Revenue Wars: Mobile app stores in 2011 and predictions for 2012

Our last round of 2011 data has been analysed and we’re certain that the New Year will bring about significant developments across all major app store platforms. Who’s generating revenue, who’s posing a threat, and how is the market changing?
Tech News from iApps Pty Ltd - Market Predictions
Tech News from iApps Pty Ltd - Market Predictions
Dec. 21, 2011 - PRLog -- 2011 has been a chaotic year for mobile app stores. The proliferation of Android devices, China’s growing love affair with all things iOS and the resurgence of WindowsPhone7, combine to sustain the notion of a robust new year for developers.

iApps Chief Technical Officer Mr. Andrew Longhorn said, “2011 was the year that in-app purchases and the ‘freemium’ model become one of the most important monetization strategies for developers.”

And he’s not wrong, as Apples prize pig: the iPhone & iPad App Store, has trumped Google’s Android Market in terms of revenue created by 200 of their highest grossing apps.

Totalling four times the revenue generated by the Google Android Market, Apple Inc. has unsurprisingly come out on top this year.

Market growth in China has increased exponentially this year, generating 44% of worldwide iPad downloads, followed by a stunning 30% of all iPhone downloads. How and why has this happened?

The Asian Development Bank found that in 2011, China experienced 13% GDP growth and a massive 58.88% of the Chinese population now belong to the countries middle class. With China’s middle class earning between $AU20-40 Per Capita Daily Income —the general populations disposable income for items such as iOS devices and in app purchases has therefore increased.

Revenue generated by China lags behind the United States, however the added possibility of Chinese consumers being able to make in app purchases in RMB as opposed to USD, will send revenue figures sky-rocketing come 2012.

Microsoft last year operated two stores: one for the old Windows 6.X devices, and an improved store for the new Windows Phone 7, with never more than 2,500 apps made available for purchase. The store was subsequently closed after July 15, 2011, and later reopened to grow by more than 400% during the end quarter of 2011. Totaling out with 35,269 available apps for download by the end of November 2011 —Windows Phone 7 will emerge as a primary competitor for mobile apps next year.  

Search Engine Giant, Google, have ramped up their capacity to reach consumers through ‘open-source’ applications made available on significantly cheaper handsets. The arrival of the Samsung’s Nexus and controversial Galaxy Tab, has positioned The Google Android Market as the largest store for free game/apps.

Free open source apps and considerably less regulation than its primary competitor, comes a risk of decreased quality and therefore, decreased user retention. However, for games —Android comes in second to Apple with a total of 46,045 games versus Cupertino’s 79,077.

There’s a chance that a new and intimidating player is due to leave its mark on the app store scene come 2011. Amazon’s Appstore: just five months since its launch, already features more mobile games than the Nokia Ovi Store and BlackBerry App World. Having had a few exclusive game releases (Angry Birds Rio, Plants vs. Zombies, etc.), the Amazon Appstore will be an interesting store to watch in 2012.

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We assist companies, organisations and industries of all sizes adapt to the digital economy, whilst empowering individuals and workplaces through enhanced business insight. With over 27 applications added to our public portfolio in 2011 alone —iApps is Australia's leading developer of Enterprise and Industry-Specific Mobile Applications. Visit our website here
Source:iApps Pty Ltd.
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