Mobile Applications & Apps Stores

Overview

This report provides a unique analysis of the opportunity for mobile applications and app stores forecasting the market for six years and vitally breaking down by category of application (mobile game applications, lifestyle and healthcare apps, multimedia & entertainment apps, education & reference, finance & productivity and social networking).

Also available when purchasing this report is the Mobile Applications & Apps Stores Excel Database please click on the link to find out more.

In this report app-billed value added services (subscriptions, premium events and additional content) are forecast revealing a market value well in excess of standalone app downloads and an investigation as to how apps are delivered both on-store and across traditional channels is presented.

In addition this mobile apps report also explains how developers, operators and OS providers have responded to the challenges laid down by the Apps Store including a discussion of how apple differentiated itself from traditional models of content distribution, monetisation and revenue share.

Table of Contents

Executive Summary

1. The Rise of the App Store

1. The Rise of the App Store
1.1 Introduction
1.2 What is a Mobile Application?
Table 1.1: Examples of Mobile Applications by Entertainment Category
1.3 What This Report Covers
1.3.1Categories of Mobile Application
i. Games
ii. Finance & Productivity
iii. Multimedia & Entertainment
iv. Education & Reference
v. Lifestyle & Healthcare
vi. Social Networking
1.3.2 Mobile Widgets
1.4 The Development of Mobile Applications
1.4.1 OTA Downloads
1.4.2 The Rise of Enterprise
1.5 The First App Stores - Handango, Motricity and GetJar
1.5.1 Handango
1.5.2 Motricity/PocketGear
1.5.3 GetJar
1.6 The iPhone and the App Store
1.6.1 Apps Market pre iPhone
1.6.2 Launch of Apple\'s iPhone
1.6.3 The Impact of \'The App Store\'
1.6.4 Industry Reaction to the iPhone/App Store
1.7 App Store Deployments Since Mid-2008
Table 1.1: App Store Launches, July 2008 onwards
1.8 Key Drivers of the App Store
1.8.1 Handset Form Factor
1.8.2 Billing
1.8.3 Competitive Revenue Share
1.9 Generic Drivers for App Stores
1.9.1 Mobile Internet Adoption is Increasing
1.9.2 Technological Advances - Networks
1.9.3 Convergent Services are Increasingly Desirable
1.9.4 Data Charges Are Being Reduced

2. The App Store, the Mobile Value Chain and Revenue Distribution

2.1 Value Chain Analysis
2.1.1 Traditional Value Chains
Figure 2.1: Traditional Value Chain of Mobile Content
Figure 2.2: Mobile Content Value Web
2.1.2 App Store Value Chain
Figure 2.3 App Store Value Chain
i. Implications of This Model
2.2 App Store Business Models
2.2.1 Pay-Per Download
i. Case Study - Bolt Creative
2.2.2 Free to Download
2.2.3 Upselling Content
2.3 Opportunities and Benefits Across the Value Chain
2.3.1 Attractiveness for Operators
Figure 2.4: Operator Opportunities from Open Access Model. Western Europe Revenue Share 2008 & 2013
i. Case Study: JIL (Joint Innovation Lab)
2.3.2 Advantages to Vendors
2.3.3 Attraction for Content Providers
i. Case Study: Shazam
2.3.4 Challenges for White Label Storefront Providers
2.3.5 Advantages for Advertisers
Table 2.1: Key Drivers of Advertising in Mobile
i. Apps in Advertising - Case Study: Lynx
ii. App Store Advertising - Case Study: Carling
Figure 2.5: The Carling iPint
2.4 The Future of Legacy Distribution Channels
2.4.1 Operator Portals
2.4.2 Aggregators
2.4.3 Off Portal D2C
2.5 Market Hurdles and Constraints
2.5.1 Addressable Market
2.5.2 Access to the End-user
2.5.3 Visibility
2.5.4 Scale
2.5.5 Application Saturation?
2.5.6 Competitive Pricing
2.5.7 Cost of Data Services
2.5.8 The VoIP Issue
2.5.9 Macro Economic Issues

