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Apps Sales to Triple in 2011



By Florence Labedays
Wed Jan 26, 2011
12:09 pm
Apps Sales to Triple in 2011

Revenue from mobile apps will more than triple this year, with growth surging more than 1,000 percent between 2010 and 2014, according to research firm Gartner.

The report said that apps will generate around $15 billion this year, a 190 percent jump from $5.2 billion a year ago. Gartner estimates that worldwide store downloads will reach 17.7 billion in 2011, a 117 percent gain from 8.2 billion last year, before sales surpass 185 billion in 2014.

In addition, free apps are projected to account for 81 percent of total downloads in 2011, before rising from 2012 through 2014.

"Many are wondering if the app frenzy we have been witnessing is just a fashion, and, like many others, it shall pass. We do not think so," said Stephanie Baghdassarian, Gartner's research director. "We strongly believe there is a sizable opportunity for application stores in the future."

In order to grow as a market, apps will need to deliver a superior experience in comparison to its Web-based incarnation, Baghdassarian explained. Native apps will survive only when they will provide a more-personal and richer experience to the 'vanilla' experience that a Web-based app will deliver.

Marketplaces are also critical for distributing and drawing customers to apps. Gartner believes that Apple is driving the sector, with nine apps out of ten being downloaded from the online store last year, a trend that will continue until 2014. Earlier this week, the Cupertino, Calif.-based company surpassed its 10 billionth download.

Meanwhile, Android Market, Nokia's Ovi Store, Research in Motion's App World, Microsoft Marketplace and Samsung App, which are all key competitors, saw their numbers grow in 2010. But Apple is expected to maintain a clear lead even as rivals gain ground.

With the success of the iPad, Apple is bound to be the leader in the tablet apps as well, Gartner argues.

"While the average number of downloads per device onto a smartphone will remain stable as the market grows, it must be assumed that media tablets will drive more downloads from consumers, boosting the overall average downloads per device," said Carolina Milanesi, Gartner's research vice president.


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