The app market has become a very lucrative market now that smartphones have taken over. People now use their mobile phones for doing many things other than making phone calls. Thanks to apps, the smartphone has become a versatile product that further makes them more appealing. And because of this, app downloads have seen a surge in demand that has recently reached 102 billion uploads so far this year.
According to a report from market research firm Gartner, app downloads reach 102 billion in 2013. That is up from 64 billion downloads from 2012. Total revenue from the app downloads for 2013 reach $ 26 billion, up from $ 18 billion from the year before.
In addition free apps account for 91 percent of the total downloads for 2013. Currently about 60 percent of apps from Apple’s App Store and 80 percent from Google Play are considered as free apps. But in-app purchases also bring in the money. It accounts for 17 percent of the revenue for 2013. It is expected to increase to 48 percent of total revenue by 2017.
The report also indicated that while revenue is expected to grow strong until 2014, it is expected to slow down in the later years. One reason is that many smartphone adopters are still exploring the app market for apps that become their choice and preference. But as they become accustomed to it, they will have favorite portfolio apps that they grow accustomed and likely stick to using. But despite this, the research firm still sees in app purchases as a major revenue stream for the app stores as well as app developers.
Gadgets – GuideTo.Com