81% of App Downloads to be Free in 2011
As we head into 2011, the Web is overflowing with reports of what we saw in 2010 and what we can expect to see in 2011. The latest such report comes from Gartner and it predicts some pretty unbelievable numbers for 2011.
It is no secret that the mobile app industry is booming and growing at unprecedented speeds but even the most optimistic outlooks were not this huge. Gartner predicts that there will be 17.7 billion mobile app downloads in 2011, which compared to 8.2 billion in 2010, is a 117% increase. The report also forecasts that by 2014, the various app stores will reach 185 billion downloads, an astronomical number by any account.
In terms of bottom line revenue, 2011 will hit a $15.1 billion mark as compared to $5.2 billion in 2010, a 190% increase. That number will include app downloads as well as in-app advertising generating revenue for developers. By 2014, overall app revenue is expected to increase by a whopping 1000%.
Gartner continues to predict that 81% of all mobile app downloads in 2011 will be free, a number that has been decreasing and will continue to decrease in 2012. Free downloads are expected to make a comeback in 2012-2014, but there is no doubt that consumers are beginning to realize the potential in native apps and are willing to pay for it.
In 2010, only 16% of overall app revenue was generated from mobile advertising, a number that is expected to grow to over 30% by 2014.
In regard to the different app stores, “We estimate that Apple’s App Store drove close to nine application downloads out of 10 in 2010 and will remain the single best-selling store … through 2014, although to a lesser extent, as other stores manage to gain momentum,” analyst Carolina Milanesi said.
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