Mobile Apps Stores

Overview

-    Exclusive App Market Strategic Analysis

-    In-Depth CxO Interviews Across App Value Chain

-    30 Tables of App Market Forecasts

The Report Covers:

Exhaustive Forecasts for the App Market. The findings of this highly anticipated report provide detailed five year forecasts for eight categories of Apps across three device types (smartphone, featurephone & tablet), alongside a comprehensive discussion of regional trends. Readers will gain unrivalled insight into the current and projected market across the full spectrum of app types and related devices.

Apps Beyond the Handset: the Tablet Opportunity. For the first time, this renewed and revamped edition of Juniper's App report scrutinises and assesses the dramatic entrance of the tablet into the App market; readers will gain unique understanding of the opportunity and implications of this rapidly expanding market sector.

Challenges to Success in the App World Overcome. From product awareness to product access and on to payment, Juniper delivers key guidelines to creating and promoting a simple and intuitive App which will succeed and sustain a strong user base.

Key Features of the Report Include:

Strategic Recommendations - This is a must-have report for vendors, network operators, storefront & content providers, offering readers an edge in a highly populated and competitive app-centric world, tackling the ways in which players must strengthen their position from design to delivery.

Analysis of Innovative Business Models - MNOs and other key player business models are analysed via case studies and 1 to 1 interviews. These provide readers with cutting edge intelligence on the ways to effectively monetise Apps in both developed and developing regions.

Interviews with Top Level Executives - Interviews with key players from across the App value chain are included:  the founders and CEOs of GetJar, Appia and Kony give readers first-hand information concerning their strategies and the evolving trends within the industry.

Table of Contents

Executive Summary

The Rise of the App Store

1.1 Introduction..........20
1.2 What This Report Covers..........21
1.2.1 Categories of Mobile Application..........21
i. Games..........22
ii. Multimedia & Entertainment..........22
iii. Lifestyle..........22
iv. Healthcare..........23
v. Finance..........23
vi. Productivity..........23
vii. Social Networking..........23
viii. eReaders..........24
1.3 Driving the App Store-centric Model..........24
1.3.1 The Confluence of iPhone and App Store..........24
1.3.2 Handset UIs Have Improved Dramatically..........25
1.3.3 Mobile Internet Adoption is Increasing..........25
1.4 App Stores For All..........26
Table 1.1: Selected Apps Store Launches 2008-2011..........26
Figure 1.1: Leading App Stores by Downloads & App Catalogues 2011..........27
Table 1.2: Leading App Stores by Downloads & App Catalogues 2011..........28
1.5 The App Store Ecosystem: The OTT Behemoths..........29
Figure 1.2: Global App Downloads to Handsets & Tablets 2011 (31.0 billion downloads)..........29
Table 1.3: Leading App Storefronts by Downloads, 2011..........29
1.5.1 The Second Walled Garden..........30

An App Centric World: The Challenge for MNOs

2.1 Introduction: The Content Legacy..........32
Figure 2.1: The Content Legacy..........32
2.1.1 Monetising Download Volumes..........33
2.1.2 The Portal Revisited?..........33
2.2 The Challenge Stated: A Lack of Scale..........33
2.2.1 Addressing Fragmentation..........34
i. Case Study: GSMA OneAPI Initiative..........34
ii. Case Study: Wholesale Application Community..........35
iii. The First Fruits: Vodafone 360, K-Apps..........36
iv. Case Study: The AT&T App Center..........37
2.2.2 Will Alliances Bring Sufficient Scale?..........37
2.3 The Challenge Stated: App Store Overload..........38
2.4 Monetising the Mass Market..........38
2.4.1 Deploying Thin Clients..........38
i. Case Study: Airtel App Central..........39
2.5 Future prospects for MNOs..........40
Figure 2.2: MNO Strategic Options in an App-Centric World..........40
2.5.1 The Bitpipe Scenario..........40
2.5.2 New Business Models: The Data/Content Bundle..........41
i. Case Study: Verizon Wireless ..........42
2.5.3 New Business Models: Leveraging the Billing Relationship..........42
2.5.4 New Business Models: The Shelf-in-Store..........43
i. Case Study: Vodafone AppSelect..........43
ii. Prospects for the Shelf-in-Store Model..........44

