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Trend: App Revenue to Surpass $15 Billion in 2011

Thu Jan 27, 2011 - 12:07 PM EST - By Annie Latham

Garner is projecting app store downloads worldwide will more than double this year to 17.7 billion. App revenue in 2011 will hit $15.1 billion, up from $5.2 billion in 2010. By 2014, app downloads will jump to 185 billion.

And it isn't just Apple and the fact that the iPhone will be available next month for Verizon customers.

Gartner points to competitors like the Android Market, Nokia's Ovi Store, Research In Motion's (RIM's) App World, Microsoft Marketplace and Samsung Apps, which saw the number of downloads grow in 2010. But the firm warns that native apps will have to deliver a more personal, richer experience than "vanilla" Web-based apps.

Despite the growth in revenue, Gartner indicated that 81 percent of downloaded apps will be free, though people will begin buying more apps once they become more comfortable with the billing mechanisms used by various stores.


Source: MediaPost Online Media Daily and SF Chronicle

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