Expects the apps industry to shift towards 'postdownload business models' using in-app purchases and advertising
Analyst firm IDC has predicted that mobile app downloads will rise from 10.7 billion in 2010 to 182.7 billion in 2015, while warning that these apps are more likely to make money from in-app purchases and advertising than paid downloads.
The predictions come from a report subtitled 'Emergence of Postdownload Business Models', and are based on IDC's recent survey of developers, which found many shifting away from pure paid downloads as their main revenue source.
"App developers are not only focusing on ways to appify just about every interaction you can think of in your physical and digital worlds, they are now focusing on longer term sustainability issues," says IDC's Scott Ellison.
"The user sustainability trifecta of social networking, location, and the cloud are now increasingly being supported by the business model financial trifecta of application store purchases, in-app purchasing, and in-app advertising."
IDC thinks features like social networking and location will be key ingredients for apps to become more engaging, and thus make those new revenues from IAP and ads.