January 26, 2011
Application Revenue Expected To Triple This Year
Research firm Gartner said on Wednesday that worldwide mobile application revenue will almost triple to $15.1 billion this year.
Apple created the market for mobile online software stores with the iPhone store in mid-2008, scoring an instant hit that drove smartphones sales and reshaped the way mobile content is delivered.
"We estimate that Apple's App Store drove close to nine application downloads out of 10 in 2010 and will remain the single best-selling store ... through 2014, although to a lesser extent, as other stores manage to gain momentum," analyst Carolina Milanesi told Reuters.
Apple's App Store reached 10 billion downloads last week, and its rival Google Android reached 1 billion downloads last June.
Android was expected to become the world's most popular smartphone operating system this year as vendors like HTC, Motorola Mobility and Samsung Electronics roll out new models.
According to Gartner, 81 percent of all downloads this year will be made for free.
The research firm said that 16 percent of application store markets' $5.2 billion revenue was generated from advertising, a share it expected to nearly double to 30 percent by the end of 2014.
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