A new study from ABI Research reveals that the worldwide app industry is well on its way to achieving 44 billion cumulative downloads by 2016. Android and Windows Phone 7 are steadily catching up with Apple as adoption picks up pace and expansion of their mobile OS installed bases continues to grow. The mobile app ecosystem and market model is also expected to evolve with the increasing pool of smartphone and tablet users.
“Given the vast number of choices available, app developers and app stores need to innovate continually in order to maintain consumers’ interest,” comments ABI research analyst Fei Feng Seet. “For example, an app called OfferedApp promises to provide a paid app each day in exchange for users completing a simple survey or signing up for an offer with advertisers. Some apps also offer virtual currency or other premiums to consumers who download a featured app from the developer. However these new marketing tactics are likely to face opposition as iTunes starts to clamp down on such incentivized promotions when they cut into Apple’s revenue from in-app sales.”
iTunes is also rumoured to have made modifications to its App Store ranking algorithm: the new ranking system takes into account qualitative information such as reviews, on top of download statistics. According to practice director Neil Strother, “App store browsing on devices has been an issue with users, who can face difficulty finding an app of interest. Having many ‘misleading’ apps hogging the top charts for a week at a time does not help either, so this could not be a better time for Apple to reform its app ecosystem in an environment where competition and consumers’ heightened expectations are increasing the pressure.”
ABI Research’s “Mobile Applications Market Data” (http://www.abiresearch.com/research/1004105) tracks mobile application downloads and revenues segmented by mobile operating system platform. The database includes historical data and forecasts for application downloads for all major mobile OS’s. It also provides mobile application revenue forecasts, and an overview of the major mobile application storefronts.
It is a component of the Mobile Services Research Service (http://www.abiresearch.com/products/service/The_Mobile_Consumer_Research_Service), which also includes Research Reports, Surveys, other Market Data products, ABI Insights, and analyst inquiry support.