Developments in mobile handset technology and use of mobile devices by consumers have made mobile application market consumer-oriented, global in scope and device-dependent.
Mobile commerce takes off, the size of the market will increase exponentially because of network externalities. Research companies see mobile commerce developing significantly in the future.
The rollout of 3G and 4G mobile services vastly increases the data transfer rate and therefore the variety of services that can be provided on a mobile device.
New technologies permit mobile phones to be used as payment devices not only for virtual but also real-world shopping.
New services, such as mobile digital television, location-based services and integrated financial services, are being offered by many market players.
The cross-border use of mobile handsets for mobile commerce also has huge potential.
Three types of applications:
Each app is different for different platforms.
There are about a total of over 1 billion apps.
Estimated earnings of app industry in 2010 was $4 billion and is estimated to grow to $27 billion till 2013.
Different Mobile OS Source: http://www.gartner.com
Native or on deck - operators, mobile device manufacturers, and Operating System (OS) developers managed
Third party or off deck- independent or third-party managed
App Stores - Native Name Established Owner Available apps Device platform Developer's cut per sale Developer fees Android Market October 22, 2008 Google 300,000 (Mar 2011) Android 70% US$25 App Catalog June 6, 2009 Palm/HP 6,405 (Mar 2011) webOS 70% Free App Store July 10, 2008 Apple 350,000 (Jan 2011) iOS 70% US$99/year App World April 1, 2009 RIM 16,121 (Dec 2010) BlackBerry OS 70% US$200/10 application submissions Ovi Store May 26, 2009 Nokia 43,535 (Oct 2010) Multiple (Symbian, Java, Maemo) 70% 1 € (plus possible certification costs) Windows Phone Marketplace October 21, 2010 Microsoft 12,023 (Mar 29 2011) Windows Phone 7 70% US$99/100 application submissions
Third Party Name Established Organizations Available apps Device platform Developer's cut per sale Developer fees Amazon Appstore March 2011 Amazon.com 3,800 (March 2011) Android 70% US$99/year AppsLib August 2009 AppsLib, Archos 445 (October 20, 09) Android 70% Free MobileRated 2006 Kalador Entertainment 55,000 (December 2010) Multiple Android, BlackBerry OS, Java N/A Free Handango 2000 PocketGear 190,000 Multiple Android, BlackBerry OS, Java, Palm OS,PSP, Symbian, Windows Mobile ≈ 42% Free explorePDA.com 2004 explorePDA 1,500 Multiple Android, BlackBerry OS, iOS, Java, Palm OS, Symbian, webOS, Windows Mobile 75% Free MobiHand 2004 MobiHand, Inc. 5,000 (June 3, 2009) Blackberry, Palm, Symbian, Windows Mobile and Android 60-80% Free PocketGear 1999 PocketGear 140,000 (June 2010) Multiple Android, BlackBerry OS, Java, Palm OS, Symbian, Windows Mobile ≈ 55% Free SlideME April 2008 SlideME 1,860 (July 21, 2010) Android ≈ 95% Free
GetJar Business Model
Third Party App Store; 70,000 applications.
Sells only free version of apps.
GetJar generates its revenue from a 'pay-per-download' system, where developers bid for ad slots on the store in order to get premium visibility, paying GetJar when downloads are made.
The company is backed by venture capital fund Accel Partners, and closed its US$11 million Series B funding round in June 2010 – at this time, it was said that the company had “maintained its profitability despite a challenging economic environment.”
Apple App Store
Launched in July 2008, in the first year, app store of apple made an estimated gross profit of about $180 million. (Source: http://news.cnet.com/8301-13579_3-20008540-37.html )
In 2011, app store’s revenue is estimated to reach to $2 billion. ( http://www.greatereader.org/?p=8933 )
Similar to the iTunes business of apple, the main focus of app store is promoting hardware sales rather than generating profits.