2014 Season Posted by Ellis Spice on July 30th, 2014 [ permalink ] | Read more »
Matter Review
Matter Review By Jennifer Allen on July 30th, 2014 Our Rating: :: ORIGINAL PHOTO MANIPULATIONUniversal App - Designed for iPhone and iPad Matter lets you add geometric 3d shapes to your images and manipulate things so each image looks quite impressive.   | Read more »
Note Review
Note Review By Jennifer Allen on July 29th, 2014 Our Rating: :: TOO SIMPLEiPhone App - Designed for the iPhone, compatible with the iPad Note is a note taking app that’s a little too short on features to be worth its asking price.   | Read more »
Chainsaw Warrior Goes on Sale & Ther...
Chainsaw Warrior Goes on Sale & There’s a Chance to Win a Copy of the Original Board Game Posted by Jennifer Allen on July 29th, 2014 [ permalink | Read more »
It Came From Canada: Tiny Tower Vegas
If you go to a casino, you might make a lot of money. If you run a casino, you’re guaranteed to make a lot of money. The choice seems pretty obvious. So while waiting for your shady real estate deals to move forward, get prepared with Tiny Tower Vegas, the latest follow-up to the smash hit sim Tiny Tower. We become mini casino moguls in this... | Read more »
Z Hunter Review
Z Hunter Review By Lee Hamlet on July 29th, 2014 Our Rating: :: RIGHT ON TARGETUniversal App - Designed for iPhone and iPad While it might not necessarily break new ground, Z Hunter has enough tricks up its sleeve to ensure that zombie head-shots have never looked so cool.   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.