14 DAY TRIAL // Having a load of applications installed on a mobile phone is today's trend. Moreover, it seems that tomorrow will be the same, and that the revenues from mobile applications are set to flourish. According to a recent report from Juniper Research, the revenues in the area should reach $32 billion in 2015, up from less than $10 billion in 2009, a figure that includes pay-per-download (PPD), value-added services (VAS, including freemium and subscription) and advertising.
Apple’s App Store is the most cited example when mobile applications are involved, but it seems that there is a downside to this too. According to the research firm, while the portal registered 4 billion downloads by April 2010, developers should not focus only on this platform. Users of other mobile operating systems need attention too, especially in developing markets, where only a few handset users own an Apple device.
“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. Moreover, Juniper Research adds that the increase in downloads does not necessarily result in revenues growth. Most apps downloaded from storefronts are free (App Store and others), which shows that there is a clear difference between the adoption of applications and maximizing content revenues in the area.
The new report found a series of challenges that an app store-centric model presents, including the need for scale, monetizing the mass market, app store overload and content legacy. According to Juniper Research, content subscriptions and in-app billing might “drive Mobile Apps to reach landmark revenues, but challenges remain for maximising content revenues.”
Those who would like to learn more on the new ‘Mobile App Stores: Business Models, Strategies & Market Segmentation 2010-2015’ study from Juniper Research should head over to the firm's website.