Gartner: Apple owns mobile apps market with 99.4% share

[*LTD*]

http://arstechnica.com/apple/news/2010/01/apple-responsible-for-994-of-mobile-app-sales-in-2009.ars

Gartner: Apple owns mobile apps market with 99.4% share

"The latest report from market research firm Gartner suggests that mobile apps are big business, and that business should only grow in the next few years," Chris Foresman reports for Ars Technica. "According to Gartner's numbers, Apple completely owns this market, grabbing almost every one of the 4.2 billion dollars spent on mobile apps in 2009."

"Apple first opened the App Store in July 2008, along with the launch of the iPhone 3G and the release of iPhone OS 2.0. Sales were brisk, with 300 million apps sold by December. After the holidays, that number had jumped to 500 million," Foresman reports. "Earlier this month, Apple announced that sales had topped 3 billion; that means iPhone users downloaded 2.5 billion apps in 2009 alone."

Foresman reports, "Gartner's figures show another 16 million apps that could come from other platform's recently opened app stores, giving Apple at least 99.4 percent of all mobile apps sold for the year."

"Gartner's predictions for 2010 are 4.5 billion apps sold, for a total of $6.8 billion in revenue. If Apple can merely maintain its current rate of about a quarter billion app sales per month, it stands to be responsible for 3 billion apps sales—67 percent—good for $4.5 billion in revenue. Apple's cut would be $1.35 billion, with developers taking the remainder. However, as Apple gains more users from sales of new iPhone models and possibly from an expected tablet, Apple could get an even larger share of the mobile app market," Foresman reports. "Predictions for 2013, just a few years away, are even bigger—21.6 billion apps sold for a total of $29.5 billion revenue."

Gruber's take:

http://daringfireball.net/

Chris Foresman, on a new report from Gartner on mobile app sales:

Earlier this month, Apple announced that sales had topped 3 billion; that means iPhone users downloaded 2.5 billion apps in 2009 alone. Gartner’s figures show another 16 million apps that could come from other platform’s platforms’ recently opened app stores, giving Apple at least 99.4 percent of all mobile apps sold for the year.

I think Foresman is wrong here. Apple didn’t announce 3 billion App Store sales; they announced 3 billion downloads, including free apps. Apple has never (to my knowledge) publicly revealed the breakdown between free and paid app downloads from the App Store.

However, if Gartner is correct that all other platforms combined accounted for only 16 million mobile app sales last year, then Apple’s share of the market is astonishingly high. It’s not 99.4 percent, as Foresman indicates, but still crazy-ass high.

Update: Via email, Chris Foresman informs me that Gartner has clarified for him that their figures are indeed estimates of all apps downloaded for any platform in 2009, free or paid. In other words, Gartner is using the word “sale” to mean “download”, probably because that appeals to their market. So Gartner really is claiming that Apple has over 99 percent of the mobile app market. Wow.

 

[maflynn]

Taking a break from your google bashing today

Yes, that's good news, I saw it on arstechnica. I just hope apple streamlines the app approval process making it easier and quicker to get applications approved.

 

[dejo]

I just hope apple streamlines the app approval process making it easier and quicker to get applications approved.

Well, they've already done something since many developers are reporting days rather than weeks to get approvals lately.

 

[Rodimus Prime]

While the numbers are impressive to me I find it a little hard to believe it is that high. If it is 99.4% of the market then the rule need to change for Apple and change quickly because they are well past monopoly sized and when youa re a monopoly ruled are different and you have to play nice with others.

I honeslty hope some one sues Apple forcing them to open up the App store to other companies and allow 3rd party app stores for the iPhone/iPod. Stating that having that much control prevent competition from forming.

You app does not work in the iTunes store it never takes off.... Can not make another story to sell it in.

 

[maflynn]

Well, they've already done something since many developers are reporting days rather than weeks to get approvals lately.

Ok, that's good news, what about the inconsistent rejecting - is that still an issue problem? Having apple review/approve all applications is a double edge sword and a bit draconian. so far it has served them well, but with increased competition I hope the bureaucracy does not drive developers away.

 

[*LTD*]

While the numbers are impressive to me I find it a little hard to believe it is that high. If it is 99.4% of the market then the rule need to change for Apple and change quickly because they are well past monopoly sized and when youa re a monopoly ruled are different and you have to play nice with others.

The rules are the same. A monopoly isn't the problem. It's the abuse of your monopoly position that is the problem.

I honeslty hope some one sues Apple forcing them to open up the App store to other companies and allow 3rd party app stores for the iPhone/iPod. Stating that having that much control prevent competition from forming.

If someone can prove abuse and that Apple is actively, deliberately, preventing competition, then fine.

So far it just seems that Apple has a better product and people are responding en masse. The competition can't keep up. That's their problem.

You app does not work in the iTunes store it never takes off.... Can not make another story to sell it in.

Port it over to a different platform and take your chances.

 

[Rodimus Prime]

Apple is abusing its power in this market. They should be force to do one of 2 things. And you are wrong rules are different when you are the biggest player. You are required to play nice. Other wise Microsoft can go in and abuse it power as being the biggest player. Small guys can put more pressure on others and say no you can not sell "blank" to sell our product. Biggest player can not do that.

Either remove the approval process of the app store or open up the iPhone/iTouch to 3rd party app stores. I personally prefer the latter because it ups the game and forces apple to improve the app store. Right now Apple does not care and has no motivation to make it any better or even reduce the cost to attact devs because were are they wanting to go. The iPhone is popular.

I would say apple is abusing its power here. Now LTD I do not expect you to see that as you do attend the church of apple and have admitted it.

 

[*LTD*]

Apple is abusing its power in this market.

How, exactly?

 

[LethalWolfe]

Being successful isn't abuse. MS, for example, used it's place in the market to dictate to computer makers what they could and could not load on their machines if they want to use Windows. Is Apple, for example, dictating to retailers what they can and cannot stock if they want Apple to ship them iPods or iPhones? Is Apple threatening developers that if they make apps for other mobile devices their iPod/iPhone apps might have problems getting approved?


Lethal

 

[maflynn]

Either remove the approval process of the app store or open up the iPhone/iTouch to 3rd party app stores.

While I may not think the approval process is in the best interest of apple, clearly they have parlayed it and the iPhone into a dominant player in the cell phone market. That doesn't mean that all of sudden that they're the dominant player they have to let their competitors onto their app store. That's just lame and flies in the face of competition and capitalism. Why penalize success in such away.

Besides, the other app stores, like google and RIM are getting plenty of apps. You want an android app, get an android phone, you want an iPhone app, get an iphone. Simple as that. Its not an abuse of power to only let apple approved products on the apple store.

What would be next, forcing McDonalds to carry Burger king products because they dominant? Kind of lame, the same goes with apple and its app store.