Ronnie05's Blog

Apple still rules the world of Apps

Posted in Applications and User Interfaces by Manas Ganguly on February 16, 2011

Apple notched up 82.7% of revenues from Apps stores globally in 2010. While this figure is marginally down from Apple’s 92.8% market share in 2009, it is testimony to the fact that in terms of mobile application stores, Apple remains far ahead of the competition, with the other stores so far unable to replicate Apple’s success in generating revenue from users. Apple, in contrast, has been able to maintain advantage by leveraging its tightly controlled ecosystem—combining compelling hardware and content with the capability to offer consumers a trusted, integrated and simple billing service via iTunes.

Revenue for the Apple App Store rose 131.9 percent to $1.8 billion in 2010 from $768.7 billion in 2009.Global revenue for the total mobile application store market in 2010 increased by 160.2 percent to reach $2.2 billion, up from $828 million in 2009. Helping Apple’s cause in terms of profitability was iPad, which even with a smaller installed base made more margins per app, disproportionately impacting Apple’s Revenue. By 2014, about 50 percent of Apple App Store revenues in the United States will be generated by iPad users, up from less than 20 percent in 2010. Apple is expected retain more than half of market revenue at least through 2014.

Research In Motion’s BlackBerry App World retained its No. 2 rank with 360.3 percent growth. The company’s share increased to 7.7 percent in 2010, up from 4.3 percent in 2009.

Nokia’s OVI Store posted the second strongest growth in 2010, with revenue rising by 719.4 percent, giving it 4.9 percent share of the application market business, up from 1.5 percent in 2009.

Google’s Android Market made the most dramatic advance, with revenue soaring 861.5 percent for 2010. This allowed Android Market to take 4.7 percent share of global mobile application store revenue in 2010, up from 1.3 percent in 2009.

Source: IHS Screen Digest February 2011

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