Juniper Research has released its report, Mobile App Stores – Business Models, Strategies & Market Segmentation 2010-2015.
The report finds that the combined revenues from apps funded by pay-per-download (PPD), value-added services (VAS, including freemium and subscription) and advertising, is expected to rise from just under $10bn (£6.8bn) in 2009, to $32bn in 2015.
The report provides detailed forecasts up until 2015 for six categories of app, for both on-store and off-store delivery, split by content monetization model. It explores the business models that have been utilized in the mobile apps market, ranging from traditional pay-per-download through the evolution of the freemium model, to the possibilities offered by ad-funded applications. It also analyses the download vs. browser debate, considers the challenges inherent in a browser-based model, and explores the likelihood of a future in which the thin client plays an ever more important role.
The report includes a number of key recommendations for players in the mobile app store ecosystem, cautioning that, while Apple’s App Store has achieved app downloads on an unprecedented scale – over 5bn to date – brands and developers are warned against ignoring users of other platforms/handsets. The report explores how such a move could be counterproductive, particularly in developing markets, where the user base of iPhones in particular, and smartphones in general, is extremely low. 
Furthermore, the study finds that uplift in download volumes does not necessarily equate to an uplift in industry revenues. It notes that the majority of application downloads from Apple’s App Store are free; other storefronts launched in the wake of the App Store also report that comparatively small proportions of apps (typically 5-15 per cent) are paid for. Thus, building a business model aimed at both maximizing consumer adoption of applications and at maximizing content revenues can be extremely problematic.
Available to buy alongside the report is an Excel database containing over 11,000 datapoints, as well as a 36 page slide deck providing a PowerPoint presentation of the report’s key findings. Both are included within the cost of the enterprise-wide licence.
There’s more information about the report here.