3. The Market for Mobile App Downloads

3.1 Introduction
3.2 Relative Popularity of Mobile Applications
Figure 3.1: Most Popular Categories of Applications on App Store (%) Split by Number of Titles, March 2009
Figure 3.2: Top 100 App Store Paid-for Applications (%) Split by 6 Categories, March 2009
Figure 3.3: Top 100 App Store Free Applications (%) Split by 6 Categories, March 2009
Table 3.1: % of Handango Downloads Attributable to Games, by OS 2005-2008
3.3 Methodology
Figure 3.4: Bottom-Up Methodology for Derivation of Onstore/Offstore Mobile App Usage and Revenues
3.4 Global Mobile Subscriber Forecast
Figure 3.5: Global Mobile Subscriber Forecast (m) Split by 8 Key Regions 2008-2014
Table 3.2: Global Mobile Subscriber Forecast (m) Split by 8 Key Regions 2008-2014
3.5 Mobile Application Users and Usage
Table 3.3: % Mobile Users Who Download Apps Split by 6 Categories 2008-2014
Figure 3.6: Number of Mobile Users (m) Who Download Apps Split by 6 Categories 2008-2014
Table 3.4: Number of Mobile Users (m) Who Download Apps Split by 6 Categories 2008-2014
3.6 The Retail Market for Onstore Applications
3.6.1 Onstore Users and Usage
Table 3.5: % Application Downloaders (m) who Download via App Stores Split by 6 Categories 2008-2014
Figure 3.7: Number of Application Downloaders who Download via App Stores Split by 6 Categories 2008-2014
Table 3.6; Number of Application Downloaders (m) who Download via App Stores Split by 6 Categories 2008-2014
Figure 3.8: Average Number of Onstore App Downloads per User per Year Split by 6 Categories 2008-2014
Table 3.7: Average Number of Onstore App Downloads per User per Year Split by 6 Categories 2008-2014
Figure 3.9: Total Number of Onstore App Downloads Per Year (m) Split by 6 Categories 2008-2014
Table 3.8: Total Number of Onstore App Downloads Per Year (m) Split by 6 Categories 2008-2014
3.6.2 Retail Revenues of Onstore Applications
Table 3.9: % Onstore App Downloads Which are Paid For Split by 6 Categories 2008-2014
Figure 3.10: Number of Onstore App Downloads (m) Which are Paid for Split by 6 Categories 2008-2014
Table 3.10: Number of Onstore App Downloads (m) Which are Paid for Split by 6 Categories 2008-2014
Table 3.11: Price Per Onstore Mobile Apps Download ($) Split by 6 Categories 2008-2014
Figure 3.11: Onstore Mobile Apps, Retail Value ($m) Split by 6 Categories 2008-2014
Table 3.12: Onstore Mobile Apps, Retail Value ($m), Split by 6 Categories 2008-2014
3.7 The Retail Market for Offstore Applications
3.7.1 Offstore Users and Usage
Table 3.13: % Offstore Application Downloaders who Download, Split by 6 Categories 2008-2014
Figure 3.12: Number of Offstore Application Downloaders (m) who Download Split by 6 Categories 2008-2014
Table 3.14: Number of Offstore Application Downloaders (m) who Download Split by 6 Categories 2008-2014
Figure 3.13: Average Number of Offstore App Downloads per User per Year Split by 6 Categories 2008-2014
Table 3.15: Average Number of Offstore App Downloads per User per Year Split by 6 Categories 2008-2014
Figure 3.14: Total Number of Offstore App Downloads Per Year (bn) Split by 6 Categories 2008-2014
Table 3.16: Total Number of Offstore App Downloads Per Year (bn) Split by 6 Categories 2008-2014
3.7.2 Retail Revenues of Offstore Applications
Table 3.17: % Offstore App Downloads Which are Paid For Split by 6 Categories 2008-2014
Figure 3.15: Number of Offstore App Downloads (m) Which are Paid for Split by 6 Categories 2008-2014
Table 3.18: Number of Offstore App Downloads (m) Which are Paid for Split by 6 Categories 2008-2014
Table 3.19: Offstore Mobile Apps, Price per Download ($) Split by 6 Categories 2008-2014
Figure 3.16: Offstore Mobile Apps, Retail Value ($m) Split by 6 Categories 2008-2014
Table 3.20: Offstore Mobile Apps, Retail Value ($m) Split by 6 Categories 2008-2014
3.8 Total Retail Market for Mobile Applications
3.8.1 Application Usage Levels
Figure 3.17: Total App Downloads (m) Split by 6 Categories 2008-2014
Table 3.21: Total App Downloads (m) Split by 6 Categories 2008-2014
Figure 3.18: Total App Downloads (m) Split by Onstore/Offstore 2008-2014
Table 3.22: Total App Downloads (m) Split by Onstore/Offstore 2008-2014
3.8.2 Application Retail Revenues
Figure 3.19: Mobile Apps, Total Retail Value ($m) Split by 6 Categories 2008-2014
Table 3.23: Mobile Apps, Total Retail Revenues ($m) Split by 6 Categories 2008-2014
Figure 3.20: Mobile Apps, Total Retail Revenues ($m) Split by Onstore/Offstore 2008-2014
Table 3.24: Mobile Apps, Total Retail Revenues ($m) Split by Onstore/Offstore 2008-2014

