Mobile App Store Revenue Forecast to Surpass $15 Billion in 2011

The world of the mobile app is good and it is expected to get better in 2011. According to Gartner research, worldwide mobile application store downloads are forecast to reach 17.7 billion downloads in 2011.These numbers say that it is a 117 percent increase from the 8.2 billion downloads in 2010. Moreover, the long term projections from Gartner are that by the end of 2014, over 185 billion applications will have been downloaded from mobile app stores, since the launch of the first one in July 2008.

Furthermore, Worldwide mobile application store revenue should exceed $15.1 billion in 2011. This includes end users buying applications and from applications themselves generating advertising revenue for their developers. This amounts to a 190 percent increase from 2010 the collected revenue of $5.2 billion.

What are some of the App stores? There is the Apple App Store. The Google Android Market, the Nokia’s Ovi Store, and Research In Motion’s (RIM’s) App World, Microsoft Marketplace, and Samsung Apps. This give you a feel for the reason that there is so much activity…there are a lot of App stores available.

For App developers, this is good news. They typically keep 70 percent of revenue for apps sold in app stores. Over time, the business model for apps is being refined; app sales only account for only a portion of the revenue generated. Followed by Ad revenue, which is on the rise. Developers are also seeing more revenue from in-app sales. This practice,  fueled by using ad-supported free apps on the hot Android platform, is bound to grow as Google is set to allow this practice for apps in the Android Market.

Finally, another form of revenue may come from the rise of the tablet. This should drive app sales up, as consumers will be grabbing apps for these mobile devices.

The next few years should be good ones for mobile phone makers, and App developers.

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