Distimo details shifting app markets
App analytics firm Distimo highlighted how the mobile app industry is seeing a number of shifts that are transforming the landscape, with the company warning that the “app store content leaders of today are not those of tomorrow.”
Speaking at the Mobile Monday Athens conference last week, Hendrik Koekkoek, an analyst for the company, also noted that business models are transforming, as in-app purchases account for an increasing amount of revenue; that Asian countries are accounting for a greater proportion of downloads; and that the growth of tablet devices means that content must also be fit for different form factors.
Distimo said that within this year, Android Market will overtake Apple’s App Store for iPhone to become the largest content market – while both will see growth, Android Market currently has the momentum. There is also a significant shift underway among the smaller stores, with Nokia’s Ovi Store set to slip from fourth place to sixth place, while Microsoft’s WP7 Marketplace will move from sixth to fourth.
Apple’s App Store for iPad is currently holding its third place, while RIM’s BlackBerry App World is holding station in fifth.
Koekkoek said that while 4 percent of products on the App Store for iPhone feature in-app purchases, these account for 76 percent of revenue. Free apps with in-app purchases account for 52 percent of the total revenue, with paid apps with in-app purchasing accounting for 24 percent. The remaining 24 percent is generated by traditional paid apps.
A similar trend has been seen on Android: while in-app purchases were only introduced in March 2011, it was noted that 76 percent of the top-25 grossing US apps are free titles monetised through in-app purchases.
There is also a significant geographic shift underway. While more established markets such as the US and the UK are seeing some stagnation, China saw “spectacular growth,” with the top 300 titles generating more than 1.8 million downloads per day in the country.
According to the company, North America, Europe and Asia are now “almost equal in size” in download terms.
It was also noted that device choices are changing, with tablets becoming more popular – and tablet app users proving to be a very lucrative market for apps.