In Sweden based analyst firm, Berg Insights, has released a new report saying that total app downloads in 2015 will reach 98 billion. If they hit that figure, the firm says, the compound annual growth rate of downloads between 2010 and 2015 will be 56.6 percent. Only few months ago, research firm, In-Stat had released its report saying that app downloads by 2015 will reach 48 billion. The Berg report is far more bullish.
There is a lot riding on the app business. According to Berg, total app revenue in 2010 hit $2.15 billion. By 2015, that figure will grow to nearly $12 billion. Apples iOS is the current leader in direct monetisation of mobile applications and will keep the number one position during the forecast period. The Android and Windows Phone operating systems are anticipated to be number two and three respectively in 2015.
Johan Svanberg, Senior Analyst, Berg, said, Even though the download numbers will increase during the forecast period, most apps are free to download and app monetisation will be a challenge for developers. Free to download monetisation strategies such as in-app advertising and in-app purchasing will be increasingly important. This is especially true in the APAC region, which will account for over 40 percent of all mobile app downloads in 2015.
The Berg report acknowledges that over time, newer technologies like HTML5 will pose a growing alternative to native apps. Already, many large Web publishers from Yahoo to Time Inc. to The New York Times have embraced HTML5 for developing new mobile properties. The point at which the balance of power on smartphones shifts to the mobile Web from apps, however, is not yet clear.
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