Mobile app store revenues to pass $15 bn! Apple store rules!

Mobile app store craze is neither a craze nor a fad, says Gartner. App stores in all forms are here to stay and they won’t just be surviving but will thrive. As per Gartner’s projections, revenues from mobile stores will surpass $15.1 bn in 2011 a 190% increase from 2010 revenue of $5.2 bn. This includes the revenues from app sales and the advertising revenues from within the apps. It doesn’t stop there. The revenue will reach $58 bn by 2014.

17.7 billion application downloads is what we are looking at by end of 2011, ever since the first app store went live in 2008. This figure will reach a whopping 185 billion app downloads by end of 2014.

9 out of every 10 apps downloaded are from Apple’s app store. Apple store will continue to remain the best-selling store through 2014. (Gartner)

Android Market, Nokia’s Ovi Store, Research In Motion’s (RIM’s) App World, Microsoft Marketplace and Samsung Apps are the other competitors for Apple’s App store. In 2011, 81% of applications downloaded will be free. This is a drop from 2010 and the trend will continue to 2014.

If you look at it, close to 20% of the applications downloaded are paid apps and are contributing to the heavy dollars. The rest, which isn’t much, is contributed by advertising revenue. In 2010, 16% of revenues is coming from advertising and the rest from app sales. This will increase to 33% by 2014. Paid apps is a much bigger bunny than advertising revenue. In the grand scheme of things, advertising revenue is still big money. At 20% rate, in 2011, $3bn will be from mobile advertising revenue from free apps. Tablets will usher in a new sales cycle in 2011 and would probably increase the advertising revenues.

Individual app store split and advertising split isn’t available. That would be an interesting read and could prove very useful for mobile app developers out there.

[Img via Flickr user : AComment]