App downloads exploding, tablets will fuel it further

App downloads exploding, tablets will fuel it further

Summary: The latest numbers from Gartner show how big a business apps have become, with $5.2 billion generated in 2010. The revenue generated by apps, both direct sales and ad revenue, is expected to almost triple in 2011 to over $15 billion.

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Apple fueled an app revolution with the introduction of the iPhone and relentlessly informing us that "there's an app for that". Smartphone owners are downloading apps in increasing numbers, with the average user installing dozens of the little snippets of code for the phone. The latest numbers from Gartner show how big a business apps have become, with $5.2 billion generated in 2010. The revenue generated by apps, both direct sales and ad revenue, is expected to almost triple in 2011 to over $15 billion.

This is good news for app developers, who typically keep 70 percent of revenue for apps sold in app stores. The business model for apps is becoming more refined over time, with app sales only accounting for a portion of the revenue generated. Ad revenue is on the rise, fueled by the practice of using ad-supported free apps on the hot Android platform. Developers are also seeing more revenue from in-app sales, a practice bound to grow significantly as Google is set to allow the practice for apps in the Android Market.

The rise of the tablet should drive app sales, as consumers will be grabbing apps for these mobile devices. While some smartphone owners are reluctant to buy apps for the phone, the tablet owner will likely view the practice as business as usual given the perception that these devices are computers.

Topics: Hardware, Apple, Laptops, Mobility, Tablets

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  • the rise of the tablets

    i am still convinced that there won't be a real "tablet market". people won't buy tablets, they will buy ipads. the usual clueless tech pundits and apple haters will be in for a rude awakening when in 2011 and 2012 they will find out that the tablet market goes the way of the mp3-player market with apple establishing itself as the only meaningful player with a constant 75% market share.
    banned from zdnet
    • Windows tablets running legacy Win32 are a non-starter, but, Android 3

      tablets will take at least 20% by the end of 2011.
      DonnieBoy
    • Oh, the denial is already in full force

      The vast majority of that $5.2 billion in app downloads went to iOS devices, but that little factoid was conveniently left out of the story, in a desperate attempt to prop up Android and make people think it's anything more than a poor man's iPhone.
      frgough
      • iPhone and iPad are great, but, Android for smart phones moved ahead of

        iPhone, and Android 3 for tablets is about to be released. Well, for 2011 I do not see Android on tablets taking more than say 20% by the end of the year. But, long term, I see Android taking over 35% market share in tablets, maybe more. Honeycomb is the real deal, and like a freight train, it is coming.
        DonnieBoy
      • RE: App downloads exploding, tablets will fuel it further

        @frgough

        Not surprise Apple is not getting the credit here when mostly all the tablet specific apps are being developed for the iPad. Especially when Apple was the ones who pushed developers to rethink their apps for the larger screen (not simply settle for it being 'scaled-up' like on Android).
        dave95.
      • re: Oh, the denial is already in full force

        @frgough : "Poor man's iPhone" is right. After all, look what Apple charges for the phone in addition to the kickback from the teleco! You need to spend quite a bit more for an iPhone over an Android or even a BlackBerry.

        It's nice being biased and/or brainwashed by the Apple brand, eh?
        Gis Bun
      • RE: App downloads exploding, tablets will fuel it further

        @Gis Bun While I don't think that "Poor man's iPhone" was necessarily the best phrase to use it doesn't change facts. You seem to think the iPhone is so expensive compared to Android phones but that's simply due to your closed minded attitude toward the device. A quick look at the carrier websites will clue you in a bit, the iPhone is priced the same or within a small difference to any comparable Android phone that I saw. Sure you can get a cheap Android phone but it's not comparable to the iPhone or the higher end Android phones so they don't count in the comparison.
        non-biased
  • The new app models will make Legacy Win32 applications obsolete in not much

    time. And, of course that makes Legacy Windows Obsolete even though it is still selling well for now.
    DonnieBoy
    • I wonder if the MCSE get's it yet

      Can they see the App store revolution yet? I doubt it;-)
      Richard Flude
  • RE: App downloads exploding, tablets will fuel it further

    Interesting, $5.2 billion on tip calculators. Tablets will not do much, they will see some growth over the next year then its going to level off once people realize they don't have a need for them. Pay $600 + apps just to have this electronic device sit on your coffee table. You also get to worry about your bad back afterwards as well.
    Loverock Davidson
    • Loverock Davidson has to be Steve Ballmer.. has to be.. LOL..

      @Loverock Davidson
      doctorSpoc
      • RE: App downloads exploding, tablets will fuel it further

        @doctorSpoc : Or maybe just Steve Jobs rubbing his hands and seeing his stock going up. [a.k.a. ripping off people]
        Gis Bun
    • RE: App downloads exploding, tablets will fuel it further

      @Loverock Davidson
      I'm sorry,Loverock, but I have to ask. But before that, let me make a few things crystal clear. I make it a iron clad rule not to attack a person thru his stated opinions. And, having said that, I actually admire your loyalty towards the Windows ecosystem.

      Still, I have to ask .. do you actually believe the stuff you write?
      kenosha77a
      • At least he's consistant

        @kenosha7777

        Though I did notice he finally dropped the "It can't be doing well because I haven't seen one in the wild" routine, I guess he's finally getting out of the house a bit.
        oncall
      • RE: App downloads exploding, tablets will fuel it further

        @kenosha7777
        Yes I do.
        Loverock Davidson
      • RE: App downloads exploding, tablets will fuel it further

        @oncall

        I still haven't seen one in the wild. I honestly don't know where these things are.
        Loverock Davidson
      • I don't want to make any assumptions about your hangouts

        @Loverock Davidson

        But coffee shops and airports are probably two good places to start. There were at least several on the last flight I took a few months ago and that was in coach.
        P.S. and I cannot rule out one or both of us is suffering from a little "preconception bias" here.
        oncall
      • RE: App downloads exploding, tablets will fuel it further

        @oncall

        I don't drink coffee and don't fly as much as I'd like to.
        Loverock Davidson
    • RE: App downloads exploding, tablets will fuel it further

      @Loverock Davidson Tablets namely the ipad already have done well, very well infact. So well that both google and microsoft have developed/modified their mobile OSs to compete with iOS. Several hardware manufactures have entered into the tablet space as well. The ipad, and potentially tablets based on moblile OSs are deffinately a disruptetive technology, and will continue to change the face of computing. I am sorry to inform you that tablets are not going to sit on the coffee table collecting dust. They are here too stay.
      jhuddle
      • RE: App downloads exploding, tablets will fuel it further

        @jhuddle
        Says you, but the reality will be different. Tablets are overly expensive for what they do. You can get a more capable laptop for less money than a tablet. There is no real need for a tablet except in a few niche markets. Once the consumers buy them they will wonder why they did, after a month when the newness wears off its going to sit on the table and collect dust.
        Loverock Davidson