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.

Android is expected to continue its surge this year with nearly 300% growth to become the second-largest app marketplace after the App Store, but Android's projected revenue of $425 million will still fall far short of Apple's nearly $3 billion figure. Research in Motion's BlackBerry App World and Nokia's Ovi Store fill out the top four with expected revenues in the $200-300 million range.

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.

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Top Rated Comments

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124 months ago
What do people with Android phones do? Just look at their lock screens all day?

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.
Score: 7 Votes (Like | Disagree)
Avatar
124 months ago

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?
Score: 6 Votes (Like | Disagree)
Avatar
124 months ago

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...
Score: 5 Votes (Like | Disagree)
Avatar
124 months ago

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.
Score: 5 Votes (Like | Disagree)
Avatar
124 months ago

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
Score: 4 Votes (Like | Disagree)
Avatar
124 months ago

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 (http://upload.wikimedia.org/wikipedia/commons/5/51/Android_mobile_phone_platform_early_device.jpg)!

Remember how much phones sucked before the iPhone? Yeah me neither.
Score: 4 Votes (Like | Disagree)

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