Mobile App Revenue Projected to Reach $58 Billion by 2014
Garter Inc, a mobile analytics company, has released their forecasts for mobile app downloads and revenue for the next three years. They are projecting downloads to reach 17.7 Billion downloads in 2011, up from 8.2 Billion in 2010. By 2014, they are estimating that a staggering 185 billion applications will be downloaded from mobile app stores.
In 2010, mobile application revenue reached $5.2 billion and projections for 2011 are showing a 190% increase to $15.1 billion and an even greater increase to $58 billion by 2014.
“Many are wondering if the app frenzy we have been witnessing in just a fashion, and, like many others, it shall pass. We do not think so,” said Stephanie Baghdassarian, research director at Gartner. This recent influx in downloads in attributed to the recent launch of app stores for many manufacturers including: Apple, Android, Nokia, RIM, Microsoft, and Samsung. Users are believed to begin paying for more applications as they become more trustful of in-app billing systems and as they build a greater perceived value from new and innovative applications.
Other notable observations include: Advertising will generate 1/3 of the revenue generated by app stores, up 16 percent from 2010 and people will generally use native apps over web-based apps if they provide a more personal and richer experience.