The Future of Storefronts: Challenges & Opportunities

3.1 Challenges For Storefront Vendors..........45
3.1.1 Discovery and Differentiation..........45
Figure 3.1: The Vicious Circle of the Addressable User Base..........46
i. A Third Party Solution? 47
3.1.2 Repositioning the Storefront from B2C to B2B: Appia..........47
3.2 Challenges for Content Providers..........48
3.2.1 Discovery and Differentiation..........48
3.3 New Opportunities, New Challenges: App Stores in Developing Markets..........49
3.3.1 Case Study: Ovi Store..........50
3.3.2 The Future of Java?..........51

Beyond the App Store

4.1 Beyond the Mobile Handset: Apps in a Convergent Environment..........52
4.1.1 The Rise of the Tablet..........52
4.1.2 The Tablet Opportunity..........53
4.2 HTML5 & D2C: the Implications of the Browser-based Approach..........54
Figure 4.1: Global Mobile Internet Users (m) Split by 8 Key Regions 2011-2106..........54
4.2.1 Case Study: FT..........56
4.2.2 Constraints of the Browser-based Approach..........56
i. Discoverability 56
ii. Browser-Based Services Require Connectivity..........56
Table 4.1: Selected US/UK Data Outages 2010-2011..........57
iii. Browser-Based Applications Can Be Slow..........57
iv. HTML5 is a work in progress..........58
v. Web-based Apps can be expensive for end users..........58
4.2.3 The Rise of the Hybrid - Opportunities for Thin Clients..........58
4.3 Conclusion: A Future for Storefronts..........59

Monetising the Mobile Application

5.1 Introduction..........60
5.2 Pay Per Download Applications..........61
5.2.1 Pricing the App..........61
5.3 Free to Download Applications..........62
5.3.1 Case Study: GetJar 62
Figure 5.2: GetJar Annual App Download Volumes (m) 2008-2011..........63
i. Business Model..........63
a. Monetisation of Speculative Investment..........64
b. GetJar Gold..........65
5.4 Upselling Content - The Freemium Approach..........65
5.4.1 The Growth of In-App Billing..........65
Table 5.1: Top Grossing US iPhone Apps, 2010..........66
i. In-App Billing and Social Gaming..........66
5.5 The Mobile Value Add..........67
5.6 The Challenges of App Monetisation - Which Business Model?..........67
5.7 Billing the App..........68
5.7.1 Beyond Billing - Maximising Monetisation Opportunities Through Intelligent Billing..........68
5.8 Advertising in Apps..........69
5.9 Reimagining the Consumer Application..........70
5.9.1 The App as Marketing Tool..........70
i. Case Study: Waterslide Extreme..........70
Figure 5.3: Fishlab's Barclaycard-Branded Waterslide Extreme on the iPhone..........71
5.9.2 The App as Retail Mechanism..........71
Figure 5.4: eBay iPhone App..........72
Figure 5.5: Ocado on the Go Screenshots..........72

