SOURCE: Juniper Research Limited
June 09, 2010 03:57 ET
Mobile Apps Revenues to Exceed $30 Billion by 2015, Juniper's Latest Mobile Apps Research Finds
Content Subscriptions and In-App Billing to Drive Mobile Apps to Reach Landmark Revenues but Challenges Remain for Maximising Content Revenues
HAMPSHIRE, UK--(Marketwire - June 9, 2010) - A new report published today by Juniper Research forecasts that, the combined revenues from apps funded by pay-per-download (PPD), value-added services (VAS, including freemium and subscription) and advertising is expected to rise from just under $10 billion in 2009 to $32 billion in 2015.
But while Apple's App Store has achieved app downloads on an unprecedented scale -- 4 billion by April 2010 -- the report cautions brands and developers against ignoring users of other platforms/handsets. According to Juniper, such a move could be counterproductive, particularly in developing markets, where the user base of iPhones (and indeed smartphones per se) is extremely low.
"If the mobile industry wishes to introduce a model based on applications, then it must ensure that those applications are accessible by a wide range of handsets ranging from smartphones to mass market devices," said report author, Dr Windsor Holden.
Furthermore, uplift in download volumes does not necessarily equate to an uplift in industry revenues. The majority of application downloads from the App Store are free; other storefronts launched in the wake of the App Store also report that comparatively small proportions of apps (typically 5-15%) are paid for. Thus, building a business model aimed at both maximizing consumer adoption of applications and at maximizing content revenues can be extremely problematic.
The report finds that an app store-centric model presents a number of challenges, including:
- The Need for Scale
- Monetising the Mass Market
- App Store Overload
- The Content Legacy
A detailed table, 'Selected Key Challenges of An App Store-Centric Ecosystem' expanding on each of the above is provided in the whitepaper 'A World of Apps,' available to download from the new Juniper Research website today. To explore new functionality and features of the new site and to register for free whitepapers and blogs, please go to www.juniperresearch.com.
Further details of the study 'Mobile App Stores: Business Models, Strategies & Market Segmentation 2010-2015' can be freely downloaded from the Juniper website.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.