Apple will account for more than half of all app revenue by 2013

Despite having around a quarter of the smartphone market.

A new report from Strategy Analytics says iOS will maintain its historic place as the most lucrative platform for apps.

It says competition will intensify in the space, with an expected 41 billion phone and tablet downloads in 2012.

But Apple will not be dislodged from the top spot, even though iOS devices account for between 20 and 30 per cent of the smartphone market depending on which source you go to.

Strategy Analytics believes the average selling price of paid downloads is declining across every major platform, as competition heats up and devices move into emerging markets.

This explains the rise in freemium and virtual goods – an industry which will quintuple in size from 2011 to more than $1 billion in 2012.

Josh Martin, director of apps research at Strategy Analytics. “Unlike paid downloads that offer one time payment, virtual goods allow developers to earn recurring revenue from heavily used apps making the business opportunity appealing. Despite the importance of virtual goods, few platforms beyond the leaders have stepped up.