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Mobile apps will outsell CDs by 2012'

Report for app store GetJar forecasts number of downloads will rise from 7bn in 2009 to almost 50bn in 2012.

Mobile app downloads are expected to increase from more than 7bn downloads in 2009 to almost 50bn in 2012, according to a report.

The independent study, carried out by Chetan Sharma Consulting for Getjar, the world's second biggest app store, forecasts that the global mobile application economy will be worth $17.5bn in 2012, more than CD sales, which it predicts will be $13.83bn.

It says that market will continue to grow exponentially as mobile devices become as powerful as computers, and wireless networks deliver consistently higher bandwidths. "With the consumer appetite for mobile apps rocketing, the opportunities for developers are huge," says the CEO and founder of GetJar, Ilja Laurs.

The study says that initially the focus of making revenue from apps was based entirely on paid downloads or subscription-based models, but this is going to change. Today, advertising-based revenue accounts for about 12% of app revenue, but by 2012 this figure is expected to rise to 28%. For some platforms such as Google's Android, advertising revenue is predicted to be even bigger than revenues from paid downloads.

The price of mobile applications ranges from $0.99 to $999 but the average selling price in 2009 was about $1.90, the study says. Over the next three years this is predicted to decrease by 29% and apps will get cheaper; however, advertising revenue derived from apps is likely to stay relatively flat.

By 2012, so-called "offdeck" apps that are offered independently from a carrier will be the biggest revenue generator, accounting for almost 50% of all app revenue. By comparison, in 2009, apps available from mobile operators still accounted for more than 60% of all app revenue, but this will fall to just under 23% by 2012.

As the WSJ Digits blogger Jennifer Valentino-DeVries points out, the study will by no means be the last word on the subject, but it provides at least a look at why so many companies are excited about mobile.

Источник: Guardian

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