Mobile revenue and apps
Mobile voice services still account for the largest share of mobile revenues, contributing over 75%, however it is expected that mobile data including text messaging, mobile Internet services, mobile apps etc will be the key growth area in the future.
The majority of mobile apps are currently free (approx 80%) and it is expected that mobile advertising will be one way to generate revenue from these free apps. It is also thought that some free mobile apps may include extra functions that users can purchase at a cost. App store business models are based on the developer usually receiving the largest percentage of revenue (approx 70%) and the App stores the remainder (approx 30%).
Interestingly, a study conducted in the UK by OpenCloud in 2010 found that the popularity of mobile apps was waning and voice calling and text service still remained the most heavily used revenue generating services. The survey of 1,000 UK mobile phone users found that 45% owned phones that could download apps, but only 39% s did so and these downloads were usually of the free variety.
In contrast, a 2011 study by Gartner Group sees a bright future ahead for the global app market, predicting 185 billion apps will be downloaded in 2014.
Operators in the saturated developed markets are seeking new revenue streams as mobile penetration in most developed countries is now well above 100% and opportunities to generate further growth are limited. The mobile voice market is already declining in revenue, and this is set to continue over the next few years.
As a result, the focus has turned to mobile broadband opportunities and it looks like this shall continue for the near future; compensating for the decline in voice revenues in the process. However, eventually this revenue growth will also have its limitations.
The real growth that BuddeComm foresees is in the hardware sector (smart phones, tablets, etc) and in the applications. The Apps market has changed beyond recognition from the content portals previously dominated by the mobile operators – which did not progress during the last decade – to a totally new industry with literally tens of thousands of new players.
Six Degrees Events will host the Apps World conference, 1-2 November 2011 in New York and 29 – 30 November 2011 in London. These two day events are specifically designed to provide top level industry insight from some of the world’s top technology brands and direct insight from high-profile industry thought leaders from around the world. For more information please see: sites www.apps-world.net/northamerica and www.apps-world.net/europe.
For more information on BuddeComm research see: Mobile & Wireless Broadband and Media Research
Tagged in: Global, Mobile
