March 24, 2010

Apple's Dominance of Smartphone Application Download Rates is Only Half the Story

The fight for market dominance has heated up as mobile subscribers take to mobile smartphone apps in rapidly increasing numbers, reports In-Stat (http://www.in-stat.com). While users are downloading applications at a phenomenal rate, Apple users download 2.4 times more applications than the average smartphone user.  However, downloads is not the only success factor for an application.

Monitoring mobile application success by downloads alone is like driving your car and only using the rear view mirror; it provides only half of the story.  Especially for free applications, usage is what determines success.  Our research indicates that social networking and phone tools and utilities provide better returns for developers as they have above-average usage and below-average deletion rates.

Recent research by In-Stat found the following:

• Increased competition and aggressive pricing strategies are starting to create significant price pressures in the market. Certain price points are emerging for premium applications, developers should price their products accordingly.
  
• Free mapping and directions were the most downloaded apps on most platforms, but just sixth on Apple.
  
• Only 3% of Palm OS users have downloaded free social networking applications, compared to 31% of total respondents.

This Market Alert is drawn from the In-Stat research, US Smartphone Application Downloads, Usage, and Deletions by Application Type (#IN1004738MCM), which covers the US market for downloadable mobile applications. It includes:

• Examination of results from In-Stat surveys of mobile users.
• Detailed data on mobile app preferences by platform.
• Per user download volume and usage patterns by platform.
• Application value, churn and demand data.

To purchase it online, please visit: http://www.instat.com/catalog/wcatalogue.asp?id=231

The price is $2,995 (US).

This research is part of In-Stat’s Mobile Applications & Services, which provides analysis and forecasts of the markets for mobile applications and content, including consumer perspectives, usage models, competitive business models, mobile applications and operating systems (OS)

Related In-Stat research:

Analog Mobile TV: Free-to-Air is Compelling!

Mobile VoIP – Transforming the Future of Wireless Voice

The Apps Store is Born: Smartphones Enable New Marketing and Advertising Opportunities Worldwide

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.