App Store Projected to Claim 75% of App Download Market in 2011

Research firm IHS iSuppli today released its projections for the performance of mobile application marketplaces in 2011, predicting that overall revenues will rise nearly 78% this year to $3.9 billion. Of that figure, Apple's App Store is expected to snag 76% or $2.91 billion on 63.4% growth over 2010.
To no one's surprise, the Apple App Store continues to head off all competition. Projected figures for the Apple App Store this year call for revenue of $2.91 billion, up 63.4 percent from $1.78 billion in 2010. Given that Apple devices such as the iPhone, iPod and iPad are the market leaders in their field, the company's App Store is expected to take in 76 percent of revenue this year and retain 60 percent market share by 2014, despite efforts by the other stores to match Apples ability to monetize its users, IHS believes.
Apple also will lead the way with revenue gained from in-app purchases - or additional purchases made within a paid application, such as bonus game levels - which will serve as a key growth driver for revenue up to 2014.
Looking further ahead, IHS iSuppli sees the app download market reaching $8.3 billion in 2014, more than doubling the projected 2011 performance. Apple is still projected to maintain a majority share of the market, albeit at a slightly lower 60% share. Still, that performance would put Apple's App Store revenue at $5 billion in 2014.
Top Rated Comments
(View all)We always see how many more android devices there are but the App Store dominates app sales by a huge margin, which means the average number of apps bought by an android user vs an iOS user must be massively out of whack.
60% growth vs. 300% growth, Apple better be worried about this. Sure, they are in the drivers seat now, but Android has the momentum of a bulldozer going 100 MPH, whereas the iOS app market has that of a 1986 Yugo going 30 MPH.
Yes at these rates Android will catch up to Apple in 7 or 8 years. Of course to do that Android will have to be on 10 billion devices, so much like a pyramid scheme, it becomes mathematically impossible for Android to surpass iOS in app store purchases.
What do people with Android phones do? Just look at their lock screens all day?
Google Maps. And widgets. Lots of widgets. And, um....yeah, that's about it.
an app to waste a dollar on
^^ And here we have Google's problem. Cheapskate Android users. ^^
A whole dollar?
60% growth vs. 300% growth, Apple better be worried about this. Sure, they are in the drivers seat now, but Android has the momentum of a bulldozer going 100 MPH, whereas the iOS app market has that of a 1986 Yugo going 30 MPH.
Way to cherry pick a quote and totally take it out of context...
Did you even read the article?
If Apple has a 60% marketshare by 2014, as this group suggest, then I think it will take less than the 7 to 8 years you think it will
It is quite clear you didn't. Nothing in the Article suggests Apple will ever surrender the market share lead, and it is quite clear they will never give up the revenue lead...
60% growth vs. 300% growth, Apple better be worried about this. Sure, they are in the drivers seat now, but Android has the momentum of a bulldozer going 100 MPH, whereas the iOS app market has that of a 1986 Yugo going 30 MPH.
Oh, the car analogies. And it's totally shocking you favor Android. TOTALLY SHOCKING.
Percentage growth? Easy to have large percentage numbers when you are far behind. If there's a new player in the game, it's incredibly easy to post 1,000% gains, because they are starting from almost nothing. Just like Android :)
Your act is growing tiresome. I keep you unblocked now that I can see how many negative votes you get on the forums.
60% growth vs. 300% growth, Apple better be worried about this. Sure, they are in the drivers seat now, but Android has the momentum of a bulldozer going 100 MPH, whereas the iOS app market has that of a 1986 Yugo going 30 MPH.
The analogy that you've given makes no sense. This discussion is about app stores and profitability. Apple is dominating this market because although there are more Android devices out there, there is a greater perception of value in the App store and a corresponding shelling out of cash toward Apple.
Apple has always been about producing and shipping quality products that are profitable as opposed to the licensing model of Android which is focused on shipping massive numbers of devices which will point users towards Google and their ad based revenue model.
Android device users don't spend much money on
1. Their device
2. Apps
Remember that the iPhone didn't support ANY apps until the iPhone 3G came out. What did THEY do?
They certainly didn't have to listen to Fandroids all day.
The first release of Android was over 3 months after the iPhone 3G, and 15 months after the initial iPhone. And the early Android phones? ZOMG OPEN SOURCE! I WANT ONE!
Remember how much phones sucked before the iPhone? Yeah me neither.
If Apple has a 60% marketshare by 2014, as this group suggest, then I think it will take less than the 7 to 8 years you think it will
So, if Apple's marketshare drops to 60% by 2014, that means that 40% of the market will be split by Android, PlayBook, WebOS, plus any other small players. So, even if Android had fully half of the remaining marketshare, then it would only hold 20% vs. Apple's 60%. And that's three years from now. So, based on that, yes, it would take on the order of 7 to 8 years...
ummmm...didn't Apple have 100% of the App Download Market in 2007-2010? :) Seriously.
So it's decreasing to 75%.
Inevitably Apple is not going to have much more than 50% as soon as Android has more time under its belt (iPhone's been out for ~4 years right?...Android has been out for 1 year).
I like my iPhone but it's silly to think that Apple will own 75%+ of "downloadable apps" after 2011. But let me guess...Apple will suddenly lump Mac OS app downloads into it's count.
So, first off, check your history. The first Android phone came out almost three years ago, and apps could be developed in Android from day 1, whereas it wasn't until about a year after the original iPhone was released that apps could be developed for it. So, the iOS AppStore has really only been around for a few months longer than the Android Marketplace.
Second, it is important to note that this percentage is based on revenue, not number if apps downloaded. As such, the real story here is not how many apps are being downloaded on each platform, but rather where people are willing to spend their money. For that reason, as already noted by a developer who posted above, this kind of information is key to developers for them to decide where to invest their development dollars. So long as the picture remains like this, the iOS development community will see more and better apps developed for it than any of the other platforms...
What I effectively wish apart from good iOS - developer - user relationship, is WP7 coming in and having a healthy competition.
After all, Microsoft and Apple seem to know alot about mobile software and software in general
Apparently Flash was going to be a selling point for android over iOS but I've read that it is not great. Steve was right. And this so called honeycomb was suppose to be the latest and greatest but has been delayed.
And then there is this odd statistic that android is heavily favored by men over women. If the percentage of female android users stays below 30%, the men will leave. It is easier to interact with the ladies if they are on the same platform.
Oh and don't forget the viruses and malware that are already cropping up on the "open platform".
It's an interesting trend.
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