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Research and Markets: By The End of 2013, the Smartphone Application Market Will Have Grown Annually By 68% to a Value of $15.6 Billion US

Research and Markets( has announced the addition of the "Corporate Smartphone Application Report 2010" report to their offering.

This report is a business guide to publishing successful corporate smartphone apps. It covers three key market dimensions that every app publisher must understand in order to flourish:

A. Market Opportunity How significant is the business opportunity rendered by this new customer channel?

The report explores the current market hype, analyzes key trends, sizes the current market and its development, and projects market growth through 2013. It provides all the information necessary for companies to evaluate the current opportunities in smartphone application publishing.

B. Publisher Best Practices What are the key benchmarks for developing and marketing successful apps?

More than 100 companies shared their views, experience and insights for this report. Leverage best practices from these successful early movers when developing your smartphone application strategy.

C. App Store Decision Which app stores offer the best opportunities for application publishers?

The report explains the current app store landscape thoroughly, including a detailed description of 35 major app stores. The in-depth App Store Ranking groups stores according to the specific benefits they offer app publishers.

Executive Summary:

With the launch of the Apple App Store in mid-2008, Apple managed to reinvent the smartphone application market, creating an end to end solution (iPhone/iPod Touch, iTunes Store and applications) that dramatically improved the customer experience of application discovery, download and usage.

Since 2007, the smartphone application market has grown annually by 140%, reaching a value of $1.94 billion US (2009). However, the market is still in its early stages. The top five application stores represent 96% of the market's downloads, with Apple alone responsible for 77% of total downloads.

Independent applications stores like GetJar, Mobango, Handmark and Handango sold smartphone applications and other mobile content long before the App Store's launch. These stores benefitted from Apple's boost to the market with quickly growing download numbers. In 2009, independent stores held a market share of 25%, but are increasingly threatened by the large number of new application stores being opened by OEM, OS and MNO companies. In 2009 there were 34 major full-catalog application stores in the market, as well as hundreds of niche stores.

With the broadening range of application stores, the development of a multi-platform strategy will become a must for corporate publishers. The selection process when assessing application stores' appropriateness for a particular publisher can be effectively guided by a few key criteria: competition level, monetization opportunities, discoverability options and service and submission quality. This report ranks more than 20 major application stores in detailed assessment according to these categories. This application store ranking highlights the various strengths of the stores and demonstrates that there are indeed other valuable distribution platforms for applications besides the Apple App Store.

On the publisher side, mobile specialists such as small garage developers and gaming companies have been the dominant players in recent years. With few exceptions, more traditional companies started their push into the application market in 2009. As part of this study, a survey of 82 of these first mover companies revealed that virtually all selected the Apple App Store as the publishing platform for their first application. For these applications, companies report using a step-by-step approach with limited development budgets (averaging $35,000 US) and quick time-to-market cycles (54% of participants released their applications in 1-3 months) in order to become familiar with this new customer channel.

Based on the flurry of activity in the smartphone application market recently, best practices for large global companies looking to successfully enter this very competitive landscape have begun to emerge. Corporations are able to leverage the resource advantages they have over independent and garage developers. Besides successfully developing unique applications that effectively make use of smartphone features, these companies manage their existing marketing and service assets better than their competitors, allowing them to directly compete with the mass of mobile specialists.

In the next four years the market will see dynamic growth. By the end of 2013, the smartphone application market will have grown annually by 68% to a value of $15.6 billion US. By that time the number of smartphone application consumers will have reached 970 million worldwide.

Average application prices will continue to fall, though less drastically, reaching $3 US in 2013.

Besides continued growth, there are five key trends that will shape the development of the smartphone application market in the next four years.

1. Business Model: The dominance of the pay-per-download business model will give way to alternative models such as in-app advertisement and application-triggered transactions.

2. Native Content: Installed applications will remain the dominant model on smartphone platforms. The time for widespread acceptance of web-based applications has still to come.

3. Platform Dominance: Today end to-end platforms managed by Apple, RIM and others clearly dominate the smartphone application world. Currently, they represent more than 85% of the market. The dominance of this model will not begin to give way to other models until 2013 at the earliest.

4. Market Structure: Apple will most likely remain the market's biggest applications store, but will lose some ground due to significant increases in competition.

5. Content: Smartphone applications will become more localized as the user bases in major countries reach critical mass. Mobile carriers, with their stronger localized presence, will attain more significant market shares in the future.

Based on current market trends, the report concludes with a set of guiding principles application publishers can leverage over the coming year in order to publish successful smartphone applications. These principles address the three main questions publishers must ask themselves when building and reassessing their mobile application strategy:

a) Application Strategy: How can I create smartphone application content that stands out against growing competition?

b) Multi-Platform Strategy: On which platforms and stores should I publish my applications?

c) Organizational Integration: How do I effectively organize my business to deal with the increasing importance and complexity of smartphone application development and publishing?

Key Topics Covered:

  • Preface (p.3)
  • Executive Summary (p.4)
  • Objectives and Scope of the Report (p.7)
  • Market Background (p.10)
  • Current Status of Corporate Mobile Applications within the Market (p.19)
  • Market Insight: Successful First Mover Corporations (p.24)
  • Best Practices (p.39)
  • Application Stores (p.59)
  • Market Outlook 2010-2013 (p.89)
  • Guiding Principles for Smartphone Application Publishers (p.99)
  • About research2guidance (p.103)
  • Appendix (p.104)
  • List of Figures
  • List of Tables

Companies Mentioned:

Some of the Survey Participants include:

  • Abner David
  • Apple
  • Avis Budget
  • Cellution
  • Clever Twist
  • Comcast
  • Deutsche Bahn
  • Eclaxy Software
  • Financial Times
  • Gelbeseiten Marketing
  • Handster
  • IBM
  • Inside Mobile
  • Kodak
  • Magmic
  • Nike
  • Nikon
  • Octane Technologies
  • Paragon Software
  • Qualcomm
  • Rabobank
  • Reebok
  • StudiVZ
  • T-Mobile
  • USA Today
  • Vodafone
  • XING
  • Zurich K1

Other Mentioned Companies

  • eBay
  • Amazon
  • Android
  • BlackBerry
  • Nokia
  • Samsung
  • Sony Ericcson
  • Palm
  • LG
  • Verizon Wireless
  • O2
  • Sprint
  • China Mobile

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