The Market for Smartphone Apps

6.1 Introduction..........73
6.2 Methodolog..........73
Figure 6.1: Methodology for Determining App Adoption, Downloads, Usage and Revenues (By Region, Device Type and App Catgeory)..........75
Table 6.1: Recent Juniper Research Reports on Application Categories..........76
6.3 Global Smartphone Market Forecast..........77
Figure 6.2: Global Smartphone Installed Base Forecast (m) Split by 8 Key Regions 2011-2016..........77
Table 6.2: Global Mobile Smartphone Installed Base (m) Split by 8 Key Regions 2011-2016..........77
6.4 Smartphone Application Users and Usage..........78
Table 6.3: Percentage of Smartphone Users Who Download Apps Split by 8 Categories 2011-2016..........78
Figure 6.3: Number of Smartphone Users (m) Who Download Apps Split by 6 Categories 2009-2015..........79
Table 6.4: Number of Smartphone Users (m) Who Download Apps Split by 8 Categories 2011-2016..........79
6.5 Smartphone Application Revenues..........80
Figure 6.4: Average Number of Smartphone App Downloads per User per Year Split by 8 Categories 2011-2016..........80
Table 6.5: Average Number of Smartphone App Downloads per User per Year Split by 8 Categories 2011-2016..........80
Figure 6.5: Total Number of Smartphone App Downloads Per Year (m) Split by 8 Categories 2011-2016..........81
Table 6.6: Total Number of Smartphone App Downloads Per Year (m) Split by 8 Categories 2011-2016..........81
6.5.1 Pay-Per-Download Application Revenues..........82
Table 6.7: Percentage of Smartphone App Downloads which are Paid For Split by 8 Categories 2011-2016..........82
Figure 6.6: Number of Smartphone App Downloads (m) which are Paid for Split by 8 Categories 2011-2016..........83
Table 6.8: Number of Smartphone App Downloads (m) which are Paid For Split by 8 Categories 2011-2016..........83
Table 6.9: Price Per Smartphone App Download ($) Split by 8 Categories 2011-2016..........84
Figure 6.7: Smartphone Apps, PPD Value ($m) Split by 6 Categories 2011-2016..........84
Table 6.10: Smartphone Apps, PPD Value ($m), Split by 8 Categories 2011-2016..........85
6.5.2 Post-Download Revenues..........85
Table 6.11: Proportion of Smartphone App Downloaders Paying for Content Post Download (%) Split by 8 Categories 2011-2016..........85
Figure 6.8: Number of Smartphone App Downloaders Paying for Content Post Download (m) Split by 8 Categories 2011-2016..........86
Table 6.12: Number of Smartphone App Downloaders Paying for Content Post Download (m) Split by 8 Categories, 2011-2016..........86
Table 6.13: Smartphone Apps, Average Annual Spend Per User ($) Split by 8 Categories..........87
Figure 6.9: Smartphone App Post Download Content Revenues ($m) Split by 8 Categories 2011-2016..........87
Table 6.14: Smartphone App Post Download Content Revenues ($m) Split by 8 Categories 2011-2016..........88
6.5.3 Total Smartphone App Revenues..........88
Figure 6.10: Total Revenues from Consumer Smartphone Apps ($m) Split by 8 Categories 2011-2016..........88
Table 6.15: Total Revenues from Consumer Smartphone Apps ($m) Split by 8 Categories 2011-2016..........89

The Market for Featurephone Apps

7.1 Introduction..........90
7.2 Global Featurephone Market Forecast..........90
Figure 7.1: Global Featurephone Installed Base Forecast (m) Split by 8 Key Regions 2011-2016..........91
Table 7.1: Global Featurephone Installed Base Forecast (m) Split by 8 Key Regions 2011-2016..........91
7.3 Featurephone Application Users and Usage..........91
Table 7.2: % Featurephone Users Who Download Apps Split by 8 Categories 2011-2016..........92
Figure 7.2: Number of Featurephone Users (m) Who Download Apps Split by 8 Categories 2011-2016..........92
Table 7.3: Number of Featurephone Users (m) Who Download Apps Split by 8 Categories 2011-2016..........93
7.4 Featurephone Application Revenues 93
Figure 7.3: Average Number of Featurephone App Downloads per User per Year Split by 8 Categories 2011-2016..........93
Table 7.4: Average Number of Featurephone App Downloads per User per Year Split by 8 Categories 2011-2016..........94
Figure 7.4: Total Number of Featurephone App Downloads Per Year (m) Split by 8 Categories 2011-2016..........94
Table 7.5: Total Number of Smartphone App Downloads Per Year (m) Split by 8 Categories 2011-2016..........95
7.4.1 Pay-Per-Download Application Revenues 95
Table 7.6: % Featurephone App Downloads which are Paid For Split by 8 Categories 2011-2016..........95
Figure 7.5: Number of Featurephone App Downloads (m) which are Paid For Split by 8 Categories 2011-2016..........96
Table 7.7: Number of Featurephone App Downloads (m) which are Paid For Split by 8 Categories 2011-2016..........96
Table 7.8: Price Per Smartphone App Download ($) Split by 8 Categories 2011-2016..........97
Figure 7.6: Featurephone Apps, PPD Value ($m) Split by 8 Categories 2011-2016..........97
Table 7.9: Smartphone Apps, PPD Value ($m), Split by 8 Categories 2011-2016..........98
7.4.2 Post-Download Revenues..........98
Table 7.10: Proportion of Smartphone App Downloaders Paying for Content Post Download (%) Split by 8 Categories, 2011-2016..........98
Figure 7.7: Number of Featurephone App Downloaders Paying for Content Post Download (m) Split by 8 Categories, 2011-2016..........99
Table 7.11: Number of Featurephone App Downloaders Paying for Content Post Download (m) Split by 8 Categories 2011-2016..........99
Table 7.12: Average Annual Spend Per User on Smartphone Apps ($) Split by 8 Categories..........100
Figure 7.8: Featurephone App Post Download Content Revenues ($m) Split by 8 Categories 2011-2016..........100
Table 7.13: Featurephone App Post Download Content Revenues ($m) Split by 8 Categories 2011-2016..........101
7.4.3 Total Featurephone App Revenues..........101
Figure 7.9: Total Revenues from Consumer Featurephone Apps ($m) Split by 8 Categories 2011-2016..........101
Table 7.14: Total Revenues from Consumer Featurephone Apps ($m) Split by 8 Categories 2011-2016..........102

The Market for Tablet Apps

8.1 Introduction..........103
8.2 Global Tablet Market Forecast..........103
Figure 8.1: Global Tablet Installed Base Forecast (m) Split by 8 Key Regions 2011-2016..........104
Table 8.1: Global Tablet Installed Base Forecast (m) Split by 8 Key Regions 2011-2016..........104
8.3 Tablet Application Users and Usage..........104
Table 8.2: Percentage of Tablet Users Who Download Apps Split by 8 Categories 2011-2016..........105
Figure 8.2: Number of Tablet Users (m) Who Download Apps Split by 8 Categories 2011-2016..........105
Table 8.3: Number of Tablet Users (m) Who Download Apps Split by 8 Categories 2011-2016..........106
8.4 Tablet Application Revenues..........106
Figure 8.3: Average Number of Tablet App Downloads per User per Year Split by 8 Categories 2011-2016..........106
Table 8.4: Average Number of Tablet App Downloads per User per Year Split by 8 Categories 2011-2016..........107
Figure 8.4: Total Number of Tablet App Downloads Per Year (m) Split by 8 Categories 2011-2016..........107
Table 8.5: Total Number of Tablet App Downloads Per Year (m) Split by 8 Categories 2011-2016..........108
8.4.1 Pay-Per-Download Application Revenues..........108
Table 8.6: Percentage of Tablet App Downloads which are Paid For Split by 8 Categories 2011-2016..........108
Figure 8.5: Number of Tablet App Downloads (m) which are Paid For Split by 8 Categories 2011-2016..........109
Table 8.7: Number of Tablet App Downloads (m) which are Paid For Split by 8 Categories 2011-2016..........109
Table 8.8: Price Per Tablet App Download ($) Split by 8 Categories 2011-2016..........110
Figure 8.6: Tablet Apps, PPD Value ($m) Split by 8 Categories 2011-2016..........110
Table 8.9: Tablet Apps, PPD Value ($m) Split by 8 Categories 2011-2016..........111
8.4.2 Post-Download Revenues..........111
Table 8.10: Proportion of Smartphone App Downloaders Paying for Content Post Download (%) Split by 8 Categories 2011-2016..........111
Figure 8.7: Number of Tablet App Downloaders Paying for Content Post Download (m) Split by 8 Categories 2011-2016..........112
Table 8.11: Number of Tablet App Downloaders Paying for Content Post Download (m) Split by 8 Categories 2011-2016..........112
Table 8.12: Tablet Apps, Average Annual Spend Per User ($), Split by 8 Categories..........113
Figure 8.8: Featurephone App Post Download Content Revenues ($m) Split by 8 Categories 2011-2016..........113
Table 8.13: Featurephone App Post Download Content Revenues ($m) Split by 8 Categories 2011-2016..........114
8.4.3 Total Tablet App Revenues..........114
Figure 8.9: Total Revenues from Consumer Tablet Apps ($m) Split by 8 Categories 2011-2016..........114
Table 8.14: Total Revenues from Consumer Tablet Apps ($m) Split by 8 Categories 2011-2016..........115

Companies Referenced

3UK, Amazon, Amobee, Appia, Apple, Argos, AT&T, Bango, Bharti Airtel, Bold Creative, Cellmania, China Mobile, eBay, Ericsson, Facebook, Fishlabs, FT, GetJar, Gameloft, Gamevil, Google, GREE, Handango, Handster, inneractive, Kony, LG, Majic Jungle Software, Microsoft, Mixi, Mobage, Mobixell, Motricity, MTS, Nokia, O2, Ocado, Opera Software, Orange, Palm, PayPal, PocketGear, Poynt, RIM, Samsung, Shazam, Smart, Softbank, T-Mobile, Telefonica, Telenor, Tencent, Tesco, Verizon Wireless, Vodafone