With app numbers rising, so are app-selling opportunities
There are now more than 100,000 iPad apps, and even Microsoft's Windows Phone recently passed a milestone. Rising app totals are not only driving billions in revenue, but new sales avenues.
The webOS-running HP TouchPad went on sale last week in the U.S., and the computer maker will certainly be expected to glean a few thing from Apple — not only on selling tablets but on building an app store. In less than a year, the Apple App Store has managed to grow its iPad-specific collection past the 100,000 mark, according to MacStories.com.
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While a serious achievement, it's not enormously surprising. What is? Microsoft has also passed a milestone, according to a number of reports, with the apps in its Windows Phone Marketplace surpassing (if not at least sneaking up on) 25,000 strong.
New operating systems are entering the game (RIM's QNX, Intel's MeeGo), established OSs are receiving notable updates (Windows Phone), and market leaders Android and Apple continue driving their tallies ever higher — for billions of reasons.
Canalys announced this week that revenue from apps, in-app purchases and subscriptions across smartphones and tablets will rise from this year's expected total of $7.4 billion to $14.1 billion in 2012 and up to $36.7 billion by 2015.
With so many applications to choose from, and so much money to be made, new markets are being born, with new companies such as GetJar offering more department store–style shopping — it offers more than 75,000 apps, across all major platforms, to consumers in more than 200 countries — and even more traditional retailers such as Amazon opening app stores (and luring in customers with a free app each day).
According to Canalys, there are also opportunities in offering more curated selections — especially for mobile operators.
"For operators, there are other advantages to having a branded app store offering beyond direct revenue," the firm shared in a June 29 release. "For example, they can actively build consumer experiences that bolster customer loyalty. A vibrant app ecosystem could lure new customers, while helping operators upsell current customers to higher-end smartphones and larger data contracts, and could even encourage pre-pay customers to consider post-pay contracts."
Operators can't compete with the app stores on the quantity front, but they can use this to their advantage, offering a vetted, easier-to-navigate experience. And, while needing to be respectful of consumers' privacy, the operators' knowledge of their subscribers offers them an advantage.
"The data they hold leaves them well positioned to propose targeted marketing services, such as promotions and recommendations, as well as richer editorial guidance, better localization, improved security and simpler billing processes," Canalys analyst Tim Shepherd said in the statement.
The firm believes the impact of mobile apps will soon extend to all aspects of the customer lifecycle.
"Mobile apps are a disruptive technology force," Shepherd continued. "Consumers will continue to value mobile device design and functionality, but the quality and availability of certain apps will progressively influence their buying decisions. By building on their strengths, operators can capture more of the market, while delivering a better customer experience."
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© 2012 Penton Media Inc.
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