4. The Market for Mobile App Value-Added Content and Services

4.1 Methodology
Figure 4.1: Bottom Up Methodology for Derivation of Onstore/Offstore Incremental App Revenues (Games, Lifestyle & Healthcare, Multimedia & Entertainment)
Figure 4.2: Top-Down Methodology for Derivation of Onstore/Offstore Incremental App Revenues (Social Networking (SN), Finance & Productivity)
4.2 The VAS Market for Onstore Applications
4.2.1 Onstore Users and Usage (Games, Lifestyle & Healthcare and Multimedia & Entertainment)
Table 4.1: % of Downloaded Applications That Upsell VAS, Onstore Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.3: Number of Onstore Downloaded Apps That Upsell VAS, Upsold Content, Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Table 4.2: Number of Onstore Downloaded Apps That Upsell VAS, Upsold Content Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.4: Average Number of Onstore VAS Sold Per Upselling Download Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Table 4.3: Average Number of Onstore VAS Sold Per Upselling Download Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.5: Total Number of Onstore VAS Sold (m), Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Table 4.4: Total Number of Onstore VAS Sold (m) Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
4.2.2 Incremental Revenues of Onstore Applications
Table 4.5: Price Per Onstore VAS, Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.6: Onstore Apps, Upselling Revenues ($m) Split by 5 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment, Finance & Productivity, Social Networking) 2008-2014
Table 4.6: Onstore Apps, Upselling Revenues ($m) Split by Category (Games, Lifestyle & Healthcare, Multimedia & Entertainment, Finance & Productivity, Social Networking) 2008-2014
4.3 The VAS Market for Offstore Applications
4.3.1 Offstore Users and Usage (Games, Lifestyle & Healthcare and Multimedia & Entertainment)
Table 4.7: % of Downloaded Applications That Upsell Offstore VAS Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.7: Number of Downloaded Apps That Upsell Offstore VAS, Upsold Content, Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Table 4.8: Number of Offstore Downloaded Apps That Upsell VAS Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.8: Average Number of Offstore VAS Sold Per Upselling Download Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Table 4.9: Average Number of Offstore VAS Sold Per Upselling Download Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.9: Total Number of Offstore VAS Sold (m) Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Table 4.10: Total Number of Offstore VAS Sold (m) Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
4.3.2 Incremental Revenues of Offstore Applications
Table 4.11: Price Per Offstore VAS Split by 3 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment) 2008-2014
Figure 4.10: Offstore Apps, Upselling Revenues Split by 5 Categories (Social Networking, Finance & Productivity, Multimedia & Entertainment, Lifestyle & Healthcare, Games) 2008-2014
Table 4.12: Offstore Apps, Upselling Revenues Split by 6 Categories (Social Networking, Finance & Productivity, Multimedia & Entertainment, Lifestyle & Healthcare, Games) 2008-2014
4.4 Total VAS Market for Mobile Applications
Figure 4.11: Mobile Apps, Total VAS Value ($m) Split by 5 Categories (Games, Lifestyle & Healthcare, Multimedia & Entertainment, Finance & Productivity, Social Networking) 2008-2014
Table 4.13: Mobile Apps, Total VAS Revenues ($m) Split by Category (Games, Lifestyle & Healthcare, Multimedia & Entertainment, Finance & Productivity, Social Networking) 2008-2014
Figure 4.12: Mobile Apps, Total VAS Revenues ($m) Split by Onstore/Offstore 2008-2014
Table 4.14: Mobile Apps, Total Retail Revenues ($m) Split by Onstore/Offstore 2008-2014
4.5 How Content is Monetised
4.5.1 The Implications of the App Store Model
Figure 4.13: Total Market for Mobile Apps, Retail and VAS Revenues ($m) Split by Onstore/Offstore 2008-2014
Table 4.15: Total Market for Mobile Apps, Retail and VAS Revenues ($m) Split by Onstore/Offstore 2008-2014
Figure 4.14: Total Market for Mobile Entertainment ($m) Median-Case Scenario Split by Onstore App Revenues vs Traditional Revenue Channels 2008-2013
Table 4.16: Total Market for Mobile Entertainment ($m) Median-Case Scenario Split by Onstore App Revenues vs Traditional Revenue Channels 2008-2013

5. App Stores: The Key Players

5.1 Storefront Brands
5.1.1 Google
5.1.2 Palm
5.1.3 Orange
5.1.4 Research in Motion
5.1.5 Nokia
5.1.6 Microsoft
5.1.7 O2 Litmus
5.1.9 Samsung
5.1.10 Cydia
5.2 White-label Storefronts
5.2.1 Amdocs
5.2.2 SurfKitchen

Companies Referenced

mdocs, Apple, AT&T, Bolt Creative, Buongiorno, Carling, Cydia, Digital Chocolate, FinBlade, Gameloft, GetJar, Google, Greystripe, Handango, Jamba, Joint Innovation Lab, Lynx, Microsoft, Motricity, Nokia, O2, Orange, Palm, PocketGear, Research in Motion, Samsung, Shazam, SurfKitchen