Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Apple/Mac
24/7/365 Network Uptime
Average Rating:
Rate this article:  
In-Store App Purchases: Where Mobile Meets the Money
In-Store App Purchases: Where Mobile Meets the Money

By Jennifer LeClaire
September 19, 2013 9:59AM

    Bookmark and Share
Provided there's some obvious value to end-users, developers can drive in-app purchases and generate revenue more effectively. Unless there's already a brand or existing value established, exposing a consumer to a free mobile app with a higher-value paid version can be more effective than charging initially, said analyst Greg Sterling.
 



Apple started a mobile app store revolution -- and plenty of people are making plenty of money from the concept. Indeed, mobile app stores will see annual downloads reach 102 billion in 2013, according to market research firm Gartner Inc. That's up from 64 billion in 2012.

Money-wise, total revenue in 2013 will reach $26 billion, up from $18 billion in 2012. And that's even with free apps accounting for 91 percent of total downloads. But the real money is in in-app purchases (IAPs). Gartner said IAPs will account for 48 percent of app store revenue by 2017, up from 11 percent in 2012.

"We expect strong growth in downloads through 2014, but growth is forecast to slow down a bit in later years," said Sandy Shen, research director at Gartner. "The average downloads per device should be high in early years as users get new devices and discover the apps they like. Over time they accumulate a portfolio of apps they like and stick to, so there will be moderate numbers of downloads in the later years."

Major Monetization Method

According to Gartner, IAP purchases will drive 17 percent of the store revenue in 2013 and increase to 48 percent in 2017. Much the same as downloads, IAP is expected to post strong growth in 2013 and 2014 and slow in later years. As Gartner sees it, this is because smart devices are reaching more mass-market consumers who are not as willing --- or cannot afford -- to spend on IAPs as early adopters. Nevertheless, Gartner said, IAP will become a major monetization method for apps stores and developers.

Brian Blau, research director at Gartner, noted that free apps currently account for about 60 percent and 80 percent of the total available apps in Apple's App Store and Google Play, respectively. And iOS and Android app stores combined are forecast to account for 90 percent of global downloads in 2017.

"These app stores are still increasingly active due to richer ecosystems and large and very active developer communities," Blau said. "However, we expect average monthly downloads per iOS device to decline from 4.9 in 2013 to 3.9 in 2017, while average monthly downloads per Android device will decline from 6.2 in 2013 to 5.8 in 2017. This relates back to the overall trend of users using the same apps more often rather than downloading new ones."

A Dual Strategy?

Gartner research also shows that IAP contributes to a significant amount of Apple's App Store revenue from iPhones worldwide. Other platforms have not reached such high levels as the iPhone, but analysts expect they will also see IAP contributions increase in the future. (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Apple/Mac
1.   Samsung Tech Experts Talk Patents
2.   Phones Annoy Patent Trial Judge
3.   Apple vs. Samsung: Latest News
4.   Hey Siri, Can You Hear Me Now?
5.   Finding Apple-Samsung Jury Hard


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 
Canadian Teen Arrested for Heartbleed Hack
One week after the OpenSSL Heartbleed vulnerability was unveiled, Canadian authorities have made the first arrest -- a London, Ontario teenager -- connected to exploiting the security hole.
 
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Google Releases Chrome Remote Desktop App for Android
You're out on a sales call, and use your Android mobile device to grab a file you have back at the office on your desktop. That's a bit easier now with Google's Chrome Remote Desktop app for Android.
 
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.