News

Total app store downloads to jump sevenfold by 2014, says Pyramid report

86 percent of free apps to be downloaded through app stores

Total app store downloads to jump sevenfold by 2014, says Pyramid report
|
| Pyramid Research news

It doesn't take a genius to realise that Apple's App Store has been a major contributor in the rise of mobile apps over the last couple of years.

Regardless, Pyramid Research believes Apple's marketplace – and those that mirror it – is about to steam into a head-on clash with operator portals.

In the latest research published by the body, it states carriers intend to play a bigger role in app sales in the coming years – a factor that will see total app download volume increase by seven times between 2009 and 2014.

App stores for all

"A key driver of mobile app growth is the app store concept popularised by Apple and subsequently adopted by all the major mobile players," Pyramid Research says in an excerpt of the report, 'Mobile App Stores: A New Mobile Web?'

"Operator portals will need a mixture of agility, compelling apps and local market sensitivity to keep pace. Meanwhile, app developers stand to benefit the most from increasingly aggressive competition for mobile app revenue."

Interestingly, however, Pyramid believes it is free apps – not paid – that will gain the most traction from the combination of an operator assault and continued growth of app stores.

Its research states 36 percent of paid apps will be downloaded through app stores this year, compared to 86 percent of free apps, paid for through advertising.

Pushing out the third-parties

But while operators are set to go toe to toe with OS or OEM centric app stores, third-parties should – in Pyramid Research's view – give up the game right now.

"Third-party stores and aggregators will lose out more and more to vendor and operator stores," the firm concludes.

"Consolidation has already started, and we believe the focus of third-party stores and aggregators should move to partnering with these new competitors rather than competing with them in the direct-to-consumer space.

"Operators and vendors are simply too well-placed to embed their own stores onto devices, and they have stronger brands."

Pyramid Research notes the case of Getjar is 'unique', however, with the store having recently just passed 1 billion downloads, ahead of Android Market and Nokia's Ovi Store.

Keith Andrew
Keith Andrew
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font. He's also Pocket Gamer's resident football gaming expert and, thanks to his work on PG.biz, monitors the market share of all mobile OSes on a daily basis.