Paid App Demand on the Rise

The research firm found that of all the smartphone apps downloaded by U.S. customers, almost a third comes with a price tag, up from 18 percent last year. The average price per app is also on the rise, costing $2.85 now compared to $1.99 in 2009.
Combining the effect of increased smartphone shipments, apps stores and highly priced apps, Yankee Group now expects total mobile app revenue to reach $537 million in 2010 alone, nearly tripled from its previous forecast of $537 million. And by 2014, that figure will further soar to a whopping $11 billion.
Not surprisingly, Apple’s iPhone generates the most downloads with its users downloading an average of 60 apps per year, three times the average smartphone users. Among wireless carriers, AT&T holds the top position with 27 apps downloaded by its subscribers annually, thanks to its iPhone exclusive deal. Together they contribute the most to the app usage as well.
However, Yankee Group also emphasizes the strong results shown by T-Mobile USA. T-Mobile subscribers download 18 apps per year on average, a figure that is attributable to its large portfolio of Android devices. Google’s Android platform, selling over 60,000 phones on a daily basis and offering 30,000 apps on its Android Market, is described as the "next breakout smartphone app platform" by the research firm.
As for paid apps, Verizon Wireless has the largest number among all networks, as nearly two-thirds of all apps downloaded are paid ones. Driving the high figure are probably the enterprise users of the carrier’s Blackberry devices, as they tend to be more willing to pay for business and productivity apps.
With the prices of paid apps continue to rise, consumers will have to prepare for spending more to get more in the near future.
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