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Apps to Generate $15B by 2013

Christine Persaud

Published: 01/26/2010 09:25:40 AM UTC in Surveys & Stats

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Apps to Generate $15B by 2013

If you thought mobile apps wasn't a profitable business, think again. According to the latest research from Futuresource Consulting, apps are poised to generate close to US$15 billion dollars in 2013. Already in 2009, apps accounted for $4.6 billion in global revenue.

Futuresource reports that consumers downloaded more than 3.6 billion apps from online app stores in 2009; three-billion of which hailed from Apple's iTunes App Store for the iPod Touch and iPhone devices. The European-based research firm expects this global number to rise to 6.6 billion this year, than surge to 16.2 billion by 2013.

Consumers will still continue to download a significant number of free apps, but the paid market will develop continuously, including pay-per-download apps like games and quizzes that sell for $0.99-a-pop as well as subscription services, like Slacker or satellite radio that are paid on a yearly basis. The figures do not take into account Java mobile gaming; this segment represented a $4 billion market last year on its own.

"Factor in mobile content revenues which fall beyond the world of the apps store, like direct downloads from gaming companies, handset manufacturers and operators, video downloads, music and ringtones, and the whole package will be worth 38 billion dollars worldwide by 2013," predicts Patrik Pfandler, Senior Market Analyst at Futuresource.

Not surprisingly, most of the growth will continue to be attributed to Apple and its iPhone, iTouch, and pending product announcements, all of which work with the company's own widely popular app store. Apple already accounts for 70% of the global apps market. However, Futuresource notes that other manufacturers and mobile phone platforms are ramping up efforts to gain a significant portion of the pie.

Nokia, for example, is really pushing its Ovi online app store and platform. Research in Motion (RIM) launched its own app store for the BlackBerry last year; while Google is investing much time and energy in its Android platform and complementary Android app Marketplace. While Samsung does not yet have an app store, the company is working on apps to go hand-in-hand with its upcoming Bada mobile operating system, to be officially revealed at Mobile World Congress next month. Samsung will also be expanding its mobile app initiative to extend across home theatre products; some of the company's latest network-capable flat-panel TVs will be able to access and operate a selection of apps.

Futuresource predicts that more than a billion people worldwide will own a smartphone by 2013. Already today, more than four-billion people, equal to 60% of the world's population, own a mobile phone of some sort.


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Apps to Generate $15B by 2013








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