Mobile app store revenues to near $37bn by 2015

Direct revenue from mobile app stores won't be far off $40 billion in a matter of years.

apps

Mobile app demand looks set to grow, with direct revenue from stores set to surpass $14 billion in 2012 and edge close to $37 billion by 2015.

So claims Canalys, which claims mobile network operators should see this as an opportunity to take on the vendor app stores from the likes of Apple et al.

Too much choice brings serious problems in terms of application discovery for both developers and users.

"The leading stores already have hundreds of thousands of apps, so it's hard for operators to compete with those numbers," said Canalys analyst Tim Shepherd.

"On the other hand, too much choice brings serious problems in terms of application discovery for both developers and users, which operators can turn to their advantage."

The research firm has predicted purchases from smarphones and tablet devices will be up by 92 per cent between this year and next. Furthermore, the compound annual growth rate (CAGR) between 2011 and 2015 will be just shy of 50 per cent.

"As more content and services are delivered over their networks, many MNOs are aspiring to move up the value chain. When it comes to detailed subscriber data, operators certainly have the competitive advantage," Shepherd added.

"While they must clearly be careful to respect their customers' privacy, the data they hold leaves them well positioned to propose targeted marketing services, such as promotions and recommendations, as well as richer editorial guidance, better localisation, improved security and simpler billing processes.'

More than 400 million and 43.3 million app-friendly smartphones and tablets respectively expected to be shipped around the world in 2011, there's a mammoth opportunity for network operators to offer users a more refined choice of applications, according to Canalys.

"Some operators are concerned that having their own branded app stores will appear as a throwback to the 'walled gardens' of the past,' Shepherd added. "While consumers would probably object to operators installing their app stores in place of vendor ones, there is no reason for operators not to pre-install their app stores alongside vendor stores to compete on user experience."

Featured Resources

BCDR buyer's guide for MSPs

How to choose a business continuity and disaster recovery solution

Download now

The definitive guide to IT security

Protecting your MSP and your customers

Download now

Cost of a data breach report 2020

Find out what factors help mitigate breach costs

Download now

The complete guide to changing your phone system provider

Optimise your phone system for better business results

Download now

Recommended

Google toughens enforcement of 30% revenue share with developers
Google Android

Google toughens enforcement of 30% revenue share with developers

25 Sep 2020
Fortnite creator sues Google and Apple over app store cut
Mobile

Fortnite creator sues Google and Apple over app store cut

14 Aug 2020
Presidential campaign apps serve as data collection tools
business apps

Presidential campaign apps serve as data collection tools

23 Jun 2020

Most Popular

16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

29 Apr 2021
How to move Windows 10 from your old hard drive to SSD
operating systems

How to move Windows 10 from your old hard drive to SSD

30 Apr 2021
Dell patches vulnerability affecting hundreds of computer models worldwide
cyber security

Dell patches vulnerability affecting hundreds of computer models worldwide

5 May 2021