Skip to main content

Mobile App Stores Experience Transient Upside

Mobile phone software applications have helped to stimulate new user demand for smartphones. Today most mobile applications are downloaded from app stores. According to the latest market study by ABI Research, last year consumers downloaded some 2.4 billion applications from such online stores.

The download rate is forecast to accelerate over the next few years until in 2013 smartphone downloads are expected to peak -- at just below seven billion. Apple's app store will likely continue to lead the market.

That will be the high point, however, and in the years that follow, smartphone download rates from app stores will start a slow decline -- although total downloads from all sources will probably continue to grow.

According to ABI senior analyst Mark Beccue, "App stores aren't going away -- following the 2013 peak in demand, the number of downloads in 2015 will have decreased only seven or eight percent. But as our use of the mobile Internet evolves, demand will increasingly shift elsewhere."

Why? The mobile web is getting more and more sophisticated, says Beccue, so that more subscribers will use the functionality on mobile websites themselves rather than dedicated apps.

"We see two emerging trends. First, many applications (increasingly built on web standards) will migrate from app stores to regular websites, and for some sites you won't need an app at all. In addition, more and more popular applications will be preloaded on mobile devices. Social networking apps in particular will be pre-loaded on new products."

This discussion has centered on smartphones and other high-end devices that allow optimized mobile web experiences, which effectively means that we're talking about mature markets.

However another development may change that -- mobile network operators (MNOs) will increasingly launch their own app stores, and these outlets may extend the principle of downloadable apps to feature phones, which means access to many newer and developing markets where smartphone penetration is lower.

Popular posts from this blog

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without