The news that consumers have downloaded 15bn apps from Apple’s App Store since its launch in July 2008 underscores the fact that Apple is the envy of the industry when it comes to the applications space, according to the analyst, Frost & Sullivan.
It took Apple two years to clock up its first 5bn downloads, but just one year after that to achieve the next 10bn. According to Craig Cartier, a research analyst for the ICT practice at Frost & Sullivan, this is further evidence of Apple’s dominance of the mobile apps space. He says: “Modern consumers use their mobile devices for a plethora of tasks beyond simple voice communication, including internet browsing, email, music, TV and video, games, navigation, and others. As the number of end users and consumption per user of applications will be growing, the entity enabling consumer access to these apps is of critical strategic importance. Device manufacturers, operating system manufacturers, and mobile network operators are all fighting to be that entity. In the Apple ecosystem (that is, the combination of developers who write applications for Apple devices and the consumers who use them) Apple has clearly secured that strategic position.”
But while Apple leads in the app space, Cartier notes that the app market as a whole is growing rapidly, with several competitors jostling for a share of the pie. He says there are several trends that contribute to this growth. The first is the proliferation of smartphones in the marketplace that has put more of these app-capable devices into more consumers’ hands. “Once considered a luxury, quality smartphones are now available at mass-market pricepoints,” says Cartier. “Additionally, the advent of multimedia-centered tablet devices, sparked with the iPad in 2010, has created additional demand for applications. Combined with the near ubiquity of high-speed 3G mobile data access and 4G rollouts, these factors will continue to accelerate the growth of the applications market.”
Cartier acknowledges that the Android ecosystem has seen the most growth in terms of device numbers in recent months, but points out that Apple’s high-value customers as a whole are more data savvy, use more applications, and, perhaps most importantly, are more willing to pay for the applications they use.
“However,” the analyst adds, “Apple would be wise to note the rapid rise of Android, particularly in the low- and mid- tier markets – those with the highest growth potential. We may see the launch of a mid- or low- tier device out of Apple in the coming years to capitalize on this growth market. Apple might need to consider such a strategic move at some point, but considering the 15bn download figure, they probably are not losing too much sleep for the time being.”