
http://metrics.admob.com/wp-content/uploads/2010/01/AdMob-Mobile-Metrics-Dec-09.pdf
The latest report from market research firm Gartner suggests that mobile apps are big business, and that business should only grow in the next few years. According to Gartner's numbers and those reported by Apple, Apple completely owns this market, likely grabbing almost every one of the 4.2 billion dollars spent on mobile apps in 2009. Based on Gartner's estimates and our own analysis, Apple could hold on to at least two-thirds of the market if current sales trends hold for 2010.
Apple first opened the App Store in July 2008, along with the launch of the iPhone 3G and the release of iPhone OS 2.0. Sales were brisk, with 300 million apps sold by December. After the holidays, that number had jumped to 500 million. Earlier this month, Apple announced that sales had topped 3 billion; that means iPhone users downloaded 2.5 billion apps in 2009 alone. Gartner's figures show another 16 million apps that could come from other platform's recently opened app stores, giving Apple at least 99.4 percent of all mobile apps sold for the year.
"As smartphones grow in popularity and application stores become the focus for several players in the value chain, more consumers will experiment with application downloads," Stephanie Baghdassarian, research director at Gartner, said in a statement. "Games remain the number one application, and mobile shopping, social networking, utilities and productivity tools continue to grow and attract increasing amounts of money."
Gartner's predictions for 2010 are 4.5 billion apps sold, for a total of $6.8 billion in revenue. If Apple can merely maintain its current rate of about a quarter billion app sales per month, and revenue share tracks with market share, it stands to be responsible for 3 billion apps sales—67 percent—good for about $4.5 billion in revenue. Apple's cut would be $1.35 billion, with developers taking the remainder. However, as Apple gains more users from sales of new iPhone models and possibly from an expected tablet, Apple could get an even larger share of the mobile app market.
Predictions for 2013, just a few years away, are even bigger—21.6 billion apps sold for a total of $29.5 billion revenue. The firm predicts that by then, 25 percent of the revenue generated by mobile apps will be from free versions supported with advertising. "Growth in smartphone sales will not necessarily mean that consumers will spend more money, but it will widen the addressable market for an offering that will be advertising-funded," Baghdassarian said. That makes Apple's acquisition of a mobile advertising firm seem like an even smarter move, just for the extra revenue alone.
The App Store model has become de rigueur on all the smartphone platforms, with RIM, Microsoft, Palm, and Google each building a similar way for developers to make apps available, and for users to find them and pay for them. Gartner warns that developers will have to carefully consider which platform's app store is best to promote their app. Even with the hundreds of thousands of options that vie for users in the iPhone App Store, the numbers suggest that Apple remains most developers' best bet.
UPDATE: A number of people have expressed concern that Gartner's figure only count apps sold, and not free apps. Gartner's press release indicated otherwise, and we verified with Baghdassarian that the figures include all apps, free or otherwise, distributed from every app store. According to Apple, it moved 2.5 billion apps, free or otherwise. We contend that the 99.4 percent figure is accurate.
To help visualize this figure, some readers requested an additional chart:
An OLED display, 5-megapixel camera and a release date between May and July appear to be the most likely rumors (and we agree that those all sound like very distinct possibilities). Also ranking high are rumors of a front-facing camera, dual-core processor with more RAM and a touch-sensitive case.
As for the removable battery rumor, 60% likely or not, we don’t see that happening. Apple has moved its portable line to built-in batteries; it seems unlikely to us that they would add a removable battery to the iPhone.
You can check out a larger version of the image directly at Nowhere Else. What do you think of this roundup? What features would you like to see in the next iPhone? Let us know!
When it comes to the mobile Web, increasingly there are only two mobile platforms that matter: Apple’s iPhone and Google’s Android. According to market share data put out today by AdMob (which is being acquired by Google), the iPhone and Android combined captured 81 percent of U.S. mobile ad impressions on smartphones in the fourth quarter of 2009, up from a combined 55 percent in the first quarter of 2009. Most of that growth comes from Android, which nearly doubled its market share from the third quarter to 27 percent. The iPhone OS made up the other 54 percent. (Worldwide, the iPhone had 51 percent share and Android had 16 percent, for a combined total of 67 percent).
Back in the first quarter of 2009, Android only had a 4 percent share of mobile ad impressions (which is also a decent proxy for overall mobile Web and app usage). It took a lot of share from Blackberry, which went from 20 percent to 10 percent over the past year, and Windows Mobile, which went from 12 percent to 3 percent. And Palm, which Android passed long ago, is barely a rounding error now, compared to its 7 percent share a year ago. During all of this time, not only has the combined market share of Android and iPhone been growing, but so has overall mobile Web traffic. In North America alone, mobile Web traffic has doubled in the past year.
Increasingly this looks like a two-horse race between iPhone and Android, and all the other mobile phones don’t matter. No wonder Google only cares about targeting mobile ads to those two platforms.
http://www.techcrunch.com/2010/01/21/iphone-android-admob-81-percent/
Mobile content delivery company Myxer is releasing a report this morning that indicate much of what we already know about Google’s Android platform: Android is gaining traction in the mobile space. According to data provided by Myxer’s 30 million users, visits to Myxer’s mobile site from users on the Android operating system grew 350% in 2009, compared to the iPhone, which grew 170%. In total, Myxer delivered seven times more downloads to Android devices than iPhone devices in Q4 2009.
Myxer, which delivered ringtones and other content to 1,500 different devices in 2009, also delves into the break down by type of Android device, with HTC’s Dream/G1 commanding 35% of the unique users completing downloads on Android handsets in December. HTC’s myTouch, Motorola CLIQ, and Motorola Droid each used by 18%, 11%, and 7% (respectively) of total unique Android users on Myxer.
Myxer reports that the Blackberry Curve is the most frequented phone to visit Myxer’s mobile site to download content, with Windows Mobile and Palm devices decreasing in visits during 2009. Hip-Hop/R&B content dominates as a music genre; accounting for 77% of Android downloads and 47% of iPhone downloads.
The company seems to be doing fairly well in the mobile content space. Myxer just delivered 10 million ringtones to iPhone users (and 1 billion ringtones in all) and offers over 2 million free ringtones, wallpapers and videos. Users can also make their own ringtones, videos and wallpaper from music and files a customer already owns. And according to the company, its mobile site sees six million monthly unique visitors downloading over 85 million content items from Myxer each month. The startup also recently launched MobileStage, a suite of mobile marketing services aimed towards the music industry. Competitors include mSpot, Playphone and SendMe.
Just about two years ago, we wrote about Google giving away free voicemail accounts to homeless people in San Francisco. While a very nice thing to do, it was also a bit of marketing genius
by both Google and SF mayor Gavin Newsom. After all, they were getting great publicity for giving away something that was already free (GrandCentral — which is now known as Google Voice). We wondered if they wouldn’t pull the same stunt in the future. Well, it’s the future; and they are.
Again, this is actually a very nice thing they’re doing, but it’s also an ingenious way to promote what Google clearly considers to be one of its killer products: Google Voice. This time, they’re giving out Google Voice accounts to U.S. veterans in Washington D.C. as an extension of their Project CARE program. This Saturday, Google is joining a dozen or so other Washington D.C. organizations at an event at the D.C. Veterans Affairs Medical Center to hand out Project CARE cards that will give veterans a unique Google Voice phone number and voicemail account.
As Google notes:
In today’s connected world, many of us don’t think twice about picking up the phone to place or receive a call. However, for a homeless individual, a phone number can be an important lifeline, connecting you with prospective employers, health care providers, family and friends.
Of course, giving away these phone numbers (which again, are free) doesn’t really mean much without an actual phone line or mobile device to attach it to. And Google doesn’t really explain how they’re going to serve these veterans who don’t have any access to a phone. But they do say that they will be helping them to set up the accounts, so presumably they’ll ask them if there is some other phone number of someone they know that they can attach the new Google Voice number to.
The grander gesture would be for Google to give out a bunch of Android phones along with the Google Voice accounts. They don’t have to be the next high-priced Nexus Ones, but I’m sure Google has plenty of G1s laying around, which as yesterday’s latest and greatest Android toy, Android fans are setting aside to jump to the new phones. That would be a nice little extension of bringing back the “don’t be evil” slogan.
Update: A Google spokesperson has reached out with the following additional information about the program:
I wanted to just clarify that Project CARE phone numbers are different from regular Google Voice accounts in that they don’t actually need to be linked to a working phone. When you setup the account, people can call your Project CARE number, just like a regular phone number, and you will be able to access those messages from any computer (e.g. at the library or a shelter).
That’s good, though I could see getting access to a computer still being a bit of a challenge for some. To be clear, Google also verified there is no VoIP element to this different version of Google Voice, so you can’t make outbound calls using this system — the Android phone would be good